More and more folks in Malaysia are getting into forex trading. It makes sense, since Malaysia’s economy is doing well, mostly because of trade. A survey in 2022 said that over 4.7 million people in Malaysia are trading forex!
If you’re in Malaysia and want to trade forex, you’ve got choices. But, some brokers are better than others.
To make it easier, we checked out the forex brokers that accept Malaysian customers and made a list of the best ones. We opened accounts with these brokers and tried out their trading platforms, how fast they execute orders, how fast the transactions are, and their customer support. The brokers we picked all have swap-free trading, learning resources, and good prices on forex. Plus, they let you use ringgit for deposits and withdrawals, which is great for Malaysian traders.
74-89 % of retails CFD accounts lose money
59.57 % of retails CFD accounts lose money
Trading leveraged product is risky
74-89% of retails CFD accounts lose money
75.5 % of retails CFD accounts lose money
The vast majority of retail client accounts lose money
71 % of retails CFD accounts lose money
76% of retails CFD accounts lose money
Forex Broker | Trustpilot Reviews | |
1. IC Markets | 46,540 | |
2,327 | ||
3,922 | ||
10,596 | ||
293 | ||
6. Spreadex | 149 | |
1,737 | ||
6,245 | ||
8,058 | ||
10. Saxo Bank | 7,371 | |
Forex Broker | EURUSD | USDJPY | EURGBP | GBPUSD |
0.9 | 1.2 | 1 | 1.1 | |
1.01 avg (Classic) | 1.17 avg (Classic) | 1.29 avg (Classic) | 1.14 avg (Classic) | |
0.96 avg (Standard) | 1.47 avg (Standard) | 1.19 avg (Standard) | 1.12 avg (Standard) | |
0.85 av.spread | 1.97 av.spread | 1.40 av. spread | 1.40 av.spread | |
5. Spreadex | from 0.6 | from 0.7 | from 0.9 | from 0.9 |
0.7 | 1.2 | 1.0 | 1.3 | |
1.1 | 1.6 | 1.6 | 1.4 | |
8. IC Markets | 0.8 | 0.8 | 0.00 (Raw) 1.00 (Standard) | 0.8 |
9. Saxo Bank | 0.8 | 2 | 3.1 | 1.6 |
0.8 | 1.3 | 1.2 | 1.2 |
Forex Broker | Commission per lot |
$0 | |
$0 | |
$0 | |
4. Saxo Bank | $3 per lot |
$0 | |
6. Spreadex | $0 |
$0 Classic Account, $4.50 round turn on Zero Account | |
$0 Standard; $6 per lot Prime; $4 per lot Institutional | |
$0 Standard Accounts; $7 round turn on Raw Accounts | |
$0 Standard MT; $6 round turn on Raw cTrader; $7 round turn on Raw MT |
Important Note: To trade for Malaysians, forex brokers need the okay from the Securities Commission Malaysia (SCM). Certain brokers from other countries work with local customers using licenses from their own financial regulators. Even though these companies face rules, going with an SCM-approved broker is the better move.
Fusion Markets Broker Details | |
Regulators | ASIC, FSA (Seychelles), VFSC (Vanuatu) |
Min Deposit | $0 |
Trading Platforms | MetaTrader4, MetaTrader5, cTrader, DupliTrade, Fusion+ Copy Trade, TradingView |
Trustpilot Rating | 4.7 out of 3,162 reviews |
Number of CFD Forex Pairs to Trade | 80+ |
Leverage | Forex & Metals CFDs: 1:30 (1:500 for forex and metals via VFSC) Index CFDs: 1:5 Cryptocurrencie CFDs: 1:2 (ASIC), 1:10 (FSA, VFSC) |
Spread | EURUSD: 1.01 avg (Classic) USDJPY: 1.17 avg (Classic) EURGBP: 1.29 avg (Classic) GBPUSD: 1.14 avg (Classic) |
Forex Commission per Lot per Trade | $0 Classic Account, $4.50 round turn on Zero Account |
Deposit Methods | Visa, Mastercard, PayPal, Skrill, Neteller, Fasapay, Jeton Wallet, Perfect Money, Online Naira, Doku, Bitcoin, Ethereum, Litecoin, USDT, Tether, Ripple, bank wire, ZotaPay, VNPay, DuitNow, XPay, DragonPay, VAPay, FasaPay, AstroPay, PayID, Jetonbank, Sticpay, Interac, LuqaPay, Zotapay, MiFinity |
Withdrawal Methods | Visa, Mastercard, Bank Wire, Skrill, Neteller,Bitcoin, Ethereum, Litecoin, Tether, Ripple, MiFinity, Interac, PayPal, AstroPay, Jetonbank, DragonPay |
Fusion Markets was started back in 2017 by a group of Australian traders who really knew their stuff. Since then, it’s become a go-to choice for traders around the world. While lots of brokers talk about low spreads, Fusion Markets has actually proven it—earning the “Lowest Spread Forex Broker” award from BrokerChooser four years in a row.
