| Updated: June 19, 2024Forex trading is becoming an increasingly popular type of investment in Malaysia, a country with a fast-growing economy mostly driven by trade and exports. Retail trading participation has witnessed considerable growth in recent years as over 4.7 million residents claim to actively engage in forex trades, according to a 2022 survey conducted by the global broker OctaFX. Malaysian forex traders face no shortage of options but not all brokers accepting customers from the country uphold the same high standards of service.
To streamline the selection process for local traders, our research team created an unbiased ranking of the best forex brokers serving clients from Malaysia. We set up live trading accounts with all recommended brokers to test their order execution, trading platforms, transaction speed, and customer support. All brokers shortlisted on this page offer swap-free trading, quality educational content, and competitive forex quotes. They support ringgit transactions, allowing Malaysian traders to deposit and withdraw in their local currency.
Fusion Markets74-89% of retail CFD accounts lose money
IC Markets70.64% of retail investor accounts lose money
AvaTrade76% of retail investor accounts lose money
easyMarkets71% of retail investor accounts lose money
Spreadex64% of retail investors lose money
Global Prime74-89% of retail CFD accounts lose money
IG70% of retail client accounts lose money
Saxo Bank65% of retail investor accounts lose money
FBS72.12% of retail investor accounts lose money
BlackBull MarketsMalaysian Forex Brokers Ranked by Trustpilot Score
| Forex Broker | Trustpilot Reviews | |
|---|---|---|
| 1. IC Markets | 35964 | 4.8 ⭐ |
| 2. Fusion Markets | 1409 | 4.8 ⭐ |
| 3. AvaTrade | 8469 | 4.5 ⭐ |
| 4. easyMarkets | 1618 | 4.5 ⭐ |
| 5. Spreadex | 93 | 4.4 ⭐ |
| 6. IG | 6723 | 4.1 ⭐ |
| 7. Global Prime | 100 | 4.1 ⭐ |
| 8. Saxo Bank | 5596 | 3.7 ⭐ |
| 9. FBS | 546 | 3.6 ⭐ |
| 10. BlackBull Markets | 34 | 3.6 ⭐ |
Malaysian Forex Brokers Ranked by Spread Commission
| Forex Broker | EURUSD | USDJPY | EURGBP | GBPUSD |
|---|---|---|---|---|
| 1. BlackBull Markets | 0.1 | 0.2 | 0.7 | 0.4 |
| 2. Fusion Markets | 0.11 | 0.13 | 0.15 | 0.11 |
| 3. Global Prime | 0.13 | 0.28 | 0.28 | 0.22 |
| 4. IG | 0.6 | 0.9 | 0.9 | 0.9 |
| 5. Spreadex | 0.6 | 9 | 0.9 | 0.8 |
| 6. easyMarkets | 0.7 | 1.0 | 1.0 | 0.9 |
| 7. FBS | 0.7 | 1.3 | 2.7 | 1.2 |
| 8. IC Markets | 0.8 | 0.8 | 0.8 | 0.8 |
| 9. Saxo Bank | 0.9 | 1.2 | 0.8 | 1 |
| 10. AvaTrade | 0.9 | 1.3 | 1.2 | 1.3 |
Malaysian Forex Brokers Ranked by Commission per Lot
| Forex Broker | Commission per lot |
|---|---|
| 1. AvaTrade | $0 |
| 2. easyMarkets | $0 |
| 3. FBS | $0 |
| 4. Saxo Bank | $3 per lot |
| 5. IG | $0 |
| 6. Spreadex | $0 |
| 7. Fusion Markets | $0 Classic Account, $4.50 round turn on Zero Account |
| 8. BlackBull Markets | $0 Standard; $6 per lot Prime; $4 per lot Institutional |
| 9. Global Prime | $0 Standard Accounts; $7 round turn on Raw Accounts |
| 10. IC Markets | $0 Standard MT; $6 round turn on Raw cTrader; $7 round turn on Raw MT |
Important Note: Forex brokers require authorization from the Securities Commission Malaysia (SCM) to conduct trades on behalf of Malaysian residents. Some offshore brokers serve local customers with licenses issued from the financial regulators of other countries. While such offshore companies are still subject to stringent regulations, registering with an SCM-approved entity is preferable.
