Forex is a fantastic entry into the exciting world of trading thanks to its relatively low entry requirements.
The best forex brokers in Malaysia are well regulated through local and international regulators. These brokers should offer a convenient and reliable platform for Malaysians to start trading in forex.
If forex trading in Malaysia sounds like something you want to do, then follow our complete guide below on the best brokers, as well as helpful tips to get you trading better.
Forex trading in Malaysia presents some great opportunities because of the relatively low starting costs. Legal forex brokers in Malaysia need to be approved by Bank Negara Malaysia. It is possible to use an offshore brokerage to trade as a foreign investment.
Forex capital gains in Malaysia are exempt from tax which is an appealing advantage. However, forex income is taxable as income tax. If you have a swap-free Islamic account, and your trading is not regarded as income, then it is not taxable.
Best Brokers for Forex Trading in Malaysia 2021
We researched the top Forex brokers for Malaysian investors. The list below is based on broker fees, security, regulation, trading platform, and more. This is our selection of the best forex trading platforms for Malaysians.
- Interactive Brokers
- Saxo Markets
- BD Swiss
- FP Markets
- City Index
- IC Markets
- Vantage FX
- Moneta Markets
Plus500 is a CFD-only trading platform. This forex broker is a popular choice in Malaysia due to its fast, up-to-date pricing and easy-to-use platform.
For those wanting to expand their portfolio, Plus500 offers over 2000 securities and multiple asset classes. There is also a risk-free demo mode.
|An easy to use platform||Focused on active traders, not long term investing|
|Offers a diverse trading portfolio|
|Free demo account|
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 this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Pepperstone is an online CFD trading platform focused on forex. The prices are very reasonable which makes it easy to get started on Pepperstone.
For new traders, there is also a risk-free demo mode which helps you to get a good feel for trading in forex. Pepperstone has fast speeds for keeping up to date with real-time pricing.
|Forex and equity index CFD fees are low||No investor protection for non-EU members|
|The platform is focused on forex trading|
|Active traders get daily cash rebates|
|VIP account with advanced trading features|
This global forex and CFD broker offers several useful features for easy trading. The broker has a low account minimum, fees are low, deposits and withdrawals are free, and everything is done online.
AvaTrade is well regulated in Malaysia for reliable trading. It is also specifically focused on forex trading.
|Good research tools available||Inactivity Fees|
|Low trading fees|
|Free deposits and withdrawals|
|Easy to use and get started on|
eToro is one of the most popular trading platforms in the world. The platform is easy to use and offers a wide range of opportunities for a varied portfolio.
Users of the eToro platform can enjoy the copy trading feature and automated trading. This is an easy-to-use platform for beginners through to experienced traders.
|Diverse trading opportunities||Forex trading fees could be better|
|Copy Trading||Higher minimum deposit ($200)|
|Global trading community|
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
XTB is a global forex broker perfectly suited towards active traders. The trading platform offers low forex trading fees, and mostly free withdrawal and deposit options.
XTB features fast speeds, a very user-friendly platform, and offers a great brokerage for CFD day traders.
|Low forex fees||Stock CFDs fees are higher|
|Deposits and withdrawals are mostly free|
|Easy to use|
Interactive Brokers is a top forex trading platform for busy day traders. They offer the Trader Workstation desktop platform specifically designed for giving active traders a more powerful experience.
Interactive Brokers offers a diverse range of trading options. Generally, the fees are very reasonable.
|Excellent research tools available||Inactivity fees|
|Fast and convenient active day trading platform|
|Many trading opportunities available|
|Commission-free ETF and stock trading|
This forex and CFD broker offers a great platform for trading in Malaysia. XM offers great resources and educational content. Opening an account is fast and easy, and the platform is simple to trade on.
|Low fees for withdrawals||Forex fees could be improved|
|Easy to use and start trading on|
|Quality educational tools|
|Great Forex and stock CFD trading options|
Forex.com is a global broker that focuses heavily on forex trading. This platform is more suitable for advanced traders. There are loads of currency pair options, and the fees are very low. Forex.com is ideal for high-volume traders.
