There are many foreign licensed forex brokers who accept Malaysian traders, but you are trading with them is at your own risk as these are not licensed in Malaysia.
If they become insolvent, recovering your trapped funds can be near impossible, and any legal disputes will have to be resolved in court sittings outside Malaysia.
As such, it is advisable that you abstain from trading or only consider those forex brokers who have Tier 1 regulations from reputed regulatory bodies like the FCA – UK, ASIC – Australia, etc.
For the purpose of educational research, HF Markets is a forex broker with good overall trading conditions & they accept traders from this region.
Best Forex Brokers in Malaysia
- HF Markets – Best Forex Broker Malaysia
- XM Forex Broker – Forex Broker with Low Minimum Deposit on all accounts
- FXTM – FCA Regulated Forex Broker with ECN Spread Account
- OctaFX – Forex Broker with Best Spread-Only Accounts (Standard Accounts)
- IC Markets – Forex Broker with the Best Forex Trading Platforms in Malaysia
- FxPro – FCA Regulated Forex Broker with cTrader
- Tickmill – Low Spread MT4 Forex Broker Regulated under IBFC Labuan
- AvaTrade – Forex Broker with Fixed Spreads
Note that the forex brokers compared in the listings below are not Bank Negara Malaysia Approved Forex Brokers, and are we have only researched them for educational purposes based on their popularity in the region & other factors.
Traders who are opening account with any foreign forex brokers must understand the risks involved.
We considered factors like Regulation, Account Type, Minimum Deposit, Leverage, Spread, Trading Platforms, Number of Tradable Instruments, commission, leverage, etc.
1. HF Markets – Best Forex Broker in Malaysia
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✅ Overall Score |
9.1/10 |
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⚖️ Regulations |
FCA, FSCA, CySEC, FSC |
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🌐 Platforms |
MT4, MT5, Apps on Google Play & App Store |
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✔️ Trading Instrumentss |
Forex, Metals, Commodities. Energies , ETFs Indices, Bonds |
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🏦 Min. Deposit |
USD 10 |
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💻 Website |
HF Markets (formerly Hotforex) is an online forex & commodities broker that caters to a wide array of traders from beginners to pros, and has sufficient customer support in English & the local language of Malaysia.
Note that HFM is not an approved forex broker in Malaysia. The account of traders in this region are registered under their foreign entity, which makes them risky.
HF Markets (SV) Ltd is the parent company and they do business under the “HFM” or “HF Markets” trading names.
The spreads are HFM are variable, and moderate to competive, depending on your account type. The spreads are moderate with Premium Account type.
HFM does not charge commissions on their accounts, except for the Zero Account with a $3 per side per standard lot commission.
The company was incorporated in Saint Vincent & The Grenadines (SV) in 2010. When you open a trading account, it is subject to the laws of Saint Vincent & The Grenadines.
HF Markets Group is regulated by 5 oversea regulatory authorities seated outside Malaysia.
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HF Markets Regulator |
Location |
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Financial Conduct Authority (FCA) |
United Kingdom |
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Dubai Financial Services Authority (DFSA) |
Dubai |
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Financial Sector Conduct Authority (FSCA) |
South Africa |
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Financial Services Authority (FSA) |
Seychelles |
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Capital Markets Authority (CMA) |
Kenya |
HF Markets have their own proprietary HFM mobile app. You can also trade on MT4 & MT5 platforms which you can upgrade with the HF Markets Premium Trader Toolkit (available for download on the HFM website under the “Tools” tab)
HF Markets offer 5 trading account types, these are Cent, Zero, Premium, PRO PLUS, and Pro Accounts. You can trade CFDs such as Forex, Metals, Bonds, Indices, Cryptocurrencies, ETFs, Energies, & Stocks.
HF Markets minimum deposit is $5 for the Cent Account, $5 for the Premium Account, & $5 for the Zero Spread Account (these accounts may have a low minimum deposit, but they charge higher spreads from 1.2 pips and beyond).
If you seek lower spreads, then be prepared to pay a higher HF Markets minimum deposit of $100 for the PRO Account (here spreads from 0.6 pips) & HF Markets minimum deposit $250 on the PRO PLUS Account (here spreads start from 0.2 pips).
You pay both spreads and commissions on all HF Markets account types causing HF Markets to have a unique pricing structure compared to closest rivals.
On the Cent, Premium, PRO PLUS, & Pro Account types, Forex CFD, Commodity CFD, ETF CFD, & Bond CFD trading is commission-free, but commissions are applied when you trade other assets.
The HF Markets Zero Spread Account is for high-volume traders seeking near-zero spreads, but they pay commissions on Forex, Indices, Crypto, & Stock CFDs in exchange.
