Forex trading in Malaysia is officially permitted and legal. Hence, the Malaysian Forex traders find it relatively easy and safe to trade Forex and CFDs as a result of Malaysia’s liberal trade policies and laws. The concept of online retail forex trading gaining momentum and more Forex traders are trying their hands in this high-risk high-return business.
However, the traders must carefully consider their trading requirements and the safety of their funds while selecting the best forex broker in Malaysia. All the Forex Brokers have different charges, fees, and policies; you should carefully select the one that meets your requirement. Here we have reviewed a few Forex brokers providing services in Malaysia to help you choose the best Forex broker in Malaysia in 2023.
Forex Trading in Malaysia – What You Need to Know
Malaysia has become an attractive market with significant business potential for Forex brokers. Several international Forex brokers have established their offices in Malaysia. Most of the broker’s websites and customer support are in English, and few of the brokers offer their websites and support in Malay. So you must select between the broker offering services in English or Malay.
The Malaysian Ringgit (MYR) is Malaysia’s national currency. As per the Bank for International Settlements (BIS), the Malaysian Ringgit accounts for 0.4% of daily turnover in the Forex market. Malaysia also offers a decent financial regulatory oversight by the Securities Commission Malaysia (SCM) established under the Securities Commission Act 1993. The Securities Commission Malaysia SCM regulates Stocks, Futures, and Exchange-traded products. However, Forex trading products are not formally regulated by SCM yet.
Forex traders of the Islamic faith in Malaysia can open Islamic Forex Accounts or Swap-free trading accounts that comply with Sharia law. Islamic Forex trading account is a popular choice in Malaysia, as Islam is Malaysia’s official religion. Malaysia’s strong financial services sector specializes in providing Islamic investment products and accounts. Also, Malaysia’s Islamic Financial Services Act (2013) requires financial services to comply with Islamic principles.
Best Forex Brokers in Malaysia 2023
Here is the list of Forex brokers reviewed for trustworthiness, transparent trading environment, safety and security of funds, Funding methods and fund withdrawal processing time, etc. This list will help you choose the best Forex broker in Malaysia reviewed for 2023. You can also check Binary Options Brokers Review in Malaysia.
MT4, MT5, Web
MT4, MT5, ECN
Social trading, MT4
ECN, MT4, MT5
easyMarkets allows Malaysian traders to invest in forex and offer traders unique trading features like – Freeze Rate, Insider Viewer, DealCancellation, and easyTrade. easyMarkets provides MetaTrader 4 in addition to web trading platform.
- Freeze Rate allows traders to freeze live rates for a moment to open and close the trades.
- Insider Viewer is an indicator that allows you to see what other traders are doing.
- You can also undo certain losing trades within a 60-minute window with DealCancellation.
- easyTrade feature allows you to set up your minimum trading risk that will not be surpassed.
- While trading with easyMarkets, there is no commission on trades but there are fixed spreads on each trade.
FBS is a well-known forex trading platform that has gained popularity in Malaysia. With its user-friendly interface and wide range of trading tools, FBS provides a seamless trading experience for both beginners and experienced traders. The platform offers various account types, including cent, standard, and ECN accounts. This allows users to choose the one that suits their trading style and preferences.
FBS also provides educational resources, including webinars and tutorials, to help traders enhance their knowledge and skills in the forex market. Additionally, the platform offers localized support in Malaysia. It ensures that users can easily access assistance and resolve any issues they may encounter. Overall, FBS has established itself as a reliable and trustworthy forex trading platform in Malaysia, attracting a large number of traders in the country.
AvaTrade offers a wide range of financial instruments for trading, including forex, stocks, commodities, and cryptocurrencies. The platform has a reputation for its user-friendly interface and advanced trading tools. AvaTrade also provides educational resources and customer support to assist traders in making informed decisions. Additionally, the Labuan Financial Services Authority (LFSA) regulates the platform to ensure a safe and secure trading environment for Malaysian traders. Overall, AvaTrade is a reliable option for individuals in Malaysia looking to engage in online trading activities.
BlackBull Markets in Malaysia
BlackBull Markets is a well-known brokerage firm that offers various promotions and bonuses to its clients in Malaysia. These are designed to attract new traders and incentivize current clients to continue trading with the company. BlackBull Markets in Malaysia offers a range of promotions, including welcome bonuses, deposit bonuses, and cashback rewards. These promotions provide traders with additional funds to trade with. This can help enhance their trading experience and potentially increase their profits. BlackBull Markets aims to create a positive trading environment for its clients in Malaysia and encourage them to make the most of their trading opportunities.