Top 10 FX Brokers in Malaysia
Fusion Markets Broker Details Regulators ASIC, FSA (Seychelles), VFSC (Vanuatu) Min Deposit $0 Trading Platforms MetaTrader4, MetaTrader5, cTrader, DupliTrade, Fusion+ Copy Trade Trustpilot Rating 4.8 out of 1409 reviews Number of Forex Pairs to Trade Over 200 Leverage Forex & Metals: 30:1
Index CFDs: 5:1
Cryptocurrencies: 2:1Spread EURUSD: 0.11
USDJPY: 0.13
EURGBP: 0.15
GBPUSD: 0.11Forex 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 Withdrawal Methods Visa, Mastercard, Bank Wire, Skrill, Neteller,Bitcoin, Ethereum, Litecoin, Tether, Ripple Founded by Australian trading experts, Fusion Markets was launched in 2017 and is currently one of the top destinations for traders all over the globe. While it is common for brokers to advertise low spreads, Fusion Markets was actually recognized by Brookerchooser, receiving the award “Lowest Spread Forex Broker” four years in a row.
In addition to offering traders tight spreads, Fusion Markets is committed to offering the best value for your trading, charging a significantly low commission of only $2.25 per lot ($4.50 per side). As you can see, const-effectiveness is one of the main values of this top-shelf broker.
Safety is always a priority for Fusion Markets, with major regulatory bodies like the Australian Financial Services (license No.385620), the Financial Services Authority of Seychelles (license No.SD096), and authorities in Vanuatu regulating the services provided by the broker. Under ASIC’s (Australian Securities & Investments Commission) regulation, the broker also provides a negative balance protection to some of its clients.
With no minimum on deposits and a wide range of popular trading platforms like MetaTrader4, MetaTrader5, cTrader, and more, it is no surprise that Fusion Markets is one of the top choices of traders. With an average score of 4.6 out of 5 on Trustpilot, this broker has received an Excellent rating from more than 1,300 happy customers.
Key Pros
- Offers some of the lowest spreads
- ASIC clients enjoy a negative balance protection
- Supports popular trading platforms
- Offers two copy trading platforms
- Supports fiat and crypto payment solutions
Key Cons
- Does not offer investor protection
- Traders outside Australia have no negative balance protection
- Cannot set up an account in a minor currency
Global Prime Broker Details Regulators ASIC (No. 385620), VFSC (No. 40256) Min Deposit $0 Trading Platforms MT4 Desktop, MT4 Webtrader, MT4 Android Trustpilot Rating 4.1 out of 100 reviews Number of Forex Pairs to Trade 56 Leverage Forex & Metals: 500:1
Index CFDs: 100:1
Cryptocurrencies: 10:1Spread EURUSD: 0.13
USDJPY: 0.28
EURGBP: 0.28
GBPUSD: 0.22Forex 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 is a reliable brokerage that has been providing low-cost trading services since 2010. Regulated by the watchdogs of Vanuatu and Australia, the broker facilitates trading with over 150 financial instruments, including indices, bonds, commodities, cryptocurrencies, and more than 50 currency pairs. Major-pair spreads on raw accounts start at zero pips, with most orders being executed within 10 milliseconds on average. The broker works with MT4 only but plans to soon expand its range of supported platforms with cTrader, MT5, and TradingView.
These excellent trading conditions, coupled with a streamlined registration process, fee-free transactions to and from customer accounts, and round-the-clock support, have earned the broker a solid 4.1 score on Trustpilot. Still, there is scope for improvement as the company offers no cent and swap-free accounts for Islamic customers. The broker has no compensation scheme for client funds, either, which is yet another area Global Prime could improve in.
