The best CFD Brokers in Malaysia offer a wide range of markets such as forex and crypto, and have good CFD trading platforms. We look at the 6 brokers for CFD trading along with their spreads and costs.
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The brokers in Malaysia to trade Contracts For Differences
| 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 ›
|
75 |
ASIC, SCB FCA,CySEC |
1.0 | 1.0 | 1.2 | 0.06 | 0.73 | 0.27 | $3.50 |
|
|
|
143ms |
$250 (Raw) $500 (Standard) |
40+ | 250+ | 500:1 | 500:1 |
|
Read review ›
|
98 |
SCB, ASIC FCA, CySEC |
1.10 | 1.40 | 1.20 | 0.10 | 0.40 | 0.20 | $3.50 |
|
|
|
77ms | $0 | 62+ | 12+ | 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 |
|
|
|
134ms | $0 | 61+ | 18+ | 30:1 | 500:1 |
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Read review ›
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82 | ASIC, VFSA, FSA-S | 0.93 | 1.08 | 0.92 | 0.13 | 0.21 | 0.12 | $2.25 |
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|
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79ms | $0 | 90+ | 10+ | 500:1 | 500:1 |
|
Read review ›
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43 |
ASIC, CySEC, MFSA FCA, FSA, FINRA GFSC |
1.0 | 2.0 | 1.0 | - | - | - | - |
|
|
|
130ms | $200 (Australia), $50-$100 (EU) | 49+ | 46+ | 30:1 | 400:1 |
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Read review ›
|
46 |
FCA, DFSA, CySEC BaFin, CMNV, KNF |
0.9 | 1.4 | 1.3 | 0.9 | 0.14 | 0.13 | - |
|
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160ms | $250 | 49+ | 16+ | 30:1 | 500:1 |
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CFDs, or Contracts for Difference, let traders speculate on price movements without owning the asset. CompareForexBrokers.com ranks six SCM-regulated Malaysian CFD brokers, considering spreads, platforms, and customer service and emphasising MetaTrader availability.
Forex Panel Score
Average Spread
EUR/USD = 0.06
GBP/USD = 0.73
AUD/USD = 0.27
Trading Platforms
MT4, MT5,
TradingView, Capitalise.ai
Minimum Deposit
$100
Why We Recommend Eightcap
With 56 Forex pairs, 6 metals, 2 energies, 16 indices and 95 cryptocurrencies, when trading with MT4, MT5 or TradingView, Eigthcap shines for its CFD product offering.
When using the Eightcap RAW account, we found the brokers have average spreads of 0.06 pips for the EUR/USD which we think is impressive. After a deeper analysis, we found that RAW spreads for EUR/USD are kept at 0.0 pips almost 100% of the time, making Eightcap an excellent option if you want to maximise your profit potential.
Pros & Cons
Broker Details
Traders Can Benefit Fully From Eightcap’s Products With The Use of MT5
A MetaTrader specialist, Eightcap is our recommended broker for the MetaTrader 5 (MT5) platform, notably since this platform allows you to take full advantage of all the products this broker offers.
An upgrade of MetaTrader 4 (also made by MetaQuotes), MT5 excels in CFD trading, mainly designed for centralised and decentralised trading (meaning you can trade products that require a central exchange and those that do not).
Trading Products With Eightcap
Eightcap offers a solid range of markets, superior trading conditions, and fast execution speed.
In addition to 63 currency pairs, Eightcap also boasts over 250 cryptocurrency products. While all products can be traded against USD, 20 of these coins can also be traded against currencies other than USD, including AUD, GBP, EUR, CAN, and MXN. You can even cross-pair these 20 cryptos against Bitcoin.
Leverage for Malaysian traders when trading forex, metals, and energies is up to 500:1; however, leverage balancing applies depending on trade size. This is to protect your account balance, as leverage is a risky instrument and no negative balance protection is provided.
You can trade crypto, stocks, and indices with leverage up to 20:1.
Commissions and Fees
The two trading accounts that Eightcap offers are Standard and Raw.
The commission-based Raw account has the lowest spreads, averaging under 1 pip across all major currency pairs at the $7 round turn industry standard.
The spread-only Standard account, meanwhile, is suited for beginners with no commissions, albeit a wider average spread.
