Best Forex Brokers in Malaysia 2022

The best forex brokers in Malaysia in 2022

There are hundreds of brokerage companies offering Forex trading. This market is very attractive for both parties: for traders and dealers. The currency market gives to the first ones an opportunity to earn on fluctuations of exchange rates of currency pairs without large investments: it is enough to have $50-100 to start. Brokerage companies earn on huge amount of clients operations: millions of traders open thousands of transactions daily. That’s why scalping is most often practiced on Forex – high market liquidity allows one trader to close up to hundreds of deals per day.

Our experts have selected the best forex brokers Malaysia, taking into account the important parameters that help to assess the quality and availability of the services offered by forex brokers. All companies included by our analysts in the top forex brokers Malaysia, were selected based on important parameters: the minimum commissions, the maximum quality of order execution, the availability of licenses from supervisory authorities of the highest order and a full-fledged free training.

The best and best forex brokers in Malaysia must work under the supervision of the Securities Commission of Malaysia (SCM) and the Labuan Financial Services Authority (LFSA). Specialists of our portal have studied more than 160 forex brokers, providing access to Forex around the world. At the analysis such important indicators as speed of orders execution, the size of commission expenses, availability of free training and virtual account, and also quantity of channels of deposit and withdrawal of money from the account were checked.

Our rating of the best and trusted forex brokers in Malaysia consists of the following companies:

1. FXTM – Best forex broker in Malaysia 2. OctaFX – The best MetaTrader broker 3. TICKMILL – The MT4 broker with the lowest trading costs 4. Pepperstone – Broker with one of the best ECN order execution 5. AvaTrade is one of the best mobile trading apps 6. Capital.com – broker with the best trading education base 7. XM – broker with the lowest MT5 commissions 8. HotForex – large choice of trading instruments 9. IG Markets is one of the oldest forex brokers 10. OANDA is reliable forex broker.

What criteria were used to select the best forex brokers in Malaysia 2022

Every international Forex broker is trying to cover the widest possible audience and accepts clients from any country where Forex dealers are not prohibited. However, for certain countries, such as Malaysia, when choosing a provider, certain peculiarities of trading should be taken into consideration. When selecting the brokers for our rating of the top 10 forex brokers in the world and in Malaysia analysts took into account the following criteria:

1) Licenses and supervision of forex brokers. You can entrust your money to the company, the work of which is licensed by the reliable regulators of the highest order and, therefore, is considered a regulated forex broker. Such supervisory commissions include: ASIC (Australia), FCA (UK), FSCA (South Africa) and CySEC (Europe). The availability of permits from such commissions guarantees the reliability and safety of client funds deposited at the broker’s accounts. Although the accounts are opened at the brokerage company, the providers have to keep their clients’ money at the largest and most reliable banks in the world, separately from the broker’s capital. Also in case of any disputable situations one can complain to any of the above mentioned commissions, which issued a license to a dealer, about the unfair behavior of the broker and get a defense.

2) Trading conditions for the accounts. The broker’s main income comes from the commissions charged on transactions: opening accounts, account maintenance, transferring orders to another business day, charges for depositing or withdrawing money from the account. A decent broker or the best broker forex is looking for a compromise between his interests and the client’s and offers different types of accounts: with a minimum spread or zero spread, then on such accounts the one-time commission for the traded lot is deducted. Each participant of the rating of the best Forex brokers offers optimal trading conditions: transparent rates and minimal commissions. All the selected providers do not charge any deposit fees and offer several methods of withdrawing funds from the account.
3) Education and training for trading. Top broker Malaysia or the best company must be interested in the successful trading of the trader, because it earns on the trades opened by the client: the more trades the trader makes, the bigger is the paid spread, and as a result the broker’s income. Free basic training in the basics of the currency market must be provided. Additionally, paid webinars or trainings can be offered, but the basic education must be free of charge. It is also worthwhile to have a demo account with a broker, where a trader can practice opening and closing trading positions, practicing the received theoretical knowledge and getting acquainted with the features of currency market functioning. Specialists do not recommend to begin real money trading without having a practice account.
4) The trading platform or forex trading platform is a prerequisite for professional and comfortable work on Forex. It is impossible to open transactions without the trading terminal. It can be provided as a web version, as a mobile application or for personal computers and tablets. Large and trusted brokers should provide a wide range of trading terminals available on different types of devices.

FXTM – Best Forex Broker in Malaysia

The best broker forex terbaik Malaysia 2022 in our rating has been providing financial forex services to customers since 2011. The company is licensed by several top-level regulators: the Financial Services Council of South Africa (FSCA), the Cyprus Securities and Exchange Commission (CySec) and the UK Financial Conduct Authority (FCA), confirming its position in the financial world. Additionally, the broker receives numerous awards every year, such as best ECN broker or training provider, best trading conditions from reputable magazines or financial portals, which demonstrates high trust from clients.

