Best Forex Brokers in Malaysia 2021 – Public Finance International

Forex is a fantastic entry into the exciting world of trading thanks to its relatively low entry requirements. 

The best forex brokers in Malaysia are well regulated through local and international regulators. These brokers should offer a convenient and reliable platform for Malaysians to start trading in forex.

If forex trading in Malaysia sounds like something you want to do, then follow our complete guide below on the best brokers, as well as helpful tips to get you trading better. 

Forex trading in Malaysia presents some great opportunities because of the relatively low starting costs. Legal forex brokers in Malaysia need to be approved by Bank Negara Malaysia. It is possible to use an offshore brokerage to trade as a foreign investment. 

Forex capital gains in Malaysia are exempt from tax which is an appealing advantage. However, forex income is taxable as income tax. If you have a swap-free Islamic account, and your trading is not regarded as income, then it is not taxable.

Best Brokers for Forex Trading in Malaysia 2021

We researched the top Forex brokers for Malaysian investors. The list below is based on broker fees, security, regulation, trading platform, and more. This is our selection of the best forex trading platforms for Malaysians.

  • Plus500
  • Pepperstone
  • AvaTrade
  • eToro
  • XTB
  • Interactive Brokers
  • XM
  • Forex.com
  • IG
  • Saxo Markets
  • HotForex
  • BD Swiss
  • Eightcap
  • easymarkets
  • Tickmill
  • FP Markets
  • City Index
  • Swissquote
  • IC Markets
  • FXTM
  • Vantage FX
  • FxPro
  • OctaFX
  • Moneta Markets
  • HYCM

Plus500

Plus500 is a CFD-only trading platform. This forex broker is a popular choice in Malaysia due to its fast, up-to-date pricing and easy-to-use platform. 

For those wanting to expand their portfolio, Plus500 offers over 2000 securities and multiple asset classes. There is also a risk-free demo mode.

Plus500 Comparison

Plus500 Comparison

Pros

Cons

An easy to use platform

Focused on active traders, not long term investing

Offers a diverse trading portfolio

Free demo account

Trusted worldwide

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76.4% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Pepperstone

Pepperstone is an online CFD trading platform focused on forex. The prices are very reasonable which makes it easy to get started on Pepperstone. 

For new traders, there is also a risk-free demo mode which helps you to get a good feel for trading in forex. Pepperstone has fast speeds for keeping up to date with real-time pricing. 

Pepperstone Logo

Pros

Cons

Forex and equity index CFD fees are low

No investor protection for non-EU members

The platform is focused on forex trading

Active traders get daily cash rebates

VIP account with advanced trading features

AvaTrade

This global forex and CFD broker offers several useful features for easy trading. The broker has a low account minimum, fees are low, deposits and withdrawals are free, and everything is done online. 

AvaTrade is well regulated in Malaysia for reliable trading. It is also specifically focused on forex trading.

AvaTrade Logo

AvaTrade Logo

Pros

Cons

Good research tools available

Inactivity Fees

Low trading fees

Free deposits and withdrawals

Easy to use and get started on

eToro

eToro is one of the most popular trading platforms in the world. The platform is easy to use and offers a wide range of opportunities for a varied portfolio.

Users of the eToro platform can enjoy the copy trading feature and automated trading. This is an easy-to-use platform for beginners through to experienced traders.

comparison etoro logo

comparison etoro logo

Pros

Cons

Diverse trading opportunities

Forex trading fees could be better

Copy Trading

Higher minimum deposit ($200)

Global trading community

XTB

XTB is a global forex broker perfectly suited towards active traders. The trading platform offers low forex trading fees, and mostly free withdrawal and deposit options. 

XTB features fast speeds, a very user-friendly platform, and offers a great brokerage for CFD day traders.

XTB logo

XTB logo

Pros

Cons

Low forex fees

Stock CFDs fees are higher

Deposits and withdrawals are mostly free

Easy to use

Interactive Brokers

Interactive Brokers is a top forex trading platform for busy day traders. They offer the Trader Workstation desktop platform specifically designed for giving active traders a more powerful experience. 

Interactive Brokers offers a diverse range of trading options. Generally, the fees are very reasonable.

Interactive Brokers Logo

Interactive Brokers Logo

Pros

Cons

Excellent research tools available

Inactivity fees

Fast and convenient active day trading platform

Many trading opportunities available

Commission-free ETF and stock trading

XM

This forex and CFD broker offers a great platform for trading in Malaysia. XM offers great resources and educational content. Opening an account is fast and easy, and the platform is simple to trade on.

