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CFD trading is a form of investment made popular by tales of generous profits from trading both sides of the market – all from the comfort of working from home. CFD Brokers provide the trading software needed to connect traders with the CFD market, so the first step for a new trader will be to choose from a long list of potential brokers.

To start our review process, we evaluated the broker’s financial regulation, trading platforms, educational material, minimum deposit requirements, and fee structure. To test these CFD brokers further, we created live trading accounts, depositing the minimum required amount, and started researching the trading conditions and functionality offered to emulate a beginner trader’s experience. These are the best CFD brokers in Malaysia for 2021, according to our testing and our research, where extra consideration was given for low trading costs and serious regulation. 

English

Last updated on 17 Sep 2021
Updated 17 Sep 2021
by Editorial Director Chris Cammackby Chris Cammack
Chris Cammack
All Brokers Regulated
All Brokers Regulated
by Trusted Authoritiesby Trusted Authorities
Trusted
1
FXTM
Min. Deposit
USD 10
4.334.33
Min. Spread
0 pips
Fx Pairs
59
Deposit & Withdrawal Methods
Overall Rating
11110.54.33/ 5
AlertAccepts Malaysian Clients. Minimum spread EUR/USD 1.50 pips on trading account with lowest minimum deposit. Islamic account available. MT4 & MT5 platforms supported. Leverage offered can vary depending on country of residence, and your trading knowledge and experience. FXTM is regulated by CySEC, FCA, FSCA, and the FSC.
2
OctaFX
Min. Deposit
USD 50
4.024.02
Min. Spread
0 pips
Fx Pairs
28
Deposit & Withdrawal Methods
Overall Rating
11110.54.02/ 5
AlertAccepts Malaysian Clients. Average spread EUR/USD 1.10 pips on trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. MT4 & MT5 platforms supported. OctaFX is regulated by CySEC & SVG FSA.
3
Tickmill
Min. Deposit
USD 100
4.484.48
Min. Spread
0 pips
Fx Pairs
60+
Deposit & Withdrawal Methods
Overall Rating
11110.54.48/ 5
AlertAccepts Malaysian Clients. Average spread EUR/USD 0.00 pips with 4 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. MT4 platform support. Tickmill is regulated by CySEC, FCA, FSCA, and the FSA-Seychelles.
4
IG Markets
Min. Deposit
USD 250
4.694.69
Min. Spread
0.60 pips
Fx Pairs
93
Deposit & Withdrawal Methods
Overall Rating
11110.54.69/ 5
AlertAccepts Malaysian Clients. Average spread EUR/USD 0.60 pips on trading account with lowest minimum deposit. Max leverage 200:1. Islamic account available. MT4, ProRealTime and L2 Dealer platforms supported. IG Markets Group is regulated by FCA, ASIC, and the FSCA.
5
AvaTrade
Min. Deposit
USD 100
4.484.48
Min. Spread
0.90 pips
Fx Pairs
50+
Deposit & Withdrawal Methods
Overall Rating
11110.54.48/ 5
AlertAccepts Malaysian Clients. Spreads start at 0.90 pips on theEUR/USD on trading account with lowest minimum deposit. Max leverage 400:1. Islamic account available. MT4 & MT5 platforms supported. AvaTrade Group regulated by ASIC, FSCA, B.V.I FSC & FSA.
6
Axi
Min. Deposit
USD 5
4.344.34
Min. Spread
0 pips
Fx Pairs
80+
Deposit & Withdrawal Methods
Overall Rating
11110.54.34/ 5
AlertAccepts Malaysian Clients. Average spread EUR/USD 1.20 pips on trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. MT4 & MT5 platforms supported. Axi Group is regulated by the FCA, ASIC and the DFSA
7
IC Markets
Min. Deposit
USD 200
4.464.46
Min. Spread
0.10 pips
Fx Pairs
64
Deposit & Withdrawal Methods
Overall Rating
11110.54.46/ 5
AlertAccepts Malaysian Clients. Average spread EUR/USD 0.10 pips on trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. MT4, MT5 & cTrader platforms supported. IC Markets is regulated by CySEC and ASIC.
8
XTB
Min. Deposit
USD 5
4.144.14
Min. Spread
0.80 pips
Fx Pairs
49
Deposit & Withdrawal Methods
Overall Rating
11110.54.14/ 5
AlertAccepts Malaysian Clients. Minimum spread EUR/USD 0.50 pips on trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. xStation5 platforms supported. XTB Group is regulated by CySEC, FSCA, DFSA, FCA and the IFSC.
9
BDSwiss
Min. Deposit
USD 100
4.324.32
Min. Spread
1.40 pips
Fx Pairs
50+
Deposit & Withdrawal Methods
Overall Rating
11110.54.32/ 5
AlertAccepts Malaysian Clients. Average spread EUR/USD 1.50 pips on trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. MT4 & MT5 platforms supported. BDSwiss is regulated by CySEC, FSC, and the FSA-Seychelles.

