The Securities Commission of Malaysia (SCM) has no licenced forex broker, so Malaysian residents will have to trade forex tier-1 brokers regulated by ASIC or MAS. Muslim Malaysian Traders should choose a swap-free Islamic account.
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Our list of the best Malaysian forex trading platforms is:
| Broker | Our Rating | Regulation | Standard EUR/USD Spread |
Standard GBP/USD Spread |
Standard AUD/USD Spread |
Raw EUR/USD Spread |
Raw GBP/USD Spread |
Raw AUD/USD Spread |
Commissions (USD Base) |
MetaTrader 4 | MetaTrader 5 | cTrader | Execution Speed | Minimum Deposit | Currency Pairs | Crypto CFDs | Retail Leverage | Prof. Leverage | Read Full Review |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Read review ›
|
80 |
ASIC,CySEC FSCA,FSA-S,FSC-M |
1.1 | 1.3 | 1.3 | 0.10 | 0.20 | 0.20 | $3.00 |
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225ms | $100 | 70+ | 10+ | 30:1 | 500:1 |
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Read review ›
|
85 |
ASIC, FSA-S CySEC |
0.62 | 0.83 | 0.77 | 0.02 | 0.23 | 0.17 | $3.50 |
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|
134ms | $0 | 61+ | 18+ | 30:1 | 500:1 |
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Read review ›
|
98 |
SCB, ASIC FCA, CySEC |
1.10 | 1.40 | 1.20 | 0.10 | 0.40 | 0.20 | $3.50 |
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77ms | $0 | 62+ | 12+ | 30:1 | 500:1 |
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Read review ›
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68 |
FCA, FSCA ASIC, FSA-S, CySEC |
1.1 | 1.3 | 1.1 | 0.1 | 0.3 | 0.2 | $3.50 |
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|
161ms | $0 | 46+ | 21+ | 30:1 | 500:1 |
|
Read review ›
|
61 |
FCA, FSCA CySEC, SCB, FSCM |
1.32 | 1.7 | 1.95 | 0.32 | 0.37 | 0.51 | $3.50 |
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|
151ms | $0 | 69+ | 30+ | 30:1 | 200:1 |
|
Read review ›
|
69 |
ASIC, MAS, FCA CIRO, FMA, BaFin |
1.12 | 1.30 | 1.64 | 0.5 | 0.9 | 0.6 | $2.50 |
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|
138ms | $0 | 338+ | 19+ | 30:1 | 500:1 |
|
Read review ›
|
71 |
ASIC, FCA, BaFin FINMA, NFA/CFTC, MAS CySEC, DFSA, FMA JFSA, BMA, FSCA |
1.13 | 1.66 | 1.01 | 0.16 | 0.59 | 0.29 | $6.00 |
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|
174ms | $450 | 100+ | 12+ | 30:1 | 200:1 |
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Read review ›
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62 |
FCA, FSCA, CySEC FSCM, CMA |
1.9 | 2 | 2 | 0.0 | 0.0 | 0.5 | $2.00 |
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|
160ms | $500 | 63+ | - | 30:1 | 300:1 |
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Read review ›
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43 |
ASIC, CySEC, MFSA FCA, FSA, FINRA GFSC |
1.0 | 2.0 | 1.0 | - | - | - | - |
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|
130ms | $200 (Australia), $50-$100 (EU) | 49+ | 46+ | 30:1 | 400:1 |
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Read review ›
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75 |
FCA,ASIC, CySEC,SCB |
1.0 | 1.0 | 1.2 | 0.06 | 0.73 | 0.27 | $3.50 |
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143ms | $100 | 40+ | 250+ | 30:1 | 500:1 |
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Forex Panel Score
Average Spread
EUR/USD = 1.1
GBP/USD = 1.3
AUD/USD = 1.3
Trading Platforms
MT4, MT5
Minimum Deposit
$100
Why We Recommend FP Markets
We recommend FP Markets for their tight spreads which average 1.1 pips for EUR/USD, unrestricted trading via the MT4 and MT5 trading platforms, their wide range of trading instruments and huge choice of funding options. We also appreciated social and copy trading access via MyFXBook and the FP Markets trading app.
