There are no licensed forex brokers registered with the Securities Commission Of Malaysia (SCM) so an Asia regulated (ASIC/MAS) CFD provider with Islamic forex trading account options is the best forex broker for Malaysian forex traders.
View the top forex brokers for Malaysia forex trading below.
By Justin Grossbard / Updated: Sunday, February 23rd, 2020
2020 Top Forex Broker Malaysia List
When forex trading in Malaysia a forex broker should be selected based on spreads, leverage and forex platform offered.
IC Markets – Lowest Spread Forex Broker
Pepperstone – Best MetaTrader 4 Forex Broker
FxPro – Best cTrader Forex Broker
CMC Markets – Best Share + Forex Trading Platform
IG Markets – Best Range Of Markets
FXTM – Highest Leverage CFD Broker
eToro – Most Advanced Social Trading
AvaTrade – Best Islamic Account Type
Top 8 Malaysian Forex Brokers
1. IC Markets 10/10 – Lowest Spread Forex Broker
IC Markets is one of the most popular fx brokers in the broader Pacific region, offering access to 65 currency pairs as well as Stock, Bond, Commodity and Cryptocurrency CFDs. The low fee brokers Raw Spread and cTrader accounts charge flat-rate commissions lower than most top forex brokers while giving clients’ access to spreads as low as 0.0 pips.
Diverse top-tier liquidity providers give IC Markets customers’ access to institutional-grade trading and reduced slippage. Offering an ECN-type trading environment, IC Markets is a low-cost option with spreads starting as low as 0.0 pips. When trading under a Raw Account, a standard commission fee of $3.50 USD is applied to each lot of 100,000 units. As a result, IC Markets is an excellent platform for high-volume Forex traders, Expert Advisors (EAs) and Scalpers.
For investors’ wanting to trade forex and CFDs on MetaTrader 4, Pepperstone is an excellent option due to the broker’s tight spreads and range of trading tools available.
MetaTrader 4 and Pepperstone
The gold standard of forex trading platforms, MetaTrader 4 (MT4), provides traders’ with a highly customisable interface where advanced analysis can be easily conducted. To assist with market analysis, MetaTrader 4 has built-in Autochartist features that include:
Market scanner with probability filters
Technical Indicators such as Wedges, Triangles and Tops and Bottoms
Risk calculator based on backtesting
Volatility Analysis to set stop-loss and take profits levels
Daily Market Reports that explain trading opportunities and significant economic events
Pepperstone clients’ can code and develop Expert Advisors (trading robots) with the MQL4 MetaQuotes language. As well as the preinstalled trading tools available on the trading platform, additional add-ons can be downloaded from the broker’s website. Pepperstone’s Smart Trader Tools include 28 indicators and Expert Advisors to enhance the MetaTrader 4 trading experience. Expert Advisors included in the Smart Trader Tools range from Correlation Matrix to Sentiment Traders to Stealth Orders.
MetaTrader 4 is available as a desktop platform, webtrader app or as mobile trading apps. Mobile apps are compatible with both iOS and Android, allowing traders to stay updated and place orders on the go.
For those wanting to gain experience or practise strategies, the free MetaTrader 4 demo account offered by Pepperstone is a great tool regardless of a traders’ experience. Seasoned traders’ can test complex trading strategies and EAs without using real money, while those new to trading can build confidence. $50,000 of virtual funds are provided, with the trial account accessible for 30 days.
When trading CFDs and forex with Pepperstone on MetaTrader 4, clients can choose from two account types. The Razor Account provides traders with ECN-like spreads as low as 0.0 pips with a flat rate commission fee attached to orders. If customers’ are new to forex and prefer a simpler pricing structure, a Standard Account includes commission fees in the spreads which average 1.0-1.3 pips for the EUR/USD currency pair.
