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11 Best Forex Brokers in Malaysia for 2024

Searching for the top forex broker in Malaysia? Based on our hands-on analysis, we’ve identified the 11 best options tailored to various trading needs. Practical tips from our experts are included.

By:
Plamen Stoyanov
Reviewed By:
Ola Alder
Updated: Mar 26, 2024

List of Top Forex Brokers in Malaysia

Multi-regulated. Versatile accounts, including Islamic. Low fees. Accepts MYR as a base currency.

Multiple tools. Low spreads. Deep liquidity.

Global licensing. Accessible and diverse account types. Over 150 tradable instruments. Reliable customer support. Automated trading via MT4’s EAs.

Range of account types. Competitive pricing. Comprehensive educational content. 24/7 customer support.

Listed on the SIX Stock Exchange. Ultra-fast order execution of 9 milliseconds. Professional-grade platform with advanced charting capabilities.

ASIC, CySEC regulations. Over 270 trading instruments. Incorporates content from TradingCentral. Comprehensive educational materials. Choice of account types.

Top-tier regulations. Feature-rich platforms. Probing research and educational materials.

Malaysian regulation. Globally recognized and trusted brand. Well-balanced offering.

1:1000 leverage for forex. MT4, MT5, and FXTM Trader App. Probing research and educational materials.

Strict regulations. Very tight spreads. Wide selection of instruments. Access to varied markets, including Asian stocks.

Low spreads and no commissions. Broad range of CFDs, including bonds and ETFs. Options trading available.

Forex Trading in Malaysia

Forex and CFD trading is legal in Malaysia. Moreover, Malaysian traders can benefit from a broker that is regulated by the local authority – the Labuan Financial Services Authority (LFSA). The LFSA’s primary purpose is to oversee the functioning of financial markets and dealings with securities in the country. Alternatively, for access to global markets, traders can seek a reliable broker abroad licensed forex broker in Malaysia.

Malaysia is situated close to Singapore, one of the two most significant financial hubs active during the Asian trading session characterized by lower trading activity (compared to the EU and U.S. sessions). Thus, Malaysian traders must select a licensed broker with access to deep liquidity supporting fast order execution.

How Did FX Empire Select the Best Forex Brokers in Malaysia?

FXEmpire's Methodology

  • International regulation. We only picked highly transparent and highly regulated brokers with a license to provide financial services to traders in Malaysia.
  • Local customer support. We selected brokers that offer customer support in the Malaysian language during business hours in Malaysia.
  • Islamic (swap-free) accounts. We only considered brokers that offer Islamic accounts permitting swap-free trading.
  • MYR as a base currency. We checked if brokers accept the Malaysian Ringgit (MYR) as a base currency for trading accounts.
  • Payments in MYR. We verified if brokers support MYR for deposits and withdrawals.
  • Low fees. We examined whether brokers offer some of the industry’s lowest trading fees (spreads, swaps, and commissions).
  • Diverse accounts. In evaluating the functionality of a broker’s account types, we look at the number of available instruments and the possibility of implementing various trading strategies.
  • Trading software. We selected brokers that offer a good balance between user-friendly and highly practical trading platforms.
  • Trading experience. We looked for quality supporting materials, including research and educational content, that offer traders a 360-degree view of market developments.

Our team of experts has identified brokers’ strengths and weaknesses using FX Empire’s comprehensive methodology. Here’s how we test.

Now let’s turn to my picks for each category.

Best Overall

Your capital is at risk.
  • Min Deposit
    $10
  • Tradable Instruments
    263
  • Fees
    Medium

If you are looking for balance and versatility on the market, then JustMarkets just might be your best choice. It’s an international CFD broker that was founded in 2012. JustMarkets provides a wide range of services catering to the needs of all kinds of traders. The broker is authorized in multiple jurisdictions by various regulators – from the top-tier CySEC to the third-tier FSA.

Regional Features:

  • Entity for Malaysian traders: Just Global Markets Ltd, regulated by Financial FSA Seychelles
  • MYR as base currency: Yes
  • Islamic accounts: Yes
  • Deposits and withdrawals in MYR: Yes

JustMarkets has three account types affording very tight spreads and commission-free trading. The Raw spreads (starting from 0.0 pips) account is the only one with a fixed round turn commission – 6 units of the base currency per lot, meeting the industry average. I checked the Raw account type and found it suitable for the implementation of high-frequency trading strategies, such as scalping.