Pros & Cons
Broker Details
FP Markets Has MT4 and MT5
FP Markets is an award-winning forex broker regulated by ASIC and CySEC offering the best forex platforms, fast execution, and the lowest fees. When Malaysian traders sign up, they automatically join the FP Markets global entity operated by First Prudential Markets LLC. You can compare in the calculator below the top regulated foreign currency brokers fees which include both commissions and spreads.
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The broker incurs low fees through ECN execution in which pricing is transparent. Since FP Markets is not a market maker, the broker doesn’t offer a deposit bonus, just the lowest fees of the Malaysian top forex brokers.
FP Markets offers a choice of two trading platform options and each comes with a trading account specifically for the platform.
FP Markets Trading Platforms
FP Markets offers two main trading platforms by MetaQuotes, the MetaTrader 4 (MT4) and MetaTrader 5 (MT5).
MetaTrader 4
It is considered by many in the trading community to be the gold standard for trading platforms. This can partially be explained by the fact MT4 is free to use which has allowed a large number of traders to access it easily. Because of this, MT4 has become the trading platform used by more traders than any other. It also has a reputation for its excellent and consistent performance.
MT4 appeals to all Malay traders as it offers a clean and easy-to-use interface, which is great for beginner traders. It can likewise be customised to meet the needs of advanced users who may desire more sophisticated details.
MT4 offers:
MetaTrader 5
MT5 is an upgrade of MT4, having all the features you can find in MT4 and more.
With MT5, you will have access to
MetaTrader 5 is designed to work with CFDs regardless of whether there is a central exchange or not for the derivative. This makes it great for share trading.
Trading Accounts
The trading account you use will depend on the trading platform you are using.
If you are using MT4 or MT5, then you can choose the Standard or Raw account. The standard account which charges no commission is great for beginner traders making your trading cost simple. Standard account spreads average 1.1 pip for EUR/USD. If you are looking to save on spread costs, the RAW account averages 0.1 pips for EUR/USD and your commission costs will be $3.0 for each standard lot sideways or $6.0 round-turn.
Malaysians trading with FP Markets will have access to leverage of 500:1.
Broker Screenshots
Forex Panel Score
Average Spread
EUR/USD = 0.62
GBP/USD = 0.83
AUD/USD = 0.77
Trading Platforms
MT4, MT5, cTrader
Minimum Deposit
$0
Why We Recommend IC Markets
We recommend IC Markets for its top-tier trading environment that offers tight spreads, due to deep liquidity all via MT4, MT5 and cTrader trading platforms. According to IC Markets, they average 0.02 pips for the EUR/USD with their RAW Spread account which is very impressive. We did our own spreads testing and found the broker really does have the lowest spreads in the industry.
Pros & Cons
Broker Details
IC Markets Gives Access To Tight Spreads And Low Trading Costs
IC Markets is one of the most popular FX brokers in the broader Pacific region, offering access to over 60 currency pairs as well as a range of Contracts for Different (CFDs). The low-fee broker’s Raw Spread and cTrader accounts charge flat-rate commissions lower than most top forex brokers while giving clients access to average EUR/USD spreads of 0.02 pips.
.When trading with IC Markets 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.
In addition to low trading fees, the top broker charges minimal trading fees that keep costs down. No fees are incurred for deposits and withdrawals, while traders can leave their trading account idle for any length of time and avoid inactivity fees.
Spreads with IC Markets RAW accounts are some of the tightest you can find due to their STP. This is because IC Markets use ECN pricing and are not market makers. Instead of the broker widening the spread, IC Markets charges a commission. Commission trading is usually cheaper than spread-only trading when it comes to forex.
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IC Markets Raw Account Spreads
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|---|---|---|---|---|---|
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0.02 | 0.23 | 0.27 | 0.85 | 0.17 |
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0.10 | 0.30 | 0.30 | 1.40 | 0.20 |
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0.10 | 0.60 | 0.40 | 2.40 | 0.20 |
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0.20 | 0.50 | 0.40 | 1.50 | 0.20 |
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0.17 | 0.59 | 0.54 | N/A | 0.30 |
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0.20 | 0.60 | 0.50 | 10.00 | 0.40 |
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0.10 | 0.60 | 0.60 | 1.30 | 0.50 |
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n/a | 0.20 | 0.60 | 3.10 | 0.50 |
|
0.44 | 0.85 | 0.40 | 1.30 | 0.42 |
Avg. spreads are taken from each broker's website and updated monthly. Last update on 04/01/2024
Why Trade Forex With IC Markets?
