Best Forex Brokers in Malaysia

Best For Trading in the App

Octa

Get Started

Best For Dedicated CFD Traders

Vantage Markets

Get Started

Best For Low Fees

Axi

Get Started

Best For Best for Low Fees and Tight Spreads

IFC Markets

Get Started

Best For Excellent Trading Conditions and Overall Offerings

FOREX.com

Get Started

View More

Forex trading has the potential to be profitable, but selecting a reputable and well-regulated broker is crucial for a smooth trading experience. Since each broker has its own strengths and weaknesses, traders must conduct thorough research before making a choice. With careful consideration, Malaysian forex traders can find a top-rated broker that aligns with their needs.

While many internationally regulated forex brokers accept Malaysian clients, those holding a Capital Markets Services License (CMSL) from the Securities Commission of Malaysia (SCM) offer an added layer of security and trust.

This article will compare some of the best brokers available, helping traders make an informed decision by evaluating key factors such as regulatory compliance, trading platforms, customer service, and pricing.

Best Malaysia Forex Brokers

Here are some of the top forex brokers in Malaysia, carefully selected based on their regulatory status, trading platforms, customer support and overall reliability. Let’s take a closer look at each broker and what they have to offer.

Best for Trading in the App: Octa

Overview: Octa was established in 2011, offering access to over 300 trading instruments, including forex, commodities, indices and cryptocurrencies. With a presence in more than 180 countries and over 40 million trading accounts opened, Octa has garnered recognition, including the "Best Global Broker Asia 2022" award.

Why We Picked It: Octa offers user-friendly platforms, including MetaTrader 4, MetaTrader 5, and its proprietary OctaTrader, available on desktop, web and mobile devices. The platform provides commission-free trading with tight spreads, no swap fees and no inactivity fees. With a maximum leverage of up to 1:1000, extensive educational resources, including webinars, tutorials, and daily trading ideas, coupled with 24/7 multilingual customer support, Octa ensures a seamless trading experience for both beginners and experienced traders.

Best for CFD Traders: Vantage Markets

Overview: Vantage Markets, established in 2009, is a trading platform offering access to over 1,000 trading instruments, including forex, commodities, indices, ETFs and bonds. Vantage provides multiple trading platforms, including MetaTrader 4, MetaTrader 5, and its proprietary Vantage App.

Why We Picked It: Vantage Markets provides flexible leverage options up to 1000:1 and low minimum deposits starting at $50. Additionally, Vantage supports advanced trading tools and platforms, including MetaTrader 4 and 5, as well as social trading platforms like MyFXBook and DupliTrade. The platform also emphasizes security and trust, being regulated by multiple reputable authorities and offering segregated client funds and negative balance protection.

Best for MT4 Traders: Axi

Overview: Axi, established in 2007, offers access to over 220 financial instruments, including forex, commodities, indices and cryptocurrencies. Axi utilizes the MetaTrader 4 (MT4) platform, enhanced with tools like Autochartist and PsyQuation, catering to both begginer and experienced traders.

Why We Picked It: Axi is a top pick due to its competitive trading conditions, offering raw spreads starting from 0.0 pips and leverage up to 1:500 for international clients. The platform imposes no minimum deposit requirement, and provides a range of account types, including Standard, Pro and Elite. The integration of advanced tools like Autochartist and the AI-powered PsyQuation analytics platform enhances trading efficiency and decision-making. Additionally, Axi's commitment to client fund security is evident through features like negative balance protection and segregated client accounts.

Best for Platform Trading Variety: IFC Markets

Overview: IFC Markets, established in 2006, offers access to over 650 financial instruments, including forex, commodities, indices, stocks and crypto. Traders can utilize multiple platforms, including MetaTrader 4, MetaTrader 5, and IFC Markets' proprietary NetTradeX, available on desktop and mobile devices.

Why We Picked It: IFC Markets provides competitive trading conditions, with fixed spreads starting from 1.8 pips and floating spreads from 0.4 pips. IFC Markets supports multiple trading tools and platforms, including the proprietary NetTradeX, which offers unique features like the Portfolio Quoting Method, enabling traders to create their own synthetic instruments. The platform also emphasizes security and trust, being regulated by multiple authorities and offering Professional Indemnity Insurance from Hamilton Group's Syndicate 4000.

Best for Beginners: FOREX.com

Overview: FOREX.com offers access to forex, stocks, metals, commodities and crypto trading. As part of StoneX Group Inc. (a Fortune 100 and Nasdaq-listed company), it ensures high security and trust through top-tier banks, strict regulatory compliance, and segregated client funds. The platform provides competitive trading conditions with RAW pricing, offering EUR/USD spreads as low as 0.01 and leverage up to 400:1. With over 80 forex pairs, 15+ world indices, 5,500+ global stocks and commodities. FOREX.com supports both spot and futures trading, including four major cryptocurrencies such as BTC, BCH, LTC, and XRP.

