Table of Contents
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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.

Forex Brokers In Malaysia

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
4.9/5
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.
MT4/MT5 trading platforms & the proprietary OctaTrader plus mobile app.
Malaysian website & 24/7 multi-lingual customer support via e-mail and live.
2
4.7/5
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.
A user-friendly, proprietary mobile trading app, FXTM Trader
Ultra-low trading fees and excellent order execution & price improvement mechanism
3
4.7/5
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.
16 payment processors in 16+ currencies, including several cryptocurrencies
High-quality research and educational content for beginners & 24/5 customer support.
4
4.5/5
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.
Quality education and webinars for beginners & 24/5 + 18/2 customer support.
Proprietary mobile trading app ideal for copy traders.
5
4.4/5
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.
Choice of great platforms + top-tier technology

  • Octa, A commission-free broker with a proprietary copy trading service.
  • FXTM, Best all-around broker with high floating leverage and fast execution.
  • ACY Securities, Swap-free trading with the MT5 trading platform.
  • Pepperstone, Great ECN execution on MT4 platform.
  • FxPro, Choice of great platforms + top-tier technology.

Malaysian Forex Brokers Comparison

Regulators
CySEC, FSCA, MWALI International Services AuthorityCMA, CySEC, FCA, FSC Mauritius, FSCAASICASIC, BaFin, CMA, CySEC, DFSA, FCA, SCBN/A
Year Established
20112011201120102006
Execution Type(s)
Market MakerECN/STP, Market MakerECN/STP, Market MakerNo Dealing Desk, NDDNo Dealing Desk
Minimum Deposit
$25
$200
$50
$200
$100
Average Trading Cost EUR/USD
0.9 pips0.1 pips1.1 pips ($11.00)1.1 pips1.3 pips
Average Trading Cost GBP/USD
1.3 pips0.2 pips1.1 pips ($11.00)1.6 pips1.5 pips
Average Trading Cost Gold
$0.30 $0.18 $0.15 $0.20 $0.29
Trading Platform(s)
MetaTrader 4, MetaTrader 5, Proprietary platformMetaTrader 4, MetaTrader 5, Proprietary platformMetaTrader 4, MetaTrader 5MetaTrader 4, MetaTrader 5, cTrader, Trading ViewOther, MetaTrader 4, MetaTrader 5, cTrader+
Islamic Account
Negative Balance Protection
N/AN/A

Octa

In Summary A commission-free broker with a proprietary copy trading service

I rate Octa as one of the best Forex brokers in Malaysia due to its low trading fees, starting from 0.6 pips or $6.00 per 1.0 standard round lot, swap-free trading for all traders on many assets, and the four-tier status program that lowers trading fees for active traders. It makes Octa ideal for algorithmic and long-term traders. Octa is also an excellent copy trading broker, featuring its in-house copy trading service and mobile app, with 40M+ trading accounts.

Octa has a $25 minimum deposit requirement, a 50% withdrawable deposit bonus, and a 19-minute average withdrawal processing time for most withdrawals.

Read more on Octa »
4.9/5 in this category

Pros & Cons

  • Quick withdrawals and deposits
  • 0% commission and no overnight charges
  • Space with personalised trading ideas
  • Customer Support 24/7
  • Mobile copy trading services available only for Android

FXTM

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.

Read more on FXTM »
4.7/5 in this category

Pros & Cons

  • 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
  • A highly regulated broker with a tier-1 license
  • No cryptocurrencies and limited choice of commodities

ACY Securities

In Summary Swap-free trading with the MT5 trading platform

Copy traders can diversify their portfolio through embedded MT4/MT5 services, Signal Start, and SoFinX, making ACY Securities one of the best Forex brokers in Malaysia for copy trading strategies. ACY Securities also upgrades its MT4/MT5 trading platforms with 15 quality plugins and features Capitalise AI, the most cutting-edge trading tool available industry-wide, which enables algorithmic trading in a code-free environment.

ACY Securities has professional indemnity insurance, offers negative balance protection, and segregates client deposits at Commonwealth Bank. Besides MYR deposits and withdrawals, traders may also use cryptocurrencies. Deposits are free, and ACY Securities allows three free monthly withdrawals.