What really makes them stand out, though, is how affordable they are. The commission is just $2.25 per lot (that’s $4.50 for a full trade), which is great if you’re trying to keep your trading costs down.
They also take regulation seriously. Fusion Markets is licensed by a few major authorities, including ASIC in Australia (Licence No. 385620), the Seychelles FSA, and regulators in Vanuatu. If you’re trading under ASIC, you also get negative balance protection—so your losses can’t go beyond your account balance.
There’s no minimum deposit to get started, and they support popular platforms like MetaTrader 4, MetaTrader 5, and cTrader. On top of all that, they’ve got a 4.7 out of 5 rating on Trustpilot, with over 1,300 people leaving glowing reviews. Safe to say, they’ve built a solid reputation.
Global Prime Broker Details | |
Regulators | ASIC (No. 385620), VFSC (No. 40256) |
Min Deposit | $0 |
Trading Platforms | MT4, MT4 Webtrader, MT4 Android; for VFSC clients MT4, MT5, and GP Copy |
Trustpilot Rating | 4.6 out of 247 reviews |
Number of CFD Forex Pairs to Trade | 56 |
Leverage | Forex & Metals CFDs: 1:500 (1:30 for ASIC entity) Index CFDs: 1:100 (1:20 for ASIC entity) Cryptocurrencie CFDs: Up to 1:2 (ASIC); Up to 1:5 (Pro and VFSC) |
Spread | EURUSD: 0.96 avg (Standard) USDJPY: 1.47 avg (Standard) EURGBP: 1.19 avg (Standard) GBPUSD: 1.12 avg (Standard) |
Forex Commission per Lot per Trade | $0 Standard Accounts; $7 round turn on Raw Accounts |
Deposit Methods | Visa, Mastercard, PayPal, Skrill, Neteller, Gate8, Dragonpay, Fasapay, VNPay, Pagsmile, BPay, POLi, AstroPay, Bank Transfer, Interac, Perfect Money, PayID, Jeton, MiFinity, XPay, Crypto |
Withdrawal Methods | Mastercard, Visa, Local Bank Transfer, Bank Wire Transfer, Skrill, Neteller, AstroPay, PayPal, Dragonpay, Perfect Money, Jeton, Interac, Cryptocurrencies |
Global Prime has been offering low-cost, reliable trading services since 2010. It’s regulated by financial authorities in both Australia and Vanuatu, giving traders a level of oversight that adds confidence. The broker gives access to over 150 tradable instruments, including forex, indices, commodities, bonds, cryptocurrencies, and more than 50 currency pairs. For those using a raw spread account, major forex pairs can start at 0.0 pips, and most trades are executed in around 10 milliseconds.
If you’re trading through their ASIC-regulated branch, you’ll be using MetaTrader 4. However, those under VFSC regulation also get access to MetaTrader 5—and there are plans to support TradingView soon, which is great to see.
What helps Global Prime stand out is its smooth sign-up process, zero fees for deposits and withdrawals, and reliable 24/7 support. These features have earned it a solid 4.4 out of 5 on Trustpilot. That said, there’s still room for improvement. Currently, Global Prime doesn’t offer cent accounts or swap-free (Islamic) accounts, which may be a drawback for some traders. There’s also no compensation scheme in place to protect client funds, which is another area where the broker could do better.
