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Best Forex Brokers in Malaysia 2022

Best Forex Broker Malaysia List

Forex trading in Malaysia is a popular investment activity, and many people are interested in learning more about it. In addition to that, Malaysia is a great place to trade forex because of its stable economy alongside the strong currency. Forex trading can be profitable if you know what you're doing, but it's also risky, so it's important to educate yourself before you start trading. Also licensed forex broker in Malaysia is also necessary to kickoff.

The availability of forex broker Malaysia is no longer a new phenomenon as it has become widely used by locals and foreigners. Further, it can be a great way to make quick money using the best forex broker Malaysia, but it can also lead to bankruptcy if you cannot analyze your risk. Let's get to know detail about Malaysia forex brokers.

Best Forex Brokers in Malaysia List:

 

RANK VISIT
BROKER
REGULATION

We only list licensed brokers that comply with the requirements of prominent regulatory agencies.

MIN
DEPOSIT

The minimum amount you need to deposit in order to start trading.

DEPOSIT
BONUS
RATING MAX
LEVERAGE

Leverage refers to the ratio of securities you can buy for a given payment. The higher the leverage ratio, the higher your buying power (and the higher the risk). For example, a leverage ratio of 500:1 means you can purchase 500 securities, but only pay the equivalent of 1 security valuation. The leverage ratio offered can vary depending on the experience level of the trader.

PAYMENT
SYSTEM
SUPPORT START
TRADING
1
ASIC, CySEC
$100
No Bonus
500:1

Telephone: +44 28 2544 7780

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Pros
  • Excellent education tools
  • Low forex fees
  • Fast account opening
  • Easy funding methods
Cons
  • No bonuses
Platforms & Devices
2
FCA, CySEC, FSCA, SCB
$100
No Bonus
100:1

Telephone: +44 (0) 203 151 5550

image
Pros
  • Excellent customer service
  • Free deposit and withdrawal
  • Negative balance protection
  • Wide range of platform
Cons
  • Inactivity fee
  • High Trading Fees for some CFDs
Platforms & Devices
3
FSC
$100
65%
200:1

Telephone: +52 556 826 8868

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Pros
  • Different passive income options
  • Discount on commissions for active traders
  • Positive price correction
  • Tight market spreads
Cons
  • Low leverage
  • Less research tools
Platforms & Devices
4
ASIC, CySEC, FSA, SCB
$200
No Bonus
500:1

Telephone: +248 467 19 76

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Pros
  • Low forex fees
  • Fast order execution
  • Analytical training materials
  • 90+ instruments
Cons
  • Slow live chat support
  • Non-EU traders don’t get investor protection
Platforms & Devices
5
ASIC, CySEC, FSC
$5
Up to $5000
1000:1

Telephone: +501 223-6696

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Pros
  • Low withdrawal fees
  • Great educational tools
  • Wide range of leverage
  • Multilingual customer support
Cons
  • Non-EU traders don’t get investor protection
  • Lack of weekend customer support
Platforms & Devices
6
CySEC
$1
100%
3000:1

Telephone: +35 7251 23212

image
Pros
  • No withdrawal fee
  • Low stock and stock index CFD fees
  • Negative balance protection
  • No inactivity fee
Cons
  • Average forex CFD fees
  • No PAMM accounts
Platforms & Devices
7
FCA, DFSA, FSCA, FSA, CMA
$5
100%
1000:1

Telephone: +44-2030978571

image
Pros
  • Low spread
  • Controlled by several regulators
  • Numerous deposit and withdrawal
  • Favorable trading conditions
Cons
  • Few account currencies
  • Only USD or EUR as base currencies
Platforms & Devices
8
ASIC, FCA
$0
No Bonus
500:1

Telephone: +61 2 9965 5830

image
Pros
  • Automatic insurance coverage
  • Low entry threshold
  • Fully digital account opening
  • Low forex fees
Cons
  • Limited research tools
  • Only forex and CFD trading
Platforms & Devices
9
FCA, ASIC, DFSA
$200
No Bonus
30:1

Telephone: +1786 628 1209

image
Pros
  • Digital account opening process
  • Seamless deposit and withdrawal
  • Attractive trading conditions
  • No inactivity fee
Cons
  • No cent account
  • Few analytical materials
Platforms & Devices
10
CFTC, FCA, ASIC, FSA, MFSA
$0
up to $1000
50:1

Telephone: 1 212 858 7690

image
Pros
  • Outstanding research tools
  • Excellent trading platforms
  • Accepts U.S. clients
  • Superior research offerings
Cons
  • No account protection for U.S. clients
  • Monthly inactivity fee
Platforms & Devices

Is Trading Forex Legal in Malaysia?

Forex trading is legal in Malaysia. The country's policy is to tamp down on all forms of speculation and to protect the domestic currency. However, forex trading accounts for a tiny percentage of the country's GDP, while trade with neighboring countries such as China, Indonesia, and Thailand accounts for a much higher percentage.

