15 Malaysia Forex Brokers of 2023

In recent years, forex trading has become popular in Malaysia and has also drawn increased regulatory attention. Although many globally regulated forex companies welcome Malaysian customers, it is advantageous to additionally possess a Capital Markets Services License (CMSL) from the nation’s financial regulator, the Securities Commission of Malaysia, or SCM. In this article, we want to analyze the best 15 Malaysia forex brokers of 2023.

Is trading forex in Malaysia legal?

Yes, trading foreign exchange is allowed in Malaysia as long as it is done through a regulated firm under the Exchange Control Act of 1953 or with a licensed money service business provider under the Malaysian Money Service Business Act of 2011. To protect clients, the Central Bank of Malaysia has compiled a list of unregulated forex brokers.

It’s crucial to remember that being on this list does not always mean that a company is a scam. The Central Bank of Malaysia views forex firms that are not directly regulated in Malaysia as possible scams.

According to the FX Policy of the Central Bank of Malaysia, there are also more than 163 Appointed Overseas Offices (AOOs) for banks and brokerages that have been granted permission to conduct business with non-residents of Malaysia for financial services like forex trading.

15 Malaysia Forex Brokers of 2023

We compiled a list of all companies that take on new Malaysian clients and ranked them according to their Overall ranking to determine which forex brokers are the best in Malaysia.

IG

IG is at the top of the 15 Malaysia forex brokers of 2023 list. With its competitive spreads, thousands of trading instruments, and cutting-edge news, research, and educational portal, IG is a great choice for both novice and seasoned traders. As the equity in their accounts grows, clients can simply upgrade from a range of platform options. Professionals who prefer direct market access (DMA) over dealing desks will value it.

All things considered, IG has a track record of being a reliable and extremely skilled company.

PROS:

• Wide selection of products.
• Takes clients from the US.
• Controlled by the CFTC, NFA, and FCA (UK) (U.S.).
• Research and education are prioritized.
• Protects client accounts in the UK and EU.

CONS:

• For US clients, there is no account protection.
• For US clients, there is no guarantee of stop losses.
• Backtesting and copy trading are not integrated into the IG platform.
• High CFD share fees.

FOREX.com

Spread betting, futures, and CFDs are just a few of the many products that FOREX.com provides across a variety of asset classes; however, not all of them are accessible in every area that it serves.

In addition to forex, which gives it its name, FOREX.com provides trading opportunities for all kinds of traders by offering commodities, indices, individual stocks, bonds, ETFs, gold & silver (unleveraged in the US), cryptocurrencies, and futures. Additionally, FOREX.com provides client account protection through guaranteed stop-loss orders and negative balance protection mandated by ESMA.

PROS:

• Offers client accounts in the EU and the UK protection.
• Rewards for high-volume traders.
• Wide range of goods accessible.
• The website is integrated with TradingView charts.

CONS:

• For US clients, there is no account protection.
• For US clients, there is no guarantee of stop losses.
• Improper upkeep of the website.

SAXO

For experienced traders and professionals with well-funded accounts, SAXO Markets is a great choice. Though trader education is lacking and customer service is poor, extensive and thorough research facilities, an API interface, and discounted fees (high-tier accounts) could increase account profitability. Estimating bottom-line expenses can also be challenging due to a bewildering array of fee schedules and hidden costs.

When two similar or identical instruments and venues are quoted at different prices, commission and spread disclosures are frequently in conflict. Because of Saxo’s surcharges for small trades, lack of educational materials, comparatively high account minimums, restricted support options, and higher-than-average bottom-line trading costs, smaller and less experienced traders may be able to find better deals elsewhere. Saxo, however, would be highly appealing to a well-read, well-funded market professional.

PROS:

• Wide selection of products.
• Controlled by FCA.
• Top research in the industry.
• Enhanced user interface.
• Provides client account protection.