HFM Pros & Cons
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👍 HF Markets Pros |
👎 HF Markets Cons |
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Multiple trading account types on offer with different minimum deposit requirements to suit any trader |
Malaysian customer accounts are registered under offshore regulation in Saint Vincent which is not as secure as what is applicable in the UK
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Cent Account type designed for beginner traders (on the Cent Account 1 lot = 1,000 units of any instrument being traded & you trade in the US Cent base currency) |
No weekend customer support
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Low minimum deposit of $5 |
Low spread accounts require a high minimum deposit. (The accounts with low minimum deposit have high spreads) |
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Swap-free halal forex trading is available on all HF Markets accounts in Malaysia |
High leverage |
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Offers support in local Melayu language |
HF Markets inactivity fee is $5 per month |
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You get access to lots of financial markets ranging from popular forex pairs to popular indices such as NASDAQ 100 |
Trading commissions are charged on every account type, and this can be confusing for beginners |
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Demo account for learning with virtual money in a simulation
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VPS hosting has been introduced so your Expert Advisors can be connected to HF Markets servers 24/7 |
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Free trading tools such as Risk calculators, & Autochartist |
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MT4 upgrade with HFM Premium Trader Tools |
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Copy Trading is available (but you must understand the risks) |
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Tier 1 regulation from FCA UK and other major regulations globally |
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Read more about the accounts & trading fees at HFM website
2. XM – Forex Broker with Low Minimum Deposit across all its accounts
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✅ Overall Score |
8.9/10 |
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⚖️ Regulations |
FSCA, CySEC, FSC |
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🌐 Platforms |
MT4, MT5, Apps on Google Play & App Store |
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✔️ Trading Instrumentss |
Forex, Metals, Commodities. Energies, Indices |
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🏦 Min. Deposit |
USD 5 |
|
💻 Website |
XM Global Ltd is a member of the Trading Point Group based in Belize City. XM Group is also regulated by the Cyprus Securities and Exchange Commission (CySEC), and Financial Services Commission (FSC) Belize
XM offers 3 different account types. The XM Micro Account is their entry-level account type with zero commissions, $5 minimum deposit, and permitting trading in micro lots.
The other accounts are the Standard, Ultra Low, & Shares Trading accounts and they come with moderately low spreads, Zero Commission (except Shares Account), and Negative Balance Protection.
The fees at XM are moderate. The lowest fees are on their Ultra Low Account. The average spreads with Standard Account for major pair EUR/USD are 1.6 pips, which is on the higher side. With the $5 minimum deposit XM Ultra Low Account, EUR/USD spread is 0.8 pips on average.
MT4 and MT5 trading platforms are provided with additional technical indicator plugins if you wish to upgrade. The XM Trading Point Mobile App is also available on Google & Apple stores.
All XM accounts (except Shares Trading Account) come with a maximum leverage of 1:1000.
You can trade multiple CFDs including Forex, Crypto, Stocks, Turbo Stocks, Commodities, Equity Indices, Precious Metals, & Energies, on XM platforms.
XM Pros & Cons
|
👍 XM Pros |
👎 XM Cons |
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One top-tier regulation from CySEC |
Very high leverage offered with trading accounts |
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Minimum deposit of $5 with all XM account types |
XM charges a $5 monthly inactivity fee on dormant accounts |
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Zero commission spread-only accounts |
XM does not have zero spread accounts. Spreads start from 0.6 pips and above |
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XM offers a Micro Account where 1 lot = 1,000 units of any instrument and this is ideal for beginners
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Copy trading (at your own risk) |
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XM offers halal forex trading in Malaysia on their Islamic Accounts |
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24/7 support in Malay language |
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Ultra Low Account charges competitive spreads when compared to industry averages, charges zero commissions, and costs just $5 minimum deposit to open. |
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Demo account for learning with virtual money in a simulation |
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Additional MT4 indicators are available so you can upgrade your MT4 platform |
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Read about XM’s accounts & other features or open account on their website
3. FXTM – FCA Regulated Forex Broker with ECN Spread Accounts
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✅ Overall Score |
8.4/10 |
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⚖️ Regulations |
FCA, FSCA, CySEC, FSC |
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🌐 Platforms |
MT4, MT5, Apps on Google Play & App Store |
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✔️ Trading Instrumentss |
Forex, Metals, Commodities. Energies, Indices |
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🏦 Min. Deposit |
USD 500 |
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💻 Website |
ForexTime Ltd (Trading name- FXTM) are a global Forex & CFD Broker operating out of Cyprus. FXTM is also a member of the global inter-broker Financial Commission Compensation Scheme.