Clients in Malaysia will be registered with Eightcap Global Limited based in the Bahamas. Eightcap Global Limited is regulated by The Securities Commission of The Bahamas (SCB) with licence number SIA-F220.
Fastest Execution Speeds For Malaysian Traders and Tightest Spreads
If you are in Malaysia, it is fascinating that Eightcap places its servers at the Equinix data centre in Tokyo (TY3). Since TY3 is closer to Malaysia than the NY4 Equinix data centre in New York (which nearly all brokers use), you can expect faster speeds with Eightcap than their competitors. A closer data centre means faster execution speed since there is less distance for data to travel.
As a no dealing desk broker (NDD), Eightcap also sources liquidity from multiple tier-1 providers, using ECN-like, STP (straight-through processing) pricing, meaning no price interference.
By utilising the prime model of trade clearing and pricing aggregation, Eightcap can more effectively distribute risk, exposure, and pricing across a broader range of participants in the underlying markets, all while keeping costs to a minimum.
For ECN-type accounts, Eightcap has competitive spreads compared to other brokers, as we highlight below. This module captures the average spreads brokers publish on their website, which they update monthly.
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ECN Broker Spreads
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|---|---|---|---|---|---|
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0.23 | 0.20 | 0.06 | 0.42 | 0.27 |
|
0.40 | 0.60 | 0.10 | 0.40 | 0.20 |
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0.03 | 0.11 | 0.02 | 0.19 | 0.05 |
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0.14 | 0.25 | 0.02 | 0.27 | 0.17 |
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0.30 | N/A | 0.30 | 0.50 | 0.40 |
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0.20 | 0.83 | 0.44 | 0.40 | 0.42 |
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0.24 | N/A | 0.17 | 0.54 | 0.30 |
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0.30 | 0.70 | 0.20 | 0.50 | 0.40 |
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0.30 | 1.10 | 0.10 | 0.60 | 0.50 |
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n/a | 0.30 | n/a | 0.60 | 0.50 |
|
0.77 | 1.41 | 0.44 | 1.13 | 1.23 |
Avg. spreads are taken from each broker's website and updated monthly. Last update on 04/01/2024
Compare Lowest Spread Forex Brokers
Trading Platforms and Plugins
MetaTrader 4 and 5 are the two main trading platforms Eightcap offers. The primary difference is in tradeable markets and device versatility. MT5 offers more markets and is available as WebTrader, while both MT4 and MT5 can be used via desktop or mobile.
As highlighted above, MT5 is particularly suited to CFD trading and a greater range of markets to trade. If you intend to trade cryptos, you are better off choosing MT5. MT4 is still a great option and suited for Forex trading.
Eightcap provides a range of MetaTrader platform plugins from FX Blue Labs, which enhance its standard suite. It also supports integration with Capitalise.ai, a third-party platform allowing algorithmic trading within your MT4/5 account without requiring programming or coding experience.
Ever-growing Range Of New Features: Cryptocrusher and Amazing Trader
Cryptocrusher is a new trading tool designed to enhance your crypto trading experience with precise entry, target and stop levels, market trend analysis, exclusive indicators and a 24-hour chat room to discuss your trades.
Eightcap has partnered with Amazing Trader to offer a new charting algo platform. This platform provides three trading strategies for FX, indices, cryptos, and metals, along with built-in automated risk management. You can test the platform at no cost by participating in their 28-day success program. To use Amazing Trader, your account balance must be at least $500.
Forex Panel Score
Average Spread
EUR/USD = 0.1
GBP/USD = 0.4
AUD/USD = 0.2
Trading Platforms
MT4, MT5, cTrader, TradingView, Capitalise.ai
Minimum Deposit
$0
Why We Recommend Pepperstone
We liked how Pepperstone broadens its horizons by offering a range of CFD platforms. Using MT4, MT5, cTrader or TradingVIew, you can trade 62 Forex pairs, 19 cryptos, 25 indices, plus shares and commodities.
If using MT4, extra 3rd party apps like Capitalise.ai for automation and Myfxbook for copy trading are provided so you can try out many different trading tools and strategies, and capitalise on market opportunities more efficiently.
Pepperstone’s execution speeds and spreads were also impressive, averaging 0.1 pips for the EUR/USD and speeds of 77ms for limit orders.
