Best forex broker malaysia

Trading cfds, FX, and cryptocurrencies involve a high degree of risk. All providers have a percentage of retail investor accounts that lose money when trading cfds with their company.

Free forex bonuses

Best Forex Brokers Malaysia for 2021, best forex broker malaysia.

You should consider whether you can afford to take the high risk of losing your money and whether you understand how cfds, FX, and cryptocurrencies work. All data was obtained from a published website as of 12/14/2020 and is believed to be accurate, but is not guaranteed. The forexbrokers.Com staff is constantly working with its online broker representatives to obtain the latest data. If you believe any data listed above is inaccurate, please contact us using the link at the bottom of this page. For our 2021 forex broker review we assessed, rated, and ranked 27 international forex brokers. Each broker was graded on 108 different variables and, in total, over 50,000 words of research were produced.

Best forex brokers malaysia for 2021

The forexbrokers.Com annual forex broker review (five years running) is the most cited in the industry. With over 50,000 words of research across the site, we spend hundreds of hours testing forex brokers each year. How we test.

Trading forex (currencies) in malaysia is popular among residents. While any internationally regulated forex broker can accept clients from malaysia, it is an additional benefit to also hold a capital markets services license (CMSL) from the securities commission of malaysia (SCM), which is the financial regulatory body in malaysia. SCM's website is sc.Com.My. We recommend malaysian residents follow the SCM on twitter, @seccommy.

Established in 1993, SCM is malaysia's financial markets regulatory body. In april 2018, SCM issued guidelines for contracts for difference (CFD) providers including brokers offering derivatives, under the capital markets services act of 2007, which will become effective july 1st 2018. As a result, we expect more regional brokers will register with SCM in order to acquire a CMSL. For a historical breakdown, here's a link to the securities commission malaysia's webpage on wikipedia.

Best forex brokers malaysia

To find the best forex brokers in malaysia, we created a list of all internationally regulated forex brokers, then ranked brokers by their trust score. Here is our list of the top forex brokers in malaysia.

IG - best overall broker 2021, most trusted

Saxo bank - best for research, trusted global brand

Interactive brokers - great for professionals and institutions

City index - excellent all-round offering

XTB - best customer service, great trading platform

FOREX.Com - great all-round offering

Avatrade - multiple trading platform options

Malaysian forex brokers comparison

Compare malaysian authorised forex and cfds brokers side by side using the forex broker comparison tool or the summary table below. This broker list is sorted by the firm's forexbrokers.Com trust score.

Forex broker	accepts MY residents	average spread EUR/USD - standard	minimum initial deposit	trust score	overall	visit site
IG	yes	0.745	£250.00	99	5 stars	visit site
saxo bank	yes	0.800	$10,000.00	99	5 stars	visit site
interactive brokers	yes	N/A	$0	94	4.5 stars	visit site
city index	yes	1.100	£50.00	93	4.5 stars	visit site
XTB	yes	0.860	$0.00	92	4.5 stars	visit site
FOREX.Com	yes	1.400	$100.00	93	4.5 stars	visit site
avatrade	yes	0.910	$100.00	93	4 stars	visit site
XM group	yes	1.600	$5-100	84	4 stars	visit site
FP markets	yes	1.140	$100 AUD	81	4 stars	visit site
pepperstone	yes	1.160	$200.00	90	4 stars	N/A
IC markets	yes	0.800	$200	83	4 stars	visit site
tickmill	yes	0.530	$100.00	81	4 stars	visit site
fxpro	yes	1.510	$100.00	89	4 stars	visit site
vantage FX	yes	1.350	$200	79	3.5 stars	N/A
moneta markets	yes	1.300	$200.00	79	3.5 stars	N/A
HYCM	yes	2.00	$100	84	3.5 stars	visit site
eightcap	yes	$100	69	3.5 stars	N/A
VT markets	yes	1.30	$200	79	3.5 stars	N/A
blackbull markets	yes	0.76	$200	70	3.5 stars	N/A
octafx	yes	1.100	$5	59	3.5 stars	N/A
easymarkets	yes	0.900	$100.00	81	3.5 stars	N/A
hotforex	yes	1.20	$50	83	4 stars	N/A

How to verify SCM authorisation

To identify if a forex broker is regulated by SCM, the first step is to identify the register number from the disclosure text at the bottom of the broker's malaysia homepage.

Next, look up the firm on the SCM website to validate the current regulatory status of the broker in malaysia. Here is the official page with the public register of license holders on SCM.

It's also worth noting that bank negara malaysia, which is the central bank of malaysia that regulates money service businesses and forex dealers, issued guidelines for digital currencies (cryptocurrency) requiring companies to comply when dealing with crypto assets.

More forex guides

Methodology

For our 2021 forex broker review we assessed, rated, and ranked 27 international forex brokers. Each broker was graded on 108 different variables and, in total, over 50,000 words of research were produced.

While encouraged, broker participation was optional. Each broker had the opportunity to complete an in-depth data profile and provide executive time (live in person or over the web) for an annual update meeting.

All data submitted by brokers is hand-checked for accuracy. Ultimately, our rigorous data validation process yields an error rate of less than .1% each year, providing site visitors quality data they can trust. Learn more about how we test.

Forex risk disclaimer

"there is a very high degree of risk involved in trading securities. With respect to margin-based foreign exchange trading, off-exchange derivatives, and cryptocurrencies, there is considerable exposure to risk, including but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or related instrument. It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable, or that they will not result in losses." learn more.

About the author: steven hatzakis steven hatzakis is the global director of research for forexbrokers.Com. Steven previously served as an editor for finance magnates, where he authored over 1,000 published articles about the online finance industry. Steven is an active fintech and crypto industry researcher and advises blockchain companies at the board level. Over the past 20 years, steven has held numerous positions within the international forex markets, from writing to consulting to serving as a registered commodity futures representative.