As a Malaysian trader, you will sign up with IC Markets (SC) which is the trading name of True ECN Trading Ltd and includes FSA (Seychelles Financial Services Authority) regulation.
As an international broker that also has tier-1 regulators in other parts of the world such as ASIC and CySEC, IC Markets can be seen as a trusted broker amongst the international retail investor community.
Traders using IC Markets to facilitate their FX transactions gain access to some of the most competitive spreads available to retail traders. When trading in IC Markets’ ECN-like environment, clients can place orders on forex pairs with spreads as low as 0.0 pips with very low trading and non-trading fees. For Malaysian retail investors wanting to gain access to institutional-grade pricing with NDD interference, IC Markets is an excellent top forex broker.
Broker Screenshots
Forex Panel Score
Average Spread
EUR/USD = 1.12
GBP/USD = 1.69
AUD/USD = 1.22
Trading Platforms
MT4, MT5, cTrader, TradingView
Minimum Deposit
$0
Why We Recommend Pepperstone
We think Pepperstone has a top range of trading platforms including TradingView, cTrader, and MetaTrader 5, but they top the list for the best MetaTrader 4 forex broker. We are impressed with their limit order execution speed of 77ms.
Pros & Cons
Broker Details
Pepperstone Excellent Trading Tools With MT4
For investors wanting to trade forex and CFDs on MetaTrader 4, Pepperstone is a tried and tested FX broker offering tight spreads and a range of trading tools available. The regulated broker is seen as trusted thanks to oversight from multiple authorities, including ASIC, the FCA, and DFSA. Malaysian traders will sign up with Pepperstone Markets Limited which is regulated by SCB (Securities Commission of The Bahamas).
With Expert Advisor functionality and advanced analysis tools, Pepperstone clients can develop and execute complex trading strategies that include major, minor, and exotic currency pairs, as well as a range of CFDs.
MetaTrader 4 And Trading Tools With Pepperstone
MetaTrader 4 (MT4), provides traders with a highly customisable interface where advanced analysis can be easily conducted. The gold standard of forex trading platforms since its initial release by MetaQuotes in 2005, MT4 allows retail investors to access institutional-grade research and analysis tools within an intuitive interface. To assist with market analysis, MetaTrader 4 has built-in Autochartist features that include:
MetaTrader 4 is available as a desktop platform (Mac and Windows), WebTrader app, or mobile trading app. Mobile apps are compatible with both iOS and Android, ensuring traders can stay up to date at any time and place orders on the go.
ECN-Style Spreads + Low Fees
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 with an average of 0.1 pips and a flat rate commission fee attached to orders.
If customers are new to forex and prefer a simpler pricing structure, a Standard Account is a great option as it includes commission fees in the spreads, that average 0.62 pips for the EUR/USD currency pair.
The reasons why Pepperstone can 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 institutions dealing in a range of assets such as stocks and derivatives. The proximity of Equinix’s servers to major players in the financial industry allows retail traders to access liquidity pools that were traditionally only offered to institutional investors and therefore better pricing.
Broker Screenshots
Forex Panel Score
Average Spread
EUR/USD = 1.1
GBP/USD = 1.3
AUD/USD = 1.1
Trading Platforms
MT4, MT5, ThinkTrader
Minimum Deposit
$0
Why We Recommend ThinkMarkets
We recommend ThinkMarkets for traders in need of a true swap-free account. Unlike other brokers, ThinkMarkets charges neither overnight interest nor an administration fee, making the swap-free account sharia compliant. Trading is via MetaTrader 4, MetaTrader 5 and their ThinkTrader app.
Pros & Cons
Broker Details
ThinkMarkets Offers Swap-Free Trading
ThinkMarkets 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 not charging swaps or interest for overnight or rolling costs.
In place of swap fees, ThinkMarkets charges a weekly administrative fee if you hold your position for 7 days or greater. There are no fees for the first 6 days you hold your position. After 7 days, charges are made in 7-day increments with the following administrative fees per day:
When choosing an Islamic Account, you have the option of a Standard account or a ThinkZero account. Conditions for these accounts are the same minus swap fees.
