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Malaysia ETF Guide – How To Buy ETF In Malaysia

In this Malaysia ETF guide, we will guide you through how to buy ETF in Malaysia, why people want to invest in ETFs, and where you can invest in ETFs in Malaysia with the best brokers. We will also go through the differences when you may encounter when considering how to buy a US ETF, or a locally listed fund.

How to buy ETF Malaysia

How To Buy ETF In Malaysia

Buying an ETF in Malaysia can be a great way to diversify your investment portfolio and take advantage of the many benefits that these financial vehicles offer but knowing how to buy ETF in Malaysia doesn’t need to be difficult if you have some clear steps to follow.

When buying ETFs, there are several important factors to consider, including choosing the right broker, understanding how ETF prices are determined, and being aware of any tax implications associated with Malaysia ETF investing. With a little research and careful planning, buying ETFs in Malaysia can be a simple and rewarding experience.

Your First Malaysia ETF Investment In Steps

1. Take Your Pick Of The Best ETF Platforms.

One of the first things to consider when trading ETFs in Malaysia is finding a broker that offers this service. Not all brokers offer the ability to trade ETFs, so it is important to do some research ahead of time.

Some good places to start include online reviews, comparing brokers based on fees and commissions, and talking to fellow investors or financial advisors for recommendations. We have also listed some of the best ETF brokers and trading platforms in Malaysia later on this page.

2. Evaluate ETF Pricing & Market Conditions

Once you have chosen a broker that offers Malaysia ETF trading services, it is important to understand how ETF prices are determined.

Most ETFs all around the globe are traded on an exchange just like regular stocks, so their prices fluctuate based on supply and demand. However, because ETFs represent a basket of assets, their prices can also be influenced by the underlying value of the securities they hold.

For this reason, it is important to pay attention to both the overall market conditions as well as the specific sector or asset class that an ETF is in before deciding which is going to be the best ETF for you to buy.

3. Get An Understanding Of The Fees You Will Incur

It’s also important to understand the fees associated with trading ETFs. When buying or selling ETFs on an exchange, investors will typically have to pay a commission to their broker. Additionally, many ETFs come with an annual management fee, which can eat into investment returns over time.

This expense ratio is a fee that covers the costs of managing and operating the fund. These fees can vary widely depending on the ETF, so it’s important to always review them before making any trades.

4. Ensure You Have A Trading Plan

As with any financial decision, it’s essential to have a robust strategy, or trading plan in place when investing in ETFs. This means developing a clear understanding of how your investments will fit into your overall portfolio, as well as having a plan for how you’ll manage risk and position yourself for potential market downturns.

5. Know Your Potential Tax Liabilities

Finally, it is also important to be aware of any tax implications associated with trading or buying ETFs in Malaysia. While capital gains from direct stock investing are currently tax-free in Malaysia, dividends and interest income are subject to a 10% tax.

As such, investors need to be aware of how their ETF investments will be taxed before making any trades. Capital gains taxes may apply to profits made from selling ETF units, so it is important to consult with a tax professional ahead of time to understand what, if any, taxes you may owe in the future should you buy into and subsequently profit from an ETF in Malaysia.

6. Place Your Orders

To open a position, you will place a buy order in the same way you do with a stock purchase. It is preferable to set a limit buy so that your purchase price will be fixed and at the level you have evaluated as being a good opportunity for this particular Malaysian ETF. The same process is undertaken when you sell, use limit sells and not market price.

So to summarise, the process of how to buy ETF in Malaysia can be broken into the below steps:
  • Take a moment to understand the tax implications of buying an ETF Malaysia
  • Analyse the market for the best ETF to buy, and create a list
  • Evaluate the price of the sector, and the direct ETFs you have listed for value opportunities
  • Find a trusted Malaysia ETF platform or broker, and open an account with them – not forgetting to check the fee structure
  • Set a purchase order (ideally a limit order) for the ETF you want to buy or invest in

Best Brokers and ETF Platforms Malaysia

Before you begin trading or investing in ETF from Malaysia, you will need to find an ETF broker or trading platform that supports ETFs. Some of the best ETF brokers in Malaysia include:

Admiral Markets

Admiral Markets ETF Malaysia

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This is a broker that offers a wide range of trading platforms, including MetaTrader 4 and MT5, and a large scope of trading instruments including leveraged and non leveraged ETFs. They also provide low commission fees and competitive spreads, making them a popular choice for investors looking to trade ETFs.


FXTM Malaysia ETF


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FXTM is a broker that offers competitive rates and a wide range of trading platforms, including MT4 and cTrader. They also provide access to a variety of markets, including for Malaysian forex traders and commodities, making them an ideal choice for traders looking to diversify their investment portfolio through leveraged ETFs.


Tickmill Malaysia ETF


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As one of the largest International brokers with an intuitive ETF platforms and local LFSA regulation, Tickmill offers a wide range of investment products and services. This includes access to ETFs with competitive rates and an easy-to-use platform range and is an excellent choice for investors looking to start buying US ETFs in Malaysia.

