Forex Trading Malaysia -Best Licensed Brokers in Malaysia

Affiliate Disclosure
Affiliate Disclosure DailyForex.com adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.

Traders in Malaysia are best-served trading with well-regulated international Forex brokers. I have compiled a list below of the best brokers operating in Malaysia, including detailed assessments of each and an explanation of what brokers offer and tools you can use to pick the best broker for your needs. Read on to find out more.

1
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
Highly-competitive cost structure
24/7 customer support
2
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
Most extensive crypto derivatives offering. Choice of 250+ Crypto CFDs
Multiple funding and swift withdrawal options
Ultra-low spreads across all Crypto derivatives
3
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
Best all around broker
High floating leverage + fast execution
4
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
Solid broker for scalping and hedging
Institutional-style trading opportunities for retail traders
5
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
High level regulation in multiple jurisdictions
Impressive range of tradeable assets including vanilla options and gold options

Top Trading Platforms in Malaysia

OctaFX

5.0/5 in this category
In Summary
A commission-free broker with a proprietary copy trading service.

Founded in 2011, OctaFX is a “Straight Through Processing” (STP) broker, which means they do not have an internal dealing desk. They simply connect buyers and sellers directly. With this model, OctaFX aims to be more cost-effective than anyone else in the market. They offer low spreads and claim 97.5% of trades are executed without slippage.

OctaFX offers their clients a choice of three Forex trading platforms: the world’s most popular MetaTrader 4 (MT4) and MetaTrader 5 (MT5). All of these can be traded as a desktop application, and on Android and iOS devices.

Unique Features

Headquarters

Saint Vincent and the Grenadines

Regulation

CySEC

Year Founded

2011

Type of Broker

Market Maker

Minimum Deposit

$100

Maximum Leverage

1:500

Type of Platform

MetaTrader 4, MetaTrader 5, Proprietary platform

OctaFX is an unregulated broker but continues to earn the trust of traders around the globe, with more than 1,500,000 accounts opened. One reason for the ongoing success of this market maker is appealing bonus campaigns. This broker paid out almost $3,000,000 in bonus funds. OctaFX offers traders the MT4 and MT5 platforms, and a proprietary mobile trading platform. OctaFX additionally grants their clients Autochartist, but traders require a Silver Level in the Status Program. Traders have a choice between fixed and floating spreads, and the overall cost structure remains competitive.

Asset selection remains the distinct weakness at OctaFX, making it most suitable for new retail traders. A series of short educational articles offers a basic Forex introduction, and this broker maintains an excellent arsenal of research and analytics tools.

OctaFX Pros & Cons

Pros
  • Well-regulated globally, with the Bank of Ireland as the primary regulator

  • Low minimum deposit and in-depth educational tools

  • Wide asset choice across seven sectors

  • Superior mobile trading platform

  • High maximum leverage

Cons
  • Unregulated

  • Low asset selection

Eightcap

5.0/5 in this category
In Summary
Competitive pricing + excellent daily videos

Unique Features

Headquarters

Australia

Regulation

ASIC, FSC Mauritius

Year Founded

2009

Type of Broker

35,38

Minimum Deposit

$100

Maximum Leverage

1:500

Type of Platform

MetaTrader 4, MetaTrader 5

Eightcap Pros & Cons

Pros
  • Low minimum deposit and high leverage of up to 1:500

  • Competitive cost structure

  • Excellent technology infrastructure and seasoned management team

  • Daily research and quality educational content

Cons
  • Limited leverage in some areas

FXTM

5.0/5 in this category
In Summary
Best all-around broker with high floating leverage and fast execution

FXTM was established in 2011 and has since quickly grown to serve 2 million customers. As a Malaysian Forex trader, you can feel secure knowing that FXTM is under the jurisdiction of a reputable regulatory body, the Cyprus Securities and Exchange Commission (CySec) and that it holds a Cyprus Investment Firm (CIF) license. Most importantly, FXTM holds clients’ funds in segregated accounts with top-tier banks separate from the company’s operational funds. If you are a short-term trader in Malaysia, you’ll be pleased with FXTM’s ultra-fast trade execution with an independently audited average of 0.1 seconds per trade. If you are a new Forex trader in Malaysia, FXTM offers trading signals that you can follow through MetaTrader.