XM Logo

XM Logo

Pros

Cons

Low fees for withdrawals

Forex fees could be improved

Easy to use and start trading on

Quality educational tools

Great Forex and stock CFD trading options

Forex.com

Forex.com is a global broker that focuses heavily on forex trading. This platform is more suitable for advanced traders. There are loads of currency pair options, and the fees are very low. Forex.com is ideal for high-volume traders.

forex.com logo

forex.com logo

Pros

Cons

A forex-first platform with plenty of currency pairs

Suitable for experienced and high-volume traders

Low forex trading fees

Not the best broker for beginners

Good research tools

IG

IG is well regulated in Malaysia and is a popular forex trading platform across the globe. IG traders can enjoy excellent tools for the foreign exchange market. Pricing structures are competitive, and the trading options are versatile.

IG Logo

Pros

Cons

Good selection of tools and educational content

Above average forex fees

Web trading platform is excellent

Slow customer support

Deposit and withdrawal options

Saxo Markets

This online broker offers low commissions and a very easy-to-use trading platform. With Saxo Markets, you can trade in a wide range of markets. 

Thanks to its trading versatility and simple platform, Saxo Markets is a good choice for new traders. Saxo Markets offers lower FX spreads than most other brokers.

SaxoMarkets

SaxoMarkets

Pros

Cons

Good selection of tools and educational content

Not focused on Forex

Easy to use platform

Offers access to wide-ranging markets

HotForex

HotForex is a top forex trading platform thanks to its low fees and many useful features. Traders can enjoy social/copy trading, a demo account, MT4, and MT5 trading. 

HotForex

HotForex

Pros

Cons

Good currency pairs

Mobile trading platform

Low forex fees and commissions

Includes useful social/copy trading

Free demo account

BDSwiss

BDSwiss is a well-regulated trading platform that appeals to all kinds of traders around the world. This forex broker has some good currency pairs available, as well as plenty of other trading options. 

It is a suitable platform for both beginners and experienced traders thanks to its useful tools and fast trading functionality.

BD Swiss Logo

BD Swiss Logo

Pros

Cons

Great forex and CFD instruments

High account minimum

Well regulated and established broker

Fast and easy account opening

Customer support

Offers wealth management opportunities

EightCap

EightCap is an Australian-based CFD and forex broker. It is a well-regulated broker with a great range of forex pairs available. The rest of the CFD trading portfolio is also good for those wanting to trade in more than just forex.

Eightcap Logo

Eightcap Logo

Pros

Cons

A good range of currency pairs available

High account minimum

Well regulated

Fees and commissions

An easy to use trading platform

Resources and trading tools

easymarkets

Beginner traders will love easymarkets thanks to its very user-friendly online trading platform. This forex brokers online platform also features two unique features that are great for beginners. 

These are the deal cancellation and freeze rate. The easymarkets MT4 offering is also great for guaranteed stop-loss orders.

Easy Markets Logo

Easy Markets Logo

Pros

Cons

Easy to use online trading platform

Forex market research tools

Well regulated for forex and CFD trading in Malaysia

Fees could be better

Easy to get started

Small selection of tradable products

Tickmill

This global forex and CFD broker is widely regulated for safe trading in Malaysia. The broker offers low forex and non-trading fees Opening an account is easy, and there is plenty of good withdrawal and deposit options. 

This is a forex-focused platform, so the rest of its product portfolio is fairly limited.

Tickmill Logo

Tickmill Logo

Pros

Cons

Forex trading fees

The mobile app could be improved

Deposit and withdrawal options

News feed structure

Low non-trading fees

Limited markets and products besides forex

FP Markets

This Australian CFD and forex broker is a great option for all levels of investors. There is high-quality educational content, a demo account included, and a very easy account opening process. 

The forex trading fees are low too. The product portfolio is fairly limited, but for forex traders, you get great currency pairs available.

FP Markets Logo

Pros

Cons

Low trading fees

Desktop trading platform

Account Opening

Limited product portfolio beyond forex

Educational content available

Deposits and withdrawals

City Index

City Index is regulated by top-tier authorities for safer global trading. This broker is focused on foreign exchange and CFDs, offering some great trading opportunities in these fields. 

Forex trading fees are low, withdrawal fees are low, and opening an account is easy. There are also great research tools for more effective trading.