The reasons why Pepperstone is able to offer traders’ using the Raw Account type an ECN-like environment are due to the brokers’ partnership with Equinix, No Dealing Desk (NDD) execution and top tier liquidity providers. Equinix’s data centre services buy and sell firms as well as multiple asset classes including forex, stocks and derivatives. The proximity of Equinix’s servers’ to major players in the financial industry allows retail traders’ to access liquidity pools which were traditionally only offered to institutional investors’.
FxPro cTrader provides traders institutional-grade trading environment with ECN-style pricing, advanced trading tools and ultra-fast execution. Traders’ can enjoy a user-friendly interface with a range of advanced technical analysis tools with over 50 different indicators. For those wanting to automate their trading, FxPro offers cTrader Automate, an advanced algorithmic coding application. Traders can build customised trading robots and indicators using the C# language and backtest algorithmic strategies against historical market data.
FxPro cTrader Commission Fees and Order Types
When using cTrader, FxPro customers’ incur a commission fee of USD $4.5 per 100k traded. To manage the high risk of forex trading, FxPro clients can utilise a range of order types to assist in minimising losses. A Market Order executes a buy or sell order at the current market price while Pending Orders include Stop Orders, Stop Loss, Limit Orders and Take Profit.
FxPro clients’ using cTrader can trade in an ECN-like environment with spreads as tight as 0.0 pips and most orders executed in less than 10 milliseconds. With No Dealing Desk execution and diverse liquidity providers, cTrader users’ gain access to competitive bid and ask prices and full market depth when trading with FxPro. The brokers’ trading servers’ are located at London and Amsterdam’s Equinix Data centers allowing FxPro to access co-located liquidity providers such as top-tier banks.
For those wanting to trade forex and shares, CMC Markets is a strong candidate owing to its market access to 300 major, minor and exotic currency pairs plus over 9400 ETFs and Shares.
Global Market Access
To start trading, prospective customers’ can register with CMC Markets through a CFD account. Spreads are as low as 0.7 pips with no commission (except for Share CFDs). No minimum deposit is required to start trading CMC Markets 9,500+ products. Traders’ execute orders on financial instruments ranging over 7 asset classes, including:
348 Currency Pairs
9405 ETFs and Shares
Trading Platforms and Risk Management Tools
With CMC’s automated trade execution and risk management tools, traders can more easily profit from the Forex market while keeping their risk levels in check. CMC Markets global market offering is available to trade via the brokers proprietary platform, Next Generation or MetaTrader 4. For those new to CFD and currency trading, the Standard version of Next Generation is a suitable option, as the Advanced trading platform is designed for experienced investors’. In-built analysis tools include over:
115 drawing tools and technical indicators
12 chart types
70 chart patterns
Many CMC Markets clients’ prefer the Next Generation platform as it offers access to a larger number of asset classes than MetaTrader 4, as well as in-built news to keep updated with changes to global markets.
To start trading with CMC Markets, Malaysian traders’ can sign up to a demo account first, or register directly with the top fx broker.
Established in 1974, IG is a Forex broker with ample experience in the marketplace and a strong history of strong customer support. With over 15,000 underlying assets for traders to choose from, IG offers excellent trading versatility. These assets include Forex currency pairs as well as a diverse range of Contracts for Difference (CFDs).
Range of Markets
Share CFDs (over 12,000 instruments with DMA)
Users’ can choose from a range of platforms when they start trading with IG Markets. The brokers proprietary webtrader platform provides a user-friendly interface, numerous indicators and charting features, as well as news directly from Reuters and Twitter.
For those wanting to trade through a desktop platform, IG Markets offers two options, MetaTrader 4 (MT4) and the brokers advanced proprietary platform. The advanced platform is designed for DMA Accounts, providing access to an ECN-like trading environment. In regards to MT4, the desktop and mobile platform allow for sophisticated analysis and order types. MT4 users’ have access to thousands of products, with the ability to go long or short in a range of markets.