Key Pros
- Overseen by a top-tier financial regulator (ASIC)
- No fees on deposits and withdrawals
- Low fees for FX trading
- Streamlined sign-up process
- A broad range of currency pairs
Key Cons
- Could use more trading platforms
- A limited range of educational resources
- Does not offer Islamic or cent accounts
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) Min Deposit $100 Trading Platforms MetaTrader4, MetaTrader5, WebTrader, AvaTadeGO, AvaSocial Trustpilot Rating 4.5 out of 8469 reviews Number of Forex Pairs to Trade 60+ Leverage Forex & Metals: 30:1
Index CFDs: 20:1
Cryptocurrencies: 2:1Spread EURUSD: 0.9
USDJPY: 1.3
EURGBP: 1.2
GBPUSD: 1.3Forex Commission per Lot per Trade $0 Deposit Methods Visa, Mastercard, Skrill, WebMoney, Neteller, bank wire Withdrawal Methods Visa, Mastercard, Skrill, WebMoney, Neteller, bank wire AvaTrade is one of the most well-experienced brokers offering online trading since 2006. Licensed and regulated to operate across six continents, this brand focuses on offering CFD and Forex trading, with popular platforms like MetaTrader 4 and 5 available to members of the broker. Alongside the MetaTrader platform, AvaTrade also offers its AvaTrade WebTrader and AvaTradeGO platforms, which introduce several innovative features such as AvaProtect.
Those inexperienced in trading can also try copy trading with AvaTrade’s AvaSocial platform. Trading on the go is also a seamless process, with AvaTrade’s mobile platforms, all available on the AvaTrade mobile app, available both to Android and iOS users.
It is no wonder that so many traders have chosen to trust AvaTrade, with the brand offering some of the greatest trading conditions online. Hedging on short selling and scalping is allowed, with traders having no restrictions to worry about. Fast order executions as well as competitively low spreads are also some of the reasons that have earned the broker a score of 4.6 out of 5 on Trustpilot. A total of 9 jurisdictions regulate the services offered by Ava Trade, with the Financial Futures Association of Japan, the Cyprus Securities and Exchange Commission, and the Australian Securities and Investments Commission being some of them.
Key Pros
- Regulated by 9 jurisdictions in 6 continents
- Offers various trading platforms suitable for beginners and expert traders
- Enables smooth mobile forex trading via dedicated app
- Offers 55 forex options and numerous CFDs
- Easy copy trading via the AvaSocial platform
Key Cons
- Retail account pricing trails behind top brokers’ offerings
- Desktop platform may seem a tad outdated
- Many payment solutions are country-specific
easyMarkets Broker Details Regulators CySEC (license no. 079/07), ASIC (license no. 246566), FSA (license no. SD056), and FSC (license no. SIBA/L/20/1135). Min Deposit $100 Trading Platforms easyMarkets, MetaTrader 4, MetaTrader 5, TradingView Trustpilot Rating 4.5 out of 1618 reviews Number of Forex Pairs to Trade 60+ Leverage Forex & Metals: 30:1
Index CFDs: 20:1
Cryptocurrencies: 2:1Spread EURUSD: 0.7
USDJPY: 1.0
EURGBP: 1.0
GBPUSD: 0.9Forex 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 Transfer Starting in 2001, nowadays, easyMarkets is one of the top brokers that cater to the preferences of a wide range of traders, with several licenses authorizing the brand to operate in multiple markets. To ensure traders’ safety, the broker is regulated by authorities like CySEC (license no. 079/07), ASIC (license no. 246566), FSA (license no. SD056), and FSC (license no. SIBA/L/20/1135).
Being among the pioneers in online trading, easyMarkets was the first one to introduce advanced tools like dealCancellation, Freeze Rate, and Inside Viewer. As for the platforms available to members of the broker, first, we would like to highlight the easyMarkets platform, which boasts a simple design and a selection of advanced trading tools that will appeal to experienced traders. Meanwhile, there is also the alternative to use platforms like MetaTrader 4 and 5 as well as TradingView. Mobile trading is also very accessible thanks to the dedicated easyMarkets app available to both Android and iOS users.
Competitive spreads and low fees are also among the features that make easyMarkets a preferable destination for a large number of traders. The company enjoys an average score of 4.6 out of 5 on Truspilot’s review platform, further cementing the broker’s reputation. Going live requires a minimum deposit of only $100, with the broker supporting a wide selection of deposit methods.