|A forex-first platform with plenty of currency pairs||Suitable for experienced and high-volume traders|
|Low forex trading fees||Not the best broker for beginners|
|Good research tools|
IG is well regulated in Malaysia and is a popular forex trading platform across the globe. IG traders can enjoy excellent tools for the foreign exchange market. Pricing structures are competitive, and the trading options are versatile.
|Good selection of tools and educational content||Above average forex fees|
|Web trading platform is excellent||Slow customer support|
|Deposit and withdrawal options|
This online broker offers low commissions and a very easy-to-use trading platform. With Saxo Markets, you can trade in a wide range of markets.
Thanks to its trading versatility and simple platform, Saxo Markets is a good choice for new traders. Saxo Markets offers lower FX spreads than most other brokers.
|Good selection of tools and educational content||Not focused on Forex|
|Easy to use platform|
|Offers access to wide-ranging markets|
HotForex is a top forex trading platform thanks to its low fees and many useful features. Traders can enjoy social/copy trading, a demo account, MT4, and MT5 trading.
|Good currency pairs||Mobile trading platform|
|Low forex fees and commissions|
|Includes useful social/copy trading|
|Free demo account|
BDSwiss is a well-regulated trading platform that appeals to all kinds of traders around the world. This forex broker has some good currency pairs available, as well as plenty of other trading options.
It is a suitable platform for both beginners and experienced traders thanks to its useful tools and fast trading functionality.
|Great forex and CFD instruments||High account minimum|
|Well regulated and established broker|
|Fast and easy account opening|
|Offers wealth management opportunities|
EightCap is an Australian-based CFD and forex broker. It is a well-regulated broker with a great range of forex pairs available. The rest of the CFD trading portfolio is also good for those wanting to trade in more than just forex.
|A good range of currency pairs available||High account minimum|
|Well regulated||Fees and commissions|
|An easy to use trading platform||Resources and trading tools|
Beginner traders will love easymarkets thanks to its very user-friendly online trading platform. This forex brokers online platform also features two unique features that are great for beginners.
These are the deal cancellation and freeze rate. The easymarkets MT4 offering is also great for guaranteed stop-loss orders.
|Easy to use online trading platform||Forex market research tools|
|Well regulated for forex and CFD trading in Malaysia||Fees could be better|
|Easy to get started||Small selection of tradable products|
This global forex and CFD broker is widely regulated for safe trading in Malaysia. The broker offers low forex and non-trading fees Opening an account is easy, and there is plenty of good withdrawal and deposit options.
This is a forex-focused platform, so the rest of its product portfolio is fairly limited.
|Forex trading fees||The mobile app could be improved|
|Deposit and withdrawal options||News feed structure|
|Low non-trading fees||Limited markets and products besides forex|
This Australian CFD and forex broker is a great option for all levels of investors. There is high-quality educational content, a demo account included, and a very easy account opening process.
The forex trading fees are low too. The product portfolio is fairly limited, but for forex traders, you get great currency pairs available.
|Low trading fees||Desktop trading platform|
|Account Opening||Limited product portfolio beyond forex|
|Educational content available|
|Deposits and withdrawals|
City Index is regulated by top-tier authorities for safer global trading. This broker is focused on foreign exchange and CFDs, offering some great trading opportunities in these fields.
Forex trading fees are low, withdrawal fees are low, and opening an account is easy. There are also great research tools for more effective trading.
|Quality research tools available||Desktop platform|
|Low forex trading fees||Not a great range of products available beyond forex|
|Low withdrawal fees|
This listed Swiss broker is a good choice for experienced, serious traders. The platform is very well regulated and offers access to a wide range of markets. Forex traders can also enjoy many currency pairs.