FXTM regulation comes from the Financial Conduct Authority (FCA) UK, the Cyprus Securities and Exchange Commission (CySEC), FSC Mauritius, FSCA South Africa, & CMA Kenya. However Malaysian traders account is registered under the laws of Mauritius.
MT4 and MT5 are FXTM’s Mobile, Desktop, and Web Trading Platforms. FXTM’s proprietary trading platform, called FXTM Trader, is compatible with mobile, and it’s available on Android and iOS.
With a $500 minimum deposit, you can trade with the FXTM Advantage Account, or Advantage Plus Account.
The Advantage Plus Account is a spread-only account type and charges high spreads with EUR/USD being 2.1 pips. The good thing about the Advantage Plus Account is that it doesn’t charge commissions so it’s more beginner friendly.
On the Advantage Account, commissions are up to $2 per side but can be lower when you trade high volumes. The Advantage Account also charges ECN type spreads which are narrow with EUR/USD average spread being 0.0 pips.
FXTM used to offer a Micro Account for small-sized trading, but this has been scrapped.
You can trade different CFD markets on FXTM: Forex, Spot Metals, Commodities, and Indices with a 1:1000 maximum leverage.
FXTM Pros & Cons
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👍 FXTM Pros |
👎 FXTM Cons |
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Strong tier-1 regulation especially from FCA, UK and others |
Not licensed in Malaysia. Malaysian traders accounts are opened & registered under offshore regulation in Mauritius
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Low volume-based trading commissions as low as $0.4 per side and as high as $2 per side |
High $500 minimum deposit |
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Copy trading is available at your own risk
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Very high leverage offered with trading accounts |
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Low ECN type spreads on the Advantage Account. EUR/USD spread is 0.0 pips
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No Malaysian language support. |
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Support is available in English language |
FXTM charges $5 monthly inactivity fee |
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FXTM offers halal forex trading in Malaysia with Islamic Accounts for swap-free trading
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Local payment methods are available |
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Get more information on FXTM website
4. Octafx – Forex Broker with Best Spread-Only Accounts (Best Standard Accounts)
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✅ Overall Score |
9.2/10 |
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⚖️ Regulations |
MISA |
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🌐 Platforms |
Octatrader, MT4, MT5 |
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✔️ Trading Instrumentss |
Forex, Metals, Energies, Crypto, Stocks, Indices |
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🏦 Min. Deposit |
USD 25 |
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💻 Website |
Octa Markets (trading as Octafx) are a multi-asset CFD broker who are regulated by the Mwali International Services Authority (MISA).
Octafx has provided its self-developed trading terminal called OctaTrader (available as a mobile app & web trader) for you to trade on.
Octafx has also provided mobile, desktop, & web versions of MT4 & MT5 as additional trading terminals & they are useful for algorithmic trading with Expert Advisors (EAs).
Octafx allows copy trading with MT4 Accounts only, but you must read & understand the terms & conditions.
Octafx offers only Standard Accounts (spread-only Accounts) so they don’t charge any commissions. The accounts are Octatrader Account, MT4 Account, & MT5 Account.
Keyfacts about Octafx Accounts:
- All Octafx Accounts are commission-free (spread-only accounts)
- All Octafx Accounts have same minimum deposit requirement of $25
- All Octafx Accounts have spreads starting from 0.6 pips minimum ( you dont get raw spreads).
- The Octafx MT5 Account allows you trade the most number of instruments (252 CFDs)
- You cannot trade Stock CFDs on Octafx MT4 & Octatrader Account types
When you open your preferred Octafx Account, you can access the markets and trades CFDs on Forex, Metals, Energies, Crypto, & Stocks. Noticably absent are instruments like ETFs & Bonds.
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👍 Octafx Pros |
👎 Octafx Cons |
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Spread-only trading accounts with zero commissions make calculating profit/loss easier |
Octafx is regulated overseas but not by a tier-1 oversea regulator. |
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Octafx permits Halal forex trading on Islamic Accounts |
High 1:500 leverage |
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Good educative videos & live webinars for learning |
No ECN-type accounts offering near zero spreads |
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Low spreads when compared to closest rivals. EUR/USD average spread is approximately 0.9 pips on average. |
Not licensed in Malaysia. Malaysian traders accounts are opened & registered under offshore regulation in Mauritius |
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Demo account |
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Fast account opening process |
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Octafx Copy trading (at your own risk) |
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Good collection of trading platforms/terminals |
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24/7 live support |
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Flat minimum deposit of $25 across all Octafx Account types |
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No inactivity fees |
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Visit Octafx to learn about quick account creation requirements for Malaysian traders
5. IC Markets – Broker with Best Forex Trading Platforms in Malaysia
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✅ Overall Score |
9.1/10 |
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⚖️ Regulations |
ASIC, FCA, FSCA, FSA |
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💻 Platforms |
MT4, MT5, cTrader, TradingView |
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✔️ Trading Instruments (CFDs) |
Forex, Metals, Commodities. Energies, Indices, Bonds, Stocks |
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🏦 Min. Deposit |
USD 200 |
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💻 Website |
Raw Trading Ltd (Trading as IC Markets) are a forex broker operating out of Seychelles.