In order not to confuse traders, one of the best forex brokers in Malaysia has developed 3 types of accounts with different starting capital, trading conditions and leverage. Micro accounts are available from $10 (or equivalent in another currency) and standard accounts from $500. The provider offers to check the quality of order execution on demo accounts available for any account type. Up to $1 million is available to the trader on the virtual account. There are Islamic accounts, trading with MT4 or MT5 terminals and minimum spreads from 1.5 pips.

FXTM Features

  • FXTM Invest is the service of copying trades, available to any investor who wants to not trade by himself, but use the skills and trading experience of the company’s most successful traders. To connect to the system you need to invest $100 and more.
  • The broker offers all customers, regardless of the size of the initial capital, full-fledged free training: seminars, webinars, forex dictionary, training videos and articles.
  • Multilingual customer support through any communication channel: online chat, popular messengers (Telegram), Youtube or Facebook.

Pros

– The optimal broker for Forex beginners;

– For some payment services, the high commission, for example, 30 EUR for withdrawal via bank transfer or 2% of the payment amount for withdrawal via Webmoney.

– the broker is regulated by the reliable financial regulators and commissions;- trading is conducted on the most popular and convenient platforms, which are understandable even for beginners (MT4 or MT5);

– instant withdrawal from the account;

– There is a service of copying accounts.

OctaFX – The Best MetaTrader Broker

Established in 2011, dollar market broker Malaysia is focused on Asian clients, that’s why it can offer some of the most competitive and favorable trading conditions for Malaysian traders. OctaFX has repeatedly won nominations as the best broker in Asia, the broker with the best copy trading service or learning platform.

The broker offers trading in 35 currency pairs, indices or cryptocurrencies on the popular MT4 or MT5 terminals, available on the web, desktop or smartphone. Spread on trades from 0.2 pips, no swaps (commission for transferring a position to the next trading day), Islamic account types and a minimum deposit to start from $25.

OctaFX key features

Islamic accounts are available on all types of devices and for all types of accounts.
Free access to Autochartist (a service provider of automatic signals that are formed on the chart and signalize possible changes in the price chart movement) if the account has $200.
Copy-trading is possible on all accounts.
Permanent bonuses for Malay traders (50% bonus on every deposit to the account and a privileges program).

Pros of

– automatic withdrawal of funds from the account (24/7);

– small selection of trading instruments;

– the broker does not charge a swap fee;

– the broker offers only 2 account types for trading.

– withdrawal and replenishment without commissions;

– Automatic trades copying system for all accounts (broker does not charge any fees for access to the service, client only pays to the manager).

TickMill – broker MT4 with the lowest trading costs

The largest European broker has been working on the foreign exchange market since 2014. It has licenses of authoritative regulators: FCA (Britain), CySec (Cyprus), FSA Labuan in Malaysia and South African FCSA.

The broker is considered one of the most profitable for Forex trading or the lowest spread forex broker, because it offers low fees for trading operations – spreads from 0 while paying a commission of $2. The minimum account to start trading from 100 U.S. dollars. You can trade any asset you like: currency pairs (more than 60), indices (more than 14 types), commodities, metals or cryptocurrencies; over 100 instruments are available to trader. Maximum leverage up to 1:500, on cryptocurrencies up to 1:10 or on metals up to 1:100.

To attract clients, the company constantly holds promotions or contests: there is a no deposit bonus of $30. Which is added to every new client and can be withdrawn or used for trading after the bonus is worked out. In addition the broker gives rebates or cashback for the trading volume which is charged as follows: for each lot traded the trader gets back to his account from $0.25 to $0.75. The more lots a trader closes, the higher the commission for each lot.

Key features of TICKMILL

Autochartist service is free to every client without minimum deposit requirements.
For investors the Myfxbook copy trading service is offered.
Islamic accounts are open to all Malaysian customers.
It’s allowed to reduce the commission on the account with zero spread (up to $2) per lot if you open VIP account with a balance of $50,000 or more.
The broker does not charge any fees for trading currency pairs on Islamic accounts.
A no deposit bonus of $30 to the account of new clients, available for withdrawal after workout.

Pros of

– the broker is regulated by the reliable financial commissions of Europe, South Africa and Malaysia;

– a small selection of trading instruments: only 3 cryptocurrencies or 2 types of metals.

– some of the lowest spreads on the market;

– there are restrictions on the minimum amount of withdrawal – from $25 for any payment service.

– there are no deposit and withdrawal fees;

– wide range of currency pairs;

– no deposit bonus to test all features of the broker.

