In this guide, we go over the Best forex brokers in Malaysia. We hand-picked and analyzed the best rated licensed forex brokers in Malaysia. We base our research on multiple factors such as fees, security, regulation, trading platform, education, customer support, and more.
Table of Contents
- Best Forex Brokers in Malaysia 2023
- 1. Pepperstone – Best Forex Broker Malaysia Overall
- 2. AvaTrade – Best Forex Trading App Malaysia
- 3. FP Markets – Best Low Spread Forex Broker in Malaysia
- 4. Interactive Brokers – Best Forex Broker in Malaysia for Market Access
- 5. XTB
- 6. Plus500 – Great CFD Forex Broker In Malaysia
- Saxo Markets
- City Index
- IC Markets
- Vantage FX
- Moneta Markets
- How do Forex Brokers in Malaysia Compare?
- What is The Best MetaTrader Forex Broker for Malaysians?
- What is The Best Broker for Beginner Forex Traders in Malaysia?
- How Is Forex Trading Regulated in Malaysia?
- How to Pick a Forex Broker in Malaysia
- Regulation & Safety
- Currency Pairs Offered
- Fees & Commission
- Rollover Interest
- Trading Platforms Supported
- Leverage and Margin
- Account Types
- Demo Account Available
- Deposit Methods
- Base Currency and the Malaysian Ringgit
- Order Types
- Mobile Trading
- Type of Brokers
- Education and Research Available
- Trading Tools Available
- Customer Service
Best Forex Brokers in Malaysia 2023
We researched the top Forex Brokers for Malaysian residents. The list below is based on broker fees, security, regulation, trading platforms, and more.
This is our selection of the top Forex Trading Platforms in Malaysia:
- Pepperstone – Best Forex Broker Malaysia Overall
- AvaTrade – Best Forex Trading App Malaysia
- FP Markets – Best Forex Broker Malaysia For Scalping
- Interactive Brokers – Best Forex Broker Malaysia for Market Access
- XTB – Best CFD Forex Broker in Malaysia
- XM – Best Forex Broker Malaysia for Education
- IC Markets – Forex Broker Malaysia with Low Spreads
- IG – Tigh Spread Forex Broker in Malaysia
- Forex.com – Forex Broker in Malaysia
Our Top 3 Picks
2. Best Trading App
PFI Rating 4.9
1. Best Overall
PFI Rating 4.9
3. Low Spreads
PFI Rating 4.9
PFI Rating: 4.9/5
1. Pepperstone – Best Forex Broker Malaysia Overall
Pepperstone is our top pick as the best forex broker in Malaysia among all forex brokers that accept Malaysian residents.
Pepperstone was founded in 2010 and offers CFDs on Forex, Crypto, Shares, Indices, and Cryptocurrencies.
The minimum deposit is $0 and it offers various deposit methods. Pepperstone is a safe and reliable forex broker regulated by top-tier authorities, perfect for Malaysian clients.
Forex trading fees are low. Pepperstone offers two account types: Razor and Standard.
- Regulated by Top Authorities
- Low Spreads
- No Minimum Deposit
76.6% of retail investor accounts lose money when trading CFDs with this provider
PFI Rating: 4.9/5
2. AvaTrade – Best Forex Trading App Malaysia
AvaTrade is the top rated forex trading app in Malaysia. AvaTrade was founded in 2006 and is regulated by top-tier authorities worldwide.
The minimum deposit is $100. Avatrade offers CFDs on Forex, Stocks, Commodities, FXOptions, Cryptocurrencies, Indices, ETFs, and Bonds.
Forex trading fees are low, and the minimum lot size is 0.01. Avatrade offers its proprietary trading platform WebTrader, MetaTrader4, Metatrader5, and one of the best trading apps in the industry. It is great for Malaysian Traders looking for automated copy trading through AvaSocial or DupliTrade.
77.82% of retail investor accounts lose money when trading CFDs with this provider
PFI Rating: 4.9/5
3. FP Markets – Best Low Spread Forex Broker in Malaysia
FP Markets is best for their low spreads. FP Markets was founded in 2005 and is regulated by ASIC (Australian Securities and Investments Commission) and CySEC (Cyprus Securities and Exchange Commission).