All accounts can be opened with MYR as a base currency, making them even more favorable for traders in Malaysia. Additionally, JustMarkets supports the renowned MetaTrader 4&5, which I find sufficient for conducting basic technical analysis. The broker also has its own social trading service and access to deep liquidity.

Pros
  • Very competitive trading fees.
  • Proprietary social trading service.
  • Flexible deposit and withdrawal options.
  • Versatile accounts supporting swap-free trading.
  • 24/7 customer support.
Cons
  • No Asian stocks.

Best for Social and Copy Trading

4.3
Forex margin trading involves substantial risks.
  • Min Deposit
    $25
  • Tradable Instruments
    230
  • Fees
    Low

OCTA was established in 2011. The broker’s service is especially well-fitted to support copy trading. OCTA provides excellent commissions for signal providers, which I consider to be quite attractive for highly successful traders. Accordingly, this also benefits traders wanting to subscribe to the most profitable strategies.

Regional Features:

  • Entity for Malaysian traders: Octa Markets Inc., not regulated
  • MYR as base currency: No
  • Islamic accounts: Yes
  • Deposits and withdrawals in MYR: Yes

OCTA offers two retail account types that afford commission-free trading and floating spreads starting from 0.6 pips. I checked and compared the live spread on the EURUSD during the morning and afternoon trading sessions – recorded at 1.0 and 0.8 pips, respectively – and found it to meet the industry average. I found this combination suitable for high-frequency and high-volume trading as it offers competitive pricing that supports the implementation of multiple trading strategies.

Copy trading is available via OCTA’s proprietary copy-trading app, connecting the best signal providers with eager copiers. It allows you to compare the performance of various strategies and check their average returns, maximum drawdown, average losses, and more. I appreciated this level of detail because, in the long run, it is not enough to simply connect to the most profitable strategy. You need also to consider the risks.

Pros
  • Tight spreads and no commissions.
  • Rich pool of research materials.
  • Very fast order execution.
  • Cost-free deposits and withdrawals.
Cons
  • Available for Malaysian residents entity is not regulated.
  • No CFD shares.
  • No phone support.

Best MT4

FX and CFDs trading involves a high risk of loss
  • Min Deposit
    $50
  • Tradable Instruments
    134
  • Fees
    Medium

Errante was founded in 2019 and is headquartered in Limassol, Cyprus. The broker is licensed and authorized in the two jurisdictions by CySEC and FSA Seychelles. It adheres to most safety requirements, and I found it fairly transparent and trustworthy overall.

Regional Features:

  • Entity for Malaysian traders: Errante Securities (Seychelles) Ltd, regulated by FSA Seychelles
  • MYR as base currency: No
  • Islamic accounts: Yes
  • Deposits and withdrawals in MYR: Yes

MetaTrader 4 is a platform preferred by traders worldwide because of its simplistic design and easy order execution. It features over 50 analytical tools, such as technical indicators and drawing tools. These are used to study price action behavior and determine different trading opportunities, like breakouts or breakdowns, range trading, and trending ones.

The platform is also frequently used for algorithmic trading because of its in-built Expert Advisors (EAs) feature, which makes it possible to automate your trading strategy and gain precise entries and exits in and out of the market.

I opened an ECN account with Errante, which features floating spreads from 0.1 pips and a $6 round-turn commission per traded lot. This combination falls just below the industry average. I also appreciated Errante’s low minimum deposit requirement of $200 for the account type.

Pros
  • Low minimum deposit requirement.
  • Competitive prices.
  • Reliable customer support.
  • Full suit of MT4.
Cons
  • Insufficient educational materials.

Best for Beginners

4.1
Trading involves a risk of loss
  • Min Deposit
    $100
  • Tradable Instruments
    164
  • Fees
    Low

FBS is a derivatives broker that was founded in 2009. It is beginner-friendly, with the bulk of its services tailored to serve the needs of rookies who are just now taking their first steps into the trading world.

Regional Features:

  • Entity for Malaysian traders: FBS Markets Ltd., regulated by IFSC Belize
  • MYR as base currency: No
  • Islamic accounts: Yes
  • Deposits and withdrawals in MYR: Yes

My first strong impression of FBS as a beginner-friendly trader stemmed from its impressive range of 7 account types. You can choose between your typical STP and ECN account types, as well as several Cent and Micro accounts specifically designed for low-volume trading. A specialized Crypto account is also available.