Phillip Securities

This is a local broker that offers a wide range of products and services, including access to ETFs. Phillip Securities also provides competitive commission rates and a user-friendly platform, making them a great choice for investors looking to buy Malaysia ETF assets.

Saxo Bank

This is a global broker that specializes in providing online trading services, including access to Malaysia ETF instruments. Saxo Bank offers competitive commission rates and a range of trading tools and research resources, making them a great choice for novice investors.

ETF Platform Summary

Each of the above listed ETF brokers in Malaysia offers a different suite of products and services, so be sure to compare them before deciding which one is right for you. When looking at each broker, consider factors like:

  • The types of ETFs they offer access to
  • Their commission structure
  • The fees they charge for ETF trading
  • Their customer service and support offerings

By taking the time to compare different ETF platforms, you can find the one that best suits your own particular investment needs and objectives.

Why Buy Malaysia ETF Investments?

Malaysia ETF Guide KL Tower

Since the early 2000s, exchange-traded funds (ETFs) have become increasingly popular among investors. An ETF is a type of investment fund that trades on a stock exchange and tracks a particular index, commodity, or basket of assets.

One of the main attractions of ETFs is that they offer exposure to a wide range of asset classes in a single investment. For example, an investor could purchase an ETF that tracks blue chip Malaysia stocks, or the S&P 500 index, which would give them exposure to 500 large US stocks. Or, an investor could purchase an ETF that tracks the price of gold, providing them with exposure to the precious metal without having to own any physical gold.

ETFs are also relatively simple and cost-effective to trade. Because they are traded on an exchange, investors can buy or sell ETFs in real-time whenever the market is open. And since ETFs track a particular index or asset class, they typically don’t require much maintenance or monitoring from the investor.

While there are some risks associated with trading ETFs, many investors find them to be a safe and effective way to gain exposure to various asset classes and markets.

How To Buy US ETF Malaysia

Wall St Sign Home Of US ETFs

Looking to trade US ETFs from Malaysia? There are several different options available, depending on your trading style and investment goals. Some of the biggest and most popular ETFs in the US include funds like SPY, QQQ, DIA, and IWM.

If you’re looking for exposure to specific sectors or markets, there are also ETFs available that track everything from tech stocks to small-cap companies.

If you want to buy US stocks from Malaysia but dont want to pick individual companies, ETFs can fill that void. No matter what you’re looking for, there’s likely an ETF out there that can give you the exposure you’re looking for.

When it comes to buying US ETFs from Malaysia, the best way to do so is through a broker that offers international access. This way, you’ll be able to trade these ETFs just as if you were trading any other security on a US exchange.

One broker that offers this type of access is Interactive Brokers. With Interactive Brokers, you can trade US ETFs without any commission or fees. This makes it an affordable and convenient option for Malaysian investors looking to trade US ETFs.

What are leveraged ETFs?

Trading ETFs with leverage is becoming increasingly popular in Malaysia, as investors look for ways to boost their returns in a fast-paced and unpredictable market environment. Leveraged ETFs are designed to amplify the returns of various underlying indices, allowing you to take advantage of short-term price movements while minimizing your risk.

There are a number of leveraged ETF providers in Malaysia, including top players like Bursa Malaysia and Phillip Securities. These providers offer leveraged ETFs that track a variety of indices, such as the S&P 500 or Dow Jones Industrial Average, allowing you to choose the leveraged ETF that best suits your trading strategy and risk tolerance. Leveraged ETFs are derivative contracts in the form of CFDs, futures, or options.

When trading leveraged ETFs in Malaysia, it’s important to remember that these products are designed for short-term trading and come with a higher degree of risk. As such, it’s crucial to have a solid understanding of how leveraged ETFs work before investing. Additionally, be sure to use stop-loss orders and other risk management techniques to protect your capital.

Some Of the Best Malaysia ETFs to Consider

best Malaysia ETFs

Trading Malaysia ETFs can be a great way to access the country’s growing economy and benefit from its many lucrative opportunities.

Some of the biggest ETFs to trade in Malaysia include the iShares MSCI Malaysia Index Fund, which offers exposure to some of the biggest companies listed on the Kuala Lumpur Stock Exchange, as well as the iShares MSCI Emerging Markets Asia Index Fund, which provides access to the broader Asian market.

Other popular Malaysia ETF tickers include the iShares FTSE Bursa Malaysia KLCI Index Fund, which tracks the performance of one of the biggest stock indices on the country’s exchange, and the SPDR Gold Shares ETF, which offers exposure to the gold market.

Whether you’re a seasoned trader or just starting out, there are many ETFs to choose from in Malaysia that can help you take advantage of the country’s many growth opportunities. So if you’re looking for a new way to tap into this thriving market, consider trading some of the top ETFs in Malaysia today.