Pros
  • Excellent commission-based Forex pricing environment and transparency

  • Upgraded MT4/MT5 trading platforms plus proprietary mobile trading app

  • Quality market research and educational content for beginner traders

  • Proprietary copy trading platform, low minimum deposit, and high leverage

Cons
  • Limited choice of cryptocurrencies and commodities

BlackBull Markets

4.5/5 in this category
In Summary
Best ECN trading environment, with scalping and hedging

BlackBull Markets offers Malaysian traders a true ECN (Electronic Communications Network) account experience. This type of account connects clients directly to the markets without any internal dealing desks. This setup effectively means that BlackBull Markets has no conflicts of interest with their clients. The benefits for an ECN account are numerous: clients receive very low spreads (from 0.1 pips in BlackBull Markets’ case) and lightning-quick execution. An ECN account essentially gives you an institutional trading experience, but with account sizes from as small as $200 and massive leverage from 500:1. For Malaysian traders wishing to be Sharia-compliant in their financial affairs, BlackBull Markets also offers Islamic accounts that are in full compliance with Sharia law.

Pros
  • ECN/NDD execution model with deep liquidity

  • Institution-grade pricing for retail traders via proprietary price aggregation

  • ZuluTrade and Myfxbook for social trading

  • Leverage of up to 1:500

Cons
  •  Limited deposit options

AvaTrade

4.5/5 in this category
In Summary
Highly regulated, choice of fixed or floating spreads

AvaTrade is regulated in the European Union, the British Virgin Islands, Australia, South Africa, Japan, and the United Arab Emirates, making it one of the best-regulated brokers offering services to Malaysian clients. As part of the regulations, Avatrade is subject to stringent compliance requirements, including how it handles client assets, the safety of client funds and regular financial reporting. Malaysian traders, just like other traders around the world, should never compromise on wanting their broker to have established regulators overseeing their operations. AvaTrade was founded in 2006 and has since expanded enormously, with over 300,000 registered customers globally, executing more than two million trades a month. The company’s total trading volumes now surpass $70 billion per month.

Pros
  • High-quality educational offering via SharpTrader

  • Excellent choice of trading platforms catering to various trading needs

  • Broad asset selection and cross-asset diversification opportunities

  • Well-regulated and trusted broker with oversight from a central bank

Cons
  • Trading costs competitive but nothing special

Choosing a Trusted & Legal Forex Broker in Malaysia

To choose a trusted Forex broker in Malaysia, it is worth beginning by looking at the regulatory framework. There are two categories of regulations for Forex brokers in Malaysia: the first category is brokers regulated domestically in Malaysia; the second category is brokers that accept Malaysian clients but are regulated outside of Malaysia. I believe by far the best range of choice available comes from internationally regulated brokers rather than domestically regulated Malaysian brokers. Almost all international brokers also offer Islamic broker accounts which claim to be sharia compliant.

Domestically Regulated Senarai Brokers

The Securities Commission Malaysia (SCM) regulates all matters relating to the financial markets in Malaysia. Underpinning the SCM’s activities is the ultimate responsibility of protecting the investor. The SCM first issued a licensing scheme in 2007 and subsequent guidelines in 2018.

The SCM has made it easy for anyone to verify the SCM authorization through an online portal. You can search here for a firm’s name to see if they are authorized by the SCM.

Internationally Regulated Brokers Accepting Malaysian Resident Clients

Countries with active financial markets have regulatory bodies, and some regulate Forex brokers more strictly than others. Top regulatory bodies include the UK’s Financial Compliance Authority (FCA), various EU-based regulators such as in Cyprus and Ireland, the Australian Securities & Investments Commission (ASIC), and New Zealand’s Financial Services Provider Registry. These jurisdictions have safeguards to help protect client assets, including requiring brokers to disclose how they hold client funds.