IC Markets is regulated by the Financial Services Authority (FSA) Seychelles, CySEC Cyprus, SCB Bahamas, and ASIC Australia. However, Malaysian client accounts are registered under its entity in Seychelles, and they are not locally licensed.
IC Markets MT4 and MT5 platforms come with free MT4 upgrade tools which you can download from the IC Markets website.
cTrader platform is available with its modern interface. IC Markets also offers copy trading on the cTrader platform as well as through ZuluTrade (a third-party copy trading platform)
If you want to trade directly from interactive super-charts, IC Markets has partnered with TradingView a dedicated charting platform to let you trade on their platform.
IC Market accounts are: Raw Spread MT4/5, Raw Spread cTrader, and Standard Account MT4/5; all with a 1:1000 leverage, and $200 minimum deposit.
Commission on the Standard Account is embedded in the spread received from liquidity providers. However, the MetaTrader Raw Spread Account commission is $3.5 per lot per side; while the cTrader Raw Spread Account commission is $3 per 100k traded.
You can trade Forex CFDs, Stocks CFDs, Bond CFDs, Digital Currency CFDs, Indices CFDs, Futures CFDs, and Commodities CFDs.
IC Markets Pros & Cons
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👍 IC Markets Pros |
👎 IC Markets Cons |
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Top-tier regulation from ASIC Australia and others |
Not licensed locally. Malaysian trader’s accounts are registered under its entity in Seychelles.
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cTrader android and ios mobile apps with cTrader automate for building your own trading bots |
High minimum deposit of USD 200
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Lower spreads than industry averages. (EUR/USD average spread is 0.82 pips on Standard MT4/5 Accounts) |
No support in Malaysian language |
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Copy Trading is available at IC Markets (at your own risk)
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Very high leverage is offered with all 3 trading accounts |
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TradingView advanced charting platform |
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Free MT4 upgrade tool kit can be downloaded from IC Markets website |
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No inactivity fees |
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Islamic Account for Halal forex trading is available on IC Markets |
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Demo account
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Uniform IC Markets minimum deposit of $200 across all account types |
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Micro lot size trading for beginners at IC Markets |
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Lots of financial markets to trade from |
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Read more about the spreads, trading accounts & more on IC Markets’s website
6. FxPro – FCA Regulated Forex Broker with cTrader
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✅ Overall Score |
8/10 |
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⚖️ Regulations |
FCA, CySEC, FSCA, SCB |
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🌐 Platforms |
MT4, MT5, cTrader |
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✔️ Trading Instrumentss |
Forex, Metals, Commodities. Energies, Indices, Bonds, Stocks |
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🏦 Min. Deposit |
USD 100 |
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💻 Website |
FxPro Global Markets (Trading as FxPro), is a forex broker operating out of The Bahamas. Malaysian traders are registered under FxPro Group’s Bahamas entity.
FxPro is regulated by the FCA UK, CySEC, FSCA, and The Securities Commission of The Bahamas (SCB).
MT4, MT5, and cTrader are FxPro’s web, desktop, and mobile trading platforms. The FxPro mobile app is its proprietary trading platform
You can trade with a minimum of $100 and up to 1:200 leverage, on any of the FxPro Standard, Pro, Raw+, or Elite Account types.
Commissions on the Standard & Pro Accounts are embedded in the spreads for different instruments, while the Raw & Elite accounts have $3.5 per side commissions ($7/lot roundturn).
You can trade wide range of CFD instruments on FxPro including Forex pairs, Indices, Futures, Shares, Metals, Energies, and Cryptocurrencies.
FxPro Pros & Cons
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👍 FxPro Pros |
👎 FxPro Cons |
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Reputed Forex Broker with Tier 1 regulations including FCA |
FxPro is not licensed in Malaysia. Malaysian traders are registered under its Bahamas entity.