The Standard account has no commission and requires no opening balance. The ThinkZero account has commissions of $3.5 per side for each standard lot ($7.00 round-turn) but unlike the Standard account, there is a minimum $500 deposit.
Forex Panel Score
Average Spread
EUR/USD = 1.32
GBP/USD = 1.7
AUD/USD = 1.95
Trading Platforms
MT4, MT5, cTrader, FxPro Trading Platform
Minimum Deposit
$100
Why We Recommend FxPro
We recommend FxPro for its sophisticated trading environment suitable for advanced technical and algorithmic traders. High leverage of 2000:1 combined with near-instant execution according to the broker’s slippage stats make it an excellent choice for high-volume traders.
Pros & Cons
Broker Details
FxPro Has Advanced Trading Tools And Fast Execution With cTrader
FxPro cTrader provides traders with a professional trading environment where they can enjoy ECN-style pricing, advanced trading tools, and ultra-fast execution. cTrader users 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 $3.50 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.
Forex Panel Score
Average Spread
EUR/USD = 1.12
GBP/USD = 1.3
AUD/USD = 1.64
Trading Platforms
MT4, CMC NGEN
Minimum Deposit
$0
Why We Recommend CMC Markets
One of the world’s most popular forex brokers, we recommend CMC Markets for its 330 currency pairs which is far more than any broker offers. The FX Active account has commissions of just $2.50 and their award-winning proprietary trading platform also appeal.
Pros & Cons
Broker Details
CMC Markets’ Range Of Shares And Forex Are Impressive
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 6 asset classes, including:
The range of financial markets offered and forex trades available are the leading reasons Malaysian forex traders choose the provider.
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 broker’s 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. The Advanced trading platform is designed for experienced investors. In-built analysis tools include the following:
Forex Panel Score
Average Spread
EUR/USD = 1.13
GBP/USD = 1.66
AUD/USD = 1.01
Trading Platforms
MT4, IG Trading Platform, L2 Dealer, ProRealTime
Minimum Deposit
$0
Why We Recommend IG Group
One of the oldest brokers in the world, we recommend IG for the peace of mind that comes from working with an established institution. The extensive selection of trading products and top-notch educational tools don’t hurt, either.
Pros & Cons
Broker Details
IG Markets Offers A Wide Scope Of Products For Trading
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
Account Types
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 trade with IG you can choose from 4 trading platforms – MT4, IG Trading Platform, ProRealTime and L2 Dealer.
To open a demo account with IG Markets, prospective clients are required to sign up for an OTC account.
Forex Panel Score
Average Spread
EUR/USD = 1.9
GBP/USD = 2
AUD/USD = 2
Trading Platforms
MT4, MT5
Minimum Deposit
$10
Why We Recommend FXTM
We recommend FXTM for its considerable 2000:1 leverage, which the broker offers to all traders regardless of account type. This broker also makes trading forex cost-efficient with low commissions.
Pros & Cons
Broker Details
FXTM Offers Leverage Up To 1000:1 On Forex Pairs
FXTM (ForexTime) 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 are required to sign up to a Standard, ECN Zero, or ECN account type.
A Standard account offers average spreads of 1.9 pips EUR/USD that include commission in the spread, while an ECN account gives traders access to ECN-like spreads starting from 0.0 pips with a commission fee of $2 per lot sideways. When trading forex through these 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.
Forex Panel Score
Average Spread
EUR/USD = 1
GBP/USD = 2
AUD/USD = 1
Trading Platforms
eToro Trading Platform
Minimum Deposit
$50
Why We Recommend eToro
We recommend eToro for its commitment to an accessible trading experience, regardless of skill level. Known for its social and copy trading tools, the broker also offers a simplified account and pricing structure to make it easy for new traders to get up and running.
Pros & Cons
Broker Details
eToro Has A Great Social Network With Unique Tools For Copy Trading
With millions of traders from over 140+ countries around the world, eToro is the best copy trading broker offering an established social network. The 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.
CopyPortfolios
By following a single Popular Investors’ strategy, eToro traders can invest in two different types of ‘CopyPortfolios’ aimed to reduce risk through diversification.