CONS:

• Neglecting to prioritize customer service.
• Confusing fee structures for instruments.
• Does not take customers from the US.
• Not MT4.

Admiral Markets

Global forex and CFD broker Admirals is governed by multiple agencies, including the prestigious FCA and ASIC. Admirals have cheap CFD forex fees. A variety of methods, such as credit/debit cards and electronic wallets, are available for quick and generally cost-free deposits and withdrawals.

Additionally, opening an account is quick and simple. Conversely, the broker’s product offering is constrained because it primarily sells CFDs; actual stocks and ETFs are only accessible to a small percentage of its clientele. There is an inactivity fee and customer support is not available around-the-clock.

PROS:

• Low CFD fees for forex.
• Free and quick withdrawals and deposits.
• Simple account opening procedure.

Cons:

• Mostly restricted to CFDs in the product portfolio.
• Fee for inactivity.
• No customer service available around the clock.

XTB

A fantastic CFD company is XTB. Numerous financial authorities throughout the world, including the FCA in the UK, regulate it.

Positively, commission-free stock and ETF trading up to a €100,000 monthly trade volume is available to a large number of European clients. You will also appreciate how quick and largely free the deposit and withdrawal processes are. The process of opening an account is easy, quick, and hassle-free.

PROS:

• It offers a trading platform tutorial.
• The broker has a demo account.
• Educational videos.

CONS:

• There is an inactivity fee charged.

AVATrade

AvaTrade is another firm among the best 15 Malaysia forex brokers of 2023. Opening an account is simple and entirely digital. AvaTrade provides several complimentary deposit and withdrawal options. It also offers a variety of easy-to-use research and instructional tools.

However, because it only includes forex, different CFDs (for stocks, indexes, commodities, etc.), and cryptocurrencies, the product portfolio is constrained. The inactivity fees are substantial, and the forex trading fees are not the lowest available.

PROS:

• Simple and quick account setup.
• Options for free deposits and withdrawals.
• Excellent research instruments.

Cons:

• Offered only in CFDs, forex, and cryptocurrencies.
• High costs for inactivity.
• Average costs for forex.

FXCM

FXCM is a UK-based broker that provides trading in both CFDs and forex. The process of opening an account with FXCM is simple, quick, and easy. It has a wealth of technical indicators and other excellent tools for technical research. There is excellent educational content available.

The fact that FXCM only offers CFDs (forex, indices, commodities, cryptocurrency, and shares) means that well-known asset classes like actual stocks and ETFs are not available. Additionally, there’s a steep fee for bank withdrawals. Finally, safer two-step authentication is not available on the trading platforms.

PROS:

• Simple and quick account opening.
• Good instruments for technical research.
• Excellent instructional materials.

Cons:

• Restricted range of products.
• High costs for bank withdrawals.
• Trading platforms do not use two-step authentication.

FP Markets

Forex fees at FP Markets are cheap. Since opening an account and making deposits are both very simple and quick processes, you can get started right away. There are many great teaching resources available, including e-books and demo accounts.

The only products offered by FP Markets are CFDs, forex, and cryptocurrencies. The desktop and web trading platforms for MetaTrader 4 are outdated. Research instruments vary widely in quality, particularly when it comes to news, charting, and fundamental data.

PROS:

• Minimal forex commissions.
• Simple and quick account funding and opening.
• Excellent teaching resources.

CONS:

• Restricted range of products.
• Outdated desktop and web applications.
• Inferior research instruments.

IC Markets

If you’re looking for low-cost forex/CFD trading and you’re not picky about the platform you use, IC Markets is a good choice. It offers a competitive range of products, including cryptocurrency, and a flexible fee structure that combines competitive spreads with affordable commissions. You can quickly create an account and take advantage of several free deposit and withdrawal options.

Given that you cannot trade stocks, ETFs, or funds on IC Markets, it is not advised for long-term investors. Although the design and functionality of IC Markets’ MetaTrader platform are limited, many forex traders will be familiar with it.