Pros & Cons
Broker Details
Pepperstone Offers a Wide Array Of Choices For CFD Trading
Pepperstone offers a variety of third-party platforms for CFD trading. Pepperstone offers a range of trading platforms, including MetaTrader 4 and 5, cTrader for scalping, and TradingView for chart trading.
They offer excellent customer support with 18-hour coverage on weekends and 24/5 during weekdays.
Clients in Malaysia will be registered with Pepperstone Markets Limited, a subsidiary of the broker located in the Bahamas. This subsidiary is regulated by The Securities Commission of The Bahamas ( SIA-F217).
Low Spreads and Superior Trading Conditions
Like Eightcap, Pepperstone sources pricing from multiple Tier 1 liquidity providers, meaning prices are similar to what the institutions get, which translates to lower spreads across the board.
You can also lock in prices at speeds of under 30ms due to Pepperstone having servers in the NY4 Equinix data centres, which results in less risk of slippage.
Commissions and Fees
Pepperstone offers two main account types: Standard (no commissions) and Razor (spread-based).
The Razor account, suited to experienced traders, has competitive spreads, averaging at less than 0.5 pips for EUR/USD, with commissions at industry standard rates.
You also have the option of either using the MetaTrader or cTrader platform with Razor. MetaTrader is best for Forex or CFD trading, while cTrader suits algorithmic traders.
Pepperstone offers a commission-free Standard account with average spreads as low as 1.0 pips, making it highly competitive among brokers.
Despite not being a market maker, Pepperstone’s spreads are competitive against market maker brokers such as IG Markets and CMC Markets.
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Standard Account Spreads
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|---|---|---|---|---|---|
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1.10 | 1.20 | 1.40 | 1.40 | 1.40 |
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0.62 | 0.77 | 1.27 | 0.83 | 0.74 |
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0.93 | 0.92 | 0.98 | 1.08 | 1.02 |
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1.00 | 1.00 | 1.50 | 2.00 | 1.00 |
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1.20 | 0.90 | 1.50 | 1.80 | 1.80 |
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1.20 | 1.40 | 1.50 | 1.60 | 1.50 |
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1.10 | 1.20 | 1.40 | 1.50 | 1.20 |
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1.10 | 1.20 | 1.30 | 1.30 | 1.30 |
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1.20 | 1.30 | 1.20 | 1.30 | 1.10 |
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1.70 | 1.60 | 1.70 | 2.00 | 1.60 |
|
1.20 | 1.80 | 1.90 | 1.90 | 1.60 |
Avg. spreads are taken from each broker's website and updated monthly. Last update on 04/01/2024
Compare Lowest No Commission Spreads
If you are a Muslim trader, you may know that swaps and overnight fees are not Sharia law-compliant since they are considered riba. Pepperstone offers a swap-free account as a solution to this matter. This account is identical to the standard account, except that swaps are replaced with an admin fee.
The admin fee varies depending on the trading instrument and is charged every 11 days for open positions. Most major forex pairs will incur a charge of USD50 for each lot.
Trading Products
Pepperstone offers a diverse selection of tradeable markets. They offer various currency pairs, including major, minor, exotics, and cross-pairs. In total, there are 62 options to choose from. This range means Pepperstone has one of the more comprehensive selections of pairs of any broker. Leverage is up to 500:1.
Trading Platforms and Additional Trading Tools
Pepperstone provides a range of trading platforms, including MT4, MT5, cTrader, and TradingView, equipped with various helpful third-party trading tools and plugins.
Our trading experience using MT4 and MT5 was improved by Smart Trader Tools and Figaro Advanced Tools. These tools allow advanced customisation with Expert Advisors, extra indicators, and add-ons for more in-depth analysis.
Autochartist can be used with MetaTrader and cTrader platforms, and it offers an intuitive charting package to capitalise on high-probability trades.
TradingView is a relatively new introduction to the Pepperstone suite of platforms. This platform allows you to conduct advanced charting to gain deeper insights and analysis. You can even trade directly through the chart. The other notable feature is the ability to share your trades and see what others are trading through the TradingView social network.
Social Trading Platforms
Pepperstone offers three excellent copy and social trading platforms: myFxbook for MetaTrader, DupliTrade for cTrader and MetaTrader, and MetaTrader’s Native Trading Signals platform.