The minimum deposit at FP Markets is $100. They offer 10,000+ financial instruments across Forex, Shares, Metals, Commodities, Indices, Cryptocurrencies, Bonds, and ETFs.
Execution speeds are among the best in the industry, and their spreads are tight starting from 0.0 pips.
FP Markets offers trading through their WebTrader, MetaTrader 4, and MetaTrader 5. They allow automated copy trading.
On FP Markets Official Website
PFI Rating: 4.9/5
4. Interactive Brokers – Best Forex Broker in Malaysia for Market Access
Interactive Brokers is a great choice for any trader. Interactive Brokers was founded in 1978 and is regulated by top-tier regulators worldwide. It is the best regarding regulation and market access.
Interactive Brokers offer trading on Stocks, ETFs, Options, Futures, Currencies, Cryptocurrencies, US Spot Gold, Bonds, Mutual Funds, and Hedge Funds.
The minimum deposit is $0. Their trading fees are low.
Their forex trading platforms are the most advanced on this list and have one of the best in the industry.
On Interactive Brokers' Official Website
PFI Rating: 4.8/5
XTB is a publicly traded company founded in 2002. XTB is a well-regulated broker by top-tier authorities worldwide.
The minimum deposit at XTB is $0. They offer Forex, Indices, Commodities, Stock CFDs, ETF CFDs, and Cryptocurrencies.
A downside of XTB is its withdrawal fee of $20 for withdrawals under $100 and the inactivity fee.
Overall XTB is a great choice for forex trading in Malaysia.
On XTB Official Website
PFI Rating: 4.7/5
6. Plus500 – Great CFD Forex Broker In Malaysia
Plus500 is next on our list. It is a great forex CFD broker. Founded in 2008, it is a trusted forex trading platform in Malaysia.
Plus500 is well-regulated.
The minimum deposit at Plus500 is $100. They offer CFD trading on Shares, Forex, Commodities, Indices, Crypto, Options, and ETFs.
Their forex trading platform is easy to use, but experienced traders will find it lacking features.
86% of retail investor accounts lose money when trading CFDs with this provider.
How do Forex Brokers in Malaysia Compare?
Below we compare the best forex brokers in Malaysia for 2023. Public Finance International researched and analyzed forex brokers on a variety of factors. Here are the most important factors compared side by side.
|Forex Broker|| |
|AvaTrade||FP Markets||XTB||Interactive Brokers|
|Regulation||ASIC, CySEC, FCA, SCB, DFSA, BaFin, CMA||FCA, ASIC, FSCA, FRSA, Israel Securities Authority, Financial Services Agency, Financial Futures Association of Japan||ASIC, CySEC||FCA, CySEC, Fincancial Services Commission in Belize||SEC, CFTC, FCA, NFA|
|Offering Of Investments||CFDs on Forex, Crypto, Shares, Indices, Crypto||Forex, Stocks, Commodities, FXOptions, Cryptocurrencies, Indices, ETFs, Bonds||Forex, Shares, Metals, Commodities, Indices, Cryptocurrency, Bonds, ETFs||Forex, Indices, Commodities, Stock CFDs, ETF CFDs, Crypto||Stocks, ETFs, Options, Futures, Currencies, Cryptocurrencies, US Spot Gold, Bonds, Mutual Funds, Hedge Funds|
|Withdrawal Fee||$5||$0||$0||20 USD for withdrawals under 100 USD||1 Free Withdrawal per Month|
|Inactivity Fee||$0||$50/month After 3 Months||$0||$10 monthly after 12 months||No|
|Deposit Methods||Credit/debit cards, Bank/Wire Transfer, PayPal, Neteller, Skrill, UnionPay||Credit and Debit Cards, Wire Transfer, e-payments||Credit Cards. Debit Cards, Bank Transfer, Ngan Luong, FasaPay, Online Pay, Broker to Broker, Neteller, Skrill, PayTrust, PayPal, Bpay, Poli||Bank Transfers, Credit and Debit Cards, Skrill||Bank Wire, Credit Cards, ACH, Mail a check, Rollover, Online Bill Pay, Trustee-to-Trustee, SEP Contribution|
How do Forex Trading Fees Compare?