PROS:

• Minimal forex commissions.
• Simple and quick account setup.
• Free withdrawals and deposits.
• Provides both raw and standard spread accounts.

CONS:

• Restricted choice of products.
• Live chat support is slow.
• Non-EU clients are not protected as investors.

OANDA

Oanda, which is another company on the best 15 Malaysia forex brokers of 2023 list, specializes in forex trading, but it also allows its EU clients to trade US stocks.

In addition to providing excellent and user-friendly trading platforms, Oanda has strong research tools, including a great API offer and a large number of technical indicators. The process of opening an account is simple and quick. It is an excellent option for first-time investors.

The downside of Oanda’s limited product offering is that only US clients can trade forex and CFDs, while EU customers can only trade stocks. Its lack of a banking history and stock exchange listing are two characteristics that could improve its safety qualification. Furthermore, customer service is only offered around the clock on weekdays.

PROS:

• Outstanding trading networks.
• Excellent resources for research.
• Quick and simple account opening.

CONS:

• For the majority of clients, only FX and CFD are offered (stocks only in the EU).
• No history in banking or being listed on a stock exchange.
• Customer service is not always available.

Pepperstone

One of the most well-known FX brokers in the market is Pepperstone. It is a fantastic option if you’re searching for a hassle-free account opening and funding process along with a range of trading platforms .Its trading fees are not too high, and most deposits and withdrawals are free.

Even so, some traders will probably be put off by the lack of assets outside of forex and CFD, and if you choose the MetaTrader platform, you might not be impressed by its simplistic UX and design.

PROS:

• Quick and entirely digital account creation.
• Excellent client support.
• Free and easy deposit and withdrawal processes.

CONS:

• Offered mostly as CFDs.
• The MetaTrader interface is basic.

TickMill

Tickmill is an inexpensive forex and CFD broker. It provides reasonable forex and non-trading fees. The account opening process is quick, easy, and fully digital. You have a plethora of free options at your disposal for making deposits and withdrawals. The trading platforms of MetaTrader are not well-organized and have an outdated layout.

PROS:

• Minimal FX charges.
• Quick and simple account setup.
• Free withdrawal and deposit.

CONS:

• Outdated features and design of the platform.
• Simple news feed.

XM

Global forex and CFD broker XM is governed by the FSC of Belize, CySEC of Cyprus, and ASIC. This company offers cheap withdrawal and stock CFD fees. Opening an account is simple and quick. There are numerous educational resources available, including demo accounts and webinars.

However, because it focuses primarily on CFDs and forex trading, XM’s product offering is more constrained. Its CFD fees for stocks and forex are average, and clients who are onboarded from outside the EU are not protected as investors.

PROS:

• Minimal withdrawal and stock CFD fees.
• Simple and quick account setup.
• Excellent teaching resources.

Cons:

• Restricted range of products.
• Average CFD fees for stocks and forex indexes.
• Non-EU clients are not protected as investors.

ACY

ACY Securities provides low-deposit and commission-based account options to accommodate a diverse range of traders. The ProZero account’s effective spreads are marginally better than the industry average, despite the Standard account’s pricing being slightly more than average.

CFDs are available from ACY Securities on several well-liked asset classes, such as forex, cryptocurrencies, commodities, metals, equities, and ETFs.

PROS:

• Opportunities in management and corporations.
• Demo account.

CONS:

• No descriptions of the products.
• No multi-currency accounts.

BlackBull

The company, BlackBull Markets is another option on the best 15 Malaysia forex brokers of 2023 list. Low CFD and forex fees are offered by this company. Opening an account is simple, quick, and entirely digital. There are excellent educational resources available to support the trading experience, such as texts, videos, and demo accounts.

The drawback is that there is a withdrawal charge. The minimum deposit for a Prime Account is large, and the research tools are basic.