Trading cfds, FX, and cryptocurrencies involve a high degree of risk. All providers have a percentage of retail investor accounts that lose money when trading cfds with their company. You should consider whether you can afford to take the high risk of losing your money and whether you understand how cfds, FX, and cryptocurrencies work. All data was obtained from a published website as of 12/14/2020 and is believed to be accurate, but is not guaranteed. The forexbrokers.Com staff is constantly working with its online broker representatives to obtain the latest data. If you believe any data listed above is inaccurate, please contact us using the link at the bottom of this page.

The names, products, services, branding/logos, and other trademarks or images featured or cited within this website (www.Forexbrokers.Com) are the property of their respective owners and the owners retain all legal rights therein. These trademark holders are not affiliated with forexbrokers.Com and the use or display of names, trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, or endorses forexbrokers.Com or any of its reviews, products, or services. Forexbrokers.Com declares no affiliation, sponsorship, nor any partnership with any trademark holders unless otherwise stated.

IG - 76% of retail investor accounts lose money when trading cfds with this provider. You should consider whether you can afford to take the high risk of losing your money.

OANDA - cfds are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when trading cfds with this provider. You should consider whether you understand how cfds work and whether you can afford to take the high risk of losing your money.

Advertiser disclosure: forexbrokers.Com helps investors across the globe by spending over 1,000 hours each year testing and researching online brokers. How do we make money? Our partners compensate us through paid advertising. While partners may pay to provide offers or be featured, e.G. Exclusive offers, they cannot pay to alter our recommendations, advice, ratings, or any other content throughout the site. Furthermore, our content and research teams do not participate in any advertising planning nor are they permitted access to advertising campaign data. Here is a list of our partners.

Disclaimer: it is our organization's primary mission to provide reviews, commentary, and analysis that are unbiased and objective. While forexbrokers.Com has some data verified by industry participants, it can vary from time to time. Operating as an online business, this site may be compensated through third party advertisers. Our receipt of such compensation shall not be construed as an endorsement or recommendation by forexbrokers.Com, nor shall it bias our reviews, analysis, and opinions. Please see our general disclaimers for more information.

Top 9 best forex brokers in malaysia for 2021

Top rated:

Searching for a trading broker in malaysia?

With this collection of the best forex brokers the country has to offer. Here you are sure to find one that fits your trading needs.

Making your malaysia forex broker search as easy as possible starts with choosing from one of these top choices, any of which can be opened both quickly and easily.

Is forex trading legal in malaysia?

This is a very valid question and concern since not very long ago forex trading in malaysia was not legal.

Now however, the rules are changing.

You will find that officially within malaysia, the only legal regulation is that people can only register with a financial services company that is regulated within malaysia and compliant with the laws of the country.

With that said, given that forex trading is relatively new to malaysia, there are not yet any brokers that are regulated by the SCM (securities commission of malaysia).

With that said, trading as a malaysian forex trader is still not illegal and some of the forex brokers that we have listed provide the very best in terms of regulatory oversight from top-tier bodies such as cysec, the FCA, or ASIC.

How to trade forex in malaysia

If you want to trade forex within malaysia then the process is in fact quite straightforward since the regulations are still quite new and allow for no particular restrictions in terms of what a forex trader can do or what a broker can offer.

The only key steps beyond choosing the correct malaysian forex broker for you is to submit the relevant documents to begin trading. These will typically include your proof of ID and residency.

From there, you are ready to begin trading.

Top 10 best forex brokers in malaysia

Here is our collection of what we feel are the best malaysia broker choices for you as a forex trader:

1. Instaforex

Starting our list of the best forex brokers in malaysia is instaforex. They are a well-known and award winning broker particularly within asia having won more than 19 awards and counting related to being the “best broker in asia”.

Beyond this, they are also very well regulated by multiple regulatory bodies including the FCA, ASIC, and cysec. When it comes to account types you will have a total of 6 to choose from. Instaforex minimum deposits here range from a bargain $1 up to $1,000 depending on account type. The account types available include 2 cent accounts, a standard account, 2 ECN accounts, and a scalping account.

You can deposit MYR through wire transfer within local banks and you can also utilize a fully functioning demo account to try out the broker. This is ideal, in combination with really low-risk cent accounts to help new forex traders get to know the market.

Finally, an islamic account type is available though there is an additional fee that replaces the swap fee. Instaforex also offers 4 bonuses to traders. This includes a 100% first deposit bonus.

XM is renowned as one of the best forex brokers in the world and is available to malaysian forex traders. They are again regulated by some of the foremost authorities in the industry in the form of FCA, cysec, and ASIC. They were also awarded the “best forex broker in australasia” award along with numerous others.

Opening an XM account, you will be faced with a wide choice of 6 account types. Minimum deposits on these account types range from $5-$100 depending on account, or you can also opt for a shares account with a minimum deposit of $10,000. These deposits can be made through wire transfer, credit card, or ewallet although no MYR deposits are facilitated.

If you would like to try out the broker, you can avail of their full demo account. This, together with the XM micro account offers a great path to get into forex trading in malaysia and around the world.

Spreads at XM can start from as little as 0 pips in many cases, and the XM islamic account follows all of the same conditions of the regular accounts with no mark-ups, higher spreads, or additional commissions.

3. Octafx

Next in our collection of the top malaysian forex brokers is octafx. They are also regulated by two highly trusted regulatory bodies in the form of both the FCA in the UK and cysec in europe. They are reputed within the industry as offering some of the best swap-free services around. In fact, in 2015 they were recognized byb forextraders.Com as the “best forex islamic account” providers.

To that end, micro, ECN, and pro accounts are available with minimum deposits starting at $100 and reaching $500 for a pro account. It is also worth noting that every account is available as a swap-free account. The accounts utilize the top trading platforms of MT4, MT5, and ctrader.

MYR deposits are accepted and can be made through local banks, billplz, and help2pay services with an excellent exchange rate of 3 MYR per $1 USD available. Spreads also start from a highly competitive 0 pips across the board and the trading conditions feature no changes at all when it comes to islamic account trading.

In terms of octafx bonus offers, a 50% deposit bonus is made available on each deposit.

4. Hotforex

Hotforex is another globally recognized forex broker and top choice for you as a malaysian trader. They are well regulated by both cysec and ASIC and offer a wide choice of 6 forex account types to choose from.