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cTrader platform is available & the trading fee is lower when trading in this platform |
No Copy Trading |
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Demo account |
High minimum deposit |
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Malaysian language support is available
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No weekend customer support |
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No deposit or withdrawal fees & local payment methods |
Inactivity fee of $10/month |
Leverage is customizable from the dashboard |
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Halal forex trading is available on FxPro Islamic Accounts |
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Expert Advisor upgrade tools for MetaTrader are offered for free |
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MT4 accounts can be configured for fixed or variable spread |
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Read more information about their trading conditions on FxPro’s website
7. Tickmill – Low Spread Forex Broker Regulated under IBFC Labuan
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✅ Overall Score |
8/10 |
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⚖️ Regulations |
FCA, CySEC, FSA |
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🌐 Platforms |
MT4, MT5, Mobile App |
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✔️ Trading Instrumentss |
Forex, Metals, Commodities. Energies, Indices, Stocks ETFs |
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🏦 Min. Deposit |
USD 100 |
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💻 Website |
Tickmill Group of Companies (Trading as Tickmill) has different entities around the world. However Malaysian clients are registered under its Asian subsidiary – Tickmill Asia Ltd. or Tickmill Ltd. Under FSA.
Tickmill is regulated by the Labuan Financial Services Authority, FCA UK, CySEC, FSA Seychelles. They are also licensed under FSCA in Africa.
No entity of Tickmill is licensed by Bank Negara Malaysia. The traders who are trading with this broker are registered under their foreign entity, and local traders in Malaysia region should understand this risk.
Tickmill has the MT4 & MT5 platforms which can be upgraded with the Toolkit provided by Tickmill.
The Tickmill Pro, Classic, and VIP Accounts have a $100 minimum deposit & leverage is pegged at 1:500. Commissions start from $1 per side per lot except on the Classic Account where it’s zero.
Tickmill requires the same minimum deposit for Pro & Classic Account but the spreads on the Classic Account are high from 1.6 pips hence the Pro Account looks the better option.
The Pro Account charges spread as low as 0.1 pips for the EUR/USD pair plus $2 per side commissions on every 100,000 units traded.
You can trade CFDs on Forex, Indices, Commodities, Bonds, Crypto, and Stocks on Tickmill platforms.
Tickmill Pros & Cons
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👍 Tickmill Pros |
👎 Tickmill Cons |
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Strong regulations including FCA, CySEC & FSA Labuan is a domestic regulator overseeing Tickmill activities |
Not licensed onshore in Malaysia.
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Competitive spreads from as low as 0 pips with Pro Account |
Lowest minimum deposit is USD 100 |
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MetaTrader 4 & 5 Platforms are available. Mobile apps on iOS & Android |
No weekend customer support
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Low commissions & spreads on Pro Account. EUR/USD typical spread is 0.1 pips |
Limited range of trading platforms (overdependence on MetaTrader) |
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No inactivity fees |
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Islamic Accounts on Tickmill for Halal forex trading |
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Malaysian language support, as well as English
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Wide range of markets available for trading
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Live Market Sentiment |
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Good MetaTrader support with Advanced Trading Expert Advisor Toolkit for MT4 & MT5 |
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Accounts suited for Professional day traders |
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Visit Tickmill website for more information on their features & accounts
- AvaTrade – Forex Broker with Fixed Spreads
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✅ Overall Score |
8.9/10 |
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⚖️ Regulations |
BVI FSC, ASIC, FSCA, CySEC, FSA, ADGM, ISA |
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💻 Platforms |
AvaTradeGO, AvaSocial, AvaOptions, MT4/5,AvaTrade Web Terminal |
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✔️ Trading Instruments |
FX CFDs, Indices CFDs, Share CFDs, Bond CFDs, ETF CFDs, Crypto CFDs, Commodity CFDs & FX Options |
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🏦 Min. Deposit |
USD 100 |
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💻 Website |
Malaysian traders are registered under Ava Trade Markets Limited, a company regulated by the British Virgin Island Financial Services Commission (BVI FSC).
AvaTrade still has a global presence and is regulated in Australia, Ireland, South Africa, Japan, Abu Dhabi, Cyprus, & Israel.
AvaTrade seems to have a platform for every activity: AvaSocial for copy trading, AvaOptions for trading FX Vanilla Options, & AvaTradeGO for trading CFDs.
The MT4/5 white label platforms are also available and AvaTrade MT4 has a Guardian Angel Tool designed to help beginners spot risky situations fast. You can download the Guardian Angel Tool from the AvaTrade website.
AvaTrade does not offer multiple account types to choose from, they just offer one account for every trader. This account comes with a top leverage of 1:400 and lets you trade a wide range of markets.
- Forex CFDs
- Forex Vanilla Options
- Share CFDs
- Indices CFDs
- Commodity CFDs
- Crypto CFDs
- Bond CFDs
- ETF CFDs
AvaTrade does not charge you commissin when you trade any asset class. The spread is fixed and the lowest spread is 0.9 pips.