Pepperstone – broker with one of the best ECN order execution

Pepperstone is Australia’s leading forex broker that has been around since 2010, offering a wide range of instruments for clients to trade. Not only familiar to the classical Forex market: currency pairs, CFD on indices or metals, but also working with the purchase of the classical stocks: blue chips or the most liquid instruments such as Tesla or Facebook. In total, the provider offers more than 1,200 assets.

Provider is under the control of reputable financial commissions of the highest security level of the largest countries or continents: ASIC (Australia), BaFin (Germany), CMA (South Africa), CySEC (Cyprus), DFSA (Dubai financial regulator), FCA (UK). Because of that at the stage of account opening the broker will request the documents confirming the identity of the client in accordance with the international standards of control over safe settlements and anti-money laundering.

Pepperstone’s main features

  • Qualified customer support available 24/7.
  • Extensive training base on the basics of Forex trading and ECN accounts.
  • Islamic accounts are opened when depositing from $200;
  • The broker offers different trading terminals: MT4, MT5 and cTrader.
  • Social trading is available through three different services: Myfxbook,
  • MetaTrader Signals DupliTrade – the client can select different managers from hundreds of accounts.

advantages

– The reliable and serious broker, regulated by the authoritative commissions (has one of the largest number of licenses among the world forex brokers);

– Relatively low leverage among the other forex brokers: up to 1:30 for currency pairs.

– diversity of trading platforms;

– minimal spreads and commissions;

– wide range of trading assets: more than 1200.

– a variety of services to connect the service of copying trades of traders.

– huge training base, divided by the categories of instruments: for beginners you can learn Forex, CFD, stocks or cryptocurrencies separately and start trading with one category of instruments.

AvaTrade is one of the best mobile trading apps

The broker has been working on the foreign exchange market since 2006. It is under the jurisdiction of many authoritative financial commissions all over the world: Central Bank of Ireland, FSCA (South Africa), ASIC (Australia), FSA (Financial Services Agency of Japan), CySEC (Cyprus), DFSA (Dubai).

The dealer offers trading using the most popular and convenient trading terminals MT4 and MT5. The company developed its own application for options trading – AvaOptions. Service of social trading or transaction copying is available through DupliTrade.

Malaysian traders can trade with the company with a starting deposit of $100. The company offers work on Islamic account type. The minimum spread on the most popular currency pair – EUR/USD from 0.9.

Key features of AvaTrade

  • Support service is available in Malaysian.
  • The company offers protection against negative balance.
  • The broker has implemented the AvaProtect service for the clients, which protects the account balance from loss-making trades (all loss-making trades closed manually or by stop out during the period of service activation will be compensated by paying for the service).
  • Leverage of the account is up to 1:400.
  • The company as forex platform malaysia in addition to the standard for each broker terminals MT4 or MT5 promotes its own application – AvaTradeGO.

The broker charges the clients for inactivity on the active account: after 3 months of non-use of the account the monthly fee will be $50 (or the equivalent in Euros/British pounds) and $100 after the absence of trade on the account more than 12 months.

Pros of

– A large number of licenses from the world’s major financial regulators make the company a reliable forex partner;

– the limited maximum leverage on the foreign exchange market;

– a variety of trading applications and platforms;

– low initial deposit for beginners;

– large knowledge base and training material for beginners;

– free daily analytics for all clients.

Capital.com – broker with the best training platform

The brokerage company has been on the foreign exchange market for a relatively short time – since 2016, but has earned the trust of millions of clients. It is under the financial control of authoritative commissions – FCA (Britain), ASIC (Australia) and CySEC (Cyprus).

More than 6000 financial instruments – this is what the broker offers, being considered the leader in the number of forex brokers offered for trading. The work is done from a single account, with just a $20 deposit to start trading. The broker’s website is available in various popular languages, including Malay, but the company does not offer Islamic accounts.

Trading at the broker is conducted through different trading terminals: MT4 (in variations for different types of devices), TradingView.

Features of Capital.com

  • Minimum spread starts from 0.6.
  • Maximum leverage on currency pairs is 1:100.
  • Company does not provide Islamic account types.
  • Withdrawal transactions are processed at any time of the day, not only during working hours.

Pros of

– Regulated by reliable financial commissions broker;

– no Islamic account for traders from Malaysia;

– huge selection of trading instruments (one of the industry leaders in the number of currency pairs or CFDs available for trading);

– small leverage for Forex market: 1:100 vs. 1:1000-1:3000 offered by other brokers;

– deposit and withdrawal with 0% commission;

– no deal copying service.

– no commissions for opening trades, no action on the account;

– low spreads;

– low deposit to start trading.

XM – broker with the lowest MT5 commissions

XM Company was founded in 2009 and is considered one of the most recognizable in the world. A great number of licenses from the major financial commissions – ASIC (Australia), CySEC (Cyprus), IFSC (Belize) and DFSA (Dubai) confirm the provider reliability, traders from more than 190 countries work with. The broker also developed special conditions for Malaysian traders.