Again here, this includes a micro trading account with a minimum deposit of only $5 ideal for new traders, a premium account with a $100 minimum, a zero spread account, and an auto trading account you can try for a minimum deposit of $200. If you are interested in copytrading this is available through hfcopy with a minimum of $100 deposit to copy, or $300 if you want others to copy your trades.

When it comes to deposits, MYR is available through local bank transfer. In other cases, you can use your major credit card or ewallet methods. Either way, a fully realistic demo account is accessible as is an islamic account where needed.

Spreads here start from a competitive 0 pips across the board although some additional fees may apply on islamic accounts. You can offset these through cash rebates, 100% bonuses, and the higher leverage that hotforex try to offer along with many real prize winning trading contests.

5. FBS

Next on the list of the best malaysian forex brokers is FBS. As with all of our brokers they are well-trusted and fully regulated by both cysec and the IFSC. This is an excellent broker with 5 account choices including a great cent account offering that may be just perfect for new traders. These account types also include an ECN account.

Minimum deposits with the broker start from just $1 reaching up to $1,000 depending on your account choice and although MYR deposits are unavailable, funding via wire transfer, credit card, and ewallet are all available. Every account can also be made swap-free where needed.

Although FBS do add an additional admin fee if you hold a position for more than 2 days with a swap-free account, this can be somewhat balanced by the fact they have a comprehensive bonus offering that includes a 100% deposit bonus and contests including some particularly aimed at islamic traders during ramadan.

6. Oanda

Oanda is one of the few brokers to be regulated in the USA by the CFTC as well as the NFA, and globally through the FCA, MAS, ASIC, and IIROC. A who’s who of top regulators for a much trusted broker.

They offer just one account type but it is available with no minimum deposit at all. Perfect if you are new to the forex trading market. Another suitable point here is you can open positions for as low as just one currency unit ($1 or equivalent base currency), although no MYR deposits are available.

With that said, deposits can be made through wire transfers, major credit cards, and ewallets. Fully operational oanda demo accounts are available to try as are islamic accounts on request.

Spreads with this broker are low, starting from just 1 pips and trading is through MT4 trading platform. .

You may find that some additional fees are placed on the islamic account in place of the swap fee, and at the moment there is unfortunately no bonus offering in place.

7. Pepperstone

Pepperstone are another of the standard bearing top brokers offering service to malaysian forex traders. They are regulated by the top authorities of FCA and ASIC and are one of the most chosen ECN brokers around.

They have two available account types that can be opened with a minimum deposit of $200. These are the standard and ECN razor account types which are also both available as islamic accounts. For account deposits, wire transfers, credit cards, and ewallets are all accepted methods of funding although no MYR deposits are available.

Spreads with pepperstone start from 0 pips and trading is available through MT4, MT5, or ctrader and you are welcome to try the pepperstone demo account first.

On the islamic accounts, an admin fee will be applied on positions held for more than 10 days and no pepperstone bonus amount is currently available.

8. IC markets

IC market regulated by cysec and ASIC represent another of the best malaysian forex broker choices for any traders. They offer 2 account types in their standard and raw spread accounts, both of which can be opened with no minimum deposit.

These accounts can be easily funded through wire transfers, major credit cards, or ewallet methods although no MYR deposits are accepted. On the minimum deposit, although there is none in place, the broker do recommend depositing at least $200.

Spreads with IC markets start from the bottom at 0 pips and with the option of trying a demo account and opting for an islamic account through MT4, MT5, or ctrader platforms. Within this islamic account most conditions remain the same. The only change is an admin fee added on positions open for more than one day.

At this time IC markets does not provide for any kind of bonus offering.

9. Etoro

Last but not least on our listing of top malaysian broker choices is etoro. Known the world over, they are regulated well by cysec, FCA, and ASIC. They are well known of course as a top broker for social trading and a particularly good fit if you are new to the sector.

One account type is offered that can also be made swap-free though in this case the minimum deposit would increase from $200 to $1,000 with trading available through the brokers own user-friendly trading platform.

Spreads at etoro typically start from 1 pip though they can be higher. Deposits are catered for through wire transfer, credit card, and ewallets, though no MYR deposit option is available.

You will be glad to know that while there are no bonus offerings, trading conditions remain the same on islamic accounts.

Malaysian trader? Here’s what to look for in a forex broker

Although there are currently no particular set of stringent rules in place from the SCM and everything is routinely left at the discretion of the trader and broker in terms of what is offered in bonus, leverage, and account type terms, there are still a few things that you should try and look out for when choosing the best forex broker to deal with.

1. Stick with regulated brokers

Always try to choose a regulated forex broker like any of the top brokers listed above. The SCM have not yet officially regulated any themselves, but you can very much trust the listed brokers regulated by some of the top bodies worldwide like cysec, ASIC, and the FCA.

It is good practice to deal with these and any who are also ESMA compliant for the most trusted experience and to avoid offshore regulated or non-regulated brokers where you can.

2. Look for the best islamic account

The muslim population in malaysia is more than 50%. This, along with the fact that islam is the official religion mean there is always big demand for malaysian islamic forex trading accounts.

Since swap or overnight broker fees are considered haram when it comes to sharia law, you should be looking to open an islamic account that will not feature any of these fees in order to be fully compliant.

If you are unsure or interested to learn more about this topic, you can read our best islamic forex brokers guide for more information.

3. Choose the broker before choosing the bonus

One of the biggest final things to be sure of is that, since forex broker bonuses are legal in malaysia, that you do not get blinded by that fact.

This means choosing a broker that best suits your trading needs above considering what types of bonus they offer.

Being tempted by a big bonus offer can leave you dissatisfied in other areas when it comes it future trading and so. You should really not base your broker decision on that. Also, always make sure you read the terms and conditions first.

Finally, you should take advantage of any no deposit bonus opportunities offered by a broker as a great chance to see what they can offer.

How to verify if a forex broker is regulated in malaysia

Although there are not any forex broker officially regulated by the SCM as yet, this may well be possible in the future. In that case, you should take the opportunity to check this page for any further developments.