Below we compare the trading fees of Malaysian Forex Brokers.
|Trading Fee||Pepperstone||AvaTrade||FP Markets||XTB||Interactive Brokers|
|EURUSD||Minimum from 0.0 and 0.17 average spread (Razor Account) Minimum from 0.6 and 0.77 average spread (Standard Account)||Spread: 0.9||from 0.0 – 1.3 (average 0.2 pips)||0.1 – 0.5||Spreads|
|GBPUSD||Minimum from 0.0 and 0.59 average spread (Razor Account) Minimum from 0.6 and 1.19 average spread (Standard Account)||Spread: 1.5||from 0.0 – 1.8 (average 0.7 pips)||0.1 – 0.5||Spreads|
|Apple Fees||0 + market spread||0.13%||Spread||0.30%||$0 commissions|
|Tesla Fees||0 + market spread||0.13%||Spread||0.30%||$0 commissions|
|Amazon Fees||0 + market spread||0.13%||Spread||0.30%||$0 commissions|
|S&P 500 Fees||min. 0.4 spread||0.25 over market||Spread||N/A||N/A|
|Options Fee||N/A||N/A||N/A||N/A||$0.25/contract – $0.65/contract|
|Mutal Fund Fees||N/A||N/A||N/A||N/A||No Transction Fee Funds – 0.00 USD and Lesser of 3% or 14.95 for Transaciton Fees|
|ETF Fee||N/A||0.13% – 0.15%||N/A||0.30%||$0 commissions|
How do the features compare?
Compare the features of Forex Trading Platforms in Malaysia below:
|Pepperstone||AvaTrade||FP Markets||Interactive Brokers||XTB|
|Leverage:||up to 1:500 (Pro) 1:200 (Retail)||up to 1:30||up to 1:500 (Pro) 1:30 (typical)||up to 1:30||up to 1:30|
Compare the trading platform software available below:
|Pepperstone||AvaTrade||FP Markets||Interactive Brokers||XTB|
|Mobile App:||Yes||Yes||Yes||Yes||Yes (xStation Mobile)|
|Proprietary Platform:||Yes||Yes||Yes||Trader Workstation, Client Portal||xStation 5|
|Desktop:||Yes||Yes||Yes||Yes (Trader Workstation)||Yes (xStation 5)|
What is The Best MetaTrader Forex Broker for Malaysians?
The best MetaTrader forex trading platform in Malaysia is Pepperstone. Pepperstone trading platform is versatile, fast, has great execution speeds, low trading fees, and low spreads. It offers excellent options for forex, with a great product portfolio beyond this.
What is The Best Broker for Beginner Forex Traders in Malaysia?
If you are new to forex trading in Malaysia, we recommend choosing AvaTrade as your broker. AvaTrade offers an easy-to-use app with plenty of great tools and educational resources. On top, they have a social copy trading system in place.
How Is Forex Trading Regulated in Malaysia?
Forex trading in Malaysia is regulated by the Securities Commission Of Malaysia (SCM) who issues the Capital Markets Services License (CMSL). The SCM was founded in 1993 and implemented CFD guidelines in April 2018. You can check the Securities Commission Malaysia website to see if any Malaysian forex broker is registered.
Many internationally regulated forex brokers accept clients from Malaysia.
Another regulatory body is the Labuan Financial Services Authority (LFSA), which is the regulator of the Labuan International Business and Finance Centre (IBFC).
The SCM or the Bank Negara Malaysia (Central Bank of Malaysia)are the regulators for financial services and asset classes such as forex and cryptocurrencies. The primary responsibilities include creating and implementing policies to ensure an efficient financial system. This includes issuing currency, overseeing exchange rates, and maintaining a stable financial system.
Several international regulators regulate Malaysian forex brokers. This includes regulators such as the CFTC, NFA, FCA (Financial Conduct Authority), CySEC, ASIC, etc. Ideally, forex traders search for brokers regulated by a reputable financial regulatory body.
