The 4 best Forex Brokers and platforms in Malaysia – Comparisons and reviews
Table of Contents
As forex trading gains popularity in Malaysia, the list of brokers also increases, making it tough to choose the right one.
We have researched and tested several platforms. We now present the 4 best forex brokers to simplify your search.
See the list of the best Forex Brokers in Malaysia:
Forex Broker: | Review: | Regulation: | Spreads: | Assets: | Advantages: | Open account: |
|---|---|---|---|---|---|---|
1. RoboForex  | IFSC | Starting 0.0 pips & $ 4.0 commission per 1 lot traded | 9,000+ (50+ currency pairs) | + Huge variety + Micro accounts + Free bonus program + Leverage up to 1:2000 + ECN accounts + MT4/MT5/cTrader | Live-account from $ 10(Risk warning: 78.1% of retail CFD accounts lose money) | |
2. BlackBull Markets  | FSPR, FSCL | Starting 0.0 pips & negotiable commission per 1 lot | 500+ (64+ currency pairs) | + ECN Broker + Deep pool execution + High liquidity + Best execution + Leverage 1:500 + MT4/MT5 | Live-account from $ 200(Risk warning: 78.1% of retail CFD accounts lose money) | |
3. Pepperstone  | FCA, ASIC, DSFA, SCB | Starting 0.0 pips & $ 3.5 commission per 1 lot | 1,000+ (40+ currency pairs) | + Fast execution + Large FX Broker + Good service + MT4/MT5/cTrader + TradingView Charts | Live-account from $ 200(Risk warning: 74-89 % of retail investor accounts lose money when trading CFDs) | |
4. IQ Option  | Not regulated | Starting 0.1 pips variable & low commission | 300+ (25+ currency pairs) | + Easy to use + Binary Trading + Support 24/7 + Min. Deposit 10$ + Low spreads on main trading hours | Live-account from $ 10(Risk warning: Your capital might be at risk.) |
(5 / 5)
(4.9 / 5)
(4.8 / 5)The 4 best forex brokers in Malaysia:
We give you an overview of each of them below:
1. RoboForex
RoboForex offers multiple account types with low trading costs. These accounts are available on four platforms. That is the MT4, MT5, cTrader, and rTrader.
The minimum deposit required is $10, so traders can easily test its platform on micro-lots. But a free demo is also available for trial.
The broker runs commission-free and commission-based accounts, and these attract different spreads. For instance, the average spread on the commission-free account can be 1.3 pips. But much lower on a commission-based.
Traders can enjoy zero spreads on the ECN and the prime account, but the commission fees are attached, ranging from $2 – $4.
The broker has a license from the International Financial Service Commission (IFSC), Belize. For most people, this is not enough regulation, and the supervision of the broker is weak. The trader, in this case, has to also bank on the broker’s reputation and trust.
Established in 2009, RoboForex has built strong credibility among traders and is now a trusted name in the forex industry.
Benefits of trading with RoboForex
1. A legit broker with competitive trading costs.
2. Large selection of assets for traders to choose from.
3. Outstanding in-house platform and the MetaTrader and cTrader.
4. An Islamic account type is available
Drawbacks
1. Not enough regulatory licenses.
2. The broker charges a withdrawal fee.
(Risk Warning: Your capital can be at risk)
2. BlackBull Markets
BlackBull Markets is a New Zealand-based brokerage firm established in 2014.
The broker is a well-respected and award-winning firm and has built strong credibility among forex traders in a short time.
BlackBull Markets is an authentic ECN broker offering high-quality trading services at competitive fees. It operates under a regulatory license from the New Zealand Financial Markets Authority and the UK’s Financial Conduct Authority (FCA).
Clients can start trading with a minimum deposit of $200 on the broker’s standard account. Spreads start from 0.8 pips with zero commission on forex.
The broker offers three account types:
- The Standard account
- The Prime account
- The Institutional account
The standard account is suitable for beginners who wish to start with micro-lots. However, the prime account has lower fees, with spreads as tight as 0.2 pips.
There is also an Islamic account type with zero interest and sharia compliance. So Malaysian Muslims can trade with this broker.
Traders can access up to 70 forex pairs and other instruments, such as index CFDs. These can be traded on the Metatrader 4 and 5, compatible with Windows, IOS, and Android.
A free demo account comes with many indicators that allow the trader to test different strategies before signing up.
Active and high-volume traders can enjoy the free VPS for automated trading, keeping their data safe and private.
The broker also has a downloadable app that is compatible with mobile phones. The app comes with a wide range of practical tools and indicators available on the desktop version. Clients can access full account features on the go.
Pros of BlackBull Markets
1. Social and copy trading are available on multiple platforms, such as Myfxbook, Tradingview, and Zulutrade.
2. Powerful Metatrader platforms with complete features on mobile phones and computers.
Cons of BlackBull Markets
1. Its minimum deposit is higher than most brokers of the same level.
(Risk Warning: Your capital can be at risk)
3. Pepperstone
Pepperstone was established in 2010 by a group of professionals who were discontented with brokers’ poor quality service in the industry.
Their brokerage firm’s goal is to offer improved brokerage service to traders in all areas. So the company makes a conscious effort to improve on such points where other brokers are lacking continuously. Fees, order executions, support services, etc are part of these areas.
Pepperstone is among the acclaimed and well-regulated brokers that offer highly competitive fees with excellent trading conditions.
The brokerage firm is based in Melbourne, Australia. But has now spread globally and accepts clients from many parts of the world, including Malaysia.