Checking registration with the other top regulatory bodies can also be as simple as a couple of clicks and a search of the following links:

Keep in mind if you are wondering about ESMA regulation, this depends on the country, but if they have registered in a european country, they will typically be ESMA compliant.

Is forex trading taxable in malaysia?

The simple answer to this question is yes.

Forex trading in malaysia is taxable. That is because all revenues should be declared through your ITN (income tax number) and these are unique to each person and issues by the IRBM (inland revenue board of malaysia).

More information on the precise filing processes can be found here.

With that said, since forex trading is new to malaysia, there is still a considerable grey area related to revenues and capital gains taxes, particularly is the broker you trade with is located outside of malaysia.

[disclaimer: we are not accountants, we have done internet research. Due to these grey areas, we strongly suggest you contacting malay local authorities before proceeding]

Top malaysia brokers for 2021

We found 11 online brokers that are appropriate for trading malaysia.

Best malaysia brokers guide

Malaysia financial markets

We've collected thousands of datapoints and written a guide to help you find the best malaysia brokers for you. We hope this guide helps you find a reputable broker that matches what you need. We list the what we think are the best malaysia brokers below. You can go straight to the broker list here.

Trading in malaysia

When trading in malaysia you will need to know what your options with your malaysia trading broker are.

We list below the trading account types available in malaysia. If you are looking for brokers in malaysia that are suitable for trading in the forex, CFD's, indices and etfs, cryptocurrencies (availability subject to regulation) or commodity markets; this malaysia broker guide will explain the things you should check and be aware of before you invest.

Forex trading in malaysia

Forex trading is growing in popularity in malaysia. The volume of forex traded in malaysia has increased year on year over the last five years.

Across the world $5.1 trillion USD in volume is traded every single day. This is a huge amount in comparison with other financial market sectors.

Advances in online technology, higher internet coverage in malaysia and increased competition among brokerages have made forex trading more accessible and reduced the costs of trading generally.

Is forex trading legal in malaysia?

Their is a misconception that trading forex on the financial market in malaysia is considered unsafe. This is not the case, forex trading in malaysia is very active.

Trading in forex is allowed in malaysia as to conduct business currency must be exchanged. Forex is an integral part of import and export and investing internationally. The important thing is that when trading forex you pick a safe and reputable broker that is regulated. Malaysia forex trading is not banned, their are many international online brokers offering favourable trading conditions.

Do forex traders pay tax in malaysia?

Once a traders profits reach a level where the income on the forex trading can be taxed in malaysia the trader should make sure all taxes owed for a financial year are paid. Malaysia taxes should be filed even if there were losses on the year. If trading losses cannot be claimed against personal income taxes. A trader should file them with the proper government agency in malaysia. You should seek advice with a malaysia tax professional to ensure they are abiding by all proper tax laws in malaysia. In malaysia islamic accounts do not have additional restrictions on trades.

Cryptocurrencies in malaysia

Cryptocurrency markets in malaysia are relatively new and their availability are subject to local financial regulation. Because cryptocurrency works on decentralised assets in malaysia things like interest rate changes and political instability do not affect cryptocurrencies as much as the currency markets in malaysia for example.

Due to a large young population in malaysia with growing income levels and wide spread adaptation of online technology cryptocurrency trading volume is increasing greatly in malaysia. $6 billion USD worth of bitcoin is traded daily around the world.

Commodity trading in malaysia

In malaysia commodity trading includes the trade in precious metals, energies and agricultural commodities.

Some commodities like metals are seeing exponential growth in malaysia since 2002.

Fast growing countries like china and india have been growing rapidly over the last 3 decades. This has meant that countries like china and india have a vast requirement for many basic commodities and raw materials for their populations. Crops to feed people and metal to build infrastructure for example. This means countries like malaysia are able to take advantage of this demand.

We list brokers that allow you to trade commodities in malaysia here.

Islamic accounts in malaysia

Malaysia brokers support islamic accounts or swap-free accounts. Malaysia islamic accounts have no rollover interest on overnight positions to comply the muslim faith. Traders of islamic faith are forbidden to pay interest. Brokers in malaysia offer accounts that are suitable for islamic traders. These malaysia brokers complies with sharia law.

Benefits of trading in malaysia

Malaysia economy and population is growing. The middle class population in malaysia is increasing which means a growing consumer base. Many business and financial opportunities exist in malaysia. Malaysia has a young population educated in technology and the internet.

Concerns of trading in malaysia

Malaysia digitisation of financial trading has made it easier to defraud unsuspecting investors across the internet. Make sure the broker you trade with is regulated and passes the checklist in this malaysia guide. Educate yourself as much as possible open a demo account if necessary be you open a live trading account.

Learn about leverage when trading. Malaysia brokers offering high leverage trades in malaysia can mean high profit margins. But this goes both was it can also mean huge losses. There are things like negative balance protection and stop loss accounts which some malaysia brokers offer as a level of protection. You can learn more about further below on this guide.

Reputable malaysia brokers checklist

There are a number of important factors to consider when picking an online malaysia trading brokerage.

Check your malaysia broker has a history of at least 2 years.

Check your malaysia broker has a reasonable sized customer support of at least 15.

Does the malaysia broker fall under regulation from a jurisdiction that can hold a broker responsible for its misgivings; or at best play an arbitration role in case of bigger disputes.

Check your malaysia broker has the ability to get deposits and withdrawals processed within 2 to 3 days. This is important when withdrawing funds.

Does your malaysia broker have an international presence in multiple countries. This includes local seminar presentations and training.

Make sure your malaysia can hire people from various locations in the world who can better communicate in your local language.

It is not essential that your brokerage is local but they must have regulation from a tier 1 reputable country. In fact the brokers international regulation could be more reputable than your local region.

When deciding to trade and find a suitable malaysia broker if you wish your broker to be 100% local check they are governed and regulated by the below.

Our team have listed brokers that match your criteria for you below. All brokerage data has been summarised into a comparison table. Scroll down.

Our brokerage comparison table below allows you to compare the below features for brokers offering malaysia brokers.