There are three primary acts important for forex trading in Malaysia:
- The Securities Commission Act, 1993: First enacted in 1993, this Act underwent amendments in 2017. As per the provisions of this Act, the Securities and Commodities Market (SCM) was granted the authority to issue licenses to institutions and businesses involved in securities transactions. This Act also established the SCM as the regulatory body overseeing trading activities within the country.
- The Exchange Control Act, 1953: The Exchange Control Act, one of Malaysia's earliest legislated acts, was instituted in 1953 to regulate foreign exchange trading by residents and non-residents. According to the Act, non-residents can invest in the nation's assets. It imposes no restrictions on transferring profits or other earnings to foreign countries.
- The Money Exchange Act, 1998: The Money Exchange Act pertains to the legal framework governing businesses engaged in currency exchange. According to the Act, any company, institution, or individual licensed to trade in foreign exchange under the Exchange Control Act of 1953 must also secure a license under the Money Exchange Act 1998.
- Money Service Business Act, 2011: Under the MSBA, all money services businesses must obtain a license from the Bank Negara Malaysia. This licensing requirement ensures that only businesses that meet standards and comply with the regulations can operate in the money services sector.
How to Pick a Forex Broker in Malaysia
To pick a reputable broker, we advise you to take the following factors into consideration.
Regulation & Safety
First, the broker must be regulated by a top-tier regulator. The local regulatory body in Malaysia is the SCA (Securities Commission Malaysia). It is an added bonus if the forex broker has other top-tier international regulators. Working exclusively with forex brokers regulated by top-tier regulators minimizes the risk of common forex scams.
Currency Pairs Offered
Trading on international currency markets involves the exchange of different currencies. These transactions are done five days a week, 24 hours a day. The forex broker you pick should offer major currency pairs and minor currency pairs for more opportunity and flexibility.
Fees & Commission
The fees and commissions charged 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, etc. It would help if you read our guide on Brokers With Low Spreads.
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 the 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 experience.
Popular examples are MT4, MT5, and cTrader. Make sure you choose a forex broker with supported trading platforms that you feel comfortable 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 larger positions with less capital.
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 their suitability for you and your level/experience.
This can include 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 in Malaysia. A demo account allows you to simulate trading on the platform at real-time market prices. It allows you to get a feel for the platform without being at risk of losing money. This is great for beginners. Forex and Derivatives trading carries a high degree of risk.
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 regard to the Malaysian Ringgit.
There are various order types to use when trading. The basic orders are market, limit entry, stop entry, stop loss, and trailing stop. Consider how your broker and trading platform accommodate these order types.
Mobile trading is incredibly popular due to easy smartphone access wherever we go. Active forex traders are interested in mobile trading to keep up with prices and make swift trades.
Consider the mobile app available and ensure it has all the necessary functionality.
Type of Brokers
There are four main types of brokers to consider. Of course, you will need a trusted forex broker for forex trading in Malaysia. You could also use a full-service broker.
Education and Research Available
Brokers offer certain educational content and research tools to make trading more informed and effective. The broker should have extensive research tools and informative, educational content to keep traders updated.
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.
Is Forex Trading in Malaysia Risky?
Any trading is risky. Wise and experienced forex traders have the potential to make money, but there is always the risk of significant losses.
Can You Make Money Trading Forex in Malaysia?
Absolutely. Forex trading offers plenty of potential for making money. Like all forms of trading, it is considered a high-risk investment.
Is Forex Trading Legal in Malaysia?
Forex trading is legal in Malaysia as long as brokers use proper regulatory authorities and all taxes are paid.
What are the Forex Trading Hours in Malaysia?
The retail Forex Market in Malaysia is open Monday 5 am – Saturday 4 am Malaysian Time.
Is Forex Trading Taxable in Malaysia?
Forex trading in Malaysia is taxable as income tax, but capital gains are exempt from tax. If you trade from a swap-free Islamic Account and don't withdraw an income, any gains should be tax-free.