Forex Panel Score
Average Spread
EUR/USD = 0.02
GBP/USD = 0.23
AUD/USD = 0.17
Trading Platforms
MT4, MT5, cTrader
Minimum Deposit
$200
Why We Recommend IC Markets
Our test results done by Ross Collins proved IC Markets have one of the lowest spreads for Forex of any broker. With the RAW spread account, we found IC Markets has an average spread of 0.32 pips and 0.76 for the Standard account. These results place IC Markets in the top 2 of the 20 brokers we tested.
You can trade 61 Forex pairs, 18 Cryptos, 17 commodities, 25 indices plus stocks, bonds and even futures. with MT4, MT5 and cTrader platforms.
With a low spread, a large range of CFDs and good trading platforms, IC Markets is a top choice.
Pros & Cons
Broker Details
IC Markets Has The Elements Needed For Automated Trading
Combining low cost, a variety of execution methods, and support for Virtual Private Servers (VPS), IC Markets has all the ingredients for algorithmic trading for CFDs.
The broker offers a desktop version of MetaTrader that supports algorithmic trading, and the cTrader suite includes trading applications such as cAlgo for automated trading and cTrader Copy for social copy trading.
IC Markets is also considered a top MetaTrader broker with competitive spreads, fast execution, and great additional trading tools.
Commissions and Fees
IC Markets offers competitive pricing across all account types with low average spreads.
Like Eightcap and Pepperstone, you can choose between a Standard (no commission) and Raw Spread (spread-based) account. With Raw Spread, IC Markets also gives you the option of either MetaTrader or cTrader platforms.
A swap-free (or Islamic) account option is also available for those unable to earn or pay interest due to their religious beliefs. Unlike Pepperstone, IC Market allows you to use either the Standard or Raw Spread MetaTrader accounts.
Clients with IC Markets will be signed in with its subsidiary based in Seychelles, Raw Trading Ltd. The Financial Services Authority of Seychelles regulates this subsidiary with License number SD018.
Trading Products
With the MT5 trading platform, you can access various trading instruments, including over 1600 Stock CFDs, 61 Forex pairs, and various cryptocurrencies. This allows you to diversify your investment portfolio and take advantage of different market opportunities. Leverage with forex can be up to 500:1.
Trading Platforms
IC Markets has a great range of trading platforms overall.
In addition to MT4, MT5, and cTrader and their plugin enhancements, the broker also offers Myfxbook and ZuluTrade for social and copy trading.
ZuluTrade boasts one of the largest networks of copy traders globally and can also integrate with MT4 or MT5, with over 3,500 trading symbols available and plenty of trading signals to follow.
Myfxbook Autotrade is another social copy option, particularly suited for algorithmic traders.
Forex Panel Score
Average Spread
EUR/USD = 0.13
GBP/USD = 0.21
AUD/USD = 0.12
Trading Platforms
MT4, MT5, cTrader
Minimum Deposit
$0
Why We Recommend Fusion Markets
Our team put Fusion Markets to the test and gave it a high 79/100 for its trading experience.
This score was mainly due to its impressively low commissions which are USD 2.25 per lot, very tight spreads (EUR/USD = 0.93 pips), and fast limit order speeds of 79ms.
Fusion Markets allows you to trade with 80 Forex pairs using MT4 and MT5 platforms. They also support most payment methods and have a minimum deposit of $0 regardless of account.
Pros & Cons
Broker Details
Fusion Markets Features Low Commission Accounts And No Deposits
Fusion Markets offers the lowest commissions of any broker, featuring zero commissions for their Classic account and as low as $4.50 (round turn) for their Zero account.
In addition, you can trade a wide variety of US share CFDs with zero commissions with Fusion, further lowering their trading costs.
The broker also has competitive spreads, a massive range of over 90 Forex currency pairs to trade, the most of any broker on this list, and a high leverage of up to 500:1.
Commissions and Fees
You can choose between Classic (no commissions) or Zero (spread-based) accounts. Zero account offers the lowest commissions among all brokers listed.
Fusion Markets does not charge deposit fees and has no minimum account size, making it easier to start trading.