I opened a Cent account with FBS to assess the conditions offered to beginners. With floating spreads from 0.6 pips and zero commissions, I found the offering quite competitive and below the industry average. Novice traders can choose between MetaTrader 4&5. Both platforms, though somewhat rugged and inflexible, have easy learning curves. They also support copy and automated trading.

FBS publishes regular webinars and seminars and has a rich collection of educational videos and guidebooks. This range of materials is quite helpful to beginners wanting to get a balanced and multilayered understanding of trading. I quite appreciated FBS’s attention to detail. Its content covers a wide range of topics, from technical analysis to the intricacies of trading psychology and risk management.

Pros
  • Low spreads.
  • Diverse account types.
  • Rich collection of educational content.
  • 13 deposit methods for Malaysian traders.
Cons
  • Relatively slow order execution.

Best for Professional Traders

Trading involves risks. Products and services of Swissquote are only intended for those permitted to receive them under local law.
  • Min Deposit
    $1000
  • Tradable Instruments
    506
  • Fees
    Medium

Established in 1996 and headquartered in Zurich, Swissquote delivers the Swiss quality worthy of its name. In the three decades since its foundation, this broker has established itself as a trustworthy partner listed on the Swiss Stock Exchange. Swissquote delivers industry-leading services geared towards professional traders.

Regional Features:

  • Entity for Malaysian traders: Swissquote Asia Limited, regulated by SFC Hong Kong
  • MYR as base currency: No
  • Islamic accounts: Yes
  • Deposits and withdrawals in MYR: Yes

What impressed me most was the lighting-fast average execution speed of around 9 milliseconds. Based on this performance, I determined that Swissquote is ideal for high-frequency trading. Seasoned traders interested in scalping stand to gain the most due to the decreased risk of negative slippage.

I opened a ‘Standard Forex & CFDs’ account with Swissquote, featuring commission-free trading and floating spreads from 1.7 pips. Traders are given access to over 450 lower-risk securities and higher-yield/risk assets, which can be used for balanced trading.

Swissquote’s Advanced Trader platform impressed me with its seamless design and feature-rich environment. It accommodates automated trading via its fast order execution capabilities. Additionally, experienced traders can make use of its professional-grade charting capabilities, which afford the execution of probing technical analysis. The platform’s intuitive and user-friendly design makes it possible to recognize even complex trading opportunities with relative ease.

Pros
  • Highly regulated.
  • Ultra-fast order execution.
  • Wide range of instruments and various contract types.
  • Professional-grade platform.
Cons
  • High spreads.

Best Supporting Content

Our products are traded on margin and carry a high level of risk and it is possible to lose all your capital. These products may not be suitable for everyone and you should ensure that you understand the risks involved.
  • Min Deposit
    $0
  • Tradable Instruments
    321
  • Fees
    Medium

Founded in 2010, IronFX is a Cyprus-based forex and CFD broker. It has multiple regulations, including CySEC and FCA, and provides its services to retail and professional traders globally. The broker offers 270+ instruments across most major asset classes at competitive prices.

Regional Features:

  • Entity for Malaysian traders: Notesco Limited, not regulated
  • MYR as base currency: No
  • Islamic accounts: Yes
  • Deposits and withdrawals in MYR: Yes

What stood out the most to me is its robust supporting content offering. IronFX provides top-line market analyses and trading ideas from TradingCentral – one of the best and most trusted providers in the trading industry. The broker also offers a comprehensive financial news screener and in-depth technical and fundamental analyses.

IronFX incorporates the renowned MetaTrader 4 platform. It is feature-rich, with more than 60 analytical tools and chart configurations, and supports essential trading tools, such as one-click trading, an alerts-setting option, and more. The platform also affords automated trading with its Expert Advisors (EAs) option.

I tested the competitiveness of IronFX’s trading fees by opening a No Commission trading account. As the name suggests, it features commission-free trading and floating spreads from 0.9 pips. This combination falls marginally below the industry average.

Pros
  • Tight regulation
  • Competitive prices
  • Well-rounded research content
  • Comprehensive educational materials
Cons
  • No alternative trading platforms

Best Account Offering

Your capital is at risk
  • Min Deposit
    $10
  • Tradable Instruments
    551
  • Fees
    High

AMarkets is an international forex and CFD broker which boasts a 16-year history. The broker provides access to more than 550 trading instruments across various markets and round-the-clock customer support. Having reviewed the broker’s services, I discovered that its diverse accounts offering makes it stand out against the rest.