Why We Picked It: FOREX.com offers a range of powerful trading platforms, including Web Trader, MetaTrader 4 (MT4), MetaTrader 5 (MT5), TradingView, and a mobile app, which ensures seamless access for traders of all levels. Advanced trading tools such as SMART Signals and Performance Analytics help refine strategies, while VPS hosting supports high-frequency trading. Multiple account types, including Direct Market Access (DMA), cater to different trading needs. They offer a low minimum deposit of $100 and funding options like debit/credit cards and bank transfers. The platform also features the Activetrader program, providing cash rebates, a dedicated relationship manager, and VIP perks.

How to Choose a Forex Broker in Malaysia

Since not all online brokers are equal, the most important thing to be confident about before opening a forex account is that the broker is secure and offers the services you require. The bullet points below describe the more common considerations you’ll want to review before you select a broker as a trading partner.

Regulation

The primary consideration when choosing a broker should be the security of your funds deposited as margin. Select a well-regulated broker with at least one reputable regulatory body overseeing its operations and that segregates client accounts from its own.

Most foreign brokers accepting clients from Malaysia will be overseen by one or more good regulatory agencies, such as the National Futures Association (NFA) and the Commodity Futures Trading Commission (CFTC) in the United States or the U.K.’s Financial Conduct Authority (FCA).

Broker Type

Online brokers will typically act either as market makers or as electronic communications network (ECN) brokers. Market makers take the other side of your trades, while ECN brokers pass on the best price of a selection of market makers who use its electronic communications network.

ECN brokers typically show narrower variable spreads but may charge a per-trade commission, while market makers often have wider fixed spreads but no commission.

Dealing Spreads and Commissions

The difference between the bid price and the offer price in a broker’s quotation is known as the dealing or bid/offer spread.  Since spreads and commissions add a cost to trading, active traders will want to keep them down as low as possible, while less active traders typically seem less sensitive to such considerations.

Trading Platform

Ideally, you want to find a broker that offers trading software with a customizable interface and that has the analysis features you require, as well as runs on the desktop, mobile or web platform you prefer.

Virtually all of the best online forex brokers will support using the popular MetaTrader 4 and 5 trading platforms developed by MetaQuotes that offer a complete technical analysis functionality with numerous valuable trading tools, including a wide range of third-party expert advisors (EAs) and custom indicator software that you can use or purchase.  Some brokers also offer access via cTrader, NinjaTrader, their own proprietary platforms and social copy trading platforms like ZuluTrade.

Customer Service

Most traders, especially those with less experience, know the importance of being able to communicate promptly with their broker’s customer support staff in case errors or issues arise. Traders new to the broker can also appreciate the material on how to use their trading platforms.

Research, Analysis and Educational Materials

These written and visual aids can be a major plus for traders with less experience. Even more advanced traders may appreciate having access to a high-quality news feed and market analysis performed by professionals.

Understanding Trading Forex in Malaysia

Forex trading in Malaysia allows traders to buy and sell foreign currencies in the Malaysian currency, the ringgit. Traders must first open a trading account with a broker to begin trading in the forex market. Once the account is opened, traders can buy and sell currencies, taking advantage of the differences in exchange rates. 

Forex brokers are establishing their presence in Malaysia as local demand has been increasing. The Malaysian ringgit, the local currency, was formerly pegged to the U.S. dollar. But in 2005, the Central Bank of Malaysia ended the peg. The currency is now a managed floating currency monitored against a currency basket to make sure the exchange rate remains close to fair value to help maintain the stability of the ringgit exchange rate.

Malaysian residents can confidently trade forex knowing that brokers there are regulated by the Securities Commission Malaysia (SCM). Islam is Malaysia's official religion, and forex brokers operating in the county offer products that comply with Sharia law. Regular forex account products charge or pay interest on funds deposited in the account, contrary to Islam's tenets. 

Generally, trading practices that contain elements of interest or high-risk speculation are prohibited in Islam. As a result, brokers operating in Malaysia design trading account products that exclude loans, margin trading and short sales.

Trade Forex in Malaysia

Forex trading in Malaysia is slightly different from other countries because of the country's unique regulations and restrictions. The Malaysian population is primarily Muslim, and the country's official religion is Islam. Therefore, FX brokers operating in Malaysia have adapted their products to comply with Islamic sharia laws, which strictly forbid interest on deposits and risky speculations.

The brokers listed here offer the best trading account options in Malaysia with products and features considered Halal (permissible). However, forex trading can be risky, and you should do thorough research before selecting the right forex broker in Malaysia.

Frequently Asked Questions