Key Pros
- Offers tight spreads and low fees
- Supports trading of over 60 currency pairs
- Regulated by several reputable authorities
- Supports a wide range of payment methods
- Offers a proprietary platform
Key Cons
- Number of supported products is somewhat limited
- Does not offer copy trading platform
- Traders from certain countries may have access to fewer payment methods
FBS Broker Details Regulators CySEC (No. 331/17), FSC (No. 000102/6), ASIC (No. 426359) Min Deposit Standard accounts: $100
Cent accounts: $10Trading Platforms MT5 Desktop, MT5 WebTrader Trustpilot Rating 3.6 out of 546 reviews Number of Forex Pairs to Trade 28 Leverage Forex & Metals: 30:1
Index CFDs: 20:1
Cryptocurrencies: 2:1Spread EURUSD: 0.7
USDJPY: 1.3
EURGBP: 2.7
GBPUSD: 1.2Forex Commission per Lot per Trade $0 Deposit Methods Visa, Mastercard, Maestro, Skrill, Bank Transfer, Neteller, EFT, Sticpay, Perfect Money, Fasapay, AstroPay, Pix Withdrawal Methods Visa, Mastercard, Maestro, Perfect Money, Neteller, Sticpay, EFT, Bank Transfer, Skrill, AstroPay, Pix, Fasapay FBS is a global forex broker with over a decade of experience in providing low-cost trading services. Regulated by CySEC, ASIC, and Belize’s FSC, the company has a whopping 23 million customers across more than 150 countries. FBS clients have access to over 40 currency pairs, indices, hard commodities, and major US stocks, available for trading with floating spreads that start from zero pips in some cases.
The brokerage has many upsides going for it, including 24/7 client support, reasonable pricing, and a great collection of learning materials for customers looking to hone their skills. Its detailed Guidebook for FX trading features chapters for beginner, elementary, intermediate, and experienced traders. Two main account types are on offer, Standard and Cent, with minimum initial deposits starting at $100 and $10, respectively. The broker offers demo versions of both account types.
FBS is ideal for customers with a high risk tolerance and large appetites for rewards, allowing them to leverage their positions at ratios of up to 3000:1. As generous as it is, this leverage cap applies only to clients registering through the Belize-licensed version of the website. Various funding methods are supported, although availability largely depends on region.
Key Pros
- Leverage of up to 3000:1 on FX majors (non-EU)
- Excellent learning content
- Novice FX traders can set up cent accounts
- Market execution speed averages 0.3 seconds
- Great Guidebook for FX trading
Key Cons
- Facilitates trading via MT5 only
- Below-average range of tradable products
- Lacks FCA authorization
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) Min Deposit $0 Classic$200,000 + Platinum $1,000,000 + VIP Trading Platforms SaxoTraderGO, SaxoTraderPRO, TradingView Trustpilot Rating 3.7 out of 5596 reviews Number of Forex Pairs to Trade 185+ Leverage Forex & Metals: 30:1
Index CFDs: 20:1
Cryptocurrencies: 2:1Spread EURUSD: 0.9
USDJPY: 1.2
EURGBP: 0.8
GBPUSD: 1Forex Commission per Lot per Trade $3 per lot Deposit Methods Visa, Visa Electron, Mastercard, Maestro, Bank Transfer, Quick Payment Withdrawal Methods Bank Transfer Established in 1992, Saxo Bank provides a superior trading experience across multiple asset classes and more than 71,000 financial instruments. The brokerage is operated by one of Denmark’s largest investment banks and carries licenses from several first-tier financial regulators, including the British FCA, Australia’s ASIC, and Singapore’s MAS. Saxo Bank provides a solid choice from over 185 major, minor, and exotic currency pairs available for commission-free trading at highly competitive spreads.
Apart from trading on the spot markets, Saxo Bank clients can dabble in Forex forwards, vanilla options, contracts for difference, and futures. All costs are built into the spreads as the brokerage charges no additional commissions on foreign exchange trades. Customers looking to diversify their portfolios can trade in various hard and soft commodities, equity indices, mutual funds, bonds, and ETFs. Its somewhat limited range of deposit and withdrawal methods is one of the very few shortcomings of Saxo Bank, whose overall score on Trustpilot averages 4.2 out of 5 stars.