City Index Logo

City Index Logo

Pros

Cons

Quality research tools available

Desktop platform

Low forex trading fees

Not a great range of products available beyond forex

Low withdrawal fees

Account Opening

Swissquote

This listed Swiss broker is a good choice for experienced, serious traders. The platform is very well regulated and offers access to a wide range of markets. Forex traders can also enjoy many currency pairs.

The platform is a little confusing for beginners to manage, and the trading fees are higher than many other forex brokers in Malaysia.

SwissQuote logo

SwissQuote logo

Pros

Cons

Good market access and currency pairs

Not the easiest trading platform to navigate

Well regulated

High trading fees

Zero inactivity fees

IC Markets

IC Markets is a forex and CFD broker that is easy to start trading on. The forex fees are low, the platform is easy to use, and deposits and withdrawals are free. There are also particularly good education and research tools available. 

IC Markets Logo

Pros

Cons

Easy account opening process

Non-EU clients don’t get investor protection

Low forex trading fees

Slow customer support

Free withdrawals and deposits

Not a great product portfolio other than forex

FXTM

FXTM is also known as Forex Time. This global CFD and forex broker 

has top-tier regulation for safe trading in Malaysia. 

There are great educational resources, including webinars, to help you trade smarter. Opening an account is fast and easy. There is also the option to open a demo account.

FXTM Logo

FXTM Logo

Pros

Cons

Opening an account is easy and digital

Trading fees

Beginner-friendly trading platform

Great educational resources

Vantage FX

Vantage FX is an ideal broker for trading forex due to its low trading fees, and lack of inactivity fees. This is a fully digital broker with a fast account opening process and plenty of deposit and withdrawal options. 

VantageFX Logo

Pros

Cons

Low trading fees

Doesn’t offer investor protection

Research and educational tools

The product portfolio is limited

Account Opening

Slow customer support

FxPro

FxPro is focused on forex trading, so this broker has plenty of options for ambitious traders in the foreign exchange market. However, if you want a wider portfolio, then this broker does not have a very large offering. 

It’s very fast and easy to open an account on FxPro. Withdrawals and deposits are free, and the platform is easy to use.

FxPro Logo

FxPro Logo

Pros

Cons

Easy account opening process

Limited portfolio beyond forex

Customer service

Trading Fees

Good educational content available

Free deposit and withdrawal options

OctaFX

OctaFX offers a MetaTrader and cTrader platform experience. This forex and CFD broker is not as well regulated as others.

However, the broker has an efficient mobile trading app. Fees and commissions are low, and there are great currency options.

OctaFX Logo

Pros

Cons

Forex-focused broker

Lacks research and educational tools

Low commissions and fees

Not as well regulated as other forex brokers 

Great mobile trading

Moneta Markets

Moneta Markets is a safe and well-regulated forex and CFD trading broker. The trading platform has high average spreads and one account type which means it isn’t the first choice for low-cost trading.

Moneta Markets has a simple to use platform with great educational content. Commissions and fee structures are good, and so is the overall investment offering.

Moneta Markets

Pros

Cons

Well regulated

Not the best technical tools available

Good fees and commissions for forex trading

Not a good choice for low-cost trading

Easy to use

Great educational resources

HYCM

HYCM is a well-established global CFD and forex broker. Forex and CFD trading fees are very low, and there is a great selection of educational tools available. 

The platform is fully digital which makes opening an account easy. For forex trading this platform is powerful, but it lacks other basic products for those wanting a broader portfolio.

HYCM Logo

Pros

Cons

Low CFD and forex trading fees

Inactivity fees

Easy to use and open an account

Limited market access

The educational content and trading tools are great

Customer service could be better

Best MetaTrader Broker for Malaysians

Looking for the overall best MetaTrader forex broker? We recommend Pepperstone. This trading platform is versatile, fast, and functional. It offers excellent options for forex trading, with a great product portfolio beyond this.

Best Broker for Beginners in Malaysia

If you are new to forex trading in Malaysia, then we recommend choosing eToro as your broker. eToro offers an easy-to-use app with plenty of great tools and educational resources.

Malaysia Forex Regulators

When trading forex in Malaysia, it is important to use a broker that is properly regulated. All brokers need approval from bank Negara Malaysia. A plus is if they are regulated by the Securities Commission of Malaysia, which is the local regulator.

Forex brokers can also be regulated by several international authorities. This can include regulators such as the CFTC, NFA, FCA, and more. Most brokers are regulated by both the SCA and additional international authorities.