Although funds can be withdrawn from CopyPortfolios at any time, the asset bundles are medium to long-term investments and should be held for longer periods than standard forex or CFD orders. 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.
Forex Panel Score
Average Spread
EUR/USD = 1
GBP/USD = 1
AUD/USD = 1.2
Trading Platforms
MT4, MT5, TradingView, Capitalise.ai
Minimum Deposit
$100
Why We Recommend Eightcap
We recommend Eightcap because of their new trading tool Cryptocrusher which is designed to improve your crypto trading experience with precise entry, target and stop levels, market trend analysis and exclusive indicators.
Pros & Cons
Broker Details
With 95 cryptos available on MetaTrader 5 and TradingView and 79 on MetaTrader 4, Eightcap by far has the largest range of crypto for trading. The table below compares the range of crypto other brokers offer. So if you want to trade Bitcoin, Ethereum or less-known crypto like NEO or UNiSwap, Eightcap is the best choice.
TRADING PLATFORMS AND PLUGINS
Eightcap offers MetaTrader 4, MetaTrader 5 and TradingView trading platforms, With over 15+ chart types, 400+ indicators (plus countless public-built indications) and, 110 drawing tools we can agree that TradingView is the best choice if you want trading analysis tools.
We think FP Markets is the best Forex Broker For Malaysian traders. FP Markets RAW account has spread as low as 0 pips due to their no dealing desk mode. These low spreads combined with $3.00 sideways commission per 100k lot and choice of 3 platforms in MT4, MT5 and cTrader is why we think FP Market is the best broker for Malaysian traders.
To choose the best forex broker to trade with in Malaysia you need to consider the following factors:
Brokers earn a good reputation and trust by being licenced with multiple tier-1 regulators, having good reviews and ratings online and being recognised through industry awards. We recommend choosing a broker that does have tier-1 licences. Tier-1 regulators include ASIC in Australia, FCA in the UK and CySEC in The EU.
Other good indicators include how long the broker has been in operation, the size of the company and where their headquarters and offices are located.
You should choose a broker that offers low spreads to ensure minimal costs on each trade. Spreads represent the difference between the bid and buy prices of a currency pair.
But you should take into consideration additional fees that may occur to your account. Those can include commissions and overnight charges.
The right trading platform and mobile app will vary for each person. If you like technical analysis, look for a platform with charts and indicators. If you wish to automate, consider a platform with algorithmic trading. If you wish to social trade or copy trade, make sure the platform has such features.
MetaTrader 4, MetaTrader 5, cTrader and TradingView are the most popular mainstream trading platforms and mobile apps. Many brokers also make their own trading platform which can be very good.
You should look for brokers in Malaysia who provide comprehensive market analysis, advanced technical indicators, and effective risk management tools in their platforms.
These tools are important for identifying potential trading opportunities and also managing and mitigating risks. You may also consider the research materials and market analysis offered by the forex platforms as that could improve your trading decisions.
Choose a broker that aligns with your budget and allows you to enter the forex market comfortably. Some platforms may have a lower minimum deposit (e.g., $100) but may require more ($200) to start trading.
For the Malaysian market specifically, there is a legal ambiguity surrounding CFDs and Forex trading within the country. This is why banks may decline transfers when dealing with unlicensed or foreign-licensed brokers.
The forex broker should offer flexible deposit methods, such as PayPal or E-Wallet.
Your Forex broker should be reachable via live chat, email or by calling. The broker should have dedicated customer support, ready to assist in the local Malaysian language. Some brokers will have dedicated customer support for the Malaysian market.
The customer support team should respond promptly and should be available at least 24/5.
With an average spread of 0.2 pips for the EUR/USD using their RAW Spread account, IC Markets is the broker with the lowest spreads in Malaysia.
The table below captures the average spreads brokers publish on their websites. IC Markets has the best average spread for 4 of the currency pairs including EUR/GBP, YSD/SGD and AUD/USD in addition to EUR/USD compared to other brokers that publish spreads on their website.
