Best Forex Broker in Malaysia
The Forex market is a popular trading vehicle in Malaysia, where brokers must obtain a service license from the Securities Commission of Malaysia. In most cases, the Forex market is considered a foreign investment, as it does not deal with the ringgit, the national currency of Malaysia. There are some regulations regarding currency trading that directly involves the ringgit, as the Bank Negara Malaysia, the central bank of Malaysia, exerts control over the value of its currency in the same manner as the banks of many other emerging market economies.
Although Forex trading is thoroughly legal in Malaysia and brokers offering trading services must obtain Malaysian licenses, the SCM does relatively little in the way of direct regulation. Because Forex pairs and CFDs are complex instruments, it’s best to choose a broker that is regulated in a nearby country with a more developed financial regulatory system. Here are some of the top options for Forex traders looking for a broker in Malaysia.
1. IC Markets – CFB Score 10/10
One of the most popular trading platforms in the broader Pacific region, IC Markets offers traders access to 65 currency pairs, as well as CFDs based on stocks, bonds, commodities and cryptocurrencies. Being a true ECN broker, IC Markets is a very low-cost option, with spreads starting at 0.0 pips. On ECN trades, a standard commission fee of $3.50 AUD is applied to each lot of 100,000 units. As a result, IC Markets is an excellent platform for high-volume Forex traders. Read more…
2. CMC Markets – CFB Score 8/10
CMC Markets is one of the world’s most powerful platforms for trading Forex currency pairs, owing to its offering of more than 300 currency pairs for traders to choose from. On the CMC Markets platform, spreads start at 0.7 points. With CMC’s automated trade execution and risk management tools, traders can more easily profit from the Forex market while keeping their risk levels in check. Read more…
3. IG – CFB Score 5/10
Established in 1974, IG is a Forex broker with ample experience in the marketplace and a strong history of good customer service. With over 15,000 underlying assets for traders to choose from, IG offers excellent trading versatility. These assets include Forex currency pairs, as well as stock, commodity and cryptocurrency CFDs. Spreads on IG start at 0.6 points, making it roughly competitive with CMC Markets in terms of trading costs. Read more…
4. OANDA – CFB Score 4.5/10
With more than 70 currency pairs available, OANDA is a popular Forex broker that offers an excellent automated trading platform and an intuitive chart display to make trading easier for users. In addition to its Forex accounts, OANDA can also be used to trade CFDs based in commodities, bonds and indices. Though the selection of underlying assets made available by OANDA is narrower than some of its competitors, some traders, particularly beginners, find that the more limited options make the platform simpler.
5. Z.com Trade – CFB Score (N/A)
Rounding out the list of Forex brokers in Malaysia is Z.com Trade, a low-cost ECN broker that offers 55 currency pairs and a handful of index and commodity CFDs. The advantage of Z.com Trade is its available ECN accounts, which let traders access no-spread trading at commission rates of $4 per lot of 100,000. A specialised account for high-volume traders brings the commission rate per lot down to $2.50, but requires a very high account balance. Z.com Trade is a good option for high-volume traders looking for low costs, but does not perform well in terms of asset diversity when compared to other brokers.
Brokers Regulated By FSB - South Africa Forex Brokers
|SA Forex Broker||Regulation||Min.Deposit||Trading Platform||Leverage|
|FXTM (Forex Time)||FCA, CySec,, IFSC||$5||MT4, MT5, Web||1000:1|
|AvaTrade||FSB, ASIC||$100||MT4, AvaTrader||400:1|
|IG||ASIC, FCA, MAS||$450||MT4, L2||200:1|
|FXCM||ASIC, FCA||$50||MT4, NinjaTrader||400:1|
|Markets.com||FSB, CySEC||$100||Sirix Web,|
|Saxo Bank||FCA, FSA, ASIC||$10000||SaxoTrader||100:1|
|BlackStone Futures||FSB||R5000||MT4, CloudTrade||100:1|
|ALFA Financials||FSB||$1000||Alfa Trader||100:1|
|FxPro||FSB, FCA, CySEC||$100||MT4, MT5, FxPro, cTrader||500:1|
|CMC Markets||Yes||$200||Next Generation||500:1|
Highest Leverage Forex Brokers
Owing to the very small price movements between currencies in the Forex market, traders must leverage their capital in order to make a good amount of money from opening positions on currency pairs. The Forex market has by far the highest average leverage ratios of any standard investment market, which is why it’s important to know what leverage a broker will allow you to use before you open an account. Following are the maximum leverage ratios for the brokerage companies listed above:
- IC Markets: Up to 500:1
- CMC Markets: Up to 30:1
- IG: Up to 50:1
- OANDA: Up to 50:1
- Z.com Trade: Up to 30:1 (Note: qualified professional clients can access higher ratios of up to 200:1)
Choosing the Best Forex Broker in Malaysia
If you want to be successful as a Forex trader, choosing a broker that is a good fit for you is a very important first step. When comparing Forex brokers, the first thing you should consider is what kind of trading you intend to do. If you plan to heavily mix CFD trading with your Forex trades, a brokerage that offers a wide range of CFDs will be best for you. You should also consider whether you plan to stick to the major Forex pairs or branch out into minors and exotics.
Just as important as your plan for trading is how much you intend to leverage your capital when executing trades. Higher rates of leverage can greatly increase your returns when you open successful positions, but high leverage can also result in losing your money more quickly when trades go bad. If you cannot afford to take the high risk of losing money rapidly due to leverage, a broker that offers lower ratios will probably be best for you.
The spreads and commissions you will pay on your trades are also an important part of deciding on a broker. To make the highest possible return on your investment in the Forex market, you need to be sure you aren’t overpaying on fees. At the same time, brokers with slightly high fees may be superior to their competitors in other areas, so be sure to take this into account as only one piece of the overall puzzle.
No matter which Forex broker you pick, it’s a good idea to start by opening a demo account with that broker before opening and funding a live trading account. A demo account will let you execute trades with imaginary money, allowing you to familiarise yourself with the broker’s platform without risking real capital. Demo accounts are also great learning tools for new traders who want to practice trading without losing their money as they learn.