Key Pros
- Offers a varied range of major, minor, and exotic FX pairs
- Provides tier-1 liquidity for high order fill rates
- Boasts over 30 years of experience in the financial industry
- Offers more than 140 FX forward contracts
- Excellent fill rates for FX majors like EUR/USD
Key Cons
- Steep minimum deposits for VIP and Platinum accounts
- Overcrowded and hard-to-navigate website
- Customizing SaxoTraderPRO for desktop takes some time
IG Broker Details Regulators ASIC (No. 515106), FCA (No. 114059), CFTC, DFSA (No. F001780), MAS, BMA Min Deposit $50 Trading Platforms MT4, L2 Dealer, ProRealTime, IG proprietary software Trustpilot Rating 4.1 out of 6723 reviews Number of Forex Pairs to Trade 80+ Leverage Forex & Metals: 30:1
Index CFDs: 20:1
Cryptocurrencies: 2:1Spread EURUSD: 0.6
USDJPY: 0.9
EURGBP: 0.9
GBPUSD: 0.9Forex Commission per Lot per Trade $0 Deposit Methods Visa, Mastercard, Bank Transfer, Wire Transfer, Visa Electron, Discover, PayPal Withdrawal Methods Visa, Visa Electron, Mastercard, Discover, Bank Transfer IG is a trusted online broker regulated in multiple jurisdictions, including Australia, Singapore, Dubai, the UK, and the US. It provides low-cost trading in thousands of financial markets, ranging from forex and commodities to cryptocurrencies, shares, bonds, and indices. Seasoned traders can dabble in options contracts, bonds, and spread betting. Interest rate trading is also available to IG customers.
The brokerage charges no commissions on forex trades, deriving its profits mostly from spreads. IG predominantly caters to customers looking to capitalize on price movements without purchasing underlying assets by offering them a broad range of CFDs. Forex traders have access to complex speculative instruments like turbo warrants, vanilla options, contracts for difference, and barrier options.
IG’s proprietary software does an excellent job at delivering seamless trading sessions, although clients can also connect third-party platforms like MT4 and ProRealTime to their IG accounts. Both platforms are suitable for algorithmic trading. Moving funds to and from your live account is entirely free, although the broker could expand its range of accepted payment methods. Cards, bank transfers, and PayPal are the only banking options IG works with at the moment. Bank transfers have no minimum threshold on deposits.
Key Pros
- Towering selection of over 17,000 tradable markets
- Listed on the FTSE 250 index
- Competitive pricing and low forex spreads
- No fees on deposits or withdrawals
- Demo accounts for risk-free forex trading practice
Key Cons
- Payment options are a bit limited
- Customer support is slow to respond during busy hours
BlackBull Markets Broker Details Regulators SFSA (No. SD045), FMA (No. FSP403326) Min Deposit $0 (Standard)$2,000 (Prime)$20,000 (Institutional) Trading Platforms MT4, MT5, TradingView, cTrader, MT WebTrader, BlackBull Shares, BlackBull CopyTrader, BlackBull Trade Trustpilot Rating 3.6 out of 34 reviews Number of Forex Pairs to Trade 70+ Leverage Forex & Metals: 500:1
Index CFDs: 500:1
Cryptocurrencies: 500:1Spread EURUSD: 0.1
USDJPY: 0.2
EURGBP: 0.7
GBPUSD: 0.4Forex 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 Founded in 2014, BlackBull Markets takes the lead when it comes to tradable asset diversity, providing a choice from a whopping 26,000 financial instruments. The broker caters to forex traders with over 70 major, minor, and exotic currency pairs tradable via three types of ECN accounts (Standard, Prime, and Institutional). Commodities, shares, indices, and futures can also be traded at BlackBull Markets.
The Seychelles-licensed broker offers relatively reasonable trading conditions, although the exact trading costs largely depend on what type of live account you open. Customers looking to trade commission-free can do so via ECN Standard accounts, where spreads generally start from 0.8 pips and there are no minimum deposit requirements. ECN Prime and ECN Institutional accounts are suitable for seasoned and high-volume traders. Both account types incur above-average commissions per lot.
Customers with live accounts can top up their balance with cards, digital wallets, online banking gateways, bank transfers, and cryptocurrencies. While deposits come at no extra cost, the New Zealand-based broker charges a $5 processing fee on all withdrawals, regardless of the payment method used.