How to Verify SCM Authorization

In Malaysia, the Securities Commission of Malaysia (SCM) expands and regulates the domestic financial system, including Forex trading. Given the high demand for Forex brokers from Malaysian residents, who are often young, tech-savvy, but financially inexperienced, scammers attempt to undertake fraudulent activities. Trading with a regulated broker can minimize the risks of loss and unethical business practices.

Here is how Malaysian resident Forex traders can verify SCM Authorization:

  • Check the broker’s website for a license number, which is usually listed in the footnote of the home page
  • The SCM issues two licenses, the New Capital Markets Services License (CMSL) or the New Capital Markets Services Representative’s License (CMSRL)
  • Traders should cross-reference the license number with the Public Register of License Holders available on the SCM website, where the SCM lists all current and former licensed intermediaries and representatives
  • The regulatory history is equally important, and traders can contact the SCM for specific details

Noteworthy:

  • Malaysian traders may trade with licensed international brokers, where favorable trading conditions exist
  • Islamic accounts are widely available


How Can I Join Forex in Malaysia?

Getting started with Forex in Malaysia remains a hassle-free process, open to all individuals 18 years and older who can afford to meet the minimum deposit required.

  • Beginner traders should start by educating themselves to understand the Forex market. Many high-quality and free educational courses are available online, including from some Forex brokers.
  • Attend free seminars in Malaysia hosted by international Forex brokers, if possible, to learn more about their offerings.
  • Carefully examine the trading cost structure of your shortlisted Forex brokers, where major currency pairs should usually be offered at a spread between $4.00 and $8.00 per 1 standard lot.
  • If you are interested in algorithmic trading, make sure you choose a broker offering a cutting-edge trading platform, ideally from a user-friendly mobile app such as are provided by market leaders MT4 and cTrader.
  • Practice trading on a demo account and ensure you are profitable over 6 months before opening and funding a real money account.
  • Opening and funding a real money trading account completes the process, and this is usually a simple step that your chosen Forex broker will be happy to guide you through.


Advantages & Risks of Forex Trading in Malaysia

Before trading Forex, beginner traders should clearly understand the risks as well as the potential advantages in trading Forex.

Advantages of Forex Trading in Malaysia:

  • Lower capital entry requirements / minimum deposit compared to stock trading.
  • Forex markets are open 24/5, allowing retail traders the flexibility to trade part time while having the time to hold a regular job.
  • High liquidity of the Forex market creates many trading opportunities for all strategies across time frames
  • Algorithmic trading is available through market-leading trading platforms like MT4 or cTrader available from most brokers.
  • Social trading provides another way for beginner traders to get involved in Forex trading through their mobile phones, a widely popular approach in Malaysia.


Risks of Forex Trading in Malaysia:

  • Trading without a reliable edge will always result in loss of account over the long-term.
  • Unrealistic expectations encouraged by overly aggressive marketing.
  • Insufficient trading capital creates insignificant returns / dangerously high-risk appetite / overly leveraged trading. Minimum deposits required by brokers do not necessary equal adequate levels of capital.
  • Poor risk management.
  • Lack of portfolio building strategy via monthly deposits.
  • Lack of realistic trading education will result in bad trading habits.


How Much Do I Need to Start Trading Forex in Malaysia?

New Forex traders often ask about the capital requirements to start Forex trading in Malaysia. They sometimes get misleading responses from Forex brokers who are simply looking to secure immediate deposits, or from industry scammers seeking to take advantage.

While the answer depends on individual risk tolerance and trading style, traders should consider the following when calculating how much money they need to start trading Forex successfully:

  • Income remains proportional to portfolio size, and most professional traders earn less than 20% annually.
  • The Forex market can offer excellent risk-adjusted returns, but profits, as in any other market, tend to be “lumpy”, so it is best to not seek regular wins. Avoid “10 pips per day” thinking.
  • Beginner traders should expect to earn less than a 20% annual return and can calculate their requirements by setting an achievable annual profit goal. For example, if a trader wants to earn $2,400 annually and can achieve 12% profitability, the required deposit size is $20,000.
  • Traders should ignore defined profit targets, especially beginners, and focus on growing their portfolios via monthly deposits and realistic trading expectations within acceptable risk parameters.
  • Discipline, skill, and patience are required to succeed over the long-term as a Forex trader, and beginners should ignore marketing hype about immediate life changing success.