There is an Avaprotect feature which requires you pay a fee in exchange for protection. You are refunded for any losing trades on Forex, Gold, & Silver instruments.
AvaTrade Pros & Cons
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Pros |
Cons |
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Multiple regulatory licenses |
No small-sized account types that beginner can open |
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Multiple tradable instruments |
AvaTrade minimum deposit of $100 is high |
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Good proprietary trading platforms |
AvaTrade inactivity fee is $50 |
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AvaProtect trade insurance tool |
High leverage at 1:400 |
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Guardian Angel MT4 Expert Advisor plugin to detect when a beginner trader is taking on too much risk |
No raw spreads |
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Copy trading (at your own risk) |
Support is not avaiable 24/7 |
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AvaTrade spreads are competitive when compared to industry standards |
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AvaTrade accepts Malaysian traders. Visit AvaTrade to see account opening steps
How to Choose the Best Forex Broker in Malaysia?
1. Check the Forex Broker’s Licenses & their Status
Foreign retail forex brokers have been barred from doing business in Malaysia because the Securities Commission of Malaysia (SCM) have strict rules regarding currency speculation of any kind.
Many of the popular foreign forex brokers, including the ones in this list are not regulated in Malaysia.
Although forex trading is not illegal in Malaysia, but retail online forex trading using CFDs is not allowed. CFDs are the common and conventional method of trading forex among individual or retails traders.
However, some brokers have been approved to trade FX Futures, but not the general public. Rather, this is only open to corporate and institutional traders.
Phillips Capital and CGS-CIMB are the only two brokers that have approval from the Securities Commission of Malaysia to trade non-forex CFDs.
However, there are no locally regulated forex CFD brokers, and local retail forex traders generally trade via foreign brokers, and this is at their own risk.
If you insist on trading with foreign brokers, understanding the risks involved, you should be careful to only trade with those who have top-tier regulations.
How to check a forex broker license:
For example, HF Markets is regulated by the Financial Conduct Authority (FCA) United Kingdom (including other regulations).
To verify if HFM (which is our example broker, and it can be any other) is legit, visit the Financial Conduct Authority (FCA) website at https://www.fca.org.uk/ to query the Financial Services Register. Its reference or license number is 801701
Type in the license number for HFM, or search by name. The result of your query should reveal confirmation of HFM details
A forex broker being regulated with Tier-1 & Tier-2 regulators only means that it is somewhat safe to trade with, but it does not mean that the broker is regulated in your local region.
For example, if a forex broker is licensed in the UK, then their investor protection is only valid for clients registered from that region. The clients from Malaysia or any other region don’t get the same investor protection.
The forex brokers generally register their Malaysian clients under entities regulated by offshore regulations. This does not reduce your risk in any way, and local traders should avoid trading forex, until & unless there are some local regulations, and licensed brokers in your country.
2. Check the overall Trading Account Charges
You may want to consider brokers who charge low commissions. However, not all brokers charge commissions, and oftentimes such brokers charge high spreads to compensate for the commission-free service.
Spread, on the other hand, is the difference between the ask price and the bid price. It is advisable that you trade with brokers who take low spreads because a wide spread can eat into your profit.
For example, if you wish to go long on EUR/USD and the bid/ask price on the broker’s website is 1.2230/1.2232, to buy the currency pair you pay the higher amount of 1.2232.
This means a spread of (1.2232 – 1.2230) or 2 pips or 0.0002 pip, so if you wish to trade 100,000 units of the currency pair, the broker makes (100,000 × 0.0002) or $20.
Here is an example of live bid/ask spread at a broker on their MetaTrader 4 platform for major currency pair. The difference is 0.7 pips.
Trading on leverage also means taking a loan from your broker and depending on the interest rates of the currencies you are pairing, you will either be debited or credited every night your position is left open.
This nightly interest rate differential debit or credit can affect your final trading profits so ensure you ask for the nightly long and short swap rates.
3. Trading Conditions at the Broker’s Platform
Before choosing a broker, you want to compare their trading conditions, like tradable Instruments.
You want to consider brokers who offer a wide range of instruments, as well as instruments that you have an interest in trading.
For example, if you want to trade XAU/USD (Gold), then check which brokers offer this instrument. You must remember that if you are trading ‘Long’ Gold at a CFD broker, you are speculating that the price of Gold will go up.
If you are using leverage to express your position, there is a high risk that you will lose very quickly. For example, if the XAU/USD instrument is trading at 18,000, and you trade 1 Mini lot ($18,000 exposure), but you only have let’s say $180 in you account balance.
