When searching for the best and most trusted forex broker Malaysia, it is a good idea to have a base understanding of the regulatory requirements.
Malaysia has two financial services regulatory bodies. These are the Labuan Financial Services Authority (LFSA) and the Securities Commission Malaysia (SCM).
Whilst these do regulate some forex brokers locally, the majority of forex brokers operating in Malaysia, and for the benefit of Malaysian traders, hold International rather than local regulation. This is acceptable.
International Trading Strength Brings Choice, But How Do You Choose The Best Forex Broker in Malaysia?
You will find that Malaysia is a great International hub for trading, with many different forex brokers operating in the Country, being an advantage for choice. It does however make the decision for finding the most trusted, or best forex broker in Malaysia that little more difficult.
This article will help you with that choice. You have found a single place for understanding the best, and most trusted forex broker in Malaysia. The team has added their favourite brokers not just for forex, but also a separate section that helps those looking for a stock broker in Malaysia.
Regulation From Tier 1 Agencies Help Create The Best Most Trusted Malaysia Forex Broker List
As briefly highlighted above, due to the International nature of most forex brokers, not all of the best forex brokers in Malaysia below will have direct LFSA or SCM regulation.
A forex broker that is able to show Tier 1 regulation from trusted agencies, along with an ability to safely onboard traders from Malaysia, will not be excluded. The most important thing is that the forex broker has a long history as a trusted broker in Malaysia.
What we will consider as an advantage for best forex broker Malaysia is the ability to onboard traders, and provide customer support in both Malay as well as English. If a forex broker has a local office in Malaysia, that will also be something we are using as a rating point.
The Best Forex Brokers Malaysia Revealed – Our Most Trusted Top 5
1. Tickmill – A forex broker you can trust in Malaysia
Tickmill are a forex broker with heaps to offer when considering who is the best forex broker in Malaysia. To start with, there is local LFSA regulation and offices to show their commitment to the Country. Tickmill also have Tier 1 FCA regulation, supported by FSCA, CySEC, and an offshore arm.
This is a broker that does forex first, and whilst there is a solid range of CFDs covering a variety of other instruments, it is forex where Tickmill are best. Spreads are very competitive, and they have a pro level offer that is taken up by some very serious heavy traders.
If you are considering Tickmill as your forex broker in Malaysia, you will have minimum deposit of $100, and one of the best range of digital payments supported, alongside mainstream deposit and withdrawal options.
2. eToro – a trusted global multi asset broker
eToro hit the mark as far as Tier 1 regulation, with both FCA and ASIC regulation options to onboard in Malaysia. This trading pioneer has Malay language support, Islamic Account options, and a track record of excellence. This is definitely a forex broker that can be trusted.
With all the basics covered as far as Malaysia specific requirements, what makes eToro stand out as one of the best forex brokers?
To start with, the range of instruments that can be traded is as wide as you could imagine. There are real stocks, CFDs, Cryptocurrencies, Indices, Commodities, ETFs, and social trading. These are all available on one account, in most cases with or without leverage. The eToro platform is very easy to use, and whilst it may not be the most sophisticated, is very mobile centric.
This trusted forex broker provides a fully comprehensive demo account (here), alongside a minimum deposit of just $200. eToro are a broker that is committed to making trading accessible to everyone and just keeping things simple.
3. XM – a trusted forex broker for Malaysia, with a strong education focus.
XM are a broker with real International presence, and are very much ‘forex first’. This forex broker has a good offer for Malaysia, with Malay language on both their website and customer support.
Tier 1 ASIC regulation, and a usual sign up bonus is provided by XM to give you as a Malaysia based trader free test entry into the market. If you choose to deposit, XM minimum deposit is only $5. This is a well and truly entry level into the forex market.
There are a series of webinars and seminars conducted by XM regularly to help develop traders. This is a forex broker that has not just given a standard basic version for Malaysia, but are very much dedicated to developing their trading offer for this part of the world.
Avatrade are a forex broker with regulation from many different territories around the globe. This broker has ASIC regulation to fulfil our requirement for Tier 1, but Avatrade also hold JFSA, CBI, DFSA, FSCA, and BVI. It is pretty safe to say that this is a trusted forex broker with a solid offer for International traders, including Malaysia.