Key Pros
- Uses proprietary copy-trading platform
- Swap-free trading via ECN Standard and Prime accounts
- Multi-platform support
- Provides a 24/7 customer support service
- Great Education Hub for traders looking to hone their skills
Key Cons
- High commissions per lot on Prime and Institutional accounts
- Charges a $5 fee on withdrawals
Spreadex Broker Details Regulators FCA (No. 190941) Min Deposit $0 Trading Platforms TradingView, proprietary software Trustpilot Rating 4.4 out of 93 reviews Number of Forex Pairs to Trade 60+ Leverage Forex & Metals: 30:1
Index CFDs: 20:1
Cryptocurrencies: 2:1Spread EURUSD: 0.6
USDJPY: 9
EURGBP: 0.9
GBPUSD: 0.8Forex 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 UK-regulated firm that provides financial spread betting and leveraged trading through contracts for difference. The company carries the stamp of approval of the Financial Conduct Authority (FCA) and has over 25 years of industry experience. Over 60,000 customers worldwide choose Spreadex for its competitive pricing, advantageous trading conditions, and diverse product range comprising more than 10,000 financial instruments.
Clients can trade over 60 currency pairs with tight spreads averaging 0.6 pips on majors like the EUR/USD. Beyond Forex, Spreadex has decent enough coverage of the equity index, commodity, and stock markets. Options, bonds, interest rates, and exchange-traded funds are also available for trading at favorable conditions.
Traders at Spreadex can stay ahead of the curve with weekly technical analysis, trading updates, and an economic diary, all available under the News & Analysis tab. Connecting your Spreadex account to TradingView is an option, although the broker’s proprietary software also ensures a seamless trading experience and fast order execution. Spreadex does not support MT4 and MT5 at the moment but has earned an above-average Trustpilot score of 4.5 stars despite this shortcoming.
Key Pros
- Provides access to over 10,000 tradable symbols
- Well-designed and intuitive mobile trading app
- Offers spread betting on FX pairs
- Commission-free FX trading with tight spreads
- Seamless registration process
Key Cons
- No support for MetaTrader 4 or 5
- Licensed by a single financial regulator (FCA)
- Deposits under $/£50 may incur additional charges
IC Markets Broker Details Regulators CySEC (license No. 362/18), ASIC (license No. 335692) Min Deposit $200 Trading Platforms MetaTrader4, MetaTrader5, cTrader, ZuluTrade Trustpilot Rating 4.8 out of 35964 reviews Number of Forex Pairs to Trade 61 Leverage Forex & Metals: 30:1
Index CFDs: 20:1
Cryptocurrencies: 2:1Spread EURUSD: 0.8
USDJPY: 0.8
EURGBP: 0.8
GBPUSD: 0.8Forex Commission per Lot per Trade $0 Standard MT; $6 round turn on Raw cTrader; $7 round turn on Raw MT Deposit Methods Bank transfer, Visa, Mastercard, PayPal, Skrill, Neteller, Visa Direct, SafeCharge, Transact365, eCommPay, CardPay, Bpay, FasaPay, Poli, RapidPay, Klarna Withdrawal Methods Bank transfer, Visa, Mastercard, PayPal, Skrill, Neteller, Visa Direct, SafeCharge, Transact365, eCommPay, FasaPay, Poli, RapidPay, Klarna Launched in 2007, IC Markets is a well-experienced Australian-based broker, catering to traders across multiple markets. We recommend the brand mainly to forex traders due to its tight spreads and a rather decent currency pair coverage. Supporting the standard MetaTrader 4 and 5 platforms as well as cTrader and ZuluTrade, IC Markets offers a smooth trading experience to both seasoned and less experienced traders.
Cost-effectiveness is definitely one of the reasons for so many traders choosing the services of IC Markets. With no inactivity or withdrawal fees, traders can enjoy a better value for their trading. Forex commission fee is as low as $3.50 per lot traded, while the average spread for a standard pair like EUR-USD is 0.2 for raw spread accounts.
The minimum deposit at IC Markets starts at $200, with traders having multiple secure payment options to choose from. Further ensuring its clients’ security, the broker follows strict trading guidelines imposed by regulators like the Cyprus Securities and Exchange Commission (License No. 362/18) and Australian Securities and Investments Commission ( License No. 335692). Another proof of the broker’s excellent trading services is the extremely high score of 4.8 out of 5 on Trustpilot.
Key Pros
- Offers a large number of forex pairs to trade
- Great for forex traders due to low spreads
- Supports all industry-standard trading platforms
- Supports a wide range of payment solutions
- Low forex trading commission
Key Cons
- Non-EU customers have no investor protection
- Not listed on stock exchange
- List of products can be further expanded
Is Forex Trading Legal in Malaysia?