We compare these features to make it easier for you to make a more informed choice.

Minimum deposit to open an account.

Available funding methods for the below malaysia brokers.

What you are able to trade with each brokerage.

Trading platforms offered by these brokers.

Spread type (if applicable) for each brokerage.

Customer support levels offered.

We show if each brokerage offers micro, standard, VIP and islamic accounts.

Top 15 malaysia brokers of 2021 compared

Here are the top malaysia brokers (MY).

Compare malaysia brokers min deposits, regulation, headquarters, benefits, funding methods and fees side by side.

All brokers below are malaysia brokers. Learn more about what they offer below.

You can scroll left and right on the comparison table below to see more malaysia brokers that accept malaysia clients

Forex brokers in malaysia

It is not hard to find a forex broker who makes you feel safe and mentally comfortable, you just have to take into account the important factors in finding a reliable and trusted forex broker. Essentially, a trusted forex broker is ethical, law-abiding, fully devoted to its clients, and its background in the industry speaks for itself. Such a broker provides quality support, prompt deposits and withdrawals methods, and most importantly, reliable trading conditions so you can take a load off your mind and focus your attention solely on your trading career.

Here we have presented the most successful forex brokers in malaysia with years of presence in the forex industry. These brokers are also fully regulated by the top international financial regulatory bodies such as cysec, FCA, ASIC, and IFSC. They have acquired the very best rate of satisfaction among the traders from all over the world.

Choosing a safe forex broker is your #1 priority for successful trading. To learn more about each reliable forex broker listed below, simply go to the broker вђ™ s вђњ review вђќ page and check out their trading products, account types, platforms, spreads and so on.

List of trusted and reliable forex brokers in malaysia 2021

How to choose a trusted & reliable forex broker?

The regulation is one of the key factors to consider before anything else. You cannot entrust your funds to any random forex broker that you come across. It is imperative to thoroughly investigate the FX broker of your choice in terms of safety, security, and reliability by simply taking into account which supervisory authority oversees their overall financial activities i.E., an administrative body which regulates forex brokers in the interest of the public. Regulated forex brokers are required to be financially stable, provide segregated accounts for their customers, offer proper pricing, quality order execution, and most importantly ethical and fair business methods.

It's better to make sure that the chosen forex broker is headquartered in a country where a certain regulatory body enforces laws and regulations; for instance, the cysec of cyprus, FCA of the UK, ASIC of australia, IFSC of belize and other relevant authorities. Working with a forex broker that is not regulated and answers to no authority could put you at financial risks. A non-regulated forex broker is not under any obligation to process your transactions, give you the correct required charts or data, or support you in any way. Additionally, if you choose to work with an unauthorized broker, you do so at your own risk, and can't redeem your losses or officially complain to authorities since they are not members of a compensation fund scheme or any organization of that kind.

The quality of a forex broker's customer support says a lot about them. The services that you require from a forex broker need to be available at all hours (24/5) considering the level of activities in the FX market. Customer support should be within your reach via various methods including email, live chat, and phone calls just to make you more comfortable. The support staff has to be well-informed and well-mannered to answer all your questions and guide you to the best of their knowledge, so you'd know if you can count on them when a real problem occurs. You can review their overall response time and effort through live chat to see how they approach your questions about spreads, leverage, regulations, or any other details that you want to know. They should listen to your concerns patiently and offer their support to address your needs. Otherwise, you need to go to another forex broker whose support department would help to make your trading experience all the more rewarding.

An active forex broker in your region that offers support in your local language could be very helpful, especially if you are not very good at english. This also means that you will receive the best support to face your problems faster.

Forex traders are required to pay a spread - the difference between the bid and ask prices - to their forex brokers. The spread is offered either as fixed or floating which can be chosen according to your trading requirements. The fixed spread, as the name suggests, stays the same regardless of the size of your trade. The floating spread, however, changes with the market movements and is usually offered as low as 1 pip. So you need to consider which spread type fits your trading strategies and choose accordingly. Forex brokers earn a profit by charging a spread for the clients' transactions. Some brokers charge higher spreads to earn more money while others offer lower fees for their services to attract more customers. Dealing desk brokers (market makers) set the spread price for every currency pair ranging from 2-3 pips. Forex traders are always looking for the lowest spread forex brokers in order to reduce their own trading costs.

Forex is known for its high leverage, and there are forex brokers who offer high leverage ranging from 1:50, 1:100 or even as high as 1:3000. Aggressive traders tend to use leverage at its maximum level and take bigger risks, cautious traders, on the other hand, might want to approach leverage more carefully to stay on the safe side.

Another important issue is the speed and quality of order execution, especially for scalpers, EA users, and those who trade more often. Moreover, scalpers are more interested in ECN forex brokers through which they can receive better and friendlier trading conditions including the lowest spreads, no re-quotes, and ultra-fast order execution.

Every forex broker offers somewhat different deposit and withdrawal methods to its clients. Ideally, you need a broker whose payment systems are user-friendly, fast, and secure. Traders can now fund their accounts via bank wire and credit cards (visa, mastercard, etc.) at many forex brokers. Forex brokers also accept online payment systems including webmoney, skrill, neteller, fasapay, bitcoin and perfectmoney because of their speed, ease of access, and worldwide popularity. Funding time in bank wire transactions is usually up to a few business days, while with online payment systems, deposits and withdrawals are processed very quickly (deposits are made instantly and withdrawals in few hours or within a working day).

Moreover, forex brokers that are active in specific regions may accept funding via local banks. For example, the clients from malaysia are able to use their accounts with the local malaysian banks as a depositing method directly from their personal cabinet. In this way, the malaysian traders can fund their forex account faster and easier withdraw the funds (e.G., any earned profits) to their local bank account (in ringgit).

Go to forex deposit & withdrawal in malaysia to learn about all payments methods offered by forex brokers in malaysia.

The best forex brokers in malaysia 2021

Finding the best brokers to trade forex in malaysia may seem difficult. The legal environment for forex traders in malaysia can be challenging to navigate and choosing the wrong broker is easier than you might think.