A wide range of trading instruments – more than 50 currency pairs, 600+ shares of the largest and most liquid companies, commodities, indices and metals or more than 1000 in total. You can test trading conditions on a free demo account with virtual funds up to $100,000. Or on a real account with a minimum deposit of $50 and leverage up to 1:888.

The main features of XM.

Islamic account types are available for traders from Malaysia.
Islamic accounts with no additional commissions or fees.
Minimum spreads from 0.6 pips.
Immediate order execution without requotes or delays is available on all account types.

Pros

– the company falls under the control of reputable commissions;

– quite high spread: from 1.6 on the most popular currency pair on the Forex market EUR/USD.

– each client can get full free trading education;

– large number of instruments for trading;

– withdrawal and depositing is carried out without commissions;

– In addition to the standard terminals in all variations of MT4 and MT5, the broker offers trading on XM WebTrader.

HotForex – a wide range of trading instruments

The company was founded in 2009 and is one of the Top forex brokers. It works under the jurisdiction of the most reputable financial regulators: CySec (Cyprus), FCA (United Kingdom), DFSA (Dubai), FSCA (South Africa) and FSA (Seychelles), which guarantees the safety and security of funds deposited in the accounts of the company.

The broker has regularly expanded the number of financial assets offered for trading, so a wide selection is available to its clients: currency pairs Forex (more than 50 pairs), CFD on shares of popular companies traded on the largest stock exchanges in the world, bonds, ETFs, commodities and swap metals.

Starting deposit starts from $100 and there are 4 types of accounts available. Minimum spreads from 0.1 and no other transaction fees except swaps (on standard accounts).

Key features of HF

  • Islamic accounts are only available in 2 of 4 accounts – Premium or Zero Spread;
  • Maximum leverage of 1:400 available only on Professional account.
  • The auxiliary tools for technical analysis are available free of charge for all clients (Autochartist service or daily analytics).
  • 24/5 support service.
  • Our clients are offered to participate in the trades copying service – HFCopy in any capacity: as investor or managing trader.
    advantages

disadvantages

– availability of licenses from the most reputable financial market regulators;

– Islamic accounts are not available for all accounts;

– wide range of tools for trading;

– low leverage in comparison with competitors (1:400 on the professional account or 1:30 on the standard account);

– free access to training materials and trading signals providers;

– only MT4 or MT5 platforms are available for trading.

– No deposit or withdrawal fees;

– low spreads;

– withdrawal transactions by many channels are processed instantly.

IG Markets is one of the oldest forex brokers

The holding that includes IG Markets forex broker was established in 1974. The broker is under the control of such financial regulators as ASIC (Australia), FCA (Great Britain) and FSCA (South Africa).

The broker offers more than 80 currency pairs, and more than 1200 assets are available. Minimum spreads from 0.6 pips or 0 – 0.3 with commission of $7 per lot. The maximum leverage is 1:200 and the company also provides Islamic account trading.

Main features of IG Markets

  • The broker notifies the client about the possible margin call in advance.
  • The Provider has created IG Academy for new traders where each client can undergo full-fledged free training in trading and receive regular analytical reviews and ready-made trading strategies.
  • Fee for inactivity on open account – in case of absence of operations on account, the broker deducts $12 commission on the first day of each month.
  • In addition to the MT4 platform, the broker offers its own trading terminals.
    The broker opens accounts not only in the standard currencies – EUR USD, but offers a wide choice of base currencies of the world – AUD, JPY, GBP, CAD, CHF, NZD, SGD or HKD.
  • 24/7 customer support.

Pros

– Reliable broker that has been on the market for more than 40 years;

– Relatively low leverage;

– any trading tactics are allowed: scalping, hedging or autotrading;

– big size of minimal deposit to start working.

– huge choice of currency pairs and other trading inst

OANDA – reliable forex broker

The brokerage company is also considered one of the oldest – the brand appeared on the foreign exchange market in 1996. Traders are offered two types of accounts for work. The broker cancelled the requirements for the minimum deposit for the standard account – it is possible to trade with any sum from $0.

The company is controlled by the reliable regulators of the major financial centers of the world: FCA (United Kingdom), ASIC (Australia), FSA (Financial Services Authority of Japan) and MAS (Singapore).

The main features of OANDA

Two types of account are offered for trading.
Maximum leverage up to 1:100 on the professional account and up to 1:30 on the standard account.
Trading via MT4 trading terminal on any type of device, additionally the broker offers its own application OANDA Trade Platform (desktop, smartphone or web-based).
More than 70 currency pairs and more than 120 CFD types are available.
You can start trading with any amount of investment (two account types): from $0 and $10,000.
Minimal spread from 0.8.
The trader needs to verify the identity after creating the account (many brokers ask for this operation only before the first withdrawal)

advantages

– high degree of reliability because of the licenses of the regulators of higher order;

– low leverage compared to other forex brokers, which allow the limit up to 1:1000 and above;

– a wide choice of trading terminals, in addition to the classical version – MT4;

– a small selection of CFDs.