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IC Markets Raw Account Spreads
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|---|---|---|---|---|---|
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0.02 | 0.23 | 0.27 | 0.85 | 0.17 |
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0.10 | 0.30 | 0.30 | 1.40 | 0.20 |
|
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0.10 | 0.60 | 0.40 | 2.40 | 0.20 |
|
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0.20 | 0.50 | 0.40 | 1.50 | 0.20 |
|
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0.17 | 0.59 | 0.54 | N/A | 0.30 |
|
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0.10 | 0.60 | 0.60 | 1.30 | 0.50 |
|
|
n/a | 0.20 | 0.60 | 3.10 | 0.50 |
|
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0.44 | 0.85 | 0.40 | 1.30 | 0.42 |
Avg. spreads are taken from each broker's website and updated monthly. Last update on 04/01/2024
By combining the average spread for each of the currency pairs we can also show that IC Markets has the best spread overall on average with 0.16 pips on their Raw Account. This just beats out Fusion Markets with 0.17 pip, ThinkMarkets with 0.20 pips and FP Markets with 0.22 pips and well below the industry average of 0.44.
| Tested Raw Spreads | |
|---|---|
| Broker |
Major Pair Average Spread |
| IC Markets | 0.16 |
| Fusion Markets | 0.17 |
| ThinkMarkets | 0.20 |
| FP Markets | 0.22 |
| FXTM | 0.22 |
| TMGM | 0.26 |
| HYCM | 0.26 |
| Tested Average | 0.44 |
The best account type for Forex Trading is a RAW spread account. When trading conditions are right with a RAW account spreads can be as low as zero pips meaning your only costs will be commissions. Just make sure the broker has low spreads and low commission costs.
Standard accounts are wider than with an RAW account so you will pay more even if you account for the fact they have no commission costs. It is popular with beginner traders as the cost structure is easier to understand.
Other types of accounts include:
Demo accounts are Ideal for beginners as they allow you to practice trading in a risk-free environment using virtual funds.
Islamic (Swap-Free) Accounts: For traders of the Islamic faith who cannot pay incur swaps, and rollover fees on overnight positions that conflict with Sharia law.
To compare fees and spreads when choosing a forex broker you need to consider the following:
Trading Costs:
Spreads: Spreads are one of your major costs so it is worth the time to find a broker with low spreads. Either see the broker’s website for indications of their spreads or test using a demo account. Spreads will vary depending on the account type if they are variable or fixed and what market you are trading.
Low Commission Fees: Commission costs can erode your profits. If using a RAW account or Zero spread account, make sure the commission is under USD$3.50 round-turn per lot.
Swaps: If you plan to hold your position overnight then check the broker rolling fees.
Non-Trading Costs
Other costs may include deposit and withdrawal fees and subscription fees such as to use of certain trading platforms or 3rd party apps.
In Malaysia, the most popular traded financial instruments are major Forex pairs such as EUR/USD, USD/GBP and GBP/JPY, known for their liquidity and narrower spreads.
Other popular CFD financial instruments include commodities (gold and oil) and indices (groups of stocks).
The best forex broker in Malaysia for the MT4 trading platform is Pepperstone. Pepperstone places no restriction on how you can use MT4 meaning you can scalp trade, hedge, trade in standard, micro and mini lots. You can also code and develop Expert Advisors (trading robots) with the MQL4 MetaQuotes language.
Other features include 3rd party the use of 3rd party apps such as Capitalise.ai, DupliTrade and Myfxbook.
The broker in Malaysia with the best mobile app for trading is IC Markets. This is because IC Markets’ Global Mobile app integrates with MT4, MT5 and cTrader, allowing you to trade on the go.
The best beginner-friendly forex broker in Malaysia is OANDA. OANDA Corporation has commission-free trading which is the preferred choice for new traders as the cost structure is simpler. The broker also has a guaranteed stop loss when using the OANDA Trade trading platform which is a risk management tool to protect yourself against losses due to slippage. The broker also provides very good education tools.
The go-to broker for CFD crypto trading in Malaysia is Eightcap, per our research. While most CFD brokers only offer 10 to 20 cryptos to trade, Eightcap offers a 95 when using MT5 and TradingView and 79 with MT4. They also offer useful 3rd party tools such as Cryptocrusher and Amazing Trader tools to help you identify crypto trading opportunities.