Malaysians can legally engage in forex trading on condition they do so with regulated brokers, preferably licensed by the country’s Securities Commission (SCM). Broking firms interested in legally operating in Malaysia must apply for a Capital Markets Services License (CMSL) from this regulatory authority. Applicants must satisfy various capital and operational requirements to gain approval from the SCM.
The SCM has set the initial capital requirements for brokers at 5 million ringgit. This condition aims to ensure broking firms have enough operating capital to meet their obligations to Malaysian clients. Directors and key management personnel behind the broking companies must be qualified and experienced enough to perform their duties. Individuals who have been subject to disciplinary or legal proceedings are ineligible.
Authorized brokers must implement robust systems for internal control and follow stringent anti-money laundering policies to prevent fraudsters from using their platforms for illicit activities. SCM-licensed companies conduct comprehensive customer verification checks and must inform the relevant authorities about any suspicious transactions or activities.
Licensees segregate client funds from their operating capital and undergo regular audits, ensuring compliance at all times. SCM-compliant companies must execute the orders of Malaysian clients at the most favorable conditions available at the time and be fully transparent about their pricing and financing costs.
Financial Regulators in Malaysia
Several financial regulators oversee forex transactions in the country, starting with Bank Negara Malaysia (BNM) or the Central Bank of Malaysia. Established in 1959, the BNM regulates all matters related to the local currency, the Malaysian ringgit, actively working to stabilize and protect it. It controls Malaysia’s international reserves and is the sole issuer of Malaysian ringgits. Additionally, the BNM advises the local government on public debt management and economic policy. It actively promotes economic growth and maintains the country’s financial stability.
The Securities Commission Malaysia (SCM) regulates the capital markets in the country under the provisions of the Capital Markets and Securities Act 2007. Based in Kuala Lumpur, the regulatory body grants licenses to securities and derivatives brokers, investment advisors, and fund management companies. It closely monitors its licensees to ensure they uphold high consumer protection standards and comply with Malaysian law. The SCM has the remit to impose sanctions on non-compliant companies and suspend and revoke their licenses.
Another prominent regulatory body is the Labuan Offshore Financial Services Authority (LOFSA), based in the eponymous island territory. A major offshore financial center, Labuan attracts foreign forex brokers with its lower tax rates and licensing costs. Broking firms seeking forex licenses from the LOFSA must meet a significantly lower initial capital threshold of around 500,000 ringgit, pocket money compared to the SCM’s minimum requirements. Since Labuan is a federal territory of Malaysia, forex brokers licensed by the LOFSA can do business with traders from the mainland.
How to Identify Forex Brokers Authorized in Malaysia
Malaysian traders should look up the regulatory status of their forex brokers to ensure they are adequately regulated. Broking firms domiciled in the country are featured in the public licensee register of the SCM. If the company you plan to trade with is locally regulated, it will appear in the watchdog’s database, along with its registration number.
Make sure the broker still holds an active license as the database also contains firms with revoked, suspended, or expired permits. The Malaysian regulator additionally maintains an investor alert list of companies targeting residents without authorization. Some companies featured on the list are not scam brokers per se, but rather firms that service the local market without SCM licenses, although clone entities are also included.
Residents who intend to trade with offshore brokers licensed outside Malaysia should check the public registers of the relevant national regulatory bodies that license them. Certain brokers accept Malaysian traders with permits from Belize, Vanuatu, or the Seychelles. Malaysians should steer clear of dealing with unregulated firms as otherwise they run the risk of falling prey to forex scammers.
Security at Malaysian Forex Brokers
Malaysian residents looking for trusted forex brokers should ensure their chosen companies implement adequate security and risk-management mechanisms to protect clients’ investments and sensitive information. The best broking companies in Malaysia normally publish obligatory risk disclosures on their websites to inform retail clients about the high risk associated with margin trading and using leverage.
Customers have access to extensive educational content on derivative trading with volatile financial instruments like contracts for differences (CFDs), futures, and options. They will benefit from negative balance protection and automatic margin closeouts that prevent unfavorable market conditions from draining their balance. The best brokers catering to traders from the Malaysian market rely on sophisticated firewalls and encryptions to protect the sensitive data transmitted to and from their platforms.