AvaTrade Broker Details | |
Regulators | FFAJ (License No.1574), CySEC (No. 347/17), ISA (No. 514666577), IIROC, ADGM / FSRA (No.190018), CBI (No.C53877), BVIFSC (No. SIBA/L/13/1049), FSCA(No.45984), ASIC (No.406684), JFSA (No. 1662) |
Min Deposit | $100 |
Trading Platforms | MetaTrader4, MetaTrader5, WebTrader, AvaTade App, AvaSocial, AvaOptions, DupliTrade |
Trustpilot Rating | 4.7 out of 10,141 reviews |
Number of CFD Forex Pairs to Trade | 50+ |
Leverage | Forex & Metals CFDs: 1:30 Index CFDs: 1:20 Cryptocurrencie CFDs: 1:2 for EU residents, 1:25 for non-EU residents |
Spread | EURUSD: 0.8 USDJPY: 1.3 EURGBP: 1.2 GBPUSD: 1.2 |
Forex Commission per Lot per Trade | $0 |
Deposit Methods | Visa, Mastercard, Skrill, WebMoney, Neteller, bank wire transfer |
Withdrawal Methods | Visa, Mastercard, Skrill, WebMoney, Neteller, bank wire transfer |
AvaTrade’s been doing online trading since ’06, so they know their stuff. They’re licensed in a bunch of places across six continents and are big on CFD and Forex trading, offering the usual MetaTrader 4 and 5. They also have their own platforms, AvaTrade WebTrader and their trading app, which has some neat stuff like AvaProtect.
If you’re new to trading, you can check out copy trading on their AvaSocial platform. Their app is pretty smooth for trading on the go, whether you’re on Android or iOS.
Lots of traders trust AvaTrade, and it’s easy to see why. They’ve got good trading conditions. You can hedge, short sell, and scalp without any problems. They execute orders fast and have pretty tight spreads, which is why they’ve got a 4.7 out of 5 on Trustpilot. They’re regulated in 9 places, including by the Financial Futures Association of Japan, the Cyprus Securities and Exchange Commission, and the Australian Securities and Investments Commission.
easyMarkets Broker Details | |
Regulators | CySEC (license no. 079/07), ASIC (license no. 246566), FSA (license no. SD056), FSCA (54018), and FSC (license no. SIBA/L/20/1135) |
Min Deposit | $25 |
Trading Platforms | easyMarkets Web/Mobile, MetaTrader 4, MetaTrader 5, TradingView |
Trustpilot Rating | 4.3 out of 1,714 reviews |
Number of CFD Forex Pairs to Trade | 95+ |
Leverage | Forex & Metals CFDs: 1:30 Index CFDs: 1:20 Cryptocurrencie CFDs: 1:2 |
Spread | EURUSD: 0.7 USDJPY: 1.2 EURGBP: 1.0 GBPUSD: 1.3 |
Forex Commission per Lot per Trade | $0 |
Deposit Methods | Visa, Mastercard, JCB, Amex, Skrill, Neteller, Fasapay, Sofort, iDEAL, Web Money, BPay, Bank Transfer |
Withdrawal Methods | Visa, Mastercard, JCB, Amex, Skrill, Neteller, Fasapay, Sofort, iDEAL, Web Money, BPay, Bank Transfe |
Since 2001, easyMarkets has become a leading broker, serving all kinds of traders. They’ve got licenses to operate in lots of different places. To keep traders safe, they’re watched over by groups like CySEC (license no. 079/07), ASIC (license no. 246566), FSA (license no. SD056), FSCA (license no. 54018), and FSC (license no. SIBA/L/20/1135). easyMarkets was one of the first to do online trading, introducing cool tools like dealCancellation, Freeze Rate, and Inside Viewer. They offer a few platform options. There’s their own platform, which is simple to use but still has some advanced tools for experienced traders. Plus, you can also use MetaTrader 4 and 5, as well as TradingView. If you wanna trade on your phone, they have an easyMarkets app for both Android and iOS. Many traders like easyMarkets because of the decent spreads and low fees. They have a score of 4.3 out of 5 on Trustpilot, which backs up their good name as a broker. You can start trading with just a $25 deposit, and they take lots of different payment methods.
FBS Broker Details | |
Regulators | CySEC (No. 331/17), FSC (No. 000102/31), ASIC (No. 426359), FSCA (no. 50885) |
Min Deposit | Standard accounts: $100 Cent accounts: $10 |
Trading Platforms | MT5 Desktop, MT5 WebTrader, MT4 |
Trustpilot Rating | 4.3 out of 5,579 reviews |
Number of CFD Forex Pairs to Trade | 35+ |
Leverage | Forex & Metals CFDs: 1:30 Index CFDs: 1:20 Cryptocurrencie CFDs: 1:2 |
Spread | EURUSD: 1.1 USDJPY: 1.6 EURGBP: 1.6 GBPUSD: 1.4 |
Forex Commission per Lot per Trade | $0 |
Deposit Methods | Visa, Mastercard, Maestro, Skrill, Bank Transfer, Neteller, EFT, Sticpay, Perfect Money, Fasapay, AstroPay, Pix, JCB, BitWallet |
Withdrawal Methods | Visa, Mastercard, Maestro, Skrill, Bank Transfer, Neteller, EFT, Sticpay, Perfect Money, Fasapay, AstroPay, Pix, JCB, BitWallet |
FBS is a forex broker that’s been around for 10+ years. They offer cheap trading and are watched over by CySEC, ASIC, FSCA, and Belize’s FSC. They’ve got a huge customer base—27+ million people in 150+ countries.