Regional Features:

  • Entity for Malaysian traders: AMarkets Ltd, regulated by Mwali International Services Authority (MISA)
  • MYR as base currency: No
  • Islamic accounts: Yes
  • Customer support in Malay: Yes
  • Deposits and withdrawals in MYR: Yes

I opened an ECN trading account with market execution. It features round-turn commissions of $5 per traded lot and raw spreads from 0.0 pips, meeting the industry average. I also recorded a 0.6 pips EURUSD spread, which allowed me to calculate that trading one full-sized position will cost around $11 (0.6 pips x $10 pip value + $5 commission).

Also, the broker offers a Standard account that serves more of a one-size-fits-all purpose with a maximum leverage of 1:3000 and a floating spread starting from 1.3 pips and a dedicated Crypto account with a maximum leverage of 1:500 and a floating spread from 1.3 pips. AMarkets’ Fixed account, featuring a fixed spread from 3.0 pips, is suitable for risk-averse traders aiming to hedge the risks of sudden market fluctuations.

AMarkets offers renowned MetaTrader 4&5 platforms, including WebTerminal is a browser-based trading terminal. I tested MetaTrader 5, which is feature-rich with over 100 analytical tools and chart customizations. Another great perk is the AMarkets mobile trading app, empowering traders to trade seamlessly while on the move.

Additionally, AMarkets provides VPS hosting and op-notch market analyses,  along with seamless trading insights from AutoChartist, one of the industry’s leading signal and technical analysis software.

Pros
  • Wide choice of instruments
  • Variety of trading account types
  • Multiple trading and market analysis tools
  • Bonuses and cashback program
Cons
  • Poor regulatory oversight

Best LFSA-Regulated

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd. You should consider whether you understand how CFDs, or any other of our products work, and whether you can afford to take the high risk of losing your money.
  • Min Deposit
    $100
  • Tradable Instruments
    747
  • Fees
    Low

What makes Tickmill, a broker with global exposure, especially suitable for traders in Malaysia is its licensing by the national regulator – the LFSA. With its offices in Labuan, Tickmill can offer its trading services to local traders directly.

Regional Features:

  • Entity for Malaysian traders: Tickmill Asia Ltd, regulated by FSA Malaysia
  • MYR as base currency: Yes
  • Islamic accounts: Yes
  • Deposits and withdrawals in MYR: No

Clients of Tickmill can choose between MetaTrader 4&5. The newer addition to the popular franchise consists of a vast array of technical indicators, drawing tools, and trading order types. Most impressively, it offers 21 different timeframes affording traders a truly deep and penetrating insight into price action behavior.

I opened a Classic account, which offers commission-free trading and floating spreads starting from 1.6 pips. After checking Tickmill’s overall costs, I assessed that they meet the industry average. The Pro account has raw spreads starting from 0.0 pips and a $4 round turn commission, which is way below the industry average. I found the Raw account type, in particular, to be suitable for high-frequency trading and scalping. On balance, Tickmill’s diverse account types offer truly competitive conditions to all kinds of traders.

Pros
  • Multi-regulated globally.
  • 260+ instruments from different markets.
  • Very low trading fees.
Cons
  • No proprietary platform.

Best for High Leverage

4.3
82% of retail CFD accounts lose money
  • Min Deposit
    $500
  • Tradable Instruments
    266
  • Fees
    Medium

FXTM was established in 2011 and is serving retail traders globally. It has strong licensing by the FCA, CySEC, and FSC Mauritius and offers diverse accounts, VPS hosting, and access to deep liquidity.

Regional Features:

  • Entity for Malaysian traders: Exinity Limited, regulated by FSC Mauritius
  • MYR as base currency: No
  • Islamic accounts: Yes
  • Deposits and withdrawals in MYR: No

FXTM’s clients in Malaysia have access to quite high leverage, up to 1:1000. They can also benefit from the broker’s tight spreads and commission-free accounts.

The Micro and Advantage Plus accounts offer zero commissions and floating spreads starting from 1.5 pips. In contrast, the Advantage account features raw spreads beginning at 0.0 pips and a fixed commission of up to $2, depending on the traded volume. These conditions generally align with the industry average.