IG Markets clients’ can trade forex and CFDs via an Over The Counter (OTC) account, or a Direct Market Access (DMA) Forex Direct Account. When trading forex through an OTC Account, there are no commission fees, while a DMA account charges a $10 commission fee per $1 million traded.
To open a demo account with IG Markets, prospective clients’ are required to sign up to an OTC account.
ForexTime (FXTM) is a top forex broker offering leverage that is significantly higher than its competitors. Although the broker offers a range of account types, to access the high maximum leverage traders should sign up to a Standard, ECN Zero or ECN account type. A Standard account offers fixed spreads from 1.3 pips that include commission, while ECN account gives traders access to ECN-like spreads starting from 0.1 pips with a commission fee of $2 per lot.
When trading forex through the above account types, FXTM clients can leverage positions up to 1000:1 on major currency pairs, 500:1 on minor currency pairs, and 200:1 on exotic currency pairs.
Leverage on Cryptocurrency products is also much higher than other top CFD brokers. On popular Cryptocurrency CFDs such as Bitcoin vs USD, Ethereum vs USD and Litecoin vs USD, FXTM traders can enter positions that are leverage up to 100:1, while the maximum leverage on Ripple vs USD is much lower at 10:1. Leverage of 100:1 on Crypto products is incredibly high compared to other retail CFD brokers that usually only offer 5:1. As FXTM Crypto products are Contracts for Difference, traders can enter long or short positions as they are not buying or selling the physical under cryptocurrency. Yet, Malaysian traders’ should note that Cryptocurrency markets lack regulation and are very volatile, therefore trading Crypto with leverage comes with a high risk of losing money.
Standard, ECN and ECN Zero accounts are all available as Islamic account structures where a flat rate is charged for overnight financing rather than interest. Yet traders of Muslim faith should note swap-free accounts are only available with Forextime through MetaTrader 4.
7. eToro #/10 – Most Advanced Social Trading
With millions of traders from over 140+ countries around the world, eToro is the best social trading broker offering an established social network. The social network allows eToro clients’ to follow and copy trading strategies of experienced investors (‘Popular Investors’) that match their desired risk level. To find a Popular Investor that has similar trading objectives, users can view their trading history and assess the investors’ past performance and behaviour. When copying the strategies of popular investors, traders are not limited to Forex markets. eToro clients’ can follow different strategies based on a range of asset classes including Shares, Commodities, ETFs (Exchange-Traded Funds) and Indices.
As well as following a single Popular Investors’ strategy, eToro traders’ can invest in two different types of ‘Copyportfolios’ aimed to reduce risk through diversification.
Market Copyportfolio: a bundle of asset classes and instruments based on a specific trading strategy (consists of shares, ETFs, forex, commodities and indices).
Top Trader Copyportfoilo: a combination of strategies designed by eToro’s best performing long-term traders (focuses on stock trading).
Although funds can be withdrawn from Copyportfolios at any time, eToro they are medium to longterm investments and should be held for longer periods. The minimum initial deposit required to invest in Copyportfolios is $5000, yet unlike many other top brokers portfolio management services, eToro charges no management fees. The broker
Earning Bonuses as an eToro Popular Investor
Any member of the social trading network can become a Popular Investor and earn fixed monthly commissions when other traders copy their strategies. The cash rewards Popular Investors gain when allowing others to follow their strategies depends on the number of copiers they have. For instance, if 50 traders copy an investors trading strategy, the Popular Investor will receive $350 a month in bonuses. When a Popular Investor reaches eToro’s elite status, they receive a monthly rebate of 2% (of the funds they managed annually) as well as access to commission-free spreads.
To explore eToro’s copy trading features prior to trading with real money, a free demo account is available. The fully-functional trial account allows traders to research Popular Investors and practise copy trading.