Clients can trade 40+ currency pairs, plus indices, commodities, and big US stocks. Spreads can be super low, starting at zero pips sometimes.
What’s cool about them? They have 24/7 support, good prices, plus lots of stuff to learn if you want to get better at trading. Their FX trading guide has sections for all levels, from newbies to pros. They mainly have two account choices: Standard and Cent. You can start with $100 for Standard or $10 for Cent. Both have demo options if you want to try before you buy.
FBS is best if you can handle risk and want big payouts. They let you trade with leverage up to 1:3000, but that’s only if you sign up through the Belize version of the site. They take different payment methods, but what’s available depends on where you live.
Saxo Bank Broker Details | |
Regulators | FCA (No. 551422), FSA Denmark (No. 1149), MAS (No. 200601141M), ASIC (No. 32110128286), SFC Hong Kong (No. 1395901), FSA Japan (No. 0104-01-082810), Registered with CONSOB (no. 296) |
Min Deposit | $0 Classic $200,000 + Platinum $1,000,000 + VIP |
Trading Platforms | Proprietary, SaxoTraderGO, SaxoTraderPRO, TradingView, SaxoInvestor |
Trustpilot Rating | 3.7 out of 7,235 reviews |
Number of CFD Forex Pairs to Trade | 185+ |
Leverage | Forex & Metals CFDs: 1:30 Index CFDs: 1:20 Cryptocurrencie CFDs: 1:2 |
Spread | EURUSD: 1.2 USDJPY: 2 EURGBP: 3.1 GBPUSD: 1.6 |
Forex Commission per Lot per Trade | $3 per lot |
Deposit Methods | Visa, Visa Electron, Mastercard, Maestro, Bank Transfer, Quick Payment |
Withdrawal Methods | Bank Transfer |
IG Broker Details | |
Regulators | ASIC, FCA, DFSA, CFTC, FMA, FINMA, BaFin, MAS, JFSA, FSCA, BMA (Bermuda) |
Min Deposit | $0 |
Trading Platforms | MetaTrader4, L2 Dealer, ProRealTime, IG proprietary software, TradingView, |
Trustpilot Rating | 3.9 out of 7,895 reviews |
Number of CFD Forex Pairs to Trade | 100+ |
Leverage | Forex & Metals CFDs: 1:30 Index CFDs: 1:20 Cryptocurrencie CFDs: 1:2 |
Spread | EURUSD: 0.85 av.spread USDJPY: 1.97 av.spread EURGBP: 1.40 av. spread GBPUSD: 1.40 av.spread |
Forex Commission per Lot per Trade | $0 |
Deposit Methods | Visa, Mastercard, Bank Transfer, Wire Transfer, Visa Electron, Discover, PayPal, Apple Pay, BPAY |
Withdrawal Methods | Visa, Visa Electron, Mastercard, Discover, Bank Transfer |
IG is a broker you can trust. They’re watched over by regulators in a bunch of places like Australia, Singapore, Dubai, the UK, and the US. They let you trade in tons of markets without costing too much – stuff like forex, commodities, crypto, stocks, bonds, and indexes. If you know your stuff, you can also play around with options, bonds, and spread betting. You can even trade interest rates with them.
They don’t charge commissions on forex trades; they mainly make money from spreads. IG is mostly for folks who want to make money off price changes without actually buying anything. They give you lots of CFDs to work with. If you’re into forex, they have all sorts of tricky stuff like turbo warrants, vanilla options, contracts for difference, and barrier options.
IG’s own software is really good and makes trading easy, but you can also hook up to other platforms like MT4 and ProRealTime if you want. Both of those are good for automated trading. Getting money in and out of your account is free. You can use debit/credit cards, bank transfers, and PayPal. Just keep in mind that some of these might not be available where you live. Bank transfers don’t have a minimum deposit.