Multiple e-payment options are available, including local transfers from Malaysian bank accounts.
Fusion Markets International Ltd, regulated by the Financial Services Authority of Seychelles, serves the broker’s clients with license number SD096.
Trading Platforms
Like Eightcap, Fusion Markets is a MetaTrader specialist, offering both MT4 and MT5, which are available on all devices and as a webtrader.
A unique benefit of Fusion Markets is that they provide the MT5 platform powered by MetaQuotes, giving the broker a competitive advantage in multi-asset trading.
The platform offers two social trading options: Myfxbook for algorithmic trading and DupliTrade for MT4 copy trading. Some extra tools are available, such as a Sponsored VPS (Virtual Private Server) for virtual trading. It includes a multi-account manager that is helpful for fund managers who have to handle multiple clients or accounts and portfolios.
Forex Panel Score
Average Spread
EUR/USD = 0.9
GBP/USD = 0.14
AUD/USD = 0.13
Trading Platforms
MT4, xStation 5
Minimum Deposit
$0
Why We Recommend XTB
We think it’s safe to say XTB is a top-tier broker for CFD product variety, offering almost 2000 CFDs based on:
You can easily navigate these products through XTB’s very user-friendly proprietary platform, xStation 5.
xStation 5 is equipped with tight spreads averaging 1.3 pips for the AUD/USD pair, and handy customisable chart tools.
Pros & Cons
Broker Details
XTB Allows Trading With A Vast Selection Of CFD Products
As a trusted multi-asset broker, we have personally utilised XTB and can attest to their diverse range of forex and CFD options available through their exceptional xStation 5 trading platform.
We found XTB’s feature-rich xStation 5 platform user-friendly due to its minimalist design, and it comes packed with a rich selection of powerful trading tools and features.
Lastly, we can vouch for XTB’s exceptional customer service, including their top-tier educational resources that can enhance your trading experience.
Commissions and Fees
We’ve used XTB and found they offer one primary account type, a no-commission Standard account.
From our experience, the average minimum spreads sit at a competitive 0.5 pips. Forex, Indices, Commodity, and Cryptocurrency CFDs attract no commission fees. On the other hand, stock and ETF CFDs also have fairly low commissions, starting from 0.16% round turn.
Malaysian clients will be signed up to XTB International Limited (XTB), which is regulated by the International Financial Services Commission in Belize. (IFSC Licence No.: 000302/185).
Top Proprietary Trading Platform
While we noticed that XTB doesn’t provide MT4, their proprietary xStation 5 platform certainly holds its ground. We accessed XTB Station through various means: as a webtrader, on a tablet, desktop, and even via the mobile app.
The xStation 5 mobile app mirrors its web counterpart and is cleanly designed with features such as streaming news, predefined watchlists, an economic calendar, top movers, and client sentiment data.
When diving into xStation 5, we found 37 technical indicators and 29 drawing tools. Plus, its highly customisable charts let us tweak things to our preference. The platform allows configurations across multiple workstations. We had the flexibility of three order types: Market, Limit, and Stop, making it convenient to set both stop loss and take profit orders.
One standout aspect of xStation 5 was the in-house analytics provided by the XTB analysts. It was also equipped with news updates, economic calendars, and tools to gauge market sentiment.
Though it doesn’t support automation and backtesting, we believe the platform is a solid choice, especially considering XTB’s extensive range of CFD products.
Excellent Educational Resources
XTB offers a comprehensive educational experience with written content, video materials, and archived webinars. These are incorporated throughout its platform suite and website, sorted by topic or experience level.
XTB’s Trading Academy offers 200 lessons, including 10 for forex and CFD education. Each category features quizzes to test your knowledge.
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 can confidently say that eToro is the best broker for social trading.
With over 30 million registered users, eToro is home to one of the world’s largest social trading platforms.
By using this platform, you’ll gain helpful advice and guidance from expert traders — this is particularly beneficial if you’re a beginner trader.
49 Forex pairs, 41 crypto, 13 indices, 263 ETFs, nearly 30 commodities and over 2500 stocks CFD are available for trading.
Pros & Cons
Broker Details
eToro Is Known for Having The Best Social Network for Copy Trading
A trusted Israeli fintech startup, eToro is the best social trading broker on this list, particularly due to its proprietary trading platform in addition to CopyTrader and CopyPortfolios.