Best CFD brokers for 2021

  • FXTM - Best CFD Broker for Beginners
  • OctaFX - CFD Broker with the Best Bonuses
  • Tickmill - MetaTrader Broker with the Lowest Trading Costs
  • IG Markets - Best CFD Broker for Weekend Trading
  • AvaTrade - Best Mobile Trading Experience
  • Axi - Best ECN CFD Broker on the MT4 Platform
  • IC Markets - Best ASIC-Regulated CFD Broker
  • XTB - Best Proprietary CFD Trading Platform
  • BDSwiss - Best CFD Market Research Provider

FXTM – Best CFD Broker for Beginners

FXTM is an award-winning CFD broker offering trading on 250+ instruments including Forex, commodities, metals, stocks, and indices. While FXTM’s Advantage Account Account has a minimum deposit of 500 USD, spreads starting at 0 pips, and a 4 USD commission, FXTM also offers a Micro Account with a 50 USD minimum deposit and spreads starting at 1.5 pips which could be more appealing to the beginner. For beginners looking to copy professional traders, the FXTM Invest CopyTrading scheme is one of the best in the industry, where traders can copy Strategy Managers whose risk profile matches their own.

FXTM has a large volume of training material, including videos, webinars, and a searchable glossary of new vocabulary to help new traders get started. An additional set of videos covering analysis topics and more detail on chart reading techniques is available for experienced traders. FXTM are one of the few CFD brokers with weekend support, allowing new traders to get set up outside of the working week.

Pros
  • Good for beginners
  • Excellent education
  • Well regulated
  • Low minimum deposit
Cons
  • Expensive withdrawals
AlertAccepts Malaysian Clients. Minimum spread EUR/USD 1.50 pips on trading account with lowest minimum deposit. Islamic account available. MT4 & MT5 platforms supported. Leverage offered can vary depending on country of residence, and your trading knowledge and experience. FXTM is regulated by CySEC, FCA, FSCA, and the FSC.

OctaFX – CFD Broker with the Best Bonuses

OctaFX offers CFD trading on an MT4 Account, MT5 Account and cTrader Account. Tradeable CFDs include 32 currency pairs, gold and silver, energies, indices and five cryptocurrencies. OctaFX offers a wide range of bonuses and promotions. A 50% deposit bonus for each deposit is available, as well as demo contests with cash prizes. OctaFX always runs contests for traders with live accounts, prizes include cars, laptops and smartphones. Be aware that all of these bonuses have terms and conditions that need to be met.

All OctaFX accounts are market execution and while trading costs are higher than other ECN brokers on the cTrader account, the MT4 and MT5 Accounts offer commission-free trading with spreads as low as 0.6 pips. Commission-free spreads this low are only usually achieved by large market makers like AvaTrade or CMC Markets. Leverage is 500:1 on all three accounts and the minimum deposit is 100 USD. All accounts are available as Islamic (swap-free) accounts and all clients are provided negative balance protection.

Pros
  • Great platform choice
  • Fast and free withdrawals
  • Copy trading accounts
Cons
  • Limited education
  • Restrictive account types
AlertAccepts Malaysian Clients. Average spread EUR/USD 1.10 pips on trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. MT4 & MT5 platforms supported. OctaFX is regulated by CySEC & SVG FSA.