BlackBull Markets Broker Details | |
Regulators | FSA (Seychelles) (No. SD045), FMA (No. FSP403326) |
Min Deposit | $0 (Standard) $2,000 (Prime) $20,000 (Institutional) |
Trading Platforms | MetaTrader4, MetaTrader5, TradingView, cTrader, MT WebTrader, BlackBull Shares, BlackBull CopyTrader, BlackBull Trade, BlackBull Invest, ZuluTrade |
Trustpilot Rating | 4.8 out of 1,876 reviews |
Number of CFD Forex Pairs to Trade | 70+ |
Leverage | Forex & Metals CFDs: 1:500 Index CFDs: 1:500 Cryptocurrencie CFDs: 1:500 |
Spread | EURUSD: 0.9 USDJPY: 1.2 EURGBP: 1.7 GBPUSD: 1.2 |
Forex Commission per Lot per Trade | $0 Standard; $6 per lot Prime; $4 per lot Institutional |
Deposit Methods | Visa, Mastercard, Neteller, Airtm, Skrill, Bank Transfer, HexoPay, American Express, POLi, Payment Asia, Help2Pay, FXPay, Fasapay, China Union Pay, Boleto, AstroPay, Beeteller, Bitcoin, Ethereum, Tether, Ripple, Litecoin, Bitcoin Cash, Chainlink, USD Coin, Stellar |
Withdrawal Methods | Visa, Mastercard, Bank Transfer, Airtm, Skrill, Neteller, American Express, POLi, HexoPay, Payment Asia, Help2Pay, FXPay, China Union Pay, Boleto, Fasapay, Beeteller, AstroPay, Bitcoin, Litecoin, Bitcoin Cash, Tether, Ripple, Stellar, Chainlink, Ethereum, USD Coin |
BlackBull Markets started back in 2014 and is a big player because they have tons of stuff to trade—around 26,000 different things! If you’re into forex, they’ve got you covered with over 70 currency pairs, from the majors to the more unusual ones. You can trade these using one of their three ECN account types: Standard, Prime, and Institutional. Plus, you can trade other things like commodities, stocks, indices, and futures there, too. This brokerage has licenses from the FSA (Seychelles) and the FMA. Their trading terms are not too bad, but what you pay depends on the account you choose. If you don’t want to pay any commission, go for the ECN Standard account. Spreads usually start around 0.8 pips, and there’s no minimum to deposit. Now, the ECN Prime and ECN Institutional accounts are better if you know your stuff and trade big volumes. Just a heads up, they charge higher commissions per lot on these accounts. If you’ve got a live account, you can add funds using cards, digital wallets, online banking, bank transfers, or even cryptocurrencies. Putting money in is free, but this brokerage is based in New Zealand and they charge a $5 fee for every withdrawal, no matter how you do it.
Spreadex Broker Details | |
Regulators | FCA (No. 190941) |
Min Deposit | $0 |
Trading Platforms | TradingView, proprietary software |
Trustpilot Rating | 4.4 out of 145 reviews |
Number of CFD Forex Pairs to Trade | 60+ |
Leverage | Forex & Metals CFDs: 1:30 Index CFDs: 1:20 Cryptocurrencie CFDs: 1:2 |
Spread | EURUSD: from 0.6 USDJPY: from 0.7 EURGBP: from 0.9 GBPUSD: from 0.9 |
Forex Commission per Lot per Trade | $0 |
Deposit Methods | Mastercard, Visa, Maestro, Direct Debit, Check, Bank Transfer |
Withdrawal Methods | Visa, Maestro, Mastercard, Bank Transfer, Check |
Spreadex is a trading company in the UK that’s been around since 1999. They’re approved by the Financial Conduct Authority (FCA) and have been doing this for over 25 years. They have more than 60,000 customers from all over the globe. People go with Spreadex because their prices are pretty good, the trading is easy, and they’ve got lots to offer – we’re talking over 10,000 different things you can trade.
They have 60+ forex assets. Spreads are tight, starting at just 0.6 pips for things like EUR/USD. Besides forex, Spreadex also has a good amount of stocks, indexes, and commodities you can trade. You can also trade options, bonds, interest rates, and ETFs with good terms.
Spreadex gives traders weekly technical analysis, trading news, and a schedule of economic events in their News & Analysis part of the site. You can hook up your Spreadex account to TradingView. Their own software works well. Right now, Spreadex does not support MT4 and MT5, but people seem to like them anyway. They’ve got a 4.4-star rating on Trustpilot, which is pretty solid.
