Now that forex trading is officially permitted in Malaysia, traders should find the country relatively easy to operate in as a result of its unusually liberal trade policies and laws, although the concept of online retail forex trading remains relatively new in the country.
Remember to carefully consider your needs and the safety of your funds as you consider the best forex broker that offers services in Malaysia. Not all brokerages are created equal.
Trading Forex in Malaysia: What You Need to Know
Malaysia offers a local market with notable business potential for forex brokers, so several have established offices in Malaysia. Still, relatively few of them offer customer support or websites translated into Malay, so you may need to understand English to have a broader selection of brokers to deal through.
Local traders will be familiar with the Malaysian ringgit (MYR) that serves as Malaysia’s national currency. According to the Bank for International Settlements (BIS), the ringgit accounts for roughly 0.4% of daily turnover in the forex market and was ranked 25th among 2016’s most actively traded currencies.
The country also offers decent financial regulatory oversight by Securities Commission Malaysia (SCM) that was established under the Securities Commission Act 1993. The SCM regulates futures and exchange-traded products, although forex products are not formally regulated yet.
The SCM does, regulate how brokers operate in Malaysia, and the National Bank of Malaysia (Bank Negara) manages the Malaysian ringgit’s value. Bank Negara has committed itself to promoting a stable, sound and progressive financial sector.
Furthermore, traders of the Islamic faith may find Malaysia a particularly good place to open Islamic swap free trading accounts that comply with Sharia law since Islam is Malaysia’s official religion. Malaysia’s strong financial services sector specializes in providing Islamic investment products and Islamic accounts. Also, the Islamic Financial Services Act (2013) requires such services to comply with Sharia law.
Before You Open a Forex Account
Since not all online brokers are equal, the most important things to be confident about before opening a forex account is that the broker is secure and offers the services you require. The bullet points below describe the more common considerations you’ll want to review before you select a broker as a trading partner.
The primary consideration when choosing a broker should be the security of your funds deposited as margin. Select a well-regulated broker with at least one reputable regulatory body overseeing its operations and that segregates client accounts from its own.
Most foreign brokers accepting clients from Malaysia will be overseen by one or more good regulatory agencies, such as the National Futures Association (NFA) and the Commodity Futures Trading Commission (CFTC) in the United States or the U.K.’s Financial Conduct Authority (FCA).
Online brokers will typically act either as market makers or
ECN brokers typically show narrower variable spreads but may charge a per trade commission, while market makers often have wider fixed spreads but no commission.
Dealing Spreads and Commissions
The difference between the bid price and the offer price in a broker’s quotation is known as the dealing or bid/offer spread. Since spreads and commissions add a cost to trading, active traders will want to keep them down as low as possible, while less active traders typically seem less sensitive to such considerations.
Ideally, you want to find a broker that offers trading software with a customizable interface and that has the analysis features you require, as well as runs on the desktop, mobile or web platform you prefer.
Virtually all of the best online forex brokers will support using the popular MetaTrader 4 and 5 trading platforms developed by MetaQuotes that offers a complete technical analysis functionality with numerous valuable trading tools, including a wide range of third-party expert advisors (EAs) and custom indicator software that you can use or purchase. Some brokers also offer access via cTrader, NinjaTrader, their own proprietary platforms and social copy trading platforms like ZuluTrade.
Most traders, especially those with less experience, know the importance of being able to communicate promptly with their broker’s customer support staff in case errors or issues arise. Traders new to the broker can also appreciate material on how to use their trading platforms.
Research, Analysis and Educational Materials
These written and visual aids can be a major plus for traders with less experience. Even more advanced traders may appreciate having access to a high-quality news feed and market analysis performed by professionals.
The Best Forex Brokers in Malaysia
If you want to deal through the best online brokerage available to Malaysian forex traders, choose from among the well-regulated brokers described below. Some of them even have offices in Malaysia and a website translated into Malay.
In general, reputable international brokers who have established a Malaysian presence would probably be ideal. This is because local representation often encourages brokers to behave more responsibly due to the greater risk of regulatory and/or other legal action being taken against them in Malaysia if clients complain.
Best for Copy Trading: OctaFX
At OctaFX, you get a multi-platform trading option available on the web, desktop, iOS and Android. When you choose FX trading, there are several account types priced according to your volume and level of expertise. An Islamic account helps you avoid interest, offers fixed fees and never offends your sensibilities.
Making the site better is a lovely bonus and promotions program, featuring contests and unique deals. In addition to the money you earn through wise investments, you can add to your account balance by remaining a loyal customer.