How to Pick a Forex Broker in Malaysia

Regulation & Safety

First of all, the broker needs to be properly regulated for safer trading and better account security. In Malaysia, this should be done through the SCA. The broker should also have other top-tier international regulators.

Currency Pairs Offered

Trading on the foreign exchange market involves the exchange of different currencies. The best forex brokers offer a wide range of currency pairs for more opportunity and flexibility.

Fees & Commission

The fees and commissions charged by the broker can leave a huge dent in the performance of your trading. Fees can be found in various areas, such as spreads, non-trading fees, trading fees, and so on. 

Make sure that the fee and commission structure matches your investment strategy. Otherwise, you can lose significantly on your returns.

Rollover Interest

The difference between the two interest rates on the currencies traded is the rollover interest. This can form a vital part of forex trading, so it is important to understand what kind of rollover interest structure the broker uses. 

Trading Platforms Supported

Forex brokers often support various other proprietary trading platforms. This offers more versatility and can enhance the overall trading experience.

Popular examples are MT4, MT5, and cTrader. Make sure that you choose a broker with supported trading platforms that you agree with.

Leverage and Margin

Margin refers to the deposit you need for making a trade and keeping open a certain position. Leverage is when you can trade in larger positions with less capital behind you. 

You will need to understand the leverage and margin positions of your broker, as this can have a major effect on your trading strategy and outcome. 

Account Types 

Forex brokers offer various account options for different traders. Consider the options available and if they are suitable for you and your level/experience.

This can include things like demo accounts, micro and mini accounts, retail and professional accounts, Islamic trading accounts, Standard accounts, VIP accounts, and so on.

Demo Account Available

Demo accounts are available from certain brokers. This allows you to simulate trading on the platform at real-time market prices. This allows you to get a feel for the platform without being at risk of losing money. This is great for beginners. 

Deposit Methods

You will need to know how to make deposits and withdrawals to and from the broker. Look at the deposit methods available and what the fees are for this. Make sure that this works with your bank.

Base Currency and the Malaysian Ringgit

Being based in Malaysia, you will be working with the Malaysian Ringgit. However, you will need a suitable base currency for use on the forex market. 

Consider what currencies are available and which will work best as a base currency for trading with regards to the Malaysian Ringgit.

Order Types

There are various order types to use when trading in forex. The basic forex orders are market, limit entry, stop entry, stop loss, and trailing stop. Consider how your broker and trading platform accommodates these order types.

Mobile Trading

Mobile trading is incredibly popular due to the easy access to cellphones wherever we go. Active forex traders are interested in mobile trading for keeping up with prices and making swift trades. 

Consider the mobile trading platform available from the broker and how effective this is.

Type of Brokers

There are four main types of brokers to consider. Of course, you will need a forex broker for forex trading in Malaysia. You could also use a full-service broker. 

Education and Research Available

Trading platforms offer certain educational content and research tools to make trading more informed and effective. The best forex brokers should have extensive research tools and informative educational content to keep traders up to date.

Trading Tools Available

To make trading more effective, the platform should also offer specialized trading tools. This differs with each broker. Trading tools are necessary for market analysis and making smarter trading decisions.

Customer Service

Customer service plays a vital role in the forex broker that you choose. As there are risks and money involved, you will need to make sure that you have solid support for seamless trading. This can make a big impact on your overall forex trading experience.

FAQ

Are Forex Brokers Safe?

The forex brokers need to be well regulated for a better level of safety. Having various top-tier regulators is best for increasing trading security.

Is Forex Trading Risky?

Any type of trading offers risks and rewards. Wise and experienced forex traders have the potential to make a lot of money, but there is always the risk of significant losses.

Can You Make Money Trading Forex?

Absolutely. Forex trading offers plenty of potential for making money. The more capital you trade with, the more you can make.

What are CFDs and Forex?

CFD stands for Contract For Difference. This is when you buy something at a low price, and sell it for a higher price, making a profit in return. You never actually own the underlying asset.

Forex follows this approach by trading on the foreign exchange market. This is when you buy weaker currencies and sell them at a higher value for profit.

Is Forex Trading Legal in Malaysia?

Yes, forex trading is legal in Malaysia. As long as brokers use proper regulatory authorities and that all taxes are paid.

What is a Lot?

A lot refers to the specific amount of forex that you trade in. A typical lot size is 100,000 units of that currency. You also get smaller lot sizes, such as a micro lot (1000 units)

What is a Pip?

This is the amount of change present in the exchange rate of two currencies. The lot is calculated through the last decimal point of the currency pricing.

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