ActivTrades Broker Details | |
Regulators | FCA (UK), CMVM (Portugal), CVM (Brazil), SCB (Bahamas), FSC (Mauritius) |
Min Deposit | $0 |
Trading Platforms | ActivTrader, TradingView, MT4, MT5 |
Trustpilot Rating | 4.5 out of 1,460 reviews |
Number of CFD Forex Pairs to Trade | 56 |
Leverage | Forex & Metals CFDs: 1:30 (1:400 Bahamas) Index CFDs: 1:20 (1:200 Bahamas) Cryptocurrencie CFDs: 1:2 (1:20 Bahamas) |
Spread | EURUSD: 0.50 USDJPY: 0.50 EURGBP: 0.80 GBPUSD: 0.80 |
Forex Commission per Lot per Trade | $0 |
Deposit Methods | Visa, Mastercard, PayPal, Apple Pay, Google Pay, Skrill, Neteller, Bank Transfer, Cryptocurrencies |
Withdrawal Methods | Visa, Mastercard, PayPal, Skrill, Neteller, Bank Transfer, Cryptocurrencies |
ActivTrades is a broker that’s been around for more than 23 years. They’re watched over by the FCA, FSC, SCB, CVM, and CMVM. They focus on keeping things secure and prices clear, plus they have small spreads on over 1,100 trading options in six groups. You can trade stuff like shares, indexes, commodities, ETFs, and bonds aside from just forex. You can open accounts in pounds and trade without commissions in all markets. The most leverage for regular customers is 1:30, but those who qualify for professional accounts can get up to 1:400. ActivTrades tries to help its customers by protecting them from going into a negative balance and insuring funds up to $1 million. Actually, ActivTrades was the first UK broker to offer extra insurance beyond the standard $50,000 per client back in 2013. To add money to your account, you can use cards, bank transfers, and e-wallets like PayPal. There’s no minimum to deposit, but there’s a 1.5% charge if you use a credit or debit card.
If you’re in Malaysia and want to trade forex legally, you need to with brokers that are watched over by the Securities Commission (SCM). If a brokerage wants to run legally in Malaysia, they need to get a Capital Markets Services License (CMSL) from the SCM. To get approved, they’ve got to meet requirements for money and how they run things.
The SCM wants brokers to start with at least 5 million ringgit. This is so they have enough money to pay their Malaysian customers what they owe. The people in charge of these brokerages need to know what they’re doing and have experience. If someone has been in trouble with the law or had disciplinary actions against them, they can’t be in charge.
Brokers that are allowed to operate must have good internal controls and strong anti-money laundering policies. This keeps people from using the systems for illegal stuff. SCM-licensed companies check out their customers and tell the authorities if they see anything strange going on.
These licensees keep customer funds separate from their operating money and get checked regularly to make sure they’re following the rules. SCM-okayed companies need to give Malaysian customers the best possible prices when they make trades and be open about their pricing and costs.
In Malaysia, a few financial regulators keep an eye on forex trading. First, there’s Bank Negara Malaysia (BNM), or the Central Bank of Malaysia. They started way back in 1959 and handle everything about the local money, the Malaysian ringgit. They work hard to keep it steady and safe. They’re in charge of Malaysia’s international money reserves and are the only ones who can issue ringgits. Also, the BNM gives the government advice on how to handle debt and the economy. They really push for economic growth and try to keep the country’s finances stable. The BNM doesn’t let people trade ringgits for other currencies unless it’s done through banks that are licensed in the country. Trading other currency pairs is usually okay if it’s with brokers that are regulated.
Then you have the Securities Commission Malaysia (SCM). They regulate the capital markets here, following the Capital Markets and Securities Act 2007. They’re based in Kuala Lumpur and give licenses to brokers for securities and derivatives, plus investment advisors and fund managers. They watch their licensees closely to make sure they’re protecting customers and following the law. The SCM can punish companies that don’t follow the rules, and even stop them from operating by suspending or canceling their licenses.
Another important regulator is the Labuan Offshore Financial Services Authority (LOFSA), which is on the island of Labuan. Labuan is a big offshore financial center which draws in foreign forex brokers with its cheaper taxes and licensing. Brokers who want a license from the LOFSA don’t need as much starting money, about 500,000 ringgit, which is nothing compared to what the SCM wants. Because Labuan is part of Malaysia, forex brokers licensed by the LOFSA can work with traders from the mainland.