While the securities commission of malaysia permits both onshore and offshore brokers, not all of these are a safe choice. Luckily for you, our experts have evaluated hundreds of providers to create a list of secure forex brokers that accept malaysian traders.

Our best malaysian forex brokers are all licensed by the SCM, provide malay language support, accept deposits via localized payment methods, and offer islamic swap-free accounts. As such, you can trust them to offer a superior trading experience.

Check out our list of reputable forex brokers in malaysia below or continue reading our detailed guide to discover:

How forex trading is regulated in malaysia

What you will need to open a trading account in malaysia

How islamic accounts work

The pros and cons of trading forex in malaysia

Our list of the best forex brokers in malaysia are:

Best and most trusted forex brokers in malaysia january 2021

How we find the best forex brokers in malaysia

As a malaysian trader, choosing a forex broker can be complicated. However, we’ve done all the hard work for you. The firms that have made it on to our list of the best places to trade forex in malaysia have all gone through a very rigorous evaluation and testing process.

Based on our extensive experience as professional traders over the years, we’ve developed a highly complex and effective methodology to review and rank brokers. Our team tests each broker using over 200 different criteria points across 10 essential areas, ranging from licensing to reputation.

We understand that not every category has the same level of importance. For that reason, we assign a different weight to each one. A category like licenses and regulation has a more significant impact on the final score than the availability of educational materials, for example.

For those looking to trade forex in malaysia, however, our forex broker review team also considers certain aspects that will appeal specifically to you.

Regulation – the main forex trading regulatory body is the securities commission of malaysia (SCM), though malaysian forex traders can sign up with any internationally regulated forex broker. However, it’s often a good idea to work with a firm that holds the capital markets services license (CMSL) issued by the SCM. All the forex brokers we recommend for malaysian traders are licensed by the SCM.

Islamic accounts – we also check to make sure that the forex brokers we recommend offer islamic forex accounts, customized for muslim traders, which means they do not charge swaps.

Localized payment methods – when you make a deposit or a withdrawal through a malaysian payment method, you’ll save time as well as money. Local payment methods are faster, have lower fees, and will also help you save on currency exchange fees. We ensure that the brokers we recommend offer payment methods convenient for you as a malaysian trader, including maybank2u, cimbclick, alipay, wechat pay, MOL-wallet, gocash, zoom payments, iwallet, and more.

Good spreads on important currency pairs for malaysian traders – A large percentage of malaysian forex traders focus on currency pairs that involve the US dollar. This is because the bank of negara has prohibited the trading of the ringgit. Therefore, we focus on finding brokers that offer attractive spreads on major USD currency pairs, such as the EUR/USD, the GBP/USD, and the USD/JPY, as well as on some of the more exotic USD pairs, including the USD/SGD, the USD/CNY, and the USD/THB.

The ability to deposit in ringgit but trade in another currency – we only recommend brokers who accept deposits in ringgit but then allow you to trade in US dollars or any other currency of your choice. This way, you won’t have to deal with the hassle of currency exchange, while still ensuring that you align with the law on the trading of ringgit.

Customer service and websites in malaysian – any forex broker catering to malaysian traders must ensure that you can understand their offer and communicate with them effectively. This means a good broker will offer support in malaysian and also have their website available in your language. This is exactly what you can expect from the brokers in our list of the best malaysian forex brokers. So-called malaysian forex brokers who don’t offer their website or support in malaysian will never make it onto our list.

How is forex trading regulated in malaysia?

While forex trading is legal in malaysia, technically you can only do so with registered and approved financial institutions. Until recently, these institutions consisted mainly of large financial organizations and banks, which were not interested in working with retail traders.

However, malaysian law states that it is legal to make overseas investments. Therefore, many malaysian traders opt to work with offshore brokers and classify their trading as an offshore investment.

Some also claim that the rule of only trading currency with licensed institutions only applies to physical currency. Conversely, retail forex trading, when done online, doesn’t fall into that category because you are trading theoretical currency.

The simplest way to ensure that you are trading forex in malaysia legally is to use a licensed institution and have an islamic account.

So, there are ways for you to trade forex legally in malaysia, especially if you’re using a licensed institution or an offshore forex broker.

However, the law is clear in that you cannot trade forex in malaysia with someone else’s funds, just as you can’t ask others to provide you with funds to trade.

It should be noted that the government is relaxing the rules of trading forex in malaysia.

Who regulates forex trading in malaysia?

In terms of regulatory bodies, trading forex in malaysia is regulated mainly by the securities commission of malaysia and bank negara malaysia.

Bank negara malaysia

Bank negara is malaysia’s central bank and controls everything related to the ringgit. It also advises the government regarding the financial standing of the economy and is also actively involved in everything to do with trading forex in malaysia.

The securities commission of malaysia

The securities commission of malaysia regulates any company that deals with securities. Some of its functions include:

Supervising clearance houses, central depositories, and exchanges

Registering preparation prospectuses other than unlisted recreational clubs

Approval of corporate bond issuances

Regulating anything to do with securities and futures contracts

Regulating mergers and acquisitions

Other regulatory authorities

The other authorities that play a role in regulating forex in malaysia include the malaysian investment development authority, the finance accreditation agency, and the sharia advisory council.

The malaysian investment development authority lays out the rules of conduct for currency exchange businesses and retail forex traders. They also regulate matters regarding investment in foreign assets, foreign currency loans, ringgit loans, and opening accounts in foreign currencies.

The finance accreditation agency was established by the securities commission malaysia and acts as an independent body charged with quality assurance and accreditation for companies operating in the financial services sector.

The sharia advisory council ensures that the islamic capital market fully complies with sharia principles.

Trading with offshore brokers in malaysia

The main issue with trading forex in malaysia is that, in some areas, this activity is permitted only to a certain point. It’s, therefore, easy to cross the legal line, especially if you don’t research the law in your local area.

You can avoid this issue is by working with an offshore forex broker. Malaysian law allows people to invest overseas, and retail forex trading can be considered a foreign investment, as long as you use an offshore forex broker.

If you choose the right offshore broker, you’ll be able to enjoy a slew of other advantages, including attractive bonuses, investor protection, safety against scams and frauds, and more.

