Compare Forex Trading Brokers in Malaysia

  • Summary
  • Trading
  • Spread
  • Support
Broker Regulators Max. Leverage Min. Spread Trading Platform Min. Deposit
Flexible 0.0 pips MetaTrader4, MetaTrader5, WebTrader USD 10
1000:1 0.0 pips MetaTrader4, WebTrader USD 5
888:1 0.6 pips MetaTrader4, MetaTrader5, WebTrader USD 5
400:1 2.0 pips etoro USD 200
400:1 0.7 pips MetaTrader4, WebTrader USD 100
500:1 0.01 pips MetaTrader4, MetaTrader5, cTrader AUD 200
400:1 0.9 pips MetaTrader4, WebTrader USD 100
1000:1 0.0 pips MetaTrader4, WebTrader USD 5
Broker Broker Type Min. Spread Max. Leverage Commission/Fees Markets
FXTM ECN/STP 0.0 pips Flexible On ECN Accounts Commodities, Cryptocurrencies, Forex, Indicies, Metals, Equities
HotForex ECN/STP 0.0 pips 1000:1 Commodities, Cryptocurrencies, Forex, Indicies, Metals, Equities, Energies, Bonds
XM Market Maker 0.6 pips 888:1 Commodities, Cryptocurrencies, Forex, Indicies, Metals, Equities, Energies
eToro Market Maker 2.0 pips 400:1 Commodities, Cryptocurrencies, Forex, Indicies, Equities
AvaTrade Market Maker 0.7 pips 400:1 None Commodities, Cryptocurrencies, Forex, Indicies, Equities, ETFs
Pepperstone ECN/STP 0.01 pips 500:1 On ECN Accounts Commodities, Cryptocurrencies, Forex, Indicies, Metals, Energies
easyMarkets Market Maker 0.9 pips 400:1 Commodities, Cryptocurrencies, Forex, Indicies, Metals, Vanilla Options
InstaForex ECN 0.0 pips 1000:1 Commodities, Forex, Equities
Broker EUR/USD USD/JPY GBP/USD FX Pairs Crypto Pairs
FXTM 0.4 0.5 0.7 59 3
HotForex 0.7 0.2 0.5 51 4
XM 0.8 0.8 1.1 57 2
eToro 3 2 4 47 16
AvaTrade 1.3 1.5 2 50+ 18
Pepperstone 0.16 0.25 0.1 80+ 5
easyMarkets 0.9 1.0 1.3 103 3
InstaForex 110 2
Broker Funding Types Account Manager Commission/Fees % Clients Lose Funds Support Hours
FXTM Bank Transfer, Visa, Mastercard, Maestro, Skrill, Neteller, Bitcoin, Unionpay No On ECN Accounts 83% 24/7
HotForex Bank Transfer, Visa, Mastercard, Skrill, Neteller, Bitcoin, Unionpay Yes 72.83% 24/5
XM Bank Transfer, Sofort Banking, Visa, Mastercard, Maestro, Skrill, Neteller, Bitcoin, Unionpay Yes 69% 24/5
eToro Visa, Mastercard, Neteller, Unionpay Yes 76% 24/5
AvaTrade POLi, Visa, Mastercard, Skrill, Neteller, Paypal, Bank Transfer Yes None 71% 24/5
Pepperstone Neteller, BPay, POLi Yes On ECN Accounts 73.6% 24/7
easyMarkets Bank Transfer, Sofort Banking, Visa, Mastercard, Maestro, Skrill, Neteller, Astropay Yes 74% 24/5
InstaForex Bank Transfer, Visa, Mastercard, Skrill, Neteller, Bitcoin, Unionpay, Broker to Broker Yes 62.8% 24/7
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How Do I Trade Forex In Malaysia?

There are several things to consider before you start trading Forex in Malaysia:

  1. Have you picked a good, well-regulated broker?
  2. Do you understand the market well enough to trade Forex successfully?
  3. Do you have a strong trading plan?
  4. Do you have the discipline to carry out your trading plan

At Forex Malaysia, we will help you answer all these questions. Below is a brief overview of how we can assist.