Having used the broker ourselves, we found that CopyTrader is geared towards individual trades, whereas CopyPortfolios caters to a collection of investments or a whole portfolio. Both these platforms enabled us to replicate the trades of seasoned investors. Furthermore, if you’re inclined to share your trading tactics, unique benefits are awaiting you.
The broker serves Malaysian clients through eToro (Seychelles) Ltd which is regulated by the Financial Services Authority Seychelles (“FSAS”) with Licence #SD076.
Commissions and Fees
eToro has one account, their Standard account, with no commissions.
The broker also has zero commissions for US stock trading, like Fusion Markets, further lowering their trading costs.
Another unique benefit is that 100,000 USD is credited into a virtual portfolio (like a demo account) once you open an account with eToro.
eToro CFD Products
You can trade a wide range of products with eToro. Nearly 50 forex pairs are available which includes all the major traded pairs. Leverage can be up to 400:1 which is slightly lower than some other brokers on this list but more than adequate for most traders.
Of particular note is the extensive range of cryptos, ETFs and commodities.
Trading Platforms
eToro’s proprietary platform is flexible as webtrader or via trading apps on Android or iOS. The broker merges self-directed trading and copy trading under a unified trading experience.
Using the platform is straightforward and results in a top-notch mobile experience. It will suit clients using multiple devices, as the web platform and mobile app have almost identical features.
The best CFD broker for Malaysian traders, according to our extensive research and market testing is Eightcap. We recommend Eightcap because it offers one of the lowest average spreads of just 0.06 for the EUR/USD pair which is 0.16 better than the industry average. In addition to this, Eightcap charges a low commission of only $3.50 for its RAW accounts as well.
Its status as a non-dealing desk broker also allows it to offer 0 pip spreads for 97.83% of the time excluding the rollover period. Plus, you can take advantage of these low trading costs on the best platforms, MetaTrader 4 (MT4), MetaTrader 5 (MT5), and TradingView.
Furthermore, we found that Eightcap offers some of the best customer support in the industry, which can be highly useful, especially in volatile markets when you have a trade open.
CFDs (contracts for difference) are agreements between a buyer and a seller to exchange the difference in the value of an asset between the time the contract opens and closes. They allow you to speculate on the price of an underlying asset (without taking ownership of the underlying asset), such as a stock index, commodity, or currency pair.
There are pros and cons to trading CFDs, here are some of them:
Trading CFDs in Malaysia is legal but needs to be done through a broker that is regulated through the Securities Commission Malaysia (SCM). The brokers we recommend are all offshore brokers that accept Malaysian clients.
Through our in-house research platform, we’ve consistently found Eightcap to offer the lowest spreads for traders in Malaysia.
We’ve found Eightcap to consistently offer low spreads of just 0.06 for the EUR/USD pair which is 0.16 better than the industry average. In addition to this, Eightcap charges a low commission of only $3.50 for its RAW accounts as well.
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RAW Account Spread Comparison
|
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|---|---|---|---|---|---|
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0.06 | 0.27 | 0.23 | 0.42 | 0.59 |
|
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0.10 | 0.20 | 0.60 | 0.40 | 1.00 |
|
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0.02 | 0.17 | 0.50 | 0.27 | 0.30 |
|
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0.02 | 0.05 | 0.36 | 0.19 | 0.23 |
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0.30 | 0.50 | 0.60 | 0.50 | 0.50 |
|
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0.17 | 0.30 | N/A | 0.54 | 0.68 |
|
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0.30 | 0.40 | N/A | 0.50 | 0.50 |
|
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0.44 | 0.42 | 0.50 | 0.40 | 0.30 |
|
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0.20 | 0.40 | 0.60 | 0.50 | 0.70 |
Avg. spreads are taken from each broker's website and updated monthly. Last update on 04/01/2024
OANDA is our top pick for beginner-friendly trading platforms for Malaysian traders. We were impressed with OANDA as it ensures a secure trading environment and has zero minimum deposits.
The broker also offers extremely low minimum trade sizes, complemented by a free demo account and comprehensive charting tools. OANDA also offers the ability to use guaranteed stop-loss orders, which means large negative price moves will never send your account into debt.