Tickmill – MetaTrader Broker with the Lowest Trading Costs

Founded in 2014 and regulated by the FCA, CySEC and the Financial Services Authority of Labuan Malaysia, Tickmill has a long history of being a responsible CFD broker with a focus on both experienced traders and serious beginners. Tickmill offers support for both MT4 and MT5 and while trading costs on its commission-free Classic Account are higher than the industry average, Forex trading on the Pro Account offers dynamic spreads down to 0 pips and a 4 USD (round turn) commission – much lower most other brokers.

While Tickmill does not offer share trading or other specialty CFDs such as ETFs, it does offer 62+ currency pairs, 16 indices, metals, bonds and has recently started offering cryptocurrencies – including Bitcoin, Ethereum and Litecoin.

Pros
  • Tight spreads
  • Well regulated
  • Fast and free withdrawals
  • Wide range of assets
Cons
  • Limited base currencies
AlertAccepts Malaysian Clients. Average spread EUR/USD 0.00 pips with 4 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. MT4 platform support. Tickmill is regulated by CySEC, FCA, FSCA, and the FSA-Seychelles.

IG Markets – Best CFD Broker for Weekend Trading

IG Markets is the world’s largest CFD broker by revenue and it offers a single commission-free CFD trading account. Forex trading is commission-free, and spreads start at 0.6 pips on the EUR/USD. IG Markets also offers over 17,000 other instruments to trade from its single account. These include commodities, indices, cryptocurrencies, ETFs, over 13,000 shares, options, interest rates and bonds. Unique to IG Markets is its weekend trading product line: 24/7 trading available on major Forex pairs, eight cryptocurrencies (including Bitcoin) and the main global indices such as FTSE 100 and HS50.

The IG Academy has structured courses for beginner, intermediate and advanced traders and daily classroom-style lessons. Market analysis across all CFD assets is updated regularly by the IG Markets research team of finance professionals. 

Pros
  • Well regulated
  • Tight spreads
  • Great platform choice
  • Excellent education
  • Excellent market analysis
Cons
  • High minimum deposit
AlertAccepts Malaysian Clients. Average spread EUR/USD 0.60 pips on trading account with lowest minimum deposit. Max leverage 200:1. Islamic account available. MT4, ProRealTime and L2 Dealer platforms supported. IG Markets Group is regulated by FCA, ASIC, and the FSCA.

AvaTrade – Best Mobile Trading Experience

AvaTrade is an internationally regulated beginner-friendly CFD broker offering trading on Forex, cryptocurrencies, commodities, indices, stocks, bonds, vanilla options, and ETFs. The AvaTradeGO app provides one of the best mobile trading experiences: All 1000+ CFDs instruments offered by AvaTrade are available in the app, as is the AvaProtect tool, which protects traders from losses for a limited time. Other highlights of the app include a market trends monitor, zoom function and seamless synchronisation with AvaTrade’s webtrader.

Avatrade single account features some of the tightest spreads for a commission-free account with a 100 USD minimum deposit – as low as 0.7 pips on the EUR/USD. Maximum leverage is set at 1:400 on MT4 and MT5, which include EA’s, indicators, scalping, hedging, and provides free access to the integrated Trading Central dashboard for both platforms. 

Pros
  • Good for beginners
  • Well regulated
  • Low minimum deposit
Cons
  • Dealing desk
  • Limited market analysis
AlertAccepts Malaysian Clients. Spreads start at 0.90 pips on theEUR/USD on trading account with lowest minimum deposit. Max leverage 400:1. Islamic account available. MT4 & MT5 platforms supported. AvaTrade Group regulated by ASIC, FSCA, B.V.I FSC & FSA.

Axi – Best ECN CFD Broker on the MT4 Platform

Axi is an Australian ASIC and FCA regulated ECN broker offering CFD trading on 140 Forex pairs, precious metals, commodities, indices, and cryptocurrencies. As an ECN broker, Axi offers tight spreads – down to 0 pips at times – and a commission of 7 USD is charged. No minimum deposit is required to open an account, but Axi does recommend starting with a minimum of 100 USD.