Factors to Consider Before Opening a Forex Account
All the online Forex brokers have unique features. Hence, you must ensure that the Forex broker you select is safe and trustworthy and offer the services you require. Here are a few points you must consider and review before investing with any broker.
The safety and security of your funds with any broker is the primary consideration while selecting a broker. Hence, you should always select a broker complying with at least one reputable international regulatory body like CySec, ASIC, FCA, IFSC, etc. The broker should keep clients’ funds segregated in a reliable bank. While selecting an overseas Forex broker in Malaysia, choose the broker which complies with European, UK, or Australian regulators. The brokers who comply with CySec, ASIC, FCA, or IFSC can be trusted for trading in a safe and transparent environment.
Online Forex brokers are classified as either market makers or electronic communications network (ECN) brokers. The Market maker brokers take the other side of your trades, whereas ECN brokers pass on the best price from liquidity providers who use its electronic communications network. ECN brokers usually have a narrow spread, which is variable depending on the liquidity provider, ECN brokers may charge a per-trade commission. In contrast, market maker brokers typically have a higher fixed spread and no commission.
Trading Costs: Spreads and Commissions
Spread is the difference between the bid price and the offer price in a broker’s price quotation. The spreads and commissions add a cost to your trading, hence choose the broker with the lower spread and commission possible. Small traders are usually less sensitive to such considerations.
Ideally, you should go for a broker with trading software with a customizable interface, having excellent analysis features. The trading software should fast and glitch-free and should run on the desktop, mobile, or web platform you prefer.
Most of the Forex brokers support MT4 and MT5 trading platforms from MetaQuotes; it includes a complete technical analysis functionality, numerous valuable trading tools, a wide range of third-party expert advisors (EAs), and custom indicators that you can add or purchase.
The other trading platforms are cTrader, NinjaTrader, and some proprietary trading platforms. There are social copy trading platforms like ZuluTrade and eToro.
Most of the Malaysian traders, especially those with less experience, need to access customer service frequently. Hence the broker with a strong customer support team is preferred. You can ask customer support for a training session on using the trading platform. Always go through the training materials available on the broker’s website; they are quite useful and make you feel confident about using the trading platform.
Is Forex Trading Legal in Malaysia?
Yes, it is legal to trade Forex in Malaysia. There are many Malaysian Forex traders who are successfully trading Forex and have become Copy trading providers and PAMM account managers with different brokers. This brings them additional income from the traders who choose to follow their trades or who invest in the PAMM-managed account. Although it is legal to trade Forex in Malaysia, you must carefully select a trustworthy broker to ensure the safety and security of your funds. Usually, a broker with more than five years of proven track record is good to go.
How Does Forex Trading Works?
While trading Forex, currency pairs are traded, for example, GBP/USD or EUR/USD. The trader has to predict how the exchange rate of the two currencies will change. If the trader determines that USD (US Dollar) will strengthen against the Euro, then they buy dollars, which means the value of the Euro will go down. If the trader is correct in his prediction, the value of USD rises, and he can sell it for a profit. If the decision goes wrong, then he loses.
For example, the EUR/USD rate shows the number of dollars one Euro can buy. If a trader believes that Euro will increase in value against the dollar, then they use dollars to buy Euros. If the exchange rate rises, then they can sell the Euro back for a profit. One of the reasons Forex trading is popular among investors is that the market is open 24 hours a day; the traders can trade following any timezone.
In conclusion, forex trading has become increasingly popular in Malaysia due to its potential for high returns and accessibility to individuals. The growth of the internet and technological advancements have made it easier for Malaysians to participate in the global forex market. However, it is crucial for traders to be aware of the risks involved and to educate themselves about the market before engaging in forex trading. Regulatory bodies such as the Securities Commission of Malaysia play a significant role in ensuring the safety and transparency of forex trading in the country. With proper knowledge, discipline, and risk management, forex trading can be a lucrative investment opportunity for Malaysians.
Managed Forex Account in Malaysia and Forex Copy Trading in Malaysia are the two indirect methods where you can trade Forex relying on the knowledge and experience of experienced and talented traders. In these cases, you don’t have to involve yourself in the complications of market analysis and monitoring your account continuously.