How do I pick a good broker?

To pick a good broker in Malaysia we need to look at a few factors:

  • Regulation: It’s absolutely critical to always trade with a well-regulated broker. Malaysian’s can trade with any internationally regulated broker, but for added security, you may want to trade with a broker who holds a license from the Securities Commission of Malaysia (SCM) or the Labuan Financial Services Authority (LFSA). Apart from the SCM and LFSA, the three best regulatory agencies are the FCA, CySEC and ASIC. Be wary of brokers who are only regulated by small island states (the Cayman Islands, Bahamas, Seychelles, etc) or those who aren’t regulated at all.
  • Islamic Account: All SCM/LFSA regulated brokers and most international brokers in the Malaysian market offer an Islamic (swap-free) account, but it is important to check first before you sign up.
  • Broker Type: Do you want a market-maker broker or an ECN broker? Market maker brokers tend to have wider spreads but don’t charge a commission on trades, while ECN brokers have tighter spreads but will charge a commission on every trade. Some brokers will provide both services on different account types, with the ECN services generally reserved for accounts with higher minimum deposits.
  • Trading Conditions: Make sure you understand exactly what spreads your broker offers, how much leverage they will give you and how many currency pairs they offer for trading. You don’t want to sign up a to a broker only to discover that the spread on your favourite currency pair is much wider than its competitors.
  • Trading Platform: Many brokers offer their own trading platforms these days, but MetaTrader 4 is still the industry standard and can move with you if you decide to change broker. Other good standalone platforms are MetaTrader 5 (which is slowly gaining in popularity) and cTrader.
  • Minimum Deposit: This is about how much you can afford to deposit with your broker. Generally, accounts with higher minimum deposits have better trading conditions but it is worth shopping around to find a good balance.
  • Deposit and Withdrawal Methods: All brokers will accept bank transfers and credit or debit cards. Most will also accept online payment systems such as Skrill or Neteller and some will also accept cryptocurrency.

Is Forex trading legal in Malaysia?

The Malaysian government, through the Securities Commission, has done a lot to safeguard the interference of the Ringgit (MYR), while at the same time ensuring that the safety of their citizens who wish to participate in Forex trading is not compromised.  Trading Forex is legal in Malaysia as long as you abide by the set laws and regulations that are put in place by the government and the other regulating bodies.  In short, if a major regulator regulates your broker, you will be fine using this broker.

Choose the Right Broker For You

Best Forex Brokers in Malaysia 2020

When comparing brokers we look at group regulation, trading conditions, bonuses, platform support and reputation. Here are the best Forex brokers in Malaysia, compared and reviewed. 

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Best Forex Demo Accounts Malaysia 2020

Compare the best demo accounts available in Malaysia. Learn what sets them apart and find the best broker for you.

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Best Forex Bonus in Malaysia

A new account bonus is offered by almost every broker on the market. They have a number of conditions, but a good gift for a beginner when opening their first account.

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Islamic Accounts

Compare the best accounts at Sharia-compliant Forex brokers for 2020. Learn what sets them apart and find the best one for you.

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What is Forex Trading?

In Forex trading, currencies are traded in pairs.  As you sell one currency, you are buying another.  The first currency in the currency pair is known as the base currency, while the second currency is known as the quote currency.

As an example, the quote price of the Euro and United States Dollar currency pair (EURUSD) is 0.8100; meaning that one unit of the Euro can purchase 0.8100 units of the US Dollar.  In this example, the base currency is the Euro, while the quote currency is the US Dollar.  Novice traders will tend to prefer trading a limited number of pairs, so choosing which Forex pairs to trade, and which to avoid, will help traders get started.

A trader then speculates whether the quote prices will decrease or increase and trade the currency pairs based on what you believe would be profitable. As you get better at analysing the Forex market, finding profitable trades will become easier.

Getting Started With Forex Trading

Trading Forex and CFDs is not suitable for all investors and comes with a high risk of losing money rapidly due to leverage. 70-90% of retail investors lose money trading these products. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

How to Choose A Forex Trading Platform

The top Forex brokers support a wider variety of trading platforms, have faster trade execution, give trades access better analysis material, and have good training, webinar and onboarding resources.