FXTM provides the renowned MetaTrader 4 platform and its successor, MetaTrader 5, which combine a feature-rich interface with simple and fast order execution. Traders can utilize a wide variety of indicators, such as range-based, trend-based, and oscillators, to analyze price action behavior. Subsequently, they can capitalize on the trading opportunities they identify by placing market, limit, or stop orders.

Pros
  • Flexible accounts.
  • MT4 indicators suite.
  • Probing educational materials.
  • VPS hosting.
Cons
  • Inactivity fee and withdrawal fees.

Best Low Spreads

Contracts for Difference (CFDs) are leveraged over-the-counter derivative products and carry a high level of risk to your capital. You should only risk capital that you can afford to lose. In certain circumstances, due to fluctuations in market value you may not get back your initial investment amount. You may not only lose your initial investment but you may incur a liability to pay a further amount to cover losses. This means you can lose more money than you have invested.
  • Min Deposit
    $100
  • Tradable Instruments
    8977
  • Fees
    Low

FP Markets was founded in 2005 and has garnered a reputation as a reliable partner offering some of the industry’s lowest fees. The broker has top-tier licensing by CySEC and ASIC, which are some of the safest regulators in the industry. But traders in Malaysia can open accounts with FP Markets’ offshore entity.

Regional Features:

  • Entity for Malaysian traders: FP Markets LLC, not regulated
  • MYR as base currency: No
  • Islamic accounts: Yes
  • Deposits and withdrawals in MYR: Yes

I tested FP Markets’ fees by opening a Raw account. It affords raw spreads from 0.0 pips and a round-turn commission of $6 per lot. Under these conditions, to trade 1 full lot (100,000 units) on the EUR/USD will cost you around $7, which I assessed to be below the industry average.

The broker offers two pricing models – ECN and DMA. Traders can thus choose the type of price feeding that is best for them. Both accommodate fast order execution without the need for a dealing desk.

FP Markets offers over 800 instruments, including 105 CFD stocks from the Hong Kong stock exchange. I appreciated this diversity because it affords traders in Malaysia great versatility since these instruments can be traded during the Asian trading session.

FP Markets supports popular MetaTrader 4&5 and the seamless iRESS platforms. The former caters to the needs of retail traders, while the latter is tailored for professional stock traders, granting them access to 1500+ shares. You can also trade on cTrader, which is among the most versatile platforms and offers better insight into price action behavior.

Another major advantage of FP Markets is the vast pool of third-party tools. The broker supports Autochartist, one of the most trusted signal providers globally, and Myfxbook. Social and automated trading are also permitted.

Pros
  • Top-tier regulation.
  • Very low fees.
  • Best execution policy.
  • No inactivity fee and handling fees for deposits and withdrawals.
Cons
  • No proprietary platform.

Best Forex Trading Platform

Trading CFDs and FX Options entail risk and could result in the loss of your capital.
  • Min Deposit
    $100
  • Tradable Instruments
    853
  • Fees
    Medium

Since its foundation in 2006, AvaTrade has grown into a globally recognized brand for its reliability and professionalism. The broker is licensed in 9 different jurisdictions by some of the most trusted regulators in the industry, including ASIC and CySEC.

Regional Features:

  • Entity for Malaysian traders: AvaTrade Markets Ltd, regulated by FSC British Virgin Islands
  • MYR as base currency: No
  • Islamic accounts: Yes
  • Deposits and withdrawals in MYR: No

The AvaTrade platform has a very sleek design, and I appreciated it for affording a detailed outlook into price action behavior. I discovered that it supports three chart types (bars, candles, and line charts), 10 timeframes, and over 100 trading indicators. This vast array of tools allows traders to conduct thorough technical analyses from multiple angles and pick the most favorable entry and exit levels for their trades.

AvaTrade’s spreads, swaps, and commissions are, for the most part, below the industry average. The broker affords commission-free trading and floating spreads starting from 0.6 pips. After testing their costs, I found out that the spreads they charge on FX pairs and commodities are quite competitive, but this was less so for CFD shares and indices.

AvaTrade is ideal for traders seeking to diversify their risk beyond CFDs by offering options trading. Options provide the right to enter the market at a specific level, without the obligation to do so. With limited risk, the maximum loss is typically the premium paid, while the potential profit is unlimited.

Pros
  • Multi-regulated globally.
  • Offers options trading.
  • 1200+ tradable instruments.
  • Several excellent mobile apps.
Cons
  • Investors’ compensation schemes are not available on all entities.