– absence of the minimum deposit requirement;

– large number of currency pairs;

– wide range of training materials, which is great for beginners.

What is the Forex currency market?

The foreign exchange market or in simple words Forex is the largest financial market, which is a global economic phenomenon. Forex is a decentralized market, which does not have a physical presence, such as the stock exchanges in Europe or the United States. It works 24 hours a day, 5 days a week, without technological interruptions or clearing.

Originally it was created for currency exchange operations by large financial market participants: banks, investment companies or holdings. With the lapse of time brokers realized that Forex was interesting to any participant of financial relations because of its huge liquidity and volatility. Turnover of Forex as a financial market exceeds any other market – trillions of American dollars turn over here daily.

Important. At certain hours: when trading sessions of different continents, such as Europe and the U.S. coincide, there may be stronger movements. Also, with a gap may be open session on the eve of important news or events that happened on the weekend.

What drives the Forex market, or why fluctuations in exchange rates happen?

The main feature of the currency market is a high volatility, which occurs due to the free conversion of national currencies, which are traded on the Forex. The Malaysian Ringgit is one of such currencies, which is considered floating as well as many other currencies: the US dollar, the pound or the Japanese yen. That is, the price is set based on supply and demand.

Due to high volumes of trading, it is possible to earn good money on currency fluctuations. Thus, because of the pandemic in February 2020, the price of the ringgit (MYR) fell by 10%.

At Forex there are currency pairs subject to higher volatility, movements on which can reach 1000 points for a short period of time. That’s why trading is popular on the eve of important economic statistics or news releases.

One of them is the release of Non-farm payrolls, or Non-farm payrolls, in the USA, which is published on the first Friday of every month. At the release of such news Malaysian traders can earn up to 100-1000 points of profit. Thus, after the release of statistics for December 2021, the rate of one of the most volatile pairs – USD/JPY dropped from 115,910 to 115,450 just for 2 hours because of the negative indicators. Malaysian traders can also work with these currency pairs, they are considered major and are available for trading at any of the brokers included in our malaysia broker list.

All important events, which influence exchange rates, are mentioned in the economic calendar, which can be found at any Forex broker. Each event is marked according to its importance. For example, speeches made by the head of the Federal Reserve and interest rate decisions, meetings of other heads of central banks, releases on oil reserves or unemployment and GDP are considered the most significant for the US dollar exchange rate.

Why is Forex trading popular among traders all over the world?

The forex market’s main advantages over other stock exchanges around the world are: high volatility, liquidity, availability and 24/7 trading. Sharp price movements and currency pair fluctuations allow to earn up to 100-1000% annual return to the deposit within several minutes. However, the risk of losing money is also high.

Another important advantage is availability or absence of strict requirements to start trading. If on classical backgrounds you need more large investments, because the cheapest shares cost about $10-$40 and the purchase is available in lots, which can include 1 security, but more often the lot consists of 10 or more securities. In Forex all companies considered in the rating and top forex trader Malaysia should be able to buy not only the whole lot, but also open smaller positions, for example 0.1 or 0.01 of a lot. The possibility of working with fractional lots is always specified in the contract specification or trading conditions of the account chosen by the client.

An additional bonus when trading with forex brokers is the availability of high leverage. If on classical stock exchanges it seldom exceeds the ratio of 1:10, then every broker in Malaysia listed in the rating offers leverage for trading positions up to 1:1000, and in some cases up to 1:2000.

Disadvantages of Forex trading

Compiled by the dollar market broker review includes a list of the most reliable companies in Malaysia, but it is not enough to work with a reliable broker, it is important to properly plan the trade and the possible risks.

All disadvantages of trading on the currency market are associated with advantages: the high volatility and high leverage provided by a broker, allows you to open positions not on your own funds, but on borrowed ones, which greatly increases the risks of losing the deposit. If price suddenly goes in the opposite direction, with high leverage position can be closed by forced margin call.

Professional traders do not advise to chase high profits from one transaction, because during the release of important political or economic news, the price can suddenly go first in one direction, then in 5-10 minutes change the direction and possible profit for a few minutes turns into a loss.