8. AvaTrade #/10 – Best Islamic Account Type
AvaTrade offers a commission free Islamic Account Type for Muslim clients’ wanting to trade forex and CFDs. Commonly known as No Swap or Swap-Free Accounts, Islamic accounts comply with Sharia Law by changing the fee structure for positions held longer than one day. For a Standard Forex account type, rollover interest is charged when positions are held overnight. Yet, with an Islamic account type, overnight financing fees are flat-rate charges as interest is prohibited under Sharia Law.
The SSB (Sharia Supervisory Board) issues a seal of approval if a forex broker is offering compliant Islamic accounts. If a broker holds an SSB seal, it can reassure traders’ of Muslim faith that their trading activity involves no hidden interest or risk, and complies with Sharia Law.
Additionally, AvaTrade provides access to Islamic halal trading of gold and silver. As Sharia Law requires all gold and silver trading to be supported by the physical underlying asset, traders’ of Muslim faith can trade these financial instruments knowing the requirements of Islamic finance are met.
Certain restrictions may apply when trading under an Islamic Account type with AvaTrade. For instance, Islamic traders’ cannot trade Cryptocurrency and certain currency pairs such as the Turkish lira, Russian Ruble, South African rand and Mexican Peso. Additionally, forex spreads available to Muslim traders’ tend to be wider than the tighter spreads offered to Standard account holders.
More Information About The Securities Commission of Malaysia
The Securities Commission Of Malaysia (SCM) as founded in 1993 and provided CFD provide guidelines recently in 2018. This has allowed a licensed forex broker in Malaysia to exist with a CMSL licence but to date, no CFD provider has registered. You can view the Securities Commission Malaysia website to view the database to review if any Malaysian forex broker has been registered. A good source to view changes in Malaysia forex broker regulation is the SCM or the Central Bank of Malaysia (Bank Negara Malaysia). This is the regulatory body for forex, cryptocurrency and other financial services and asset classes.
With no licensed forex broker in Malaysia (SCM), to avoid a scam the best forex broker option for Malaysian forex traders is with a foreign exchange broker registered with another credible regulator. In Asia this is the Australian regulator (ASIC) or the Singapore regulator (MAS). Other credible regulators are in the UK (FCA) and Cyprus (CYSEC) and in the UAE (DFSA). Viewing the best forex broker pages on this website to view the best-regulated forex brokers in each region is a good starting point to find the right online trading account when trading CFDs for your needs.
Choosing the Best Forex Broker in Malaysia
If you want to be successful as a Forex trader, choosing a broker that suits your trading needs and preferences is a important first step. When comparing Forex brokers, the first thing you should consider is what kind of trading you intend to do. If you plan to heavily mix CFD trading with your Forex trades, a brokerage that offers a wide range of CFDs will be best for you. You should also consider whether you plan to stick to the major Forex pairs or branch out into minors and exotics.
Malaysian traders should understand the risks associated with leveraged CFD products. Most retail investor accounts will provide risk warnings and disclaimers explaining these risks. There are ways to reduce the risk of CFD trading from choosing lower leverage, a trading account with negative balance protection and a low minimum deposit. If you are not an experienced trader and are not willing to take a high level of risk when trading markets you should consider a free demo account that most forex broker accounts will offer to Malaysian residents.
Many Malaysian forex traders may choose a forex broker that offers an Islamic trading account. With 61.3% of Malaysia’s population identifying as Islamic, there is a high demand for a forex trading account that is permitted by Sharia law. Islamic forex accounts do not pay interest or earn interest and instead are charged flat fees for holding positions for an extended period of time. While no trading account has a base currency of the Malaysian Ringgit (MYR) the exchange costs to local currencies are relatively modest.
IC Markets offers the best Islamic Trading account in the Asia-Pacific region based on:
Low spreads and fees (and no interest charged)
The option of the two best forex trading platforms (MT4 + MT5)
Strong customer support worldwide
High leverage available (high risk) for experienced traders
ASIC regulated foreign exchange broker
A range of financial instruments (including Bitcoin CFD trading)