Is Forex trading legal in Malaysia?

The short answer to this question is yes, but only with a registered and approved financial institution. The official ruling is that you are only allowed to trade currency legally in Malaysia with licensed institutions, of which there are several. There are some that say that this rule only applies to physical currency and retail Forex Trading, especially online, does not fall into that category because online, you trade theoretical currency. That is why this is considered a tricky question requiring explanation and not just a simple yes or no. The easiest way to trade Forex in Malaysia legally is to use one of the approved institutions, and maintain an Islamic account.

Investing overseas is legal in Malaysia and there are many opinions that say that retail forex trading with an offshore brokerage can be easily considered foreign investment. The main issues that the nation has with Forex is that they are a developing country that wants to control the value of their currency to some degree. Since most Forex trading even in Malaysia does not involve their own currency, they tend to overlook the many ways that Forex can be traded using other currencies.

Forex Malaysia

The idea here is that the laws are written in favor of the government being able to act if they see fit. Meaning, that it is extremely unlikely that you will be arrested in Malaysia for trading forex because there are ways to do it legally but the government reserves the right to have some control over what is happening. The law does strictly prohibit Forex trading with the funds of others and soliciting funds to trade. This is pretty clear and will get anyone who transgresses these regulations into a heap of trouble.

There are many laws on the books that people do not comply with and they are not even aware of the law in the first place. This means that most of the time, you can go on your merry way and not have any problems with the law, but the minute you do something that crosses the authorities or brings your offenses to the attention of the authorities, you can be penalized for everything that you are doing wrong, even the ones you didn't know about. Forex trading in Malaysia is a pretty good example. It is likely that if you are trading your own funds, not bothering anyone and not being very public about it, nothing will happen to you at all. If you do something that angers the authorities, they can then come after you for every little law that you are breaking including this one.

Since the law is very grey here, there is a risk of getting into trouble with the government, if you are trading with a brokerage that is not on the list of licensed institutions and then risking everything you do being examined closely as well. That being said, most people who are trading from Malaysia with their own funds and an overseas broker will never have a problem.

Best Time to Trade Forex in Malaysia​

Forex traders in Malaysia, just like traders around the world, must consider whether their time zone and daily routine fit with the best times of the day to trade the Forex markets.

Although the Forex markets are open 24 hours a day, 5 days a week, certain times of day are more active with more trading volume flowing through the market.

The most active time of day with the heaviest trading volume is the U.S./London markets overlap from 1 p.m. to 5 p.m. GMT (9 p.m. to 1 a.m. Malaysian Standard Time, or MST). Most traders consider it the best time of the day to place trades, especially intraday trades.

Let’s say you’re an intraday trader in Malaysia, and you want to trade during the U.S./London markets overlap beginning at 9 p.m. MST. You should ask yourself: is that a good time for you to be at your screen? Or would you prefer to do something else with your evenings? For some people, trading in the evenings is perfect because they can still work during the day. For others, trading in the evenings may get in the way of family or personal commitments.

The next most active trading session is the opening of the London session, which starts at 8 a.m. GMT (4 p.m. MST). Many Forex trends that contain the British Pound (GBP), Euro (EUR) and Swiss Franc (CHF) start in the London session.

The least most active trading sessions are the Sydney and Tokyo sessions (beginning at 10 p.m. & 11 p.m. GMT respectively, or 6 a.m. & 7 a.m. MST). However, the Sydney and Tokyo sessions often offer opportunities specific to the Australian Dollar (AUD), New Zealand Dollar (NZD) and Japanese Yen (JPY). These three currencies are also active during the London and US sessions, though. Yet if you must trade during Asian business hours, you may find the greatest success by focusing on trading Asian or Australasian currencies.