Best Forex Broker Malaysia Criteria – Our 10 Rating Points
The Top 10 points we consider in our goal of finding the best, and most trusted forex broker in Malaysia will include the below:
1. Trusted Forex Broker with Tier 1 regulation, Malaysia local regulation also a positive.
Whilst we cannot assume that any non Tier 1 regulated broker is not to be trusted, ensuring that you trade with a broker that has undergone the most rigorous of checks and measures is only an advantage.
We will otherwise only consider forex brokers with FCA, or ASIC regulation.
2. Language support relevant for Malaysia – A trusted broker in Malay and English
Having additional language support in Malay is a sure sign that a forex broker is dedicated to providing the best possible level of support to Malaysia based traders.
When a broker is showing commitment, and is willing to go that extra mile and assume the cost to provide a more localised option, it is a surefire sign that that forex broker is trying to tailor their service to Malaysia.
3. Competitive spreads and low cost broker fee structure. Islamic account options on fee structure needed.
This is one of our standard checks and measures regardless of the Country we are evaluating. It goes without saying that keeping the costs low via competitive spreads and/or low fee structure leaves more in your own trading account balance.
The less we pay on charges, the easier it becomes to maintain profitability.
Due to the fact that more than 60% of the Malaysia population are of the Islamic faith, it is a prerequisite that forex brokers offer Islamic account types in order to rank highly on this list.
4. Different markets and instruments to trade.
Having a strong variety of pairs is fundamental for any best broker ranking. In the particular case of finding the best forex broker Malaysia, ensuring that the Malaysia Dollar is provided as a strong option against the major global currencies will be a plus point.
Providing an option to trade stocks CFDs on the Malaysia or SE Asia based companies, alongside gold and other commodities that are highly traded in Malaysia will also bring a forex broker a little closer to the top of the list.
5. Quality trading on mobile.
This is an absolute necessity for all forex brokers across the globe now, but even more so in Malaysia and SE Asia where mobile based trading, and mobile transactions in general are at global leading levels.
6. Variety of deposit & withdrawal methods.
Support for e-wallets, and broad digital payments that are an essential part of life in Malaysia will give a trusted forex broker an edge.
It is all about the user experience in that sense, minimising the hassle of having to transfer across multiple different payment service methods and allowing you as a trader to have the best options available.
We will be considering not only the support of the payment methods, but also the fee structure relating to deposits and withdrawals. Ideally, a broker operating fee free in this area will top the list of forex brokers.
7. Leverage and Margin.
The range of leverage offered, and the flexibility to change the lever used in your account is helpful.
Whilst in Malaysia you may want to trade 1:1000 leverage on one particular trade, it is nice if your forex broker gives the option to scale back to lower levers when needed, or during times of highly unpredictable volatility.
Margin requirements are also an important factor when considering how much capital you need to have in your account in order to open the trade sizes you want to. We will dig into the details and keep things simple.
8. Fully functional demo account – a necessity for all best brokers in Malaysia and beyond
We need to see a demo account that functions fully, and with the option of unlimited time of use.
It is our core belief that every trader needs to have access to a demo account to test trading strategies and instruments over time. Whether you are looking for a forex broker in Malaysia, or anywhere else in the world that remains true.
We will mark down those with really limited demo functionality.
9. Quality of the trading platform.
The majority of forex trading in Malaysia happens on one of the MetaTrader platforms, and more so MT4.
We are looking here more holistically at the trading platforms that are available, whether proprietary or MT4, MT5, cTrader.
If there are additional functionalities provided, or additional tools that are helpful for trading, we will take this into account.
10. A Broker With Malaysia Oriented Customer Service Function
For a forex broker to be trusted in Malaysia, the customer support function needs to operate across the relevant timezone.
It is no good trying to get hold of customer support out of hours as trading is very time sensitive, by the time you hear back from a broker the following day, the market may have shifted dramatically.
We are therefore looking for a forex broker that operates at least throughout part of the Malaysia working day, and preferably into the early evening period, for the support needed whilst trading on European or US markets.