If you’re a Malaysian trader, double-check that your forex broker is properly licensed. Brokers based in Malaysia should be on the Securities Commission Malaysia’s (SCM) public list of approved firms. If they’re legit, you’ll find them there with their registration number.
Make sure that the broker’s license is still valid. The SCM’s list also includes companies whose licenses have been canceled, paused, or have run out. The SCM also has a list that alerts investors to companies that are trying to get Malaysian clients without permission. Some of these companies aren’t necessarily scams. They might be firms that serve the Malaysian market without licenses from the SCM, and they may also be clone companies.
You can also contact the SCM through the inquiry form on their site, by email (cau@seccom.com.my), or by calling +603-6204 8000 during weekday business hours (9 am to 5 pm). They’re closed on weekends and holidays. If you want to file a complaint, use aduan@seccom.com.my.
If you want to use brokers licensed outside Malaysia, check their licensing on those countries’ regulatory websites. Some brokers take on Malaysian traders if they have permits from places like Belize, Vanuatu, the Bahamas, or the Seychelles. It’s best to not work with firms that aren’t licensed, or you might get scammed.
If you’re in Malaysia and want to trade forex, make sure the broker you pick is serious about security. They should have good systems to keep your investments and personal info safe. Good brokers usually have warnings on their websites about the risks of trading with borrowed money.
You should also be able to find lots of info on how to trade things like CFDs and futures. Things can get wild with those! Look for brokers that offer negative balance protection – that way, you won’t lose more money than you have in your account if the market goes crazy. Top brokers use strong firewalls and encryption to protect your data.
Another thing: your broker should keep your money separate from their own. That way, if they run into trouble, your money is safe. You shouldn’t have to worry about losing your funds if your broker goes bankrupt because your money is held in a secure bank account, separate from the broker’s business funds.
When trading, see if your broker offers negative balance protection, no matter if they’re local or overseas. It’s super important, especially if you’re messing around with risky stuff like currency CFDs. These things use leverage, which can make your wins and losses much bigger. Negative balance protection keeps newer traders from losing a ton of money. It stops your account from going below zero, so you can’t lose more than you put in.
With leverage, you’re basically borrowing money from your broker to trade with more money than you have. If you’re using leverage, you need to have enough money in your account to cover any losses – that’s called maintenance margin. If the market suddenly goes against you, brokers will start closing your losing trades to stop you from losing even more money. This is called automatic margin closeout, and all legit brokers do it, including the ones in Malaysia.
In Malaysia, you gotta pay taxes on your forex profits, but the rules can be tricky. Usually, you don’t pay capital gains taxes on forex, but you do pay personal income tax if you make enough dough. Where you live also matters. If you’re not a permanent resident, you’re taxed at a flat 30%.
How you declare that income depends on how often and how much you trade. If you’re trading all the time and making a killing, the tax folks (LHDN) might see it as a business. And, taxes will apply accordingly. Usually, you can’t carry over losses to lower your future tax bill; but, if you’re officially taxed as a business you can.
If you’re a permanent resident in Malaysia, you’re looking at a tax system that goes from 1% to 30%; the more you make, the higher the percentage you pay. No taxes if you earn less than 5,000 ringgit. If you’re raking in 2 million ringgit or more, you will be taxed the highest rate of 30%. Take a look at the table below with all the tax rates, sorted by income bracket.
Income Tax Brackets in Malaysia
Tax Bracket | Tax Rate Percentage |
5,000 MYR -20,000 MYR | 1% |
20,000 MYR – 35,000 MYR | 3% |
35,000 MYR – 50,000MYR | 6% |
50,000 MYR – 70,000 MYR | 11% |
70,000 MYR – 100,000 MYR | 19% |
100,000 MYR – 400,000 MYR | 25% |
400,000 MYR – 600,000 MYR | 26% |
600,000 MYR – 2 million MYR | 28% |
2,000,000 MYR and above | 30% |
Important: Tax laws in Malaysia are rather complicated and can be confusing for some traders. Malaysians should seek assistance from experienced tax advisors if they find it hard to navigate the complex tax landscape of their country.
The Securities Commission Malaysia doesn’t say exactly what the leverage limits are for CFD companies. But the Labuan Financial Services Authority (LOFSA) says regular traders can’t go over 1:100. That limit is for all CFDs, no matter how shaky the things they’re based on are. That’s actually pretty high, especially when you look at other places.