By exclusively supporting the MT4 platform, Axi offers a thoughtful and heavily customisable MT4 experience. Axi offers a range of tools as part of its MT4 NexGen package. These include a sentiment indicator, a correlation trader, a more intuitive terminal window, and an automated trade journal. Other tools include AutoChartist, a powerful automated technical analysis tool, and PsyQuation, an AI diagnostic that tracks your trading style and coaches you into more profitable trades. VPS hosting is also available, along with various trading algorithms to install on your MT4.

Pros
  • Low minimum deposit
  • Wide range of assets
  • Well regulated
  • Tight spreads
Cons
  • Poor customer service
  • Limited demo account
AlertAccepts Malaysian Clients. Average spread EUR/USD 1.20 pips on trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. MT4 & MT5 platforms supported. Axi Group is regulated by the FCA, ASIC and the DFSA

IC Markets – Best ASIC-Regulated CFD Broker

IC Markets is a beginner-friendly ASIC regulated CFD broker offering trading on Forex, commodities, stocks, indices, crypto, bonds, and futures.  IC Markets strives to provide the lowest latency and fastest possible execution for its clients, and with over 25 liquidity providers, IC Markets offers the tightest average spread, at 0.1 pips on the EUR/USD, of any broker globally. IC Markets is one of the few brokers to offer support for all three major trading platforms, including MT4, MT5, and CTrader, alongside an array of trading tools including Autochartist, Trading Central, and a free VPS service.  

IC Markets has a well-structured educational section developed in-house by a team of knowledgeable experts.  With a full library of course material, including video tutorials, various articles, frequent webinars, and IC Markets’ Web TV, traders will receive comprehensive instruction in CFD trading.   IC Markets also has a dedicated support department operating 24/7, to help beginner traders answer any technical or trading-related questions. 

Pros
  • Well regulated
  • Tight spreads
  • Wide range of assets
  • Great platform choice
Cons
  • High minimum deposit
  • Limited market analysis
AlertAccepts Malaysian Clients. Average spread EUR/USD 0.10 pips on trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. MT4, MT5 & cTrader platforms supported. IC Markets is regulated by CySEC and ASIC.

XTB – Best Proprietary CFD Trading Platform

A well-regulated STP broker, XTB offers trading on multiple assets, including Forex, indices, commodities, stock CFDs, ETFs, and cryptocurrencies.  XTB offers trading on two live accounts with competitive trading conditions, including tight spreads, high leverage, and no minimum deposit requirements. The main draw at XTB is the award-winning xStation 5 trading platform. Intuitive, powerful, and fast, xStation 5 shows XTB sentiment data in the platform and offers powerful charting tools, one-click trading, and real-time performance statistics so traders can identify areas for improvement.

While xStation 5 is a multiple award-winning platform, some traders may be disappointed that XTB recently removed its support for MT4 – severely limiting platform choice. It’s important to note that as xStation 5 is a proprietary platform it can not be used at other brokers, so traders may feel tied to XTB. For beginners, XTB has some of the best Forex education available. Its Trading Academy is structured into topics and experience levels; it is clear and concise and structured like a course. Market analysis is less detailed but will assist new traders looking for trading opportunities.

Pros
  • Well regulated
  • Tight spreads
  • Low minimum deposit
  • Good for beginners
Cons
  • Limited platform choice
AlertAccepts Malaysian Clients. Minimum spread EUR/USD 0.50 pips on trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. xStation5 platforms supported. XTB Group is regulated by CySEC, FSCA, DFSA, FCA and the IFSC.

BDSwiss – Best CFD Market Research Provider

BDSwiss is a European CFD broker offering trading 1000+ asset including Forex pairs, stocks, commodities, shares, indices, ETFs and cryptocurrencies, with no strategy restrictions. Of special note is the range of 20 crypto pairs and cross pairs, including exotics such as LTC/USD and ETH/JPY. Winner of the award for the Best Market Research Provider of 2020, BDSwiss’s financial commentary is frequently published by numerous global news agencies, and BDSwiss’ clients benefit from exceptionally detailed and accurate market analysis for traders of all experience levels. Analysis includes daily webinars, market insights, weekly outlook and daily briefings – all from BDSwiss’ team of industry experts. 