The platform is a little confusing for beginners to manage, and the trading fees are higher than many other forex brokers in Malaysia.
|Good market access and currency pairs||Not the easiest trading platform to navigate|
|Well regulated||High trading fees|
|Zero inactivity fees|
IC Markets is a forex and CFD broker that is easy to start trading on. The forex fees are low, the platform is easy to use, and deposits and withdrawals are free. There are also particularly good education and research tools available.
|Easy account opening process||Non-EU clients don't get investor protection|
|Low forex trading fees||Slow customer support|
|Free withdrawals and deposits||Not a great product portfolio other than forex|
FXTM is also known as Forex Time. This global CFD and forex broker
has top-tier regulation for safe trading in Malaysia.
There are great educational resources, including webinars, to help you trade smarter. Opening an account is fast and easy. There is also the option to open a demo account.
|Opening an account is easy and digital||Trading fees|
|Beginner-friendly trading platform|
|Great educational resources|
Vantage FX is an ideal broker for trading forex due to its low trading fees, and lack of inactivity fees. This is a fully digital broker with a fast account opening process and plenty of deposit and withdrawal options.
|Low trading fees||Doesn’t offer investor protection|
|Research and educational tools||The product portfolio is limited|
|Account Opening||Slow customer support|
FxPro is focused on forex trading, so this broker has plenty of options for ambitious traders in the foreign exchange market. However, if you want a wider portfolio, then this broker does not have a very large offering.
It's very fast and easy to open an account on FxPro. Withdrawals and deposits are free, and the platform is easy to use.
|Easy account opening process||Limited portfolio beyond forex|
|Customer service||Trading Fees|
|Good educational content available|
|Free deposit and withdrawal options|
OctaFX offers a MetaTrader and cTrader platform experience. This forex and CFD broker is not as well regulated as others.
However, the broker has an efficient mobile trading app. Fees and commissions are low, and there are great currency options.
|Forex-focused broker||Lacks research and educational tools|
|Low commissions and fees||Not as well regulated as other forex brokers|
|Great mobile trading|
Moneta Markets is a safe and well-regulated forex and CFD trading broker. The trading platform has high average spreads and one account type which means it isn’t the first choice for low-cost trading.
Moneta Markets has a simple to use platform with great educational content. Commissions and fee structures are good, and so is the overall investment offering.
|Well regulated||Not the best technical tools available|
|Good fees and commissions for forex trading||Not a good choice for low-cost trading|
|Easy to use|
|Great educational resources|
HYCM is a well-established global CFD and forex broker. Forex and CFD trading fees are very low, and there is a great selection of educational tools available.
The platform is fully digital which makes opening an account easy. For forex trading this platform is powerful, but it lacks other basic products for those wanting a broader portfolio.
|Low CFD and forex trading fees||Inactivity fees|
|Easy to use and open an account||Limited market access|
|The educational content and trading tools are great||Customer service could be better|
Best MetaTrader Broker for Malaysians
Looking for the overall best MetaTrader forex broker? We recommend Pepperstone. This trading platform is versatile, fast, and functional. It offers excellent options for forex trading, with a great product portfolio beyond this.
Best Broker for Beginners in Malaysia
If you are new to forex trading in Malaysia, then we recommend choosing eToro as your broker. eToro offers an easy-to-use app with plenty of great tools and educational resources.
Malaysia Forex Regulators
When trading forex in Malaysia, it is important to use a broker that is properly regulated. All brokers need approval from bank Negara Malaysia. A plus is if they are regulated by the Securities Commission of Malaysia, which is the local regulator.
Forex brokers can also be regulated by several international authorities. This can include regulators such as the CFTC, NFA, FCA, and more. Most brokers are regulated by both the SCA and additional international authorities.
How to Pick a Forex Broker in Malaysia
Regulation & Safety
First of all, the broker needs to be properly regulated for safer trading and better account security. In Malaysia, this should be done through the SCA. The broker should also have other top-tier international regulators.