For example, brokers in Australia and Europe usually have lower limits, like 1:30 for big currency pairs. And it gets even lower for riskier stuff, down to 1:2 for crazy things like cryptocurrencies. In Japan, the JSA makes it even tighter, with a 1:25 limit for major currencies.
Like we said before, a bunch of forex brokers work with people in Malaysia but get their licenses from places like the Financial Services Commission of Belize. Some of these places are more chill about the rules for regular traders and let you use way more leverage.
So, some brokers that Malaysians like, and that are licensed in Belize, let you use leverage as high as 1:1000! If you’re in Malaysia and using that much leverage, you could lose a ton of money if you don’t really know what you’re doing with margin trading.
In Malaysia, where most people (over 63%) are Muslim, Islam’s rules against interest (riba) are a big deal. It sees interest as unfair. Lots of Malaysian brokers get this and offer special Shariah-friendly accounts for local traders.
These accounts let you trade without those overnight swap fees. This way, Muslims don’t pay or receive interest when they keep trades open for days. Other than that, they’re like regular accounts, just without the swap costs. But sometimes, you can’t trade everything because some markets have high swap rates. So, it’s not worth it for brokers to offer them interest-free to Muslim clients.
Instead of swaps, some Malay-friendly brokers charge flat holding fees, which works with Islamic rules. These fees come out after a grace period, which changes depending on what you’re trading. For example, say a broker charges $20 per standard lot for holding EUR/USD in a swap-free account. If they give you a 7-day grace period and you close your trade after 10 days, you’d pay that $20 fee just once.
Usually, if you’re Muslim, you sign up with a broker, put money in your account, and ask to change from a normal account to a swap-free one. The broker will check things out and approve it in a couple of days. Some brokers are stricter. They might want a letter from your mosque leader or another religious person to prove you’re really Muslim. This helps them catch people who just want to avoid swap fees. If your ID doesn’t say you’re Muslim, they’ll probably ask for more proof. If you break the rules, you’ll lose your swap-free account. Others just let customers from Muslim countries turn on swap-free mode themselves in their account settings.
From what we’ve seen, most forex brokers in Malaysia use top-notch software such as MetaTrader 4 and MetaTrader 5. These platforms, made by MetaQuotes, give a really good trading experience. So many regulated brokers all over the world support them. It’s totally legal to use MT4 and MT5 in Malaysia, so if your forex broker has the right license, you’re good to go.
MT4 is easily the most popular trading platform in the world and ensures a seamless forex trading experience. Then again, this is unsurprising since the platform was designed specifically for this purpose. It has a relatively simple-to-use interface and is ideal for retail forex traders. MetaTrader 4 boasts tons of great functions and features that can considerably improve your forex performance. It supports one-click trading and algorithmic trading with hundreds of built-in and custom expert advisors.
MetaTrader 5 is more advanced in terms of features and capabilities. Its speed of order execution is slightly better but the interface is less intuitive compared to MT4. MT5 facilitates forex trading but was designed with the needs of stock traders in mind. If you are unfamiliar with MT4 and MT5, we recommend you test both platforms in demo mode before connecting them to a live trading account. This will enable you to make an informed decision as to which platform better corresponds to your needs and trading style.
TradingView is another commonly used platform in Malaysia. Renowned for its social trading capabilities, the platform is home to a vast community of over 100 million users, allowing them to discuss trading strategies, exchange ideas, and share insights into various markets. Additionally, TradingView facilitates advanced chart trading and offers an outstanding selection of features, including historical price data replays, thousands of built-in and custom indicators, and seasonality charts. Users can access the platform directly in their browsers or download it onto their Windows, Mac, and Linux devices. The interface is available in Malay and 18 other languages.
Below you can find some useful references with links to organisations that monitor the forex market in Malaysia.
Bank Negara Malaysia (BNM) or the Central Bank of Malaysia
Securities Commission Malaysia (SCM)
Labuan Offshore Financial Services Authority (LOFSA)
Public licensee register of broking firms.
Investor alert list of unauthorized companies.
SCM on Social Media: Follow the financial regulator on Facebook, Instagram, LinkedIn, and X.
Think Forex Brokers provides independent comparisons of regulated brokers across forex, stocks, and crypto. Information is for educational purposes only and should not be taken as financial advice. Always verify broker regulation before trading
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