Finally, you should take time to read educational materials presented throughout the site or use the CopyTrading program. CopyTrading is a unique tool that allows you to copy the experts. Yes, you will increase your net worth, but you also learn how experts think while they commence with FX trading every day.
- Beginners, intermediate and advanced traders
- Scalpers, swingers and long-term traders
- Traders looking for an all-in-one trading platform.
- Islamic traders looking for a swap-free trading platform.
- 4 platforms: MT4, MT5, next-gen WebTrader and AppTrader platforms
- Wide range of financial instruments
- Outstanding analytical and educational tools
- Very competitive low spreads
- 50% deposit bonus on $500+ live trading account
- $0 deposit fees
- It does not require any download
- Unavailable for US clients
- Offshore regulators may not guarantee adequate protection
Best for Long-term Traders: Moneta Markets
Moneta Markets are a leading, regulated Forex and CFD broker servicing traders of all levels across the globe.
With 300+ FX pairs, commodities, indices, Share CFDs and crypto CFDs on offer, and a minimum deposit of just $50, traders can open an account and start trading in just minutes.
Moneta Markets offer three trading account types, STP, TRUE ECN, and PRIME on their next-gen WebTrader, MT4, or MT5 platforms, and traders can access spreads from 0.0 pips on forex and indices. And, all clients gain free access to daily trading signals, market updates, trading tutorials and much more.
Moneta Markets are a subsidiary of the industry leading brokerage group, Vantage International Group, which was established in 2009 and is regulated in multiple jurisdictions, and all client funds are held in a segregated account with the AA rated National Australia Bank (NAB).
- MetaTrader 4 users
- Beginner forex traders
- Active forex traders
- Impressive, easy-to-navigate platform
- Wide range of education and research tools
- Access to over 80 currencies to buy and sell
- Leverage available up to 50:1
- Cannot buy and sell other securities (like stocks and bonds)
Best for MetaTrader4 Users: FOREX.com
FOREX.com ranks as the top U.S. forex broker when it comes to client assets.
It is well-regulated in the United States by the NFA and CFTC, and it is also regulated in seven further jurisdictions that include Canada, Australia, the U.K., Singapore, Japan, Hong Kong
Although you’re not able to communicate with them or view their website in Malay, Malaysian clients are welcome to open an account at FOREX.com.
Doing so requires just a $250 minimum deposit, and micro lot trading is supported.
The broker keeps client accounts segregated from its own funds, and it provides the Islamic account option most Malaysian traders prefer.
When it comes to trading platforms, the broker offers desktop, mobile
They also offer MetaQuotes’ popular MetaTrader4 and 5 platforms and NinjaTrader, as well as its own Advanced Trading Platform and Web Trading platform.
FOREX.com only allows clients to trade forex using a rather low maximum leverage ratio of 50:1, and you can find out additional information at FOREX.com.
- Investors looking to CopyTrade other traders
- Simple user interface
- Several major cryptocurrencies and altcoins
- Expansive network of social trading features
- Large client base for new traders to imitate
- Only 29 coins available
Best for Social Trading: eToro
eToro is a social trading platform which provides forex products and to retail clients, and has for over 10 years. With over 10 million account holders worldwide, eToro creates a community for users to be a part of.
eToro’s most popular trading features for forex trading are CopyTrader, CopyPortfolios, and the Social News Feed.
With the Social News Feed, you can access a Twitter-like feed to trader updates.
With CopyTrader and CopyPortfolio, you can find a successful trader and copy the strategy they use. You can copy up to 100 traders; this feature is easy to set up and access.
Traders discuss the markets, their strategies, and are able to get alerts based on certain market factors.
Finding a reputable broker that takes forex trading clients from Malaysia isn’t difficult, so just choose one of the above brokers and set up an account. You can generally try out services and platform using a demo account first. To open a live account, you will then need to provide personal identifying information and make a margin deposit of a suitable size to satisfy the broker’s requirements to do so.
Get a Forex Pro on Your Side
FOREX.com, registered with the Commodity Futures Trading Commission (CFTC), lets you trade a wide range of forex markets plus spot metals with low pricing and fast, quality execution on every trade.
You can also tap into:
- EUR/USD as low as 0.2 with fixed $5 commissions per 100,000
- Powerful, purpose-built currency trading platforms
- Monthly cash rebates of up to $9 per million dollars traded with FOREX.com’s Active Trader Program
Learn more about FOREX.com’s low pricing and how you can get started trading with FOREX.com.