Bank Negara Malaysia (BNM), also known as the Central Bank of Malaysia (BNM), mainly oversee the forex market in Malaysia. You will find many brokers under their regulation, but you will need to choose the right one for your success. Using the guideline from BNM, you can do the broker comparison Malaysia. Also, you can look for BNM approved forex brokers on their official website.

Keep in mind that BNM approved brokers are legal forex broker in Malaysia. Alternatively, you may also choose from other international brokers.

Is Forex Halal in Malaysia?

Since Malaysia is an Islamic country and gambling is prohibited in Islam. So, Malaysian traders stay in confusion if forex is gambling or not, if it is halal or not. Let's analyze it with the Islamic perspective on trading currencies or the so-called forex. This will involve an explanation of what contractual exchanges are. Then we will be looking at how Islamic scholars view these types of exchanges and whether they are actually permitted in Islam or not.

Islamic Perspective on Trading Currencies

Before we can talk about Malaysia specifically, we must say that Islam has different views on what is permissible and what are forbidden activities to do under Islamic Law. The Islamic Law, as organized in the Sharia, also contains details on how these different activities should be done. In particular, in the trading of things such as money or commodities, there are some things that Muslims can only do under specific circumstances and under specific conditions. We will be looking at whether trading currencies is sanctioned by the Sharia and whether this attitude to trading can be seen in Malaysia.

The Islamic perspective on trading currencies is quite complex, but we will try to make it as simple and clear as possible.

Contractual Exchange in the Islamic Perspective

Before we can fully address whether forex trading is permissible in Islam, we must first look at what type of exchange deals are permitted under the Sharia. In Malaysia, there are a lot of things that are done under Islamic principles. One of these things is the concept of contractual exchanges. When an exchange of goods or services is made, there must be a contract or an agreement in place. In Malaysia, there are a lot of laws that are created to regulate these agreements.

The Islamic perspective on the issue of contractual exchanges is much different from the conventional perspective. According to Islam, not everything can be bought and sold. The Islamic Law and in Malaysia, the Federal Constitution also limits what can be bought and sold under contract.

However, Malaysia forex brokers follow Islamic law and offer swap-free accounts for the traders. Hence, forex trading in halal in Malaysia.

3 Things to Do Before Starting Forex in Malaysia as Newbie

There are three things that you must do if you have never before traded forex. These are:

  • Register with a licensed forex broker in Malaysia. Once you have registered with a regulated broker, there is no further requirement for registration. You can begin trading immediately.
  • Learn how to use the Forex trading calculator. The calculator will give you the information needed to calculate your margin.
  • Retrain your habits from other markets. Since there are no rules and regulations for forex, it is very important that you appear to be an expert at this new market by being aware of only the most relevant news and market moves.

How to Trade forex with Best Trading Platform Malaysia?

Step 1: Open an account with the best forex broker Malaysia

Register with the trusted forex broker in Malaysia. This article has covered the Malaysia forex brokers list. Also, this means that the forex broker will be able to give you relevant information on how to start trading on the forex market.

Step 2: Deposit

Use your bank's online banking service or cards to deposit money into your new forex account and use this money to trade your first trade. After you deposit the money, you are ready to trade your desired currency pair. Select your desired currency pair (for instance, EUR/USD), and it is recommended to deposit the highest amount you can afford.

Step 3: Trade. 

After you have deposited the money, you can place an order. You may also need to trade using the leverage provided by your forex broker. With this leverage, you will be able to make a profit by making small moves in the market.

Top Forex Broker Malaysia: Trading Strategies

There are many forex trading strategies, but the margin trading strategy is the most lucrative one. Most financial experts recommend that a trader has a margin account with a minimum of 2:1 leverage. This means that the trader will be trading with anywhere between 60% and 80% of his or her deposited funds. Margin accounts can only be opened online and should be obtained from the same brokers that your forex broker uses. Margin accounts usually have a minimum deposit amount. This is just for the initial margin of your account. The rest of the money can be deposited in a normal non-margin account. A trader can then use this to trade with more pairs.

The margin account will get you access to the Forex broker's margin calculator. This calculator will allow you to determine your promised value for each currency pair and the difference between it and the current price. With this information, you will be able to calculate how many units of currency you will trade in order to keep your desired profit margin and make a profit or avoid a loss.

This will allow you to leverage your account with a higher return. For example, you may open a trade on EUR/USD with the leverage of 1:500. Use 10% of your deposited money as a margin, which will be used to increase your leverage.

Wait for the pair to reach its target (the Take Profit limit you chose) and then close your trade. It is advisable to use 2-5 pairs at the same time. That way, if one pair suffers a loss, you will minimize it with profit on another pair.

Repeat the above-mentioned steps as often as required to increase the number of pairs you trade. If a pair's price moves in the wrong direction, that is, it goes below your take profit limit, use your margin to cover it. This way, you will make extra profits with minimum losses.

It is also important to make sure that your risk control (margin) is always above your desired profit margin.