If the price of Gold goes down by even 1%, then you entire account balance will be zero. Moreover, you are required to pay overnight Swap fees for holding Long position on Gold.
Below screenshot is an example of a CFD contract at a broker. The contract mentions its size, tick value, margin requirements, stop-out levels etc.
Apart from that, there is also a Swap fees involved as seen in the screenshot below. These trading conditions may not be favourable for every trader.
For example, if you plan to hold Gold or a stock for long term, then CFDs via a forex broker is not the right option. There are excessive holding charges, which make the trading conditions very unfavourable.
Therefore, you should understand the risks involved depending on the type of trading you are doing.
If you are a high-volume trader who trades intraday, you may want to consider ECN brokers rather than market markers. This is because the fees can add up to a lot at the end of the month if your volume is in millions.
You also want to know the broker’s execution method (whether Market or Instant), Margin Stop-out Rates, Leverage per Asset Class, Order Types, Expert Advisor Compatibility, etc.
4. Payment Methods
Payment methods are another area of concern in Forex trading in Malaysia because CFDs and Forex trading exist in a legal grey area in the country.
Depositing and withdrawing using bank transfers can be risky, mainly because the banks may refuse to make transfers, when they notice that one of the parties is an unlicensed or a foreign licensed broker.
Many brokers allow local bank transfers in Malaysia, but you must note that you are working with these brokers at your own risk. Usually, bank transfers are processed within 1-2 days.
You should know that some brokers charge deposit and/or withdrawal fees. Such fees can be avoided by going with brokers that make deposits and withdrawals free.
You should also consider brokers whose deposit methods are instant. This way, when you have an urgent need to fund your account, it won’t be an issue.
5. Platforms + Mobile app
Trading platforms should be available on Mobile, Desktop, & Web. This way, regardless of your device, you can access your trading account.
The broker’s mobile app should be compatible with iOS/Android, and support Two-Factor Authentication to avoid security breaches.
6. Customer Support
Your preferred broker should have customer service that is available at any time of the day and reachable through various means like live chat, email, call, etc.
A broker whose customer service is available in the local Malaysian language will be a plus; this way, language barriers will not be a problem.
Comparison of Forex Brokers in Malaysia
|
💼 Forex Broker |
🏦 Regulation |
💳 Min deposit |
🦸🏻 Leverage |
✂️ EUR/USD Average Spread |
💻 Platforms |
|
FCA, DFSA, FSCA, FSA, and CMA |
$5 |
1:2000 |
1.6 |
MT4, MT5, Proprietary App |
|
|
CySEC, FSC Belize
|
$5 |
1:1000 |
1.3 |
MT4, MT4 Multi-Terminal, MT5, Proprietary App |
|
|
CySEC, CMA, FCA, FSCA |
$10 |
1:1000 |
2.0 |
MT4, MT5, Proprietary App |
|
|
|
MISA |
$25 |
1:500 |
0.9 |
OctaTrader, MT4, MT5 |
|
SCB, CySEC, ASIC, FSA |
$200 |
1:1000 |
0.62 |
MT4, MT5, cTrader, Proprietary Copy Trading App |
|
|
FSCM, SCB, FCA, FSCA |
$100 |
1:200 |
0.9 |
MT4, MT5, cTrader, Proprietary |
|
|
FSCA, FSA, FSCA, CySEC, FCA |
$100 |
1:500 |
1.6 |
MT4, MT5, Proprietary App |
|
|
BVI FSA, ASIC, ISA, FSA, FSCA, FCA, CySEC |
$100 |
1:400 |
0.9 |
MT4, MT5, AvaTradeGO, AvaSocial, AvaOptions |
What is a Forex Broker?
Retail traders use forex brokers to speculate on currencies. For example, if a trader has a theory that EUR/USD will go up due to lower interest rates in the EuroZone, then he/she can short the Euro against the US Dollar.
This is done by taking a position in lots where for every tick, the P&L moves. For example, if you have placed a 10 Standard Lot position, for every pip, the P&L is ± 100 USD.
Frequently Asked Questions – Forex Brokers Malaysia
What Is Forex Trading?
Forex trading is the process of speculating on the change in the exchange rate of two currencies with the intention to profit.
Anyone who wants to speculate on currencies must go through a licensed forex broker/dealer. It must be an entity regulated in the region, if not, you are trading at your own risk.
How to start Forex Trading?
- Get a device with a good internet connection
- Identify your preferred broker and open an account with them
- Practice with the broker’s demo account
- Fund your trading account
- Select your preferred currency pair to trade
- Place your first trade and monitor it
What is the Best Forex Trading Platform in Malaysia?