BDSwiss offers account types suitable for both beginners and more experienced traders, including a Raw Account with spreads down to 0 pips. All accounts benefit from fast execution speeds, with 97.5% of all trades executed in less than 0.2 seconds. Accounts are available on both MT4 and MT5 and the BDSwiss webtrader, which has an intuitive and user-friendly trading interface. Limited share trading is available on all account with a commission of 0.15%, but for the full range of shares and ETFs, traders will want to open an InvesPLUS account offering direct market access and a commission of 0.1%.

Pros
  • Tight spreads
  • Good for beginners
  • Wide range of assets
Cons
  • Expensive withdrawals
AlertAccepts Malaysian Clients. Average spread EUR/USD 1.50 pips on trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. MT4 & MT5 platforms supported. BDSwiss is regulated by CySEC, FSC, and the FSA-Seychelles.

What are CFDs?

Remember

A CFD is a Contract For Difference. It is an agreement between you and a CFD broker to pay the difference in the price of an asset (like gold, or oil, or Tesla stock) after it increases or decreases.

Trading CFDs is speculating on the price movement of an asset without ever owning it.

CFDs are usually traded with leverage (money borrowed from the CFD broker) and neither the trader nor the broker ever owns the underlying asset.

What is a CFD Broker?

CFD brokers are the companies that provide access to a CFD market and provide a trading platform to open and close trades. To trade CFDs, you will need to open an account with a CFD broker. Once you open an account you will need to fund it with the minimum deposit required by the CFD broker.

CFD brokers usually require a minimum deposit to open an account

All CFD brokers offer the same basic services – like a trading platform and access to a market – but they can be quite different in other ways.

Types of CFD Brokers

CFD brokers come in two main forms: Market Makers or Direct Market Access (DMA)

Market Makers

Market makers are CFD brokers who create an artificial market for traders. When you trade with a market maker, you are not trading with real market prices. Instead, you are trading with prices that a market maker thinks are fair.

Market makers are always counterparty to your trade

Because a market maker is the market, it will always take the other side of your trade. This is called being the counterparty. So, when you lose money the market maker will profit – and when you profit the market maker will lose money.

Market makers will often require low minimum deposits to open an account and offer instant execution of trades.

These are the best market maker CFD brokers in 2021:

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Overall Rating
Official Site
Regulators
Min. Deposit
Cost of Trading
Withdrawal Fee
No. of FX Pairs
Compare
Official Site
4.64 /5
Read Review
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USD 20
USD 6
Fees Included in Spread
166
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4.49 /5
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Your capital is at risk
USD 100
USD 7
Fees Included in Spread
67
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Your capital is at risk
4.48 /5
Read Review
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Your capital is at risk
USD 100
USD 9
Fees Included in Spread
50+
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Your capital is at risk
4.33 /5
Read Review
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Your capital is at risk
USD 10
USD 15
4 USD / ECN Accounts
59
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Your capital is at risk
4.25 /5
Read Review
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Your capital is at risk
USD 5
USD 16
7 USD / lot - XM Zero Account
57
Visit Broker >
Your capital is at risk

Direct Market Access (DMA)

ECN-Network

Unlike market makers, DMA brokers provide access to the CFD market. The most common form of DMA broker is called an ECN (Electronic Communication Network) broker. When you trade with an ECN broker, it will pass your trade to a member of its network to take the other side of your trade.

DMA brokers pass your trade to other members of the CFD market

ECN brokers and other DMA brokers usually require high minimum deposits to open an account and trade execution is never instant.