Eightcap offers BTC/USD spreads from $12 USD, a $2 USD spread on ETH/USD and a $0.2 USD spread on SOL/USD.
In Malaysia, regulatory oversight for Forex brokers is mainly governed by the Securities Commission Malaysia (SCM), Bank Negara Malaysia and Labuan Financial Services Authority (LFSA). Their role is to oversee the Malaysian market and ensure investor protection.
Most forex brokers that accept Malaysian clients operate offshore and use an offshore regulator.
The SCM is the main regulatory body responsible for overseeing the securities and derivatives markets in Malaysia. Its function is to regulate a wide range of financial activities, including Forex trading, to ensure market integrity, investor protection, and the fair and efficient functioning of capital markets.
Bank Negara Malaysia is the central bank of Malaysia. The bank plays a crucial role in maintaining monetary stability and financial system integrity. While the bank may not directly regulate Forex brokers, it establishes monetary policies and guidelines that indirectly impact the operations of financial institutions, such as Forex trading.
The Labuan Financial Services Authority oversees the financial services sector in the Labuan International Business and Financial Centre, the designated financial hub and free trade zone in Malaysia. The LFSA regulates and supervises financial activities, including Forex trading, within the Labuan IBFC.
In Malaysia, income from Forex trading is subject to income tax, while Forex capital gains remain tax-exempt. This means that if you are using a swap-free Islamic account, where trading income is not derived, allows for tax-free gains.
Malaysia legally permits Forex trading, involving the exchange of foreign currencies. The nation boasts a robust financial market that is being regulated by the Bank Negara Malaysia, the central bank of Malaysia. The bank regulates all financial institutions, including those offering Forex trading services.
Forex trading is the act of trading forex pairs to make a profit. The global foreign exchange (also known as ‘’forex’’ or ‘’FX’’) market facilitates the exchange of national currencies, establishing itself as the world’s largest and most liquid asset market due to the extensive reach of trade, commerce, and finance.
Currencies engage in trading against each other as exchange rate pairs. You make a profit by speculating on which one currency will be stronger than the other.
The optimal time for forex trading in Malaysia is between 9 PM and 1 AM (Malaysia Time Zone), aligning with the overlapping hours of the New York and London forex markets. Another good time is the overlap of the Asian (Tokyo) and European (Frankfurt) sessions, which are from 2:00 PM to 5:00 PM Malaysian time.
Numerous well-known international forex brokers operate without regulation in Malaysia but most instead use an offshore regulator. While forex trading is legal in the country, retail online forex trading utilizing CFDs is restricted.
Technically an offshore regulator is any regulator outside the Malaysian jurisdiction so this includes ASIC in Australia, the Cyprus Securities and Exchange Commission (CySEC) in Europe, The British Financial Conduct Authority (FCA), FSCA in South Africa and even FSA in Seychelles.
The answer is Yes, you can legally purchase Bitcoin and other cryptocurrencies in Malaysia as CFD. You can securely buy and sell cryptocurrencies through Malaysian crypto exchanges, such as Eightcap. You can also legally engage in trading crypto and use leveraged crypto trading to turn higher profits by speculating on crypto movements.
CFD providers in Malaysia are restricted to offering CFDs based on shares or indexes that meet specific regulatory criteria. Presently, CFDs on forex, bonds, commodities, or cryptocurrencies are not permitted in the country.
The best forex demo account in Malaysia is FP Markets. The platform offers demo accounts for beginner traders who are still learning forex trading and want to experiment with price speculations on MetaTrader 4 and MetaTrader 5.
The platform allows you to experiment with their Raw and Standard accounts and play around with different currencies and lots.
To be a successful Forex trader, selecting a broker that suits your trading needs and preferences is an important first step. When comparing Forex brokers that accept Malaysian clients’, 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 diverse range of CFDs will be best for you. It is also worth considering 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 the high-risk nature of forex and CFD trading. There are ways to reduce the risk of CFD trading from; using 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 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 Muslim, there is a high demand for forex trading accounts that follow Islamic finance and Sharia law. Islamic forex accounts do not pay or earn interest instead, flat-rate fees are incurred for holding positions for an extended period. While no trading account has a base currency of the Malaysian Ringgit (MYR), exchange costs to local currencies are relatively modest.
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