Our Methodology

FX Empire has pioneered a unique methodology for evaluating CFD brokers worldwide. Our goal is to highlight all the advantages and disadvantages of a broker’s service so that our readers can make informed decisions when choosing a reliable partner. Our reviews are written with care and attention to detail, reflecting all the goals and needs of the typical retail trader.

Our team of dedicated professionals is working continuously to improve our system and keep it up-to-date with current market trends. We test each broker systematically by employing over 250 variables across nine categories:

  • Trust
  • Fees
  • Platforms and Tools
  • Account Types
  • Tradable Instruments
  • Deposits and Withdrawals
  • Customer Support
  • Research
  • Education

We strive to be as rigorous and objective as possible and write our reviews without personal bias. We check the licenses of all the subsidiaries of a broker and look at the fine print in the Client Agreement. The reliability of a broker is further determined based on the website’s regulations, fees, and general transparency.

In order to check the performance of a broker in real time, we open a live account with one of its entities. This is done so that we can measure the spreads, swaps, and commissions on its most popular account type. Our findings are then compared to the industry average, which is how we determine whether a broker offers competitive prices.

We also test the functionality of the available platforms, the number and types of tradable instruments, the reliability of customer support, and the quality of the research and educational materials.

For selecting the best brokers in Malaysia, we looked for broker entities with international licensing to provide financial services globally and preferred LFSA (Malaysia) licensing. We also examined whether brokers accept the Malaysian Ringgit (MYR) as a base currency as well as for deposits and withdrawals. Additionally, we searched for the availability of Islamic accounts, the overall reliability of the broker, low fees, and user-friendly platforms.

We abide by our strict guidelines for editorial integrity based on the objective standards we have set for our reviews. You can read more about our review process here.

Meet our Writers

The team of forex and CFD analysts and editors at FXEmpire is comprised of trading industry professionals and seasoned financial journalists. Our experts are published on leading financial websites such as Investopedia and Forbes. In addition, they all have extensive trading experience.

Get to Know Our Authors

Dan BlystoneBroker Analyst

Dan Blystone began his career in the trading industry in 1998 on the floor of the Chicago Mercantile Exchange. Later Dan gained insight into the forex industry during his time as a Series 3 licenced futures and forex broker. He also traded at a couple of different prop trading firms in Chicago. Dan is well-equipped to recommend the best forex brokers due to his extensive experience and understanding of the brokerage industry.

Jitan SolankiBroker Analyst

Jitan Solanki is a professional trader, market analyst, and educator. He day trades major currency and index markets and focuses on swing trading US equities and commodities. A qualified Market Technician, Jitan also works with trader education and brokerage companies on various projects. These include market analysis, live trading events, and broker reviews. As an experienced trader and educator, Jitan brings all his qualities in action when reviewing and recommending brokers.

Plamen StoyanovBroker Analyst

Having been a retail trader since 2013, Plamen has gained an in-depth understanding of the challenges that novice traders face today. His expertise is swing trading and day trading with a heavy emphasis on psychological and fundamental analysis. Plamen’s favourite trading instruments include FX majors and gold. He earned a Bachelor's degree in Economics and International Relations. Plamen's broad experience has equipped him with the expertise to recommend the best forex brokers.

Vladimir ZernovBroker Analyst

In more than 15 years of trading in the financial markets, Vladimir dealt with a wide range of brokers and financial instruments. His career as a day-trader at a proprietary trading firm goes back to 2007. Later, Vladimir turned to longer time frames and became an independent trader and analyst managing his own portfolio. Using his experience, he helps traders find the best broker in his reviews.

How to Choose a Forex Broker in Malaysia?

Now that we have covered our picks for each category, it’s time to talk about specific considerations traders in Malaysia need to make before they choose a partner.

How to choose a safe broker?

When looking for a reliable partner, you must consider multiple factors to ensure your safety on the market. Your first concern should be licensing. Ideally, traders in Malaysia should look for a broker that is regulated by the local authority – the Labuan Financial Services Authority (LFSA). Alternatively, they can select a licensed broker to provide financial services globally.