Currency Pairs Offered
Trading on the foreign exchange market involves the exchange of different currencies. The best forex brokers offer a wide range of currency pairs for more opportunity and flexibility.
Fees & Commission
The fees and commissions charged by the broker can leave a huge dent in the performance of your trading. Fees can be found in various areas, such as spreads, non-trading fees, trading fees, and so on.
Make sure that the fee and commission structure matches your investment strategy. Otherwise, you can lose significantly on your returns.
The difference between the two interest rates on the currencies traded is the rollover interest. This can form a vital part of forex trading, so it is important to understand what kind of rollover interest structure the broker uses.
Trading Platforms Supported
Forex brokers often support various other proprietary trading platforms. This offers more versatility and can enhance the overall trading experience.
Popular examples are MT4, MT5, and cTrader. Make sure that you choose a broker with supported trading platforms that you agree with.
Leverage and Margin
Margin refers to the deposit you need for making a trade and keeping open a certain position. Leverage is when you can trade in larger positions with less capital behind you.
You will need to understand the leverage and margin positions of your broker, as this can have a major effect on your trading strategy and outcome.
Forex brokers offer various account options for different traders. Consider the options available and if they are suitable for you and your level/experience.
This can include things like demo accounts, micro and mini accounts, retail and professional accounts, Islamic trading accounts, Standard accounts, VIP accounts, and so on.
Demo Account Available
Demo accounts are available from certain brokers. This allows you to simulate trading on the platform at real-time market prices. This allows you to get a feel for the platform without being at risk of losing money. This is great for beginners.
You will need to know how to make deposits and withdrawals to and from the broker. Look at the deposit methods available and what the fees are for this. Make sure that this works with your bank.
Base Currency and the Malaysian Ringgit
Being based in Malaysia, you will be working with the Malaysian Ringgit. However, you will need a suitable base currency for use on the forex market.
Consider what currencies are available and which will work best as a base currency for trading with regards to the Malaysian Ringgit.
There are various order types to use when trading in forex. The basic forex orders are market, limit entry, stop entry, stop loss, and trailing stop. Consider how your broker and trading platform accommodates these order types.
Mobile trading is incredibly popular due to the easy access to cellphones wherever we go. Active forex traders are interested in mobile trading for keeping up with prices and making swift trades.
Consider the mobile trading platform available from the broker and how effective this is.
Type of Brokers
There are four main types of brokers to consider. Of course, you will need a forex broker for forex trading in Malaysia. You could also use a full-service broker.
Education and Research Available
Trading platforms offer certain educational content and research tools to make trading more informed and effective. The best forex brokers should have extensive research tools and informative educational content to keep traders up to date.
Trading Tools Available
To make trading more effective, the platform should also offer specialized trading tools. This differs with each broker. Trading tools are necessary for market analysis and making smarter trading decisions.
Customer service plays a vital role in the forex broker that you choose. As there are risks and money involved, you will need to make sure that you have solid support for seamless trading. This can make a big impact on your overall forex trading experience.
The forex brokers need to be well regulated for a better level of safety. Having various top-tier regulators is best for increasing trading security.
Any type of trading offers risks and rewards. Wise and experienced forex traders have the potential to make a lot of money, but there is always the risk of significant losses.
Absolutely. Forex trading offers plenty of potential for making money. The more capital you trade with, the more you can make.
CFD stands for Contract For Difference. This is when you buy something at a low price, and sell it for a higher price, making a profit in return. You never actually own the underlying asset.
Forex follows this approach by trading on the foreign exchange market. This is when you buy weaker currencies and sell them at a higher value for profit.
Yes, forex trading is legal in Malaysia. As long as brokers use proper regulatory authorities and that all taxes are paid.
A lot refers to the specific amount of forex that you trade in. A typical lot size is 100,000 units of that currency. You also get smaller lot sizes, such as a micro lot (1000 units)
This is the amount of change present in the exchange rate of two currencies. The lot is calculated through the last decimal point of the currency pricing.
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