Best Forex Brokers in Malaysia – Top Forex Broker Revealed

Forex trading involves buying and selling currencies like the Malaysian ringgit, US dollar, and many more. Trading currencies can be a way to speculate on economic conditions around the world or to diversify your investment portfolio. However, before you get started, it’s essential to review the top forex brokers in Malaysia and pick the right one for you.

Your broker will determine how much you pay for trading, what currency pairs you have access to, and what trading tools you can use to spot opportunities, among other factors.

In this guide, we’ll review the best forex brokers in Malaysia for 2024. We’ll also cover everything you need to know about how to choose the best forex broker for you and provide a step-by-step guide on how you can get started trading forex today.

How to Trade Forex in Malaysia in 3 Quick Steps:

Can’t wait to start get started with forex trading in Malaysia? You can place your first currency trade in just three easy steps:

Step 1: Compare the Top Forex Brokers in Malaysia

There has been an explosion of online forex brokers operating in Malaysia in recent years. That’s a good thing for traders, but it also means that deciding which broker is right for you can be a bit challenging.

To help you out, we’ve reviewed six of the best forex brokers in Malaysia that you can open an account with today.

Step 2: Learn About Forex Brokers in Malaysia

Before you start trading forex, it’s important to understand what role Malaysia forex brokers play in the currency market.

What is a Forex Broker?

Also known as a currency trading broker, a forex broker is a firm that gives access to the foreign exchange market for purposes of speculation.

A forex broker acts as an intermediary between you and the broader forex market. When you place a forex trade, your broker will buy currency on your behalf or create a contract for CFD trading of forex.

Nowadays, the process of creating a forex trading account is straightforward and can be done online. You simply need to register and verify an account, deposit funds and then start trading. Most brokers offer leverage, so that you can borrow capital to make larger trades.

How do Forex Brokers Work in Malaysia?

Forex brokers in Malaysia are required to be registered and licensed by the Securities Commission of Malaysia (SCM) to start operating. Other regulators include the Labuan Financial Service Authority (LFSA), Bank Negara Malaysia (BNM) and the Sharia Advisory Council.

Recently, these regulators introduced new guidelines to further regulate forex trading. So, it is expected that more forex brokers will emerge in Malaysia in the coming years.

What are the Regulations for Forex Brokers in Malaysia?

Initially, the Malaysian government had banned forex trading and termed it as an illegal activity. Anyone found engaging in forex trading was charged hefty fines and even incarcerated.

Fortunately, over the past few years, the government has eased its hard stance. Now, forex trading in Malaysia is legal provided that you are dealing with a registered and licensed broker. Investing abroad is legal in Malaysia and using an offshore broker is considered as having a foreign investment.

How to Choose a Forex Broker in Malaysia?

To be a successful forex trader in Malaysia, you have to choose a broker that suits your preferences and needs. Due to the ever-growing nature of forex trading in Malaysia, there are many forex brokers available, making it difficult to choose the best one.

We recommend keeping the following factors in mind to help you find the right broker for you:

• Regulation and licensing – It’s vital you choose a broker that will keep your personal details and your funds secure. Go for top forex brokers that hold licenses from respected governing bodies, such as the UK’s FCA, Australia’s ASIC and Cyprus’ CySEC.
• Currency pairs – Check to make sure your preferred currency pairs are available before signing up. The available trading pairs can vary a lot at different brokers, particularly when it comes to minor and exotic pairs.
• Fees and charges – All of the Malaysian forex brokers we recommended are fully commission-free, which is a huge advantage for high volume traders. However, keep in mind that you’ll still pay a spread on every forex trade, and high spreads can add up over time. You’ll also want to look into what fees your broker charges outside of trading, such as deposit or withdrawal fees and inactivity fees.
• Trading tools – It’s important to have the right trading tools for you. Whether you’re a beginner and want to use copy trading tools or if you want to use the advanced charting and analysis tools that come with MT5 brokers, you should check what;s on offer before signing up.
• Educational resources – As a new forex trader, one of the most important factors to look out for when choosing a forex broker is the variety and depth of educational resources it can provide you. Most reputable online brokers offer educational materials such as videos, articles, e-courses, seminars and webinars at no extra cost.
• Banking – You’ll want to make sure your preferred payment method is accepted. For example, some brokers accept PayPal, while others accept Neteller and Skrill. We also recommend ensuring the minimum deposit is in your budget range.
• Customer service – It is important to choose a broker that offers quality and reliable customer services. This is to make sure that you can get immediate assistance in case you encounter issues related to the trading platform’s functionalities or the withdrawal system. Ideally, your chosen forex broker can be contacted via email, phone and social media during a wide range of hours.
• Platform and user experience – The trading platform your broker provides will be critical to your forex trading experience. To start, it should be easy to use even for beginner forex traders. Ideally, you’ll also want the platform to be available as a mobile forex trading app so that you can monitor your currency trades on the go. When it comes to charting and analysis, platforms can vary widely. Some brokers offer basic charting software with a few technical indicators, while others have advanced software with hundreds of indicators. MT4 brokers like AvaTrade and IG also give you access to MetaTrader 4, which includes forex trading signals, algorithmic trading, and automated trading.

Step 3: Open a Forex Trade

The final step is to open a Forex trade.

Select one of the brokers from the list above, go through the account creation process, and execute your first trade.

Conclusion

Finding the right forex broker in Malaysia is essential to your success as a forex trader. It’s important to find a broker that offers a good range of currency pairs, low fees, a high-quality trading platform, educational resources, and solid customer support, among other factors.

Thankfully, you’ll find exactly that winning combination in the top Malaysian forex brokers we featured.

References

To ensure we bring you the most reliable and accurate information possible, our writers use primary sources to support their content. These include studies, government resources and commentary from industry experts.

• Bank Negara Malaysia. “Framework for Electronic Trading Platforms.” https://www.bnm.gov.my/index.php?ch=57&pg=150&ac=859&bb=file. Accessed June 8, 2020.
• Financial Times. “Malaysian Central Bank Liberalises Foreign Exchange Policy.” https://www.ft.com/content/f4a585e2-a1d5-11e8-85da-eeb7a9ce36e4. Accessed June 8, 2020.

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