Read more on ACY Securities »
4.7/5 in this category

Pros & Cons

  • Large repository of daily analysis and educational content
  • Low spreads starting at 0 pips in the Spread Zero account
  • 16 payment processors, including cryptocurrencies
  • Competitive trading fees in its commission-based accounts
  • Only 1 regulator

Pepperstone

In Summary Great ECN execution on MT4 platform

I rank Pepperstone among the best Forex brokers in Malaysia for traders seeking a cutting-edge upgrade to the MT4/MT5 platforms, as Pepperstone features the 28-plugin Smart Trader Tools package and Autochartist. Traders also benefit from a well-balanced asset selection, including Forex indices, cryptocurrencies, and ETFs. VPS hosting ensures 24/5 low-latency Forex trading.

Pepperstone maintains a competitive edge with Capitalise AI, which supports algorithmic trading in a code-free environment, enhanced via deep liquidity pools. It is also a leading copy trading provider with embedded MT4/MT5/cTrader services, Myfxbook Autotrade, and DupliTrade. Pepperstone also connects social traders with 50M+ peers to TradingView.

Read more on Pepperstone »
4.5/5 in this category

Pros & Cons

  • Excellent choice of trading platforms consisting of MT4/MT5, and cTrader
  • Market-leading MT4/MT5 upgrade package, Autochartist, and API trading
  • Social trading support via Myfxbook, MetaTrader Signals, and DupliTrade
  • Leverage of up to 1:30 and superb trade execution
  • Demo accounts have 30-day time limits

FxPro

In Summary Choice of great platforms + top-tier technology

FXPro is a leading NDD Forex broker for demanding traders like scalpers and algorithmic traders. 84.30% of orders experienced no or positive slippage, 99.64% of 2023 orders faced zero or positive requotes, and the average order execution speed was twelve milliseconds. Therefore, I rank FXPro among the best Forex brokers in Malaysia with the highest quality order execution engine.

Traders can choose between MT4, MT5, cTrader, and the proprietary FXPro Trading Platform, where 2,000 assets await. FXPro is also an excellent choice for copy traders due to its 7.8M+ account. Beginners can benefit from quality education and Trading Central services.

Read more on FxPro »
4.4/5 in this category

Pros & Cons

  • Quality education for beginners and trading tools for advanced traders
  • Excellent asset selection and high leverage with negative balance protection
  • Competitive commission-free and commission-based trading fees
  • Excellent NDD order execution, including positive slippage and requotes
  • Limited payment processors and no crypto deposits/withdrawals

How to Choose the Best Malaysian Forex Brokers?

To choose the best 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 Can a beginner Start Forex Trading in Malaysia in 5 Steps?

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.

  1. 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.
  2. 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.
  3. 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.
  4. Practice trading on a demo account and ensure you are profitable over 6 months before opening and funding a real money account.
  5. 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.

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

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.

Do You Have to Pay Tax on Forex Trading in Malaysia?

Forex traders in Malaysia should consult a licensed professional to receive the most up-to-date information, pay what they owe to the government, and ensure they record their Forex income accordingly.

Malaysia considers Forex income as income tax, but capital gains tax from Forex trading is tax-free. Therefore, if trading does not result in income, it could remain tax-free. Since most profitable traders trade Forex for a living, they are likely to pay income taxes, where an eleven-tier tax bracket levies taxes between 1% and 30%, with 0% taxes on income below MYR5,000. Non-residents pay a flat tax of 30%. An accountant can assist Forex traders in navigating the Malaysian tax law and advise on how to proceed, given the tax complexity between income and capital gains, plus possible exemptions.

What is 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.

Advantages & Risks of Forex Trading in Malaysia

Before beginner traders start trading Forex, they 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.

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.

FAQs

Which Forex Broker is best in Malaysia?

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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?

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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?

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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?

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With more than 10 million downloads and offering access to a broker giving competitive fees and trading conditions to Malaysian traders, the OctaFX trading app is the best in Malaysia.

Can I trade Forex in Malaysia?

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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?

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MetaTrader remains the best, most intuitive, and most popular retail trading platform in Malaysia.

Is Forex taxable in Malaysia?

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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.

Is FXTM legal in Malaysia?

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It is unclear whether trading with FXTM from Malaysia is legal, as FXTM does not hold a local license. However, some analysts argue that as no physical currency is traded, trading with FXTM is legal.

Is Forex legal in Malaysia Bank Negara?

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Malaysia Bank Negara (MBN) has clarified that trading Forex is legal with licensed commercial banks, Islamic banks, investment banks, and international Islamic banks.

What time doe the Forex market open in Malaysia?

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The global Forex market opens at 5am local time on Monday morning in Malaysia, closing on Saturday at 4am.

What is the best broker for Forex in Malaysia?

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OctaFX is the best broker for Forex in Malaysia due to its highly competitive trading fees and low slippage rate.

Huzefa Hamid
About 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.