Fund segregation is another safeguard reputable brokerages commonly implement. Such companies always keep the funds of their clients separate from their own capital. This practice prevents brokers from misusing customers’ assets and deposits when experiencing financial challenges. With fund segregation in place, you should never worry about not getting your money back if your broker files for bankruptcy. Both customers’ money and the companies’ operational capital are stored in reliable banks.
Negative Balance Protection at Malaysian Forex Brokers
Whether you trade with a locally licensed or an offshore broker, you should always ascertain it provides negative balance protection. This risk-management tool is beyond important, especially if you intend to dabble into high-risk currency CFDs. Complex derivatives like these involve using leverage which can significantly magnify both your profits and losses. Negative balance protection safeguards unversed traders from suffering huge financial losses. It prevents their account balance from dropping below zero and losing more than their original investment.
When using leverage, traders basically borrow extra funds from their brokers to open larger positions with a smaller capital overlay. Traders with leveraged CFD positions must maintain sufficient balance in their live accounts, known as “maintenance” margin. When the markets move abruptly against their trades, brokers will start closing all losing positions in their accounts to prevent further losses. The measure is known as automatic margin closeout and is adopted by all regulated brokers, including those serving the Malaysian market.
Taxes on Forex Trading Profits in Malaysia
Profits obtained through forex trading are taxable in Malaysia but taxation rules are nuanced. Forex traders are generally exempt from capital gains taxes, but are liable for personal income taxes provided they reach a specific threshold. One’s residential status also plays a role. Individuals who do not reside in the country permanently are taxed at a flat rate of 30%.
A tiered tax system applies to permanent residents of Malaysia, with tax rates ranging from 1% to 30%. The exact percentages due depend on income size. Individuals who generate income below 5,000 ringgit are exempt from taxation, while those with profits of 2 million ringgit or more are taxed at the highest rate of 30%. The table below contains all nine income tiers, along with their respective tax percentages.
| Income Tax Brackets in Malaysia | |
|---|---|
| Income Amount | Tax Percentage Due |
| 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.
Leverage Caps in Malaysia
The Securities Commission Malaysia does not mention specific leverage caps in its guidelines for CFD providers. The Labuan Financial Services Authority (LOFSA) mandates maximum leverage of 100:1 for retail traders. The threshold applies to all contracts for difference regardless of the volatility of the underlying assets. This leverage is rather generous especially when we compare it to the caps in other jurisdictions.
Brokers regulated in Australia and Europe, for instance, impose considerably lower caps of 30:1 for major forex pairs. The rates become progressively lower for riskier underlying assets, dropping to 2:1 for highly volatile cryptocurrencies. Japan’s regulator JSA mandates even lower leverage of 25:1 for forex majors.
As we previously mentioned, many forex brokers serve Malaysian customers with licenses obtained from offshore regulators like the Financial Services Commission of Belize. Some offshore watchdogs have adopted a more lenient approach toward retail trading regulation and allow considerably higher leverage.
As a result, some Malay-friendly brokers licensed in Belize offer leverage as high as 1000:1 to retail traders from the country. Malaysian residents leveraging their positions at such unreasonably high rates risk sustaining crippling losses if they lack experience in margin trading with derivatives.
Islamic Forex Trading Accounts in Malaysia
Malaysia is a predominantly Muslim country as over 63% of the population professes the Islamic faith. Islam prohibits interest, or riba, as it deems it an unfair and exploitative way of earning money. Malaysian brokers commonly comply with the principles of the Shariah law, catering to local traders with Shariah-compliant accounts. This type of account facilitates swap-free trading, meaning there are no swap fees on overnight positions.
Malay-friendly brokers charge flat holding fees in place of swaps, which sits well with Shariah principles. In most cases, Muslim customers must register with a broker, deposit funds to their balance, and request to upgrade from regular to swap-free accounts. The broker’s relevant department will assess and approve the requests of eligible traders within a couple of business days. Some brokers allow customers from predominantly Muslim countries to manually enable swap-free mode from the dashboard of their accounts.
Forex Trading Platforms in Malaysia
In our observations, most forex brokers accepting customers from Malaysia utilize award-winning software like MetaTrader 4 and MetaTrader 5. Courtesy of MetaQuotes, both platforms deliver a superior trading experience and are supported by hundreds of regulated brokers worldwide. MT4 and MT5 are also fully legal to use in Malaysia, so you have nothing to worry about if you are trading with properly licensed forex brokers.
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.
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.