All of these things make for a stellar trading environment for beginner traders.
IG Group offers the most amount of CFDs by far to Malaysian traders. The broker boasts over 17,000 markets to trade. Markets include 12,000+ shares 13 cryptos, 80+ Forex pairs, and even futures, options, ETFs, and sectors.
IG Group is one of the world’s oldest and largest Forex brokers, and you can trade using IG WebTrader and mobile which includes a guaranteed stop loss, ProRealTime, and MT4. Spreads for the EUR/USD average 1.13 pips which we think is competitive.
There is no shortage of CFD trading platforms available to use in Malaysia however, the 6 most popular are:
Not all trading platforms are offered by certain brokers, so it’s best to check that your chosen platform is offered before opening an account. At CompareForexBrokers, we’re a huge fan of MetaTrader4 (MT4) and recommend it to most traders, the thing is like the Toyota Hilux of the trading industry – ultra-reliable, with a huge amount of features and simple to use.
CFD trading in forex is where you open a contract with a broker based on whether the exchange rate of a currency pair will go up or down. You do not take ownership of the underlying asset.
For example, if you think the euro will appreciate against the US dollar, you can buy a CFD on EUR/USD. If the exchange rate rises, you can close your CFD contract and profit from the difference.
CFD trading is legal in Malaysia and is overseen by the Securities Commission of Malaysia (SCM). Brokers must hold a Capital Market Services License (CMSL) from the SCM to offer CFDs in shares, indices, and commodities locally.
Forex CFDs are not permitted, but some brokers bypass this by establishing offshore entities with derivatives trading licenses from foreign regulators. While the SCM may caution against offshore brokers, it is tolerated not formally illegal.
Some Muslims consider CFD trading halal due to elements of interest (riba) and gambling (qimar) inherent in CFD contracts. Due to this, many brokers offer Islamic accounts which offer swap-free trading, to negate the aspect of charging interest.
CFD trading can be beginner-friendly if you are willing to learn the basics, develop a strategy, apply risk management techniques, and consistently develop your trading skills. However, CFD trading also carries a high level of risk, as you can lose more than your initial investment due to leverage, market volatility, and fees.
Gains from CFD trading in Malaysia might be subject to income tax, with rates reaching up to 30%. Maintaining a comprehensive record of your trades is crucial for precise income reporting and tax compliance. For accurate guidance on your tax status, we recommend that you consult with a professional tax advisor.
CFD trading in Malaysia is legal and is regulated by the Securities Commission Malaysia (SCM). CFD providers must be licensed by the SCM and comply with its rules and standards which are laid out to protect traders. These regulations include:
The difference between CFD trading and investing in stocks is mainly related to the concept of ownership, leverage, and taxation.
When you trade CFDs, you are not buying or selling the underlying asset, but rather opening a position based on whether you think the price of the asset will go up or down. Alternatively, when you invest in stocks, you are buying a share of a company, which gives you partial ownership of the business.
Yes, you can use a Forex demo account in Malaysia. We recommend that all beginner traders use a demo account before ever risking a single Ringhit in the markets.
A Forex demo account is a simulated trading environment where you can practice your trading skills and strategies with virtual money, without risking any real money. Most brokers offer demo accounts where you can be set up and trading within minutes.
While it is possible and legal to trade with offshore brokers in Malaysia, the Securities Commission of Malaysia (SCM) advises traders to only use brokers that are regulated in Malaysia.
Disclaimer: Trading with Offshore brokers comes with a high risk of losing your capital due to mismanagement or dishonesty by the brokerage firm. That being said, it can at times also come with benefits such as lower spreads, more financial instruments, increased leverage, or a wider range of asset classes.
We recommend forex trades to sign up for retail investor accounts in only regulated brokers that are under the jurisdiction of the European CySEC in Cyprus, the British FCA or the Australian ASIC. That way, your retail CFD account will be protected and you can comfortably trade on the financial markets.
We focused on comparing forex brokers for Malaysian traders that had tier 1 regulation in locations such as Australia, NZ, Singapore or the UK. This is because local Malaysian brokers are rare and offer a limited range of markets (such as share CFDs). All brokers accept CFD traders from Malaysia and have protections in place, such as negative balance protection, to mitigate extreme trading risk.
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