These are the best ECN CFD brokers in 2021:

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Overall Rating
Official Site
Regulators
Min. Deposit
Cost of Trading
Withdrawal Fee
No. of FX Pairs
Compare
Official Site
4.61 /5
Read Review
Visit Broker >
Your capital is at risk
USD 5
USD 6.90
From 7 USD / lot - Razor Account
80+
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Your capital is at risk
4.34 /5
Read Review
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Your capital is at risk
USD 5
USD 12
7 USD / lot - PRO account
80+
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Your capital is at risk
4.33 /5
Read Review
Visit Broker >
Your capital is at risk
USD 10
USD 15
4 USD / ECN Accounts
59
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Your capital is at risk
4.25 /5
Read Review
Visit Broker >
Your capital is at risk
USD 5
USD 7
6 USD / Lot
80+
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Your capital is at risk
4.18 /5
Read Review
Visit Broker >
Your capital is at risk
USD 5
USD 12
7 USD / lot - ThinkZero Account
40
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Your capital is at risk

What is a CFD Trading Account?

CFD trading accounts are accounts opened with a CFD broker. Many CFD brokers will offer different accounts with different costs and benefits.

Unless it is a CFD demo account, traders have to transfer money into the trading account to start trading.

Types of CFD Trading Accounts

Forex Charts

Accounts with CFD brokers can be split into two main groups: Demo Accounts and Live (or Real) Accounts.

Demo Accounts

Demo accounts are the best way to practice CFD trading with zero risk. All CFD brokers will offer a demo account for beginners to practice trading and get used to the broker’s trading platform. They are free to open, and the broker will load them with virtual money.

Demo accounts have fake money, but real market conditions

Even though there is no real money involved, demo accounts have real market conditions; traders with a demo account are seeing exactly the same thing as traders with a real account. Demo accounts are indispensable for new traders who want to understand how it feels to trade CFDs.

Some CFD brokers will put a time limit on their demo accounts, usually 2 or 3 weeks, forcing new traders to switch to a real account. The best CFD brokers have demo accounts that never expire, so traders can continue to practice as long as they want.

These are the CFD brokers with the best demo accounts in 2021:

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Overall Rating
Official Site
Regulators
Min. Deposit
Cost of Trading
Withdrawal Fee
No. of FX Pairs
Compare
Official Site
4.24 /5
Read Review
Visit Broker >
Your capital is at risk
USD 25
USD 5
1.8 - 3 USD per lot
50+
Visit Broker >
Your capital is at risk
4.64 /5
Read Review
Visit Broker >
Your capital is at risk
USD 20
USD 6
Fees Included in Spread
166
Visit Broker >
Your capital is at risk
4.48 /5
Read Review
Visit Broker >
Your capital is at risk
USD 100
USD 9
Fees Included in Spread
50+
Visit Broker >
Your capital is at risk
4.49 /5
Read Review
Visit Broker >
Your capital is at risk
USD 5
USD 10
6 USD / lot - Zero Account
51
Visit Broker >
Your capital is at risk
4.33 /5
Read Review
Visit Broker >
Your capital is at risk
USD 10
USD 15
4 USD / ECN Accounts
59
Visit Broker >
Your capital is at risk

Live Accounts

Live accounts come in many different forms depending on the CFD broker. Most CFD brokers have several live accounts, with different required minimum deposits. Generally, live accounts with lower minimum deposits have worse trading conditions (i.e. making trades is more expensive).

Lower minimum deposits = worse trading conditions

As well as lower trading costs, CFD brokers will also offer more perks on accounts with higher minimum deposits. Perks can include one-on-one training and advanced trading tools.

Some CFD brokers will offer both market maker accounts (so you will be trading against the broker) and direct market access accounts (so you will be trading on the market).

What Types of CFDs Can You Trade?

Tradeable CFDs include: Forex (currency pairs), commodities (oil, gold, coffee, grain, etc.), stocks (Tesla, Apple, etc.), indices (like the NASDAQ or FTSE 100) and cryptocurrency pairs (such as BTC/USD). There are other CFDs, but these are the most common.

The most popular form of CFD trading is Forex trading

The most popular form of CFD trading is Forex trading, or the trading of currency pairs like EUR/USD (Euro/US Dollar) or GBP/JPY (British Pound/Japanese Yen).

How do CFD Brokers Make Money?