PROS:

• Minimal CFD and forex fees.
• Quick and simple account creation.
• Excellent teaching resources.

Cons

• Refund charge.
• Few resources for research.
• Prime Account deposits require a minimum of $2,000.

Bank Negara Malaysia’s Official Forex Warning List

As of the time of writing, the Financial Consumer Alert (FCA) List, which is maintained by Bank Negara Malaysia (BNM), the central bank of Malaysia, includes close to 400 companies. BNM updates the list occasionally. The stated purpose of the FCA list maintained by BNM is to locate “entities or schemes which may have been incorrectly perceived or represented as being licensed or regulated by Bank Negara Malaysia (BNM).”

The BNM’s FCA list might initially seem like a list of forex scammers. Some of the companies or entities listed may be legitimate brands that are regulated in other countries or jurisdictions, but not in Malaysia, even though many of them may be dubious forex brokers and/or potential scammers.

Having said that, if at all possible, we advise dealing with a company that is licensed in your home nation. Or you can stick to the 15 Malaysia forex brokers of 2023 list.

Malaysia’s Financial Markets

The Malaysian ringgit (MYR), which was unpegged from the US dollar (USD) in 2005 and replaced with a managed float system akin to current central bank monetary policies worldwide, is the currency that forex traders may be familiar with. Bank Negara Malaysia (BNM), the central bank of Malaysia, is the only body with the power to control and issue ringgit.

The Bursa Malaysia Exchange, formerly known as the Kuala Lumpur Stock Exchange, is the main stock market in Malaysia and is situated in Kuala Lumpur. Trade execution is offered by the Bursa Malaysia Exchange for Malaysian stocks, funds, exchange-traded funds (ETFs), fixed-income products, and derivatives through the Bursa Malaysia Derivatives (BMD) marketplace.

To facilitate Sharia-compliant trading platforms and related financial products, Bursa Malaysia established an Islamic Market to position Malaysia as a global center for Islamic finance.

Is Metatrader 4 legal in Malaysia?

Indeed, hundreds of companies worldwide have licenses to use the MetaTrader platforms, which include MetaTrader 4 (MT4) and MetaTrader 5 (MT5), developed by MetaQuotes Software Corporation. It is also lawful to use in Malaysia.

To find out if the firm is approved by the SCM, the local regulator, the forex broker offering MetaTrader in Malaysia (or any platform, for that matter) needs to be verified on an individual basis.

Is forex trading taxable in Malaysia?

Since capital gains are taxable events, trading forex is indeed taxable in Malaysia. Malaysian citizens are required to report all income received from overseas sources, including foreign brokers for forex trading as well as local investments.

To find out the best way to handle your reportable taxable gains from forex trading in Malaysia, it is best to speak with a local accountant.

Does the Bank Negara Malaysia (BNM) Regulate Forex?

The Malaysian Ringgit is regulated by the central bank of the country, Bank Negara Malaysia (BNM), which also has control over the regional foreign exchange markets. Nevertheless, residents have limited options when selecting a local forex broker for retail forex trading because there is no established framework for companies that offer retail forex from a margin account.

What is the best forex trading app in Malaysia?

IG’s mobile app suite is the top pick after testing the top mobile apps from both local and international forex brokers in Malaysia. IG offers an incredible mobile trading experience, and both iOS and Android users can download the IG Trading app.

Conclusion

As more Malaysians become aware of the vast array of investment opportunities at their disposal, the country’s forex trading industry is expanding daily. Additionally, Malaysia offers very progressive policies regarding Forex trading, allowing its citizens to use any firm that is internationally regulated.

Although Malaysians have access to a large number of Forex brokers, not many are aware of the benefits of having a Capital Markets Services License (CMSL). The best 15 Malaysia forex brokers of 2023 can help you select the best company for trading. The licensing is provided by the Securities Commission of Malaysia (SCM), which is Malaysia’s financial regulatory body.