Accordingly, traders can look for individual safety mechanisms that protect traders from various market risks. I have listed these below:

  • Negative balance protection. Negative balance protection is the safety net that ensures traders cannot incur losses that exceed their account balances. This is especially important in highly volatile markets and when trading leveraged instruments like Contracts for Difference (CFDs).
  • Segregated client funds. Brokers that keep their clients’ funds in separate bank accounts from the ones used for their corporate capital mitigate the risk of accounting errors.
  • Compensation scheme. A compensation scheme can reimburse clients of a broker in the unlikely event that the company becomes insolvent. Private indemnity insurance serves a similar purpose. They protect the trader against the broker’s credit risk and liabilities.
  • Best execution policy. Brokers that have a ‘best execution policy’ are obliged to fill their clients’ orders under the most favorable conditions at the time. This is very important as a ‘best execution policy’ effectively decreases the likelihood of traders incurring a negative slippage.

Traders can check whether a broker provides these and other safety mechanisms by checking its documents in the Legal Docs section of the website.

Read more about Best regulated forex brokers.

How to choose a trading account?

It is always important to check which account type offered by a broker is the best match for your personal goals, needs, and means on the market. Broadly speaking, the industry has two prevailing account types – STP and ECN. The former affords commission-free trading and floating spreads, usually starting from 1.0 pips. The latter has raw spreads starting from 0.0 pips and a fixed round turn commission, typically around $6 per traded lot.

Check out our guides on Best ECN forex brokers and Best STP forex brokers.

In my point of view, classic accounts are more suitable for high-frequency trading, whereas raw accounts cater to the needs of high-volume traders. For instance, classic accounts accommodate the needs of scalpers and intraday traders since these strategies usually involve executing multiple orders within a relatively narrow timeframe. Conversely, raw accounts are preferred by longer-term day and position traders, who are less active but tend to place much larger orders.

There is also the question of liquidity. Brokers with access to deep liquidity are better equipped to fill orders promptly and precisely. This mitigates the risk of negative slippage and ensures better prospects for success in the long run.

Here is our list of Best lowest spread forex brokers.

How to choose a trading platform?

The next thing traders need to think about when selecting a broker should be the platforms and tools it supports. Platforms like MetaTrader 4 and MetaTrader 5 have a decent range of technical indicators and drawing tools, though I find them lacking the easy-to-navigate interface of newer and sleeker platforms like TradingView and NinjaTrader. However, MT4 and MT5 are quite suitable for social and copy trading.

Explore Best MT4 brokers, and Best MT5 brokers.

In terms of tools, it is worth choosing a broker that incorporates those third-party tools that enhance its own services. For instance, services like TradingCentral and Autochartist afford traders a deep and penetrating insight into currently unfolding trading setups. There is also DupliTrade, which provides comprehensive solutions to those interested in copy trading.

Read more about Best forex trading platforms.

What to look for in tradable instruments selection?

Finally, it is important to consider the assortment of tradable instruments a broker offers and whether it suits your personal goals and needs. Selecting a broker that offers a wide range of high-volatility assets, like CFD shares and cryptocurrencies, and lower-risk securities, like bonds and treasuries, is always helpful. As a high-frequency intraday trader, I have always sought diversity when looking for new trading opportunities.

Here is our guide on Best crypto trading brokers.

However, there are additional considerations traders in Malaysia should make that are more country-specific. Traders in Malaysia are active during the Asian trading session, which is a period that is typically characterized by diminished though climbing trading activity.

There is a 12-hour difference between Labuan and New York, meaning that most traders in Malaysia will find it difficult to be active during the U.S. open. This is significant for the type of instruments offered by a broker. For instance, your broker might offer hundreds of blue-chip CFD stocks of top American companies, which is great, but this diversity will be of little use to traders in Malaysia who are reluctant to stay up late.

That is why it is a good idea to select a broker that offers you a decent amount of Asian instruments, such as stocks of regional companies, commodities, ETFs, currency pairs, and others.

Read more about Best oil trading brokers and Best gold trading brokers.

What to Avoid When Choosing a Forex Broker in Malaysia?

It is vitally important to avoid signing up with unregulated brokers that do not adhere to any legal frameworks or ensure the most important safety mechanisms. Reliable brokers are always the ones that are licensed by strict regulatory bodies. But licensing alone is not necessarily a guarantee of safety, as not all regulators mandate adherence to the same policies.

Avoid the brokers that don’t comply with the most vital safety mechanisms in the industry, such as having negative balance protection, segregation of client funds, and compensation scheme or private indemnity insurance. It is also helpful when brokers have a ‘best execution policy’ to ensure the most favorable price quotes are used for order filling under prevailing market conditions.