Time of day is more critical to short-term or intraday traders than to longer-term traders. For example, if an intraday trader wants to trade EUR/USD on the 5-minute chart, they probably need to trade during the London or US sessions. The Sydney & Tokyo sessions may have too little movement to provide an attractive trade entry point.

Long-term or swing traders that hold positions open for days or weeks will usually have enough flexibility to enter their trades at different times of the day. Let’s say a swing trader is looking at the daily and weekly charts, and they identify a trade that they hope to hold for a few weeks. They can probably enter the trade anytime that day. Sure, the price will move around during the day, but it most likely won’t be significant compared to the price movement over a few weeks. If the trader uses advance orders, such as limit orders or stop-entry orders, instead of market orders, they may be able to enter orders days in advance depending on their trading strategy, which again gives lots of flexibility in their schedule.

Bottom Line

Forex brokers can give Malaysian traders excellent regulation and trading conditions, whether regulated internationally or domestically by the SCM.

Choose a Forex broker with segregated accounts for client funds, a trading platform that you enjoy using and lets you trade all the markets you want at reasonable spreads and commissions.

If you’re new to Forex trading, always start with a demo account until you are profitable over many months. Then you will be ready to start trading a small live account, which you will probably find feels very different, which may bring new challenges. Slowly build up your account size as you become more profitable. If you are not profitable over several months, ask yourself why. You may be using a trading strategy which has no track record of success, or you may be taking poor discretionary trading decisions. It is important that you stop trading and get to the root of the problem before you suffer a very serious loss. When you have identified your problem, you should be able to fix your trading and put the odds back in your favor.

FAQs

Which Forex Broker is best in Malaysia?

The best Forex broker in Malaysia will be properly regulated in a recognized jurisdiction and have segregated accounts for client funds. And the best Forex broker in Malaysia will have a trading platform that you find suitable for your trading, with spreads and commissions that are competitive. Don’t forget customer service—the best brokers are easy to reach and reply quickly to your messages, or have live support.

Which Forex broker is legal in Malaysia?

The SCM regulates financial activities domestically and has a licensing scheme for financial firms operating in Malaysia which you can find here.

Is Forex legal in Malaysia?

Historically, the Malaysian authorities have allowed individuals to trade Forex through internationally located Forex brokers. The Malaysian authorities have clear rules against retail traders trading other people’s money—you should only be trading your own money and not running a fund!

Which is the best trading app in Malaysia?

It depends on individual requirements, but the best trading apps in Malaysia offer traders a user-friendly interface with access to all core trading functions.

What is the best broker for Forex in Malaysia?

It depends on individual requirements. However, all the best Malaysian Forex brokers share characteristics like low trading costs, cutting-edge trading platforms, a balanced asset selection, low deposit requirements, and adequate leverage with negative balance protection.

Can I trade Forex in Malaysia?

Forex trading is 100% legal in Malaysia with few restrictions, so it is easy to start trading Forex in Malaysia.

Which trading platform is best in Malaysia?

It depends on individual requirements, but the best trading platforms in Malaysia offer low trading costs, deep liquidity, and fast order execution, while supporting algorithmic and social trading. MT4 and cTrader, offering all the above, are the industry leading platforms.

Is Forex taxable in Malaysia?

Profit from Forex trading is taxable in Malaysia, and traders should consult with a licensed tax professional to ensure they understand and fulfill their obligations.

Huzefa Hamid

I’m a trader and manage my own capital. I trade the major Forex pairs, some Futures contracts, and I rely entirely on Technical Analysis to place my trades. Today, I am also a Senior Analyst for DailyForex.com. I began trading the markets in the early 1990s, at the age of sixteen. I had a few hundred British pounds saved up (I grew up in England), with which I was able to open a small account with some help from my Dad. I started my trading journey by buying UK equities that I had read about in the business sections of newspapers. The 1990s were a bull market, so naturally, I made money. I was fortunate enough in my early twenties to have a friend that recommended a Technical Analysis course run by a British trader who emphasized raw chart analysis without indicators. Having this first-principles approach to charts influences how I trade to this day.