Forex Trading in Malaysia Overview

The development of technologies and availability of the Internet let anyone to do trading: it is enough to have access to the Internet, the basic knowledge and a minimal deposit to start trading. The situation on the labor market in Malaysia, as well as in many developing countries in Asia, forces young people to find additional ways to earn money. Traders in Malaysia are free to trade on the foreign exchange market for the following reasons:

all brokers in Malaysia allow clients to trade using a mobile app, so the currency market is always at their fingertips: the trader at any time can make transactions, control the status of the account and keep up to date with the latest news;
Most of the Malaysian providers set the minimum requirements for the initial deposit, so that anyone can try trading currency pairs;
malaysia forex trading must offer work with islamic accounts, which according to the islamic religion forbids charging interest on trading operations, most brokers from our rating meet this requirement.
The increased interest in forex trading allows a large number of illegal brokers to exist on the market. The presence or absence of licenses is one of the first and most important signs of a fraudulent company. Every Malaysian broker included in the rating is considered to be reliable and open for cooperation with Malaysian traders. Other important criteria for the selection – the duration of the brand (the longer the better, preferably more than 10 years), the lack of minimum withdrawal amount requirements (fraudsters can set the bar at $ 100-200), and transparent trading conditions, sensitively described on the official website of the company.

Forex market regulation in Malaysia

There are two supervisory bodies in Malaysia that control activity of Malaysian Forex brokers – Securities Commission of Malaysia (SCM) and Labuan Financial Services Authority (LFSA).

Securities Commission of Malaysia (SCM)
The Securities Commission of Malaysia was established in 1993 by the Central Bank of Malaysia (Bank Negara Malaysia or BNM), which is considered the main control and supervisory body of the securities market. To create a fair and understandable trading environment in the financial markets, the Commission compiled and published a list of requirements in 2018. They are mandatory for any brokerage company offering Forex trading in currency pairs or derivatives (contracts for difference – CFDs).

The main requirements are as follows:

  • Providers must report on the financial position, any transactions on their accounts or customer accounts.
  • Brokers must verify or document the identity of traders opening accounts. Prevent the illegal laundering of criminally derived money.
  • Before opening an account, companies must make sure that clients are aware of all the risks associated with trading in financial markets.
  • Brokerage firms must convey to clients all the risks associated with leveraged trading.
  • The minimum paid-in capital of a broker must be at least MYR 10 million (approximately $2.4 million) and at least MYR 500,000 (or approximately $120,000).
  • The broker must be domiciled in Malaysia and have open accounts with local banks.
  • Introduction of such restrictions and requirements led to the fact that some brokers work legally, but many companies continue to operate without an SCM license. Therefore, when choosing a brokerage company, it is important to check the availability of licenses and certificates from controlling commissions beforehand.

Labuan Financial Services Authority (LFSA)

The Labuan Financial Services Authority (LFSA) is a financial relations supervisory authority established in the Labuan Special Economic Zone. The island of the same name was designated as a special offshore zone by the Government of Malaysia in 1990. The department regulates and monitors the companies licensed by the commission.

How to detect a fraudster or a bad broker?

Since there are more than 100 brokerage companies on the financial market of Malaysia, it is sometimes difficult for beginners to find their bearings and choose a reliable company. There are a number of indications that a Forex broker is a fraud or an unreliable partner, with whom it is better to avoid any financial relationships:

Hidden or unspecified spreads in the rates. Since the difference between the bid and ask price (or spread) is the main commission that brings profit to the broker, a decent broker is obliged to sound out the commission fees in the tariffs. The client should be able to see the spread at any time.
The presence of commissions for depositing money into the account and for withdrawal. Most licensed brokers have multiple deposit channels with no commission or all methods are free. Withdrawal should also be done with minimal fees and at least one payment method without fees.
Long processing times for withdrawal transactions. Withdrawal transactions must be processed instantly or within 24 hours. Additionally, depending on the means of payment withdrawal can take up to 1-2 business days. But most legal Forex brokers withdraw money within a few hours.
Requirements for the minimum amount to be deposited. Decent brokers do not require depositing amounts starting from $100, on the contrary, they offer deposits with the minimum amounts.
Paid basic education. Licensed broker companies are interested in the successful trading of clients, that’s why they always offer the initial or beginning education in the basics of trading on the currency market free of charge. Moreover, most companies offer their clients free daily analytics and ready-made trading solutions or strategies.
Questions and Answers or How do I choose a Forex broker?
At first glance, the terms offered by forex brokers in Malaysia may seem the same. However, on closer analysis a lot of differences emerge which will greatly influence the quality of trading with the dealer.

Do I need a broker to trade Forex?

Access to any financial market, be it Forex or any other stock market, is available to private clients only through an intermediary – a broker. It is important to choose a forex company in Malaysia, which offers not only the most favorable conditions, but also regulated by the reputable Malaysian supervisory authorities of the highest level.

What is an Islamic trading account?

Due to the specifics of the Islamic religion the interest is forbidden. That is why forex brokers from Islamic countries, including Malaysia, whenever possible have to offer working on the special accounts: Islamic accounts, on which no interest is accrued.