One of the main disadvantages of an offshore forex broker is that you could end up choosing the wrong firms to work with. Some brokers are licensed in regions with regulatory bodies that do little regulating. In these cases, the risk of being defrauded is far higher.

This won’t be an issue, however, if you only choose an offshore forex broker from our list of the best firms to trade forex in malaysia.

If you decide to work with a different firm, though, make sure they are regulated by a top tier regulatory agency. These include the australian securities and investments commission, the monetary authority of singapore, the cyprus exchange and securities commission, and the financial conduct authority of the UK.

Top tier regulatory bodies enforce strict rules of conduct for forex brokers, ensuring that these firms treat you fairly. Many of them also require brokers to be part of some form of investor compensation program to ensure that if the firm goes bankrupt, you will receive some form of compensation.

For example, cysec-regulated brokers are members of the investor compensation fund, which covers forex traders up to €20,000.

Islamic accounts for malaysian forex traders

Islamic accounts are designed for muslim traders as you won’t have to pay swaps/rollover fees and will not earn interest. Transactions should also be settled right away. Currencies, therefore, must be transferred between accounts immediately upon the conclusion of the transaction, and the costs must be covered at the same time.

Sharia law does not permit making money from money, known as “riba”, which includes interest. Likewise, muslim traders are not permitted to pay interest.

Another consideration is the practice of gharar, which roughly means gambling, and is prohibited. However, gharar can also imply making any hazardous sale or risky investment. Some conservatives may feel that speculation on the forex market might equate to gharar.

Some activities that could be affected by these prohibitions include:

Swaps: shariah law states that trading accounts cannot incur or receive swaps on overnight positions.

Interest on margin deposits: according to shariah law, a trading account cannot receive interest on the funds it contains.

Loans: any funds transferred by a financial institution as a loan with interest terms are prohibited because of riba. A signed commitment to repay the loan is also forbidden.

Margin trading: trading certain securities on margin requires the payment of interest to borrow the funds from a broker to trade, which means it’s against shariah law. However, trading forex on margin doesn’t involve the payment of interest and only requires a margin deposit.

Forward sales: sharia law forbids traders from making agreements to purchase or sell at a future date on a price set today. This means that muslim traders cannot enter forward contracts or trade futures contracts.

What we look for in islamic accounts

Not all forex brokers offer islamic accounts that conform in full with shariah law. Some, for example, will place a time limit on the no-swap period. So, they’ll advertise that their accounts are swap-free, but when you read the fine print, you discover that the swap-free period is only authorized for 14 business days, for example.

Other forex brokers claim not to charge rollover fees, but fold these swaps into other fees they charge you or simply name them commissions, which means they are not 100% shariah-compliant.

Yet other firms might offer a truly swap-free account, but then practice wider spreads and require higher deposits for these types of accounts.

However, if you choose to work with one of the firms on our list of the best brokers to trade forex in malaysia, you don’t have to be concerned. We’ve ensured that they offer islamic accounts that are 100% compliant with shariah law.

What you will need to trade forex in malaysia

Opening a live forex trading account in malaysia is a straightforward, simple process. While the details might differ slightly from one broker to another, the overall process is practically the same.

You start by filling out an online application that requires you to provide some personal information, such as:

Your name and address

An email address and phone number

Your date of birth

Your nationality and an ID/passport number

A password for your account.

Some forex brokers might then ask you some questions to determine your trading experience and to ensure that you have at least a basic understanding of forex trading.

Then, you will have to upload your government-issued ID or passport, along with a utility bill, to verify your identity and address.

Once the broker verifies your documents, you’ll be able to deposit funds into your account and start trading.

Malaysian forex brokers vs other forex brokers

Trading forex in malaysia with local forex brokers has a few benefits over using an offshore broker. However, malaysian brokers also have some limitations.

The benefits of malaysian forex brokers

Here are some benefits of trading with forex brokers in malaysia:

All malaysian forex brokers must be licensed by the securities commission of malaysia, which ensures that you are in full compliance with the law when trading with these firms.

Among other responsibilities, the SCM also works to ensure that malaysian forex traders are safe when trading with a broker that has received a license. Your funds are, therefore, secure when trading with a malay forex broker.

Malay forex brokers also offer localized payment methods, so you will get your funds faster than with an international transfer. You’ll also pay lower fees and save on exchange rates.

Many forex brokers in malaysia also permit you to deposit funds in ringgit but to then trade with another currency. It makes life easier for you since you don’t have to go through the hassle of exchanging ringgit into another currency, while also ensuring that you comply with the law as trading ringgit is prohibited.

The limitations of malaysian forex brokers

While trading with a malay forex brokers means you are safe at all times, these brokers do have some limitations that might make you consider using an offshore broker:

Trading forex in malaysia is still a relatively new concept, so local brokers are often not as sophisticated as offshore brokers. This can lead to various issues, including basic trading platforms, lower execution speed, and more.

You are also limited in terms of trading ringgit. However, this is an issue common to all forex brokers, regardless of location. The malaysian government has not lifted its prohibition on trading the local currency to maintain some control over the exchange rate.

Malaysian forex trading guide

With wealth in the country increasing and living standards improving, forex trading in malaysia is becoming increasingly popular. Until a few years ago, the practice was illegal, but now it has become legal. There are still some government and religious bodies that believe it to be outlawed so it may require you to carry out further research in your locality.

As its popularity grows, so it makes the choice of brokers available to trade with grow. Having such an extensive selection of forex brokers in malaysia is good news for those that wish to trade. It opens up much more opportunity for you and means that you can select the one that offers you the best experience.

Malaysian residents are required to trade with a licensed broker which means that you must choose wisely. This is where we can help. We work hard to provide you with only the best that the forex market has to offer. We spend our time trading with and researching, every broker to ensure that they meet our high expectations.

In this article, you will learn:

Top rated forex sites

Risk warning: the products offered by the companies listed on this website carry a high level of risk and can result in the loss of all your funds. You should never risk money that you cannot afford to lose.

