Best Forex Brokers Malaysia 2021

In this guide we go over the best brokers that offer forex trading to Malaysian clients. Forex trading is popular in Malaysia 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 Forex Trading Platforms 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.

  • Plus500
  • Pepperstone
  • AvaTrade
  • eToro
  • XTB
  • Interactive Brokers
  • XM
  • Forex.com
  • IG
  • Saxo Markets
  • HotForex
  • BD Swiss
  • Eightcap
  • easymarkets
  • Tickmill
  • FP Markets
  • City Index
  • Swissquote
  • IC Markets
  • FXTM
  • Vantage FX
  • FxPro
  • OctaFX
  • Moneta Markets
  • HYCM

Plus500

Plus500 is a CFD-only trading platform. This CFD 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.

ProsCons
An easy to use platformFocused on active traders, not long term investing
Offers a diverse trading portfolio
Free demo account
Trusted worldwide
Visit Plus500 >>

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

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. 

Pepperstone Logo
ProsCons
Forex and equity index CFD fees are lowNo 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
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AvaTrade

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.

ProsCons
Good research tools availableInactivity Fees
Low trading fees
Free deposits and withdrawals
Easy to use and get started on
Open Free Account

eToro

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.

ProsCons
Diverse trading opportunitiesForex trading fees could be better
Copy TradingHigher minimum deposit ($200)
Global trading community
Open Free Account

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

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.

ProsCons
Low forex feesStock CFDs fees are higher
Deposits and withdrawals are mostly free
Easy to use
Open Free Account

Interactive Brokers

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.

ProsCons
Excellent research tools availableInactivity fees
Fast and convenient active day trading platform
Many trading opportunities available
Commission-free ETF and stock trading
Open Free Account

XM

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.

ProsCons
Low fees for withdrawalsForex fees could be improved
Easy to use and start trading on
Quality educational tools
Great Forex and stock CFD trading options
Open Free Account

Forex.com

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.

forex.com logo
ProsCons
A forex-first platform with plenty of currency pairsSuitable for experienced and high-volume traders
Low forex trading feesNot the best broker for beginners
Good research tools

IG

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.

IG Logo
ProsCons
Good selection of tools and educational contentAbove average forex fees
Web trading platform is excellentSlow customer support
Deposit and withdrawal options

Saxo Markets

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.

SaxoMarkets
ProsCons
Good selection of tools and educational contentNot focused on Forex
Easy to use platform
Offers access to wide-ranging markets

HotForex

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. 

HotForex
ProsCons
Good currency pairsMobile trading platform
Low forex fees and commissions
Includes useful social/copy trading
Free demo account

BDSwiss

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.

BD Swiss Logo
ProsCons
Great forex and CFD instrumentsHigh account minimum
Well regulated and established broker
Fast and easy account opening
Customer support
Offers wealth management opportunities

EightCap

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.

Eightcap Logo
ProsCons
A good range of currency pairs availableHigh account minimum
Well regulatedFees and commissions
An easy to use trading platformResources and trading tools

easymarkets

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 Markets Logo
ProsCons
Easy to use online trading platformForex market research tools
Well regulated for forex and CFD trading in MalaysiaFees could be better
Easy to get startedSmall selection of tradable products

Tickmill

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.

Tickmill Logo
ProsCons
Forex trading feesThe mobile app could be improved
Deposit and withdrawal optionsNews feed structure
Low non-trading feesLimited markets and products besides forex

FP Markets

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.

FP Markets Logo
ProsCons
Low trading feesDesktop trading platform
Account OpeningLimited product portfolio beyond forex
Educational content available
Deposits and withdrawals
Open Free Account

City Index

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.

City Index Logo
ProsCons
Quality research tools availableDesktop platform
Low forex trading feesNot a great range of products available beyond forex
Low withdrawal fees
Account Opening

Swissquote

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.

ProsCons
Good market access and currency pairsNot the easiest trading platform to navigate
Well regulatedHigh trading fees
Zero inactivity fees
Open Free Account

IC Markets

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. 

IC Markets Logo
ProsCons
Easy account opening processNon-EU clients don't get investor protection
Low forex trading feesSlow customer support
Free withdrawals and depositsNot a great product portfolio other than forex
Open Free Account

FXTM

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.

FXTM Logo
ProsCons
Opening an account is easy and digitalTrading fees
Beginner-friendly trading platform
Great educational resources

Vantage FX

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. 

VantageFX Logo
ProsCons
Low trading feesDoesn’t offer investor protection
Research and educational toolsThe product portfolio is limited
Account OpeningSlow customer support

FxPro

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.

FxPro Logo
ProsCons
Easy account opening processLimited portfolio beyond forex
Customer serviceTrading Fees
Good educational content available
Free deposit and withdrawal options

OctaFX

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.

OctaFX Logo
ProsCons
Forex-focused brokerLacks research and educational tools
Low commissions and feesNot as well regulated as other forex brokers 
Great mobile trading

Moneta Markets

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.

Moneta Markets
ProsCons
Well regulatedNot the best technical tools available
Good fees and commissions for forex tradingNot a good choice for low-cost trading
Easy to use
Great educational resources

HYCM

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.

HYCM Logo
ProsCons
Low CFD and forex trading feesInactivity fees
Easy to use and open an accountLimited market access
The educational content and trading tools are greatCustomer 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 forex broker you pick, should 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.

Rollover Interest

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. 

Account Types 

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. 

Deposit Methods

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.

Order Types

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

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 broker 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

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.

FAQ

Are Forex Brokers Safe?

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.

Is Forex Trading Risky?

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.

Can You Make Money Trading Forex?

Absolutely. Forex trading offers plenty of potential for making money. The more capital you trade with, the more you can make.

What are CFDs and Forex?

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.

Is Forex Trading Legal in Malaysia?

Yes, forex trading is legal in Malaysia. As long as brokers use proper regulatory authorities and that all taxes are paid.

What is a Lot?

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)

What is a Pip?

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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