Regarding trading fees, traders should generally avoid accounts with floating spreads starting from 1.4 pips or round-turn commissions above $6.5 per traded lot. These rates exceed the industry average.

Finally, traders should avoid platforms that do not support fast order execution (no more than 100 milliseconds) or those that do not allow you to examine price action behavior from different angles. When it comes to platforms, tools, and instruments, look for diversity and versatility. The more options you have, the easier it is to diversify your trading risk and become a consistently performing trader.

How to Avoid Forex and CFD Scams?

Scammers rely on the gullibility of traders. A common tactic fraudsters employ is to promise quick and easy profits at no risk to the trader. Oftentimes, scammers would use labels that closely resemble the brands of real and legitimate companies. That is why regulators like the FCA have registers where traders can read about such fraudulent companies pretending to be others.

The best and easiest way to protect yourself is to make sure you work with a trustworthy and transparent broker. You can find a comprehensive list of reliable brokers by jurisdiction here.

Another thing to keep in mind is that you need to be careful where you leave your information online. Registering your details on suspicious pop-ups or even more innocuous-looking landing pages promising you enormous profits could result in your contact details ending up in a scammer’s calling list. Remember, no licensed broker would make unsolicited cold calls.

The next time you get contacted out of the blue with promises of becoming the next Warren Buffet, you must remember that you are most likely speaking to a scammer. In my experience, nowhere is the “if something sounds too good to be true…” saying truer than in the world of trading. That is why you should do your due diligence before opening an account with any broker.

FAQ

Yes, trading with financial derivatives (Forex, CFDs, options, etc.) is legal in Malaysia.
The Labuan Financial Services Authority (LFSA) is the regulatory authority responsible for overseeing and regulating financial services in the Labuan International Business and Financial Centre (Labuan IBFC) in Malaysia. For forex traders, LFSA regulation provides a regulated environment with investor protections and compliance requirements. It enhances the credibility and reputation of forex brokers operating within Labuan IBFC, offering traders a sense of security and transparency in their trading activities.
To verify LFSA regulation, you can check the broker’s legal documents on its website and look for a licensing number. Also, you can check LFSA’s register of regulated entities following this link https://www.labuanfsa.gov.my/.
Bank Negara Malaysia (BNM) is Malaysia’s central bank. It is responsible for managing the country’s monetary policy and overseeing the operations of Malaysia’s financial institutions. It is not, however, directly involved in regulating Forex operations on a broker-client level.
Due to our research, BDSwiss is the best option for beginners in Malaysia as it provides rich educational and research content, reliable customer support, and competitive fees.
We assessed that Vantage provides a well-balanced assortment of services that cater to the needs of professional traders. It has low fees, sophisticated platforms, and access to deep liquidity.
Malaysia does not impose a capital gains tax on financial investments, including forex trading. However, other taxes might apply depending on the specifics of your situation, such as income tax. The tax status can also be different for individuals and corporations. Tax laws can be complex and subject to change. It is recommended to consult with a tax professional or financial advisor who understands the local tax laws and can provide advice tailored to your specific circumstances
The Labuan Financial Services Authority (LFSA) and overseas regulators like the FCA or ASIC all aim to protect investors, but their methods and the extent of protection can differ. Key areas of variance include the existence of investor compensation schemes, requirements for fund segregation, levels of regulatory compliance, dispute resolution processes, and limits on leverage. Always research your broker's regulatory environment to understand your rights and protections.
Under LFSA, brokers are allowed to offer a maximum leverage of 1:500 to retail traders. Other overseas regulators with more relaxed requirements may allow much higher leverage, sometimes reaching 1:2000. In comparison, European regulators are a lot more stringent, capping the maximum leverage allowed to retail traders at 1:30.
Yes, signing up with brokers that are licensed internationally is legal in Malaysia, however, you may not be entitled to the same protections.
Yes, cryptocurrency trading is available in Malaysia. However, you should remember that crypto CFDs are considered to be very risky financial instruments.
No, it’s not possible. Trading Forex on margin requires the services of a broker.

About the Author

Plamen StoyanovBroker Analyst

Having been a retail trader since 2013, Plamen has gained an in-depth understanding of the challenges that novice traders face today. His expertise is swing trading and day trading with a heavy emphasis on psychological and fundamental analysis. Plamen’s favourite trading instruments include FX majors and gold. He earned a Bachelor's degree in Economics and International Relations. Plamen's broad experience has equipped him with the expertise to recommend the best forex brokers.

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