Ad disclosure: some of the links that you will find on this website are advertisements for which we do receive financial gain for referring new customers.

Forex sites in malaysia

When it comes to forex trading in malaysia, your first hurdle is to choose the best broker. This is important as it will mean the difference between a great experience and a not so good one. There are many criteria to consider from the incentives offered to encourage you to trade, to the overall trading experience. These are some of the critical things to look out for:

Welcome bonuses and deals

Most brokers offer a welcome bonus in one form or another. A popular choice is the no deposit bonus. This bonus is offered to new traders to encourage you to open an account. It can vary in price but generally starts at $25. This allows you the opportunity to test the platform without risking your funds and is a great way to start.

Currency pairs

There are three main categories of forex currency pairs. The main ones include pairs like the USD/GBP and USD/EUR. Then there are minors and exotics which involve trading in less popular currencies. Some brokers offer more options than others when it comes to trading. Some will only allow you to trade in the main pairs which tend to be more profitable but with tighter spreads.

Demo account

If you want to get familiar with a forex broker before you start investing your funds then the demo account is perfect. It allows you to trade on the virtual version of the platform with a generous amount of virtual funds. You have a limited amount of time available to trade on the platform, but it gives you the chance to get familiar with it.

Customer support

This is an essential factor, especially to new traders. You need to be sure that if you have a question, query or an issue then you can get hold of someone. Many brokers offer a live chat assistant but make sure you dig deeper than this. Check out the contact link to see what opportunities you have to contact them.

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Broker fees and tax

Any income that is accrued or derived in malaysia is subject to income tax. Now there may be some confusion as to whether trading with an offshore broker, classes as income that is derived in malaysia and if you are in any doubt at all then we recommend that you consult with a tax professional.

As legally you are required to trade with a licensed broker, you may be trading with a broker that is local to you in which case you will most certainly be liable to tax on your trading profits. To ensure that you are paying the right amount, you need to obtain a full history of your transactions so that you offset your losses against your earnings.

In terms of fees, there are a few to consider. Some of them might be regarded as negligible for those of you that are trading in large sums, but they soon add up. First is the commission you pay for a successful trade. Then there are additional fees. The withdrawal fee is often charged by brokers as a fixed fee each time a withdrawal is made.

It is advisable to make larger, less frequent withdrawals to minimise these fees. Then there are a couple of other expenses to consider; transaction fees from your payment provider and currency conversion fees if you are trading in a foreign currency.

Best forex brokers in malaysia 2020

We research over 30+ reputed forex brokers & have listed the ones that you can safely trade with lowest fees.

Last updated: october 29, 2020

Trading forex (currencies) in malaysia is popular among residents. Before any fx broker in malysia can accept forex and CFD traders as clients, they must hold a capital markets services license (CMSL) from the securities commission of malaysia (SCM), which is the financial regulatory body in malaysia.

Established in 1993, SCM is malaysia’s financial markets regulatory body. In april 2018, SCM issued guidelines for contracts for difference (CFD) providers including brokers offering derivatives, under the capital markets services act of 2007, which will become effective july 1st 2018. As a result, we expect more regional brokers will register with SCM in order to acquire a CMSL.

List of best forex brokers in malaysia

Exness – overall best forex broker in malaysia

XM broker – good broker with low fees

Hotforex

Octafx

IC markets

FXTM

Best forex brokers list malaysia

To find the best forex broker in malaysia, we created a list of regional brokers, then ranked brokers by both trustworthiness, as well as their overall ranking from the. The result is our top forex brokers list for malaysia.

How to verify SCM authorisation

To identify if a forex broker is regulated by SCM, the first step is to identify the register number from the disclosure text at the bottom of the broker’s malaysia homepage.

Next, look up the firm on the SCM website to validate the current regulatory status of the broker in malaysia. Here is the official page with the public register of license holders on SCM.

It’s also worth noting that bank negara malaysia, which is the central bank of malaysia that regulates money service businesses and forex dealers, issued guidelines for digital currencies (cryptocurrency) requiring companies to comply when dealing with crypto assets.

Top malaysia brokers for 2021

We found 11 online brokers that are appropriate for trading malaysia.

Best malaysia brokers guide

Malaysia financial markets

Trading in malaysia

When trading in malaysia you will need to know what your options with your malaysia trading broker are.

Forex trading in malaysia

Forex trading is growing in popularity in malaysia. The volume of forex traded in malaysia has increased year on year over the last five years.

Across the world $5.1 trillion USD in volume is traded every single day. This is a huge amount in comparison with other financial market sectors.

Advances in online technology, higher internet coverage in malaysia and increased competition among brokerages have made forex trading more accessible and reduced the costs of trading generally.

Is forex trading legal in malaysia?

Their is a misconception that trading forex on the financial market in malaysia is considered unsafe. This is not the case, forex trading in malaysia is very active.

Do forex traders pay tax in malaysia?

Cryptocurrencies in malaysia

Commodity trading in malaysia

In malaysia commodity trading includes the trade in precious metals, energies and agricultural commodities.

Some commodities like metals are seeing exponential growth in malaysia since 2002.

We list brokers that allow you to trade commodities in malaysia here.

Islamic accounts in malaysia

Benefits of trading in malaysia

Concerns of trading in malaysia

Reputable malaysia brokers checklist

There are a number of important factors to consider when picking an online malaysia trading brokerage.

Check your malaysia broker has a history of at least 2 years.

Check your malaysia broker has a reasonable sized customer support of at least 15.

Does the malaysia broker fall under regulation from a jurisdiction that can hold a broker responsible for its misgivings; or at best play an arbitration role in case of bigger disputes.

Check your malaysia broker has the ability to get deposits and withdrawals processed within 2 to 3 days. This is important when withdrawing funds.

Does your malaysia broker have an international presence in multiple countries. This includes local seminar presentations and training.

Make sure your malaysia can hire people from various locations in the world who can better communicate in your local language.

When deciding to trade and find a suitable malaysia broker if you wish your broker to be 100% local check they are governed and regulated by the below.

Our team have listed brokers that match your criteria for you below. All brokerage data has been summarised into a comparison table. Scroll down.