MetaTrader 4 is regarded as one of the best and most popular trading platforms. However, its interface is not as updated as the new MetaTrader5 successor.
HF Markets, & XM Brokers are examples of brokers with the MT4 platform. XM even has the MT4 Multi-terminal which allows you open several MT4 trading accounts on one server, and trade with them simultaneously.
What is the Best time to trade Forex in Malaysia?
Best time to trade forex in Malaysia is between 3 PM and 11 PM, as this is the London session time and liquidity is high. Most currency pairs move during the NY & London sessions.
What are the Risks of Forex Trading in Malaysia?
Forex Trading for retail traders is not regulated, and no forex brokers are licensed to offer trading on currencies. Any trader who is trading forex in Malaysia, is doing at their own risk, and should engage with caution.
It is very risky to trade forex on margin through foreign licensed CFD brokers, as there will no local protection in case the broker is a scam or you lose money due to any reason.
It is best to not trade via foreign forex brokers until there is a local regulation for protection of retail forex traders.
What is the best Forex Broker for Beginners in Malaysia?
HF Markets & XM broker are the best forex brokers for beginners in Malaysia. They have low minimum deposits of $5, which doesn’t let beginners’ risk too much.
HF Markets & XM broker also have Cent & Micro Accounts respectively, which are mini-trading accounts with restrictions on order size and financial market exposure. These restrictions are good for beginners, so they don’t risk too much.
HF Markets & XM broker also have Demo Accounts where beginners can practice how to trade with virtual funds, the trading conditions on a Demo Account mimic that of a live trading session except that there’s an absence of emotions such as fear since your money is not at risk.
Which type of Forex Broker is the best?
If you are a casual trader trading small volumes, then a Market Maker broker may be good for you. If you are a professional & active high-volume trader, then an ECN broker is a good option.
Forex brokers like AvaTrade & XM are Market Makers, and they are best if you don’t intend to trade in big volumes.
Market makers can speedily fill very small orders since they trade against you & control the liquidity, but they charge higher spreads.
Market Maker forex brokers make money from spreads and do not charge commissions which is why AvaTrade and XM don’t charge commissions.
On the other hand, ECN brokers (Electronic Communication Network) such as FXTM, & IC Markets are best for active high-volume traders.
ECN brokers don’t trade against you, instead they send your order directly to the interbank market using high speed computer networks, so you get charged a low spread, while they charge you a commission.
ECN brokers are best for filling large orders and not micro-orders, as the more volume you trade the more discounts you get on the commission.
ECN forex brokers make money from commissions, and they charge very tight spreads which are almost zero.
Which is the best forex broker for copy trading in Malaysia?
HF Markets & XM broker are the best forex brokers for copy trading because you beginners can copy trades using low minimum deposit Cent & Micro Trading Accounts, which is affordable.
They are also the best forex brokers for copy trading in Malaysia because you don’t need to download a separate app for copy trading, you just use one app (their trading app) for everything.
Which is the best forex broker for algorithmic trading in Malaysia?
IC Markets & Tickmill are the best forex brokers for algorithmic trading in Malaysia because they offer Raw Spread Accounts (most automated trading programs work better with raw spreads).
IC Markets & Tickmill also offer MetaTrader support tools so you can upgrade your MT4/5 and add custom features suitable for algo trading.
Tickmill even has capitalisse.ai which is a tool where you ask Artificial Intelligence (AI) to build you a trading robot.
With Tickmill capitalise.ai tool, you don’t need to be an expert in any programming languages you simply send your command in English language and AI builds you a trading program.
Which is the best forex broker for short selling in Malaysia?
AvaTrade is the best forex broker if you want to short sell. AvaTrade allows you to insure your trades against losses if you agree to pay them a premium for the service which they call AvaProtect. Since short selling exposes you to unlimited upside risk, AvaProtect helps you hedge the risk.
AvaTrade is also good for short selling because they expose you to a wide range of financial markets from FX, Bonds, Stocks, Crypto, Commodities, and Indices etc. So, you can always hedge your exposure in one asset class by opening a position in another.
Warning to readers: short selling involves making profit when prices are falling & is a dangerous trading strategy and should be left to professional traders only. It exposes you to unlimited risk if the asset price begins to rise as there is no telling how high a price could rise.
Which is the best forex broker for Stock CFD trading in Malaysia?
Tickmill is the best forex broker in Malaysia to trade Stock CFDs with because they don’t charge commissions on stock trading, they provide the MT5 platform which is best for Stock trading & they offer you may ways to trade stock such as via Stock CFDs, Stock ETFs & Stock Indices.