Which is the best broker in Malaysia?

After conducting a comparative analysis, it was found that the best broker malaysia – FXTM. The company offers competitive trading conditions, low spreads, Islamic account types.

The broker gives clients access to trading the most liquid commodities in the market: currency pairs, stocks, commodities or indices. For trading the most popular platforms are offered: MetaTrader 4 and 5, which are adapted to any type of device. Additionally, the broker has developed one of the best deal copying systems – FXTM Invest. The service allows investors to earn on Forex with any experience – just connect to the account of a successful and experienced trader and copy his transactions.

Which is the best broker for beginners?

When choosing a provider, beginners should pay special attention to the following parameters: the size of the initial capital, the availability of free training and free access to the free analytics.

It is also important for a company to offer a demo account so that a trader can test the trading conditions: how quickly the account is opened, how to place stop orders, and how to choose the right leverage. Thus, IG Markets offers one of the most favorable conditions for beginners because of low spread starting from 0.6 pips and no requirements for the initial deposit size which makes the broker one of the most convenient for new traders.

Another interesting offer for beginners is the no deposit bonus offered by brokerage companies after successful registration on the website and personal verification. The size of the bonus can vary from 10 to $1000. Some companies ask to credit the account with real money within a week in order to work off the received bonus and withdraw it afterwards. Other brokers credit the bonus funds to the account available for trading at once. After completing the conditions of the promotion (usually you need to trade a certain volume: depending on the broker’s requirements 50-100% of the lots of the bonus received), that is, if $50 is credited, the broker will request a trading turnover of 25-50 lots. One of the leaders in our rating offers a no deposit bonus to every new client – TickMill.

Which broker has the best demo trading account?

Every good broker who is included in the list of top forex brokers should offer a demo account with virtual money. The trader can freely dispose of them and conduct trading operations. One of such brokers is Capital.com, which offers a virtual account with no time limit – the account is opened and available for trading any amount of time. The provider also allows working on a demo account with all the instruments available on the real accounts. This helps traders to get acquainted with the peculiarities that are peculiar to currency pairs or stocks. The only way to understand the behavior of an asset is to work with it in a real environment, either by opening or closing a trade.

Are Forex brokers in Malaysia reliable?

Most brokers, including the top 10 forex brokers in Malaysia, working in Malaysia have the necessary permits and licenses for carrying out forex activities. This is proved by the licenses of such reputable regulators as FCA, CySEC or ASIC. Before you start working with a company, you should always make sure that the chosen provider has at least one license from the list of the most serious forex regulators.

How to choose a reliable Forex Provider?

When choosing a company, there are three important criteria to consider, which are as follows:

Licenses. When choosing a broker, the first thing a trader should study is whether the company has licenses. Trusted forex broker malaysia must have at least one of the licenses of the high level regulators: CySEC (Europe), ASIC (Australia) or FCA (UK). Legal forex broker in malaysia must guarantee that he is responsible for client deposits in his accounts and comply with the law in the sphere of financial relations.
Training. It is impossible to earn on Forex without basic training. Fundamental and technical analysis is a basis for successful trading, because it gives understanding of what laws the price is subject to and why it changes. Training helps a trader to predict the possible price movement of a traded asset and earn on it. The best forex broker should be interested in ensuring that traders are fully trained to trade on their own. Additionally, it is not unreasonable if a broker provides a free daily analytical review on the major currency pairs and assets. Also, having ready-made trading strategies or signal providers like Autochartist is considered an important advantage.
Commission. When choosing a forex provider, it is important to pay attention to what commissions a broker charges. Among the main ones are: spread, swap, and deposit transaction fees. The best forex brokers in Malaysia charge minimal fees, offer zero spreads and do not charge for depositing in the account, and offer several different options for withdrawing the profit without any commission.

How do Forex brokers make money?

Every broker malaysia forex earns on several types of commissions. The main one is spread – the difference between the buying and selling price of an asset.

It is important to choose the company with optimal conditions. Thus, some Forex brokers may not charge for opening of a deal but set a higher spread or take a fee for depositing on the account. Other brokers offer trades on accounts with zero spread, but have high rates for swap, i.e. the fee for transferring of the opened transaction to the next trading day. All brokers listed in the TOP 10 broker forex Malaysia offer an optimal balance between the quality of their services and the fees they charge.

Which brokers have the lowest trading costs?

The broker that offers the lowest commissions or low spread broker malaysia is Tickmill. The company has one of the lowest spreads: starting from 0.4 pips per trade for the most popular currency pair traded – EUR/USD. Another one is considered a zero spread account, where the $4 commission is charged for 1 lot of traded turnover.

How do I make a deposit with a broker?