When choosing a trading platform, you need to consider if you want to use a trading platform that will work with different brokers, or if you want to use a platform that is specific to a broker while might be more user-friendly.  MetaTrader 4 & 5, along with cTrader are examples of software that has wide industry adoption, which would make the trader less dependent on a broker and easier to change between them when looking for better trading conditions.

On the other hand, brokers like eToro have their own trading platform as they have functionality that is unique to their business.  Learning a platform that is not cross-compatible with other brokers, will mean learning a new platform should you wish to make a change.

Is Forex Trading Risky?

Forex trading does contain significant amounts of investment risk. To mitigate this risk, you need to develop a good trading strategy and have a good understanding of risk management in forex trading.  In order to mitigate counterparty risk, it is important to find a broker which is regulated by multiple recognised regulators.

When trading Forex as a retail (individual) trader, you should first open an account with a Forex broker who will be responsible for making sure that your trades are taken to the market.  At this point, you can either open a demo account or invest an amount of money to get you started.

Going Short or Going Long?

There are two kinds of trades you can make – short or long.  This is unique to CFD trading and is only possible because Forex traders are only speculating on price instead of taking ownership of an asset.

Taking a short position is placing a wager that the exchange rate will decrease. If the price behaves as you had predicted, you close the order with a profit. But if the price moves in the opposite direction of your speculation, then you end up making a loss.  However, if a trader speculates that the exchange rate will rise, then they would buy the currency pair by placing a buy order or opening a long position.

Do I understand the Forex market well enough to trade successfully?

Trading Forex is high-risk speculation and most traders will lose money – especially unprepared beginners.

If you want to understand the Forex market the first thing you will need is a good demo account. All brokers will offer demo accounts, but you will want one that is:

  • Unlimited (some brokers only offer demo accounts for a few weeks or months)
  • Has a large amount of virtual currency (10,000 USD is perfect but not essential)
  • Exactly mirrors your broker’s live platform – you don’t want to have a different trading experience when you decide to switch to live trading

We have a comprehensive education section full of practical advice on placing trades, market analysis and common strategies. The best way to learn how the Forex market works is to learn as much as you can and constantly use your new knowledge to make trades with your demo account. Good brokers will also have a dedicated education section featuring articles, tips, video tutorials and webinars and you should use this intensively.

You will need to be patient and dedicated in order to fully understand the Forex market. There are many different aspects of trading and you will need to understand them all to make consistently profitable trades.

Do I have a profitable trading plan?

Once you are confident in your knowledge of the market, you will have to develop a profitable trading plan. Trading plans are generally a set of trading strategies that rely on your analysis of the market, this is why having a solid understanding of the Forex market is so important.

A good Forex trading strategy will rely on both fundamental analysis (analysing the effect of economic trends and geopolitical events) and technical analysis (analysing price movement, usually on charts). There are many forms of technical analysis and it can take some time to learn enough to use it successfully.

Other factors essential to any successful trading plan are your trading hours (in Malaysia, most of the daylight hours will coincide with Japanese market hours, but the highest market volatility occurs in the New York/London market crossover period), order types (such as a trailing stop loss – the most important part of any strategy) and automated trading software/bots (they can often notice price movements that you don’t).

Do I have the discipline to carry out my trading plan?

This is the most difficult question to answer, and you will only be able to answer it once you start trading with a live account. Trading with a demo account will never be able to create the same sense of fear and nervousness that occurs with live trading – preventing your negative emotions from affecting your trading plan is the true test of all Forex traders.

Successfully carrying out a trading plan is a test of your psychological strength and it is where many traders fail. You will need caution, decisiveness, discipline and intelligence in order to succeed. But if you are well-prepared, well-educated and have a good broker you already have the advantage.

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Trading Forex and CFDs is not suitable for all investors and comes with a high risk of losing money rapidly due to leverage. 75-90% of retail investors lose money trading these products. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.