Money

CFD brokers make money from traders with:

  • Spreads and commission
  • Overnight interest
  • Hedging
  • Deposit and withdrawal fees
  • Optional services.

Once you understand how these fees work, you will be able to compare CFD brokers by cost.

Spreads and Commission

Most CFD brokers will make money from the spread. The spread is the broker’s fee for their services. It is the difference between the buy and sell price a CFD broker gives traders and the real market price. The lower (or tighter) the spread, the cheaper a broker is to trade with.

The spread is the CFD broker’s fee for their services

Market makers brokers have wider spreads than direct market access brokers. But direct market access brokers usually charge a commission. This commission is paid when you open a trade and when you close a trade and is usually a fixed amount, charged in USD.

Direct market access brokers have tight spreads but usually charge a commission

Overnight Interest

CFD brokers also make money from interest. CFD trading is leveraged, which means that you borrow money from the broker to increase the size of your position. Brokers will charge you interest for borrowing money from them, this is charged on all trading positions that are held overnight.

Hedging

Market maker CFD brokers will also hedge their counterparty trades. If a CFD broker is the counterparty to a trader buying gold, it will also sell gold to protect itself from the trader winning.

Deposit and Withdrawal Fees

Some CFD brokers also charge deposit and withdrawal fees. These can be either a fixed fee or a percentage of the deposit or withdrawal. Always check with the CFD broker first before you make a deposit or withdrawal to avoid being surprised.

Other Fees

CFD brokers also charge other fees. The most common is an inactivity fee for trading accounts that have not been used for many months. But brokers may also charge for optional services such as advanced trading tools, in-depth education, and VPS services.

CFD Broker Ratings and Reviews

It is important to read reviews and check the ratings for CFD brokers when comparing them. CFD brokers tend to be strong in some areas and weaker in others, only a very few are excellent overall.

The best CFD broker for you will depend on your trading experience, educational background, and financial situation.

For instance, the best CFD broker for beginners will have excellent education and trading accounts with low minimum deposits. But the best CFD broker for experienced traders will have advanced trading tools and trading accounts with high minimum deposits and exceptional trading conditions.

Regulated CFD Brokers

Regulators are national authorities that protect citizens from financial scams and unethical businesses. Traders should always use CFD brokers that regulated by at least one national authority. In Malaysia, the national regulator is the Securities Commission (SC), but most Forex brokers do not have authorisation from the SC to provide services to Malaysian residents. For this reason, it is essential for traders to use a CFD broker licenced by one of the better international regulators such as the Australian Securities and Investments Commission (ASIC), Cyprus Securities and Exchange Commission (CySEC) or the UK’s FCA (Financial Conduct Authority). 

Traders should always use a regulated CFD broker

To protect traders, ASIC-regulated CFD brokers are required to comply with the following rules:

  • Segregated Accounts: CFD brokers are required to keep trader’s money in a separate bank account from their own. This means that traders can get their money back if a CFD broker goes bankrupt.
  • Negative Balance Protection: Traders with ASIC-regulated CFD brokers can never lose more money than they have in their trading account. This means that any negative balance cannot be claimed by the brokers.
  • Leverage Limits: From 29th March 2021, all CFD brokers regulated by the ASIC can only offer leverage of 30:1. This means that traders can only borrow from the broker 30 times more than they have in their trading account.
  • Regular Audits and Inspections: ASIC-regulated CFD brokers are subject to audits of their finances and surprise inspections of their trading setup. This prevents brokers from cheating their traders.

There are many other regulators around the world, but ASIC, the FCA and CySEC are considered the best and most rigorous. Some CFD brokers are regulated by more than one national authority.

CFD Trading Platforms

All CFD brokers will offer a trading platform to access the markets. Some brokers have their own platforms, while others use popular independent trading platforms that you can download to your computer.

The most popular CFD trading platform is MetaTrader 4

The most popular trading platform in the world is MetaTrader 4 (MT4). Other popular CFD trading platforms are MetaTrader 5 (MT5) and cTrader. All three platforms provide access to the CFD markets and allow users to make trades.