Making a deposit with a Forex broker is one of the easiest operations. All companies included in the top 10 forex brokers in Malaysia provide access to a large number of payment services: bank cards of the popular payment systems, electronic wallets such as Neteller, Scrill or cryptocurrency. All payment services available to the customer fulfill deposit operations within several minutes and operate 24/7. Decent companies do not charge for depositing money to an account.

Important. When making a deposit for the first time, a trader should keep in mind that many Forex dealers, for security purposes, execute withdrawal transactions to the same channel that was used to make the deposit.

How do I make a withdrawal from a broker?

Withdrawal of funds from the account is available minus the deposit, which is blocked when there are open positions.

Withdrawals at different brokers occur instantly or during business hours and take 1-2 days. Most of the companies considered in the rating carry out withdrawal operations from the deposit without commissions.

Another important condition – withdrawal of money from the account is possible only after verification of the account or documentary confirmation of the trader’s identity. This is considered an important condition and is performed in accordance with the NYC policy (know your client) and is done to prevent illegal financial transactions for money laundering. That’s why the account verification should be done in advance – the process at different companies can take up to 1 business day, as the documents provided for verification are manually checked by the company employees.

Which broker has the lowest minimum deposit?

Every trader who just started Forex trading is looking for a company that offers the minimum deposit. Who wants to entrust a large deposit to a company they are not yet familiar with.

The minimum deposit is important to check the trading conditions of the broker, you should test how the provider executes orders to open or close trades – the demo account often has a different system, which may be different from the real trading accounts. On the basis of the analysis it was found that among the leaders of the rating OANDA offers the minimum initial deposit on the real accounts – the provider in principle has no minimum capital requirement.

How do I calculate trading costs?

Before you open any transaction, it is advisable to calculate in advance the cost of spread and additional commissions. Low spread forex brokers always offer a calculator to calculate how much a trader will bear when opening a specific transaction. In addition, this service helps to calculate what collateral is required for the position for the selected trading instrument.

Which broker has the highest leverage?

Any broker has a leverage. However, it is not advisable to choose the highest leverage, especially for beginners, because it can lead to loss of the deposit. Leverage allows you to trade with money that the client does not have, for the opening of a position for which you need a deposit, the broker offers to use the leverage.

Thus, among the companies included in our rating, FXTM broker has the highest leverage at 1:2000. Another company offering high leverage is XM. Nevertheless specialists do not recommend abusing leverage, especially when dealing with highly volatile instruments such as gold.

Which broker has the most CFDs?

Among the forex brokers considered in the rating, XM, HotForex, Pepperstone or Capital.com offer the largest number of CFDs on many assets: stocks, metals, commodities, bonds or futures.

Which broker has the most currency pairs?

Since the Forex market was originally designed for foreign exchange trading, currency pairs are the main instruments to work with. The number of currency pairs can vary greatly depending on the company providing access to the market. Thus, in the rating of the best brokers in Malaysia the largest number of currency pairs offered by the company Capital.com: 137 pairs are available to trader on the platform.

Which broker is the best for professional traders?

Pepperstone offers some of the most interesting trading conditions for professional traders. The platform has developed a wide range of accounts, particularly ECN accounts that provide direct liquidity delivery and instant execution. These account types are considered the most suitable for experienced traders.

How do I know if a Forex broker is regulated?

The broker, which provides transparent and clear trading conditions, obligatorily demonstrates all the approvals or documents necessary for conducting lawful activity in the sphere of providing financial services. For example, license numbers and the names of the issuing authorities are always indicated on the main page of the official website of the company. Also in the additional section of the license number, you can go to the website of the regulator, who issued the license and check the relevance of the information.

How can I report scam brokers?

If the client has a complaint against the broker, he can apply to the controlling organization of the company and make a complaint. The address where to send the complaint is always indicated on the regulator’s website. In addition, a complaint can be made at popular and authoritative forums dedicated to forex trading. Here, the company’s representatives answer the questions of clients.

Which is the best platform for Forex?

It is believed that the best forex trading platform is MetaTrader version 4 or the upgraded MT 5, which has surpassed the number of companies that use the platform in June 2021. The exit of MT4 service on the financial market took place in June 2005 and until now the software is leading by the number of active users.

According to statistics, the MT 5 service is considered the most downloaded for trading on the foreign exchange market. For a long period of existence, the company has managed to develop the best services and conditions for a full and high-quality work of a trader.

Which forex broker has the best platform?

XM and HotForex offer the best services for forex trading. Since MetaTrader terminals are considered to be the most popular and convenient for forex trading, it is important for a broker to offer trading on MT and an opportunity to use an application. The participants of our rating offer traders to work on any possible type of device using the MetaTrader service.

Other participants of the rating – AvaTrade, IG Markets or OANDA – have additional trading possibilities. All companies, in addition to classical terminals, offer their own trading platforms.