Best online broker Malaysia: Scalping trading strategy

This strategy involves the buying and selling of currency pairs in short periods of time, typically with only a few seconds to a few minutes between trades. This is so that you can take advantage of price differences between the two currencies involved.

The main goal of this strategy is capital preservation. Because you place so many trades, you want to make sure that your technical and fundamental analysis is sound.

The trend trading strategy 

It is a basic forex strategy that involves identifying turning points in the price of your currency pair and taking this opportunity to make a profit. The goal of this strategy is profit maximization, so you want to be the first person on the scene at the moment a major trend emerges.

You can use different timeframes for your trades, ranging from one minute to several days. It is also important that you have a solid understanding of your trading platform(s) and the software you are using to optimize the timeframes you choose. A lack of understanding or experience with these might lead to a loss in profits.

Trading in a choppy market

Choppy water is a forex strategy that involves trading pairs that are moving in a very choppy fashion. In general, you will be looking to profit from the price difference between two currencies in a very short period. This format can work best on currency pairs of the same type.

The choppy strategy may seem tricky to execute properly, but if you do your research and plan your trades accordingly, you will profit from it more often than not. It is also important that you keep in mind that the choppy water strategy will not work every single time, so it is important to have a Plan B as well.

Best trading platform Malaysia

There are mainly two forex platforms leading the Malaysian forex market, MetaTrader 4 and MetaTrader 5.

MetaTrader 4 is one of the most popular trading platforms used by forex traders around the world. Open your own MT4 account with a forex broker, and you can trade directly with the broker using this platform.

For much of the world, MetaTrader 5 is also another platform everyone uses. However, traders in Malaysia can trade with it.

Metatrader 5 is a forex trading platform that allows you to do technical analysis as well as engage in forex trading from anywhere with an internet connection. It does not require installation, and all trades can take place without any need for complicated set-up procedures. However, you may install these platforms on your computer or mobile devices.

Different Forex Trading Accounts in Malaysia

There are several different types of accounts in the Forex market. These account types include live accounts, demo accounts, auto trading accounts, and operations accounts.

  • Live accounts: Live accounts are more like trading with actual money. Since you are treating Forex as real money, you'll want to be careful about what you do with it. For one thing, you want to ensure that your Forex trading is not jeopardizing your finances.
  • Demo account: Depending on the broker or trading platform where you trade, they may offer a demo account that allows you to practice what goes on behind the scenes when trading a live account. Demo accounts are a great way to learn how a market works and educate yourself on how such markets function. For some people, however, there's no substitute for actual trading money. Still, understanding the mechanics of Forex is something that can't be completely worked out by just reading books or articles on the subject.

Demo accounts are not quite as complex as live trading accounts. In effect, with a demo account, you'll have access to tools that let you keep track of your trades and investments. Demo a are also valuable for learning about how a market works without risking anything of your own.

  • Auto trading accounts: Some forex brokers Malaysia offer auto trading accounts, which is something like a no-risk test run for forex trading. You can use these accounts to test out forex strategies on a simulator before putting real money at stake. Auto trading is useful for those who want to get a feel for the available strategies in the market and determine which one would be the most difficult for them to make money with.

Risk Factors for Forex Trading in Malaysia

Many of us are interested in trading currency, but many underestimate the risk and potential dangers that come with it. The high volatility of the market can make or break investors while also making it difficult to predict what will happen on any given day. It's important to understand the risks before committing yourself to this type of trading.

Risk 1- Volatility

The Forex market is subject to extreme change and can be overwhelmed by the wild fluctuations that can happen on any given day. The lack of transparency in the Forex market makes it very difficult to predict what will happen on any given day. While there is a potential for profit in this type of trading, traders should take caution and understand how volatile this type of trading is.

Risk 2- Unpredictability

The Forex market is not just volatile, and it is unpredictable. Any number of factors can affect the fluctuations in currency values, making it impossible to predict what will happen next. This can make it difficult for traders to anticipate what the market will do on any given day and even more difficult when planning long-term goals.

Risk 3- Leverage

Another risk that comes with trading Forex is the use of leverage by investors. By increasing their leverage, investors can multiply their potential gains and increases the loses they could suffer if the market goes against them. Since there is no way to predict how the market will move, it is important for investors to understand that this can be a risky operation and do so with caution.

Risk 4- Interest

Interest rates are another factor that traders must consider when trading Forex. Some currencies may have an interest rate attached to them. This can make an investor's return on investment vary from month to month and even from day today. This can make it difficult for a trader to determine how much return they will receive on their investment, and they must understand this before taking on the operation.

Final Words

Forex trading in Malaysia can be a very rewarding experience if you take the time to learn about it first and then start with a small amount of money. With the right knowledge, dedication, and access to the best forex broker Malaysia, you could begin to make great money in this field very easily.

However, if you are in confusion about the top broker, you can choose one from the list of forex broker in Malaysia we have mentioned in this article. We have picked them after a comprehensive analysis.

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