These are the best CFD brokers with MT4 in 2021 according to our expert’s research:

Scroll for more detailsPreviousNext
Overall Rating
Official Site
Regulators
Min. Deposit
Cost of Trading
Withdrawal Fee
No. of FX Pairs
Compare
Official Site
4.61 /5
Read Review
Visit Broker >
Your capital is at risk
USD 5
USD 6.90
From 7 USD / lot - Razor Account
80+
Visit Broker >
Your capital is at risk
4.49 /5
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USD 100
USD 7
Fees Included in Spread
67
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4.49 /5
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USD 5
USD 10
6 USD / lot - Zero Account
51
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4.48 /5
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USD 100
USD 9
Fees Included in Spread
50+
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4.34 /5
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USD 5
USD 12
7 USD / lot - PRO account
80+
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All three platforms also allow CFD traders to install small software programs called robots and indicators. Robots trade automatically, based on pre-determined signals, and indicators help traders find opportunities in the markets.

Trading robots will trade automatically for you based on pre-set signals

All trading platforms are also available on Android and iOS mobile devices. CFD brokers with their own platforms will often have their own mobile apps too. MT4, MT5 and cTrader are also available as mobile apps.

Deposits and Withdrawals with a CFD Broker

The best CFD brokers offer a range of methods to make deposits and withdrawals. Almost all CFD brokers will accept credit/debit cards, bank wires and ewallets such as Skrill or Neteller.

Deposits can usually be made instantly with credit/debit cards and ewallets, but bank transfers usually take a few days – or longer if you are making an international bank transfer.

Withdrawals tend to take a little longer, but the best CFD brokers will allow you to withdraw to your credit/debit card or ewallet within 24 hours. Again, bank transfers will take a few days and international bank transfers even longer.

The best CFD brokers will not charge for deposits or withdrawals

The best CFD brokers will not charge for deposits or withdrawals, but unfortunately, this is quite rare. Many CFD brokers will allow free deposits but will charge a fee for withdrawals. Some CFD brokers will even charge for both.

International bank transfers will always incur a fee from the banks involved in the transfer and CFD brokers will usually not cover this cost.

Learn How to Trade CFDs

Forex education

Trading CFDs with a CFD broker (even the best) is risky, and most traders lose money.

The first step to being a profitable CFD trader is to be an educated CFD trader

Most CFD brokers will offer some form of education, but the best CFD brokers excel when it comes to teaching new traders. CFD education should be comprehensive and well-structured. It should be a mix of video and written content, featuring input from market experts and trading professionals.

The best CFD brokers will also have an in-house team of market analysts to provide technical insight and detailed coverage of events that affect the CFD markets.

Final Word

The best CFD brokers will be well-regulated, have low trading costs and will provide excellent education and powerful but easy-to-manage trading platforms. Because there are quite a few brokers who will fit those criteria, it is important to think about what you want from a CFD broker when making your comparison.

Forex Risk Disclaimer

Trading Forex and CFDs is not suitable for all investors as it carries a high degree of risk to your capital: 75-90% of retail investors lose money trading these products. 

Forex and CFD transactions involve high risk due to the following factors: Over-leveraging, unpredictable market volatility, slippage arising from a lack of liquidity, inadequate trading knowledge or experience, and a lack of regulatory protection for clients.

Traders should not deposit any money that is not disposable. Regardless of how much research you have done, or how confident you are in your trade, there is always a substantial risk of loss. (Learn more from the FCA or from ASIC)

Our Methodology

Our State of the Market Report and Broker Directory are the result of extensive research on over 100 Forex brokers. The explicit goal of these resources is to help traders find the best Malaysian Forex brokers – and steer them away from the worst ones – with the benefit of accurate and up-to-date information.

With over 150 data points on each broker and over 3000 hours of research and review writing, we believe we have succeeded in our goal. 

In a world where trading conditions and customer support can vary based on where you live, our broker reviews focus on the local trader and give you information about these brokers from a Malaysian perspective.

All research has been conducted by our in-house team of researchers and writers, gathering information from various company representatives, websites and by sifting through the fine print. Learn more about how we rank brokers

 

References

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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.

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