Pepperstone provides superb trading services with incredibly helpful tools that boost the trader’s efficiency and help them master forex trading.
The broker holds licenses from multiple internationally-recognized financial bodies, including ASIC, FCA, BaFin, and DFSA.
Traders worldwide can feel safe with this broker as these licenses guarantee best practices at all times.
The broker does not have a fixed minimum deposit but recommends $200 as initial capital. The implication is forex traders in Malaysia can start trading with this amount or lower.
Pepperstone offers two types of accounts; the standard and the razor account. Traders can choose to sign up for any of these and trade on MT4, MT5, or cTrader. Although, the fees are different. The standard account attracts more charges than the razor, with an average spread of 0.77 pips on forex majors.
Traders can access over 60 forex pairs and cryptocurrency CFDs. Note that cryptocurrencies are not available for retail traders in the UK.
Pepperstone advantages
1. Well-regulated broker with low fees and excellent trading conditions.
2. Advanced features added to the Metatrader and cTrader to enhance Algo trading.
3. Flexible broker and easy registration with a $0 minimum deposit.
Pepperstone disadvantage
1. Educational content does not include quizzes.
(Risk warning: 74-89 % of retail investor accounts lose money when trading CFDs)
4. IQ Option
IQ Option is a forex and binary options broker founded in 2013. The brokerage attracts beginners because of its low minimum deposit of $10 and distinctive in-house trading platform.
The broker offers an easy-to-use platform with numerous indicators and a unique ‘live community deal’ feature.
Traders can choose to trade with a standard account or VIP. These accounts are available for forex, CFDs, cryptocurrencies, and binary options. Spreads start from 0.7 pips for major crosses, but this broker charges withdrawal fees.
The brokerage firm is registered in St. Vincent and the Grenadines.
Pros of IQ Option:
1. The broker has won multiple awards and recognition for its unique proprietary platform.
2. Spreads on currencies are highly competitive.
3. IQ Option is considered one of the best binary options and CFD brokers.
Cons of IQ Option:
1. The broker charges an inactivity fee after 3 months of a non-active account.
2. Withdrawal fees apply.
(Risk warning: Your capital might be at risk.)
What are the financial regulations in Malaysia?
Malaysia and other Southeast Asian countries are massive markets for forex brokerage companies.
These companies engage in aggressive campaigns to lure traders from these regions to signup with them.
The problem is not all of these brokers hold the appropriate licenses or are authorized to accept Malaysians. A few of them hold licenses from bodies that are not internationally recognized. These organizations offer scary-high leverages and no investor protection.
The regulatory body in charge of Malaysia’s financial market is the Securities Commission of Malaysia. The organization has expressed its misgivings about dealing with such brokers. The commission has warned Malaysian citizens to stir clear of these brokers. They send regular notifications to reinforce this warning.
Brokers without a top-tier license are now considered illegal because of this. They are not safe to trade with, as they offer the trader little or no protection.
The Securities Commission of Malaysia issued its framework in 2018 that controls forex and other CFDs activities. According to this framework, brokerage companies must secure an SCM license from the organization before accepting Malaysian-based clients.
Brokers must also report transactions to the commission at intervals.
Security for Malaysian traders – What you need to know
Malaysian forex traders need to take caution when choosing a broker.
Many genuine brokers are operating in Malaysia and accepting traders from there.
But it is safer to sign up with ones who hold licenses from reputable and globally recognized bodies.
Examples of such organizations are:
- Financial Service Commission (FCA), UK.
- Australian Securities and Investments Commission (ASIC).
- Securities and Exchange Commission (SEC), USA.
- Cyprus Securities and Exchange Commission (CySEC).
- Financial Sector Conduct Authority (FSCA), South Africa.
These bodies require strict adherence to best industry practices and offer some protection to investors. These protections can include segregated funds, insurance compensation, negative balance protection, etc.
Malaysian traders should check the brokers’ websites to confirm their licenses before trading. They can also investigate further by contacting the organization to ensure the broker’s license is genuine.
Though not all brokers with unrecognized licenses are a scam, it is safer to deal with ones with globally-recognized licenses. Malaysians can also check with the country’s regulatory body to see that the broker is authorized.
Is it legal to trade forex in Malaysia?
Yes, it is legal to trade forex in Malaysia. But the broker must operate under a license from a top-tier organization. The Securities Commission of Malaysia also has to approve the broker to accept Malaysian traders.
How to trade forex as a Malaysian trader
A trader must first find a credible broker to trade forex. A trustworthy broker has a recognizable license, competitive pricing, and a good reputation.
Once you choose a broker, follow the steps below to trade forex:
1. Open a forex trading account in Malaysia
As we mentioned, confirm that the broker is legit and reputable.
Visit the website and enter your name and email on the signup form to begin.
The broker then sends a link to your email that lets you verify the details provided. The verification link takes you to the full signup page to complete the process.
Be ready to upload a government-issued ID and utility bill receipt to prove your house address. These are basic financial institution requirements in most countries.
2. Start with a demo or ‘real’ account
A few traders who are not new to forex prefers live trading account for tests. However, they fund the account with the accepted minimum deposit.
This allows the trader to test the platform with ALL its features before they properly begin. They gain actual market experience and learn to control their emotions during this test.
However, we recommend the demo account for new traders. This type of account simulates the live trading environment. The broker deposits virtual funds into the account to let you get a taste of the market and its platform features. A newbie needs such an account to get acquainted with the system before beginning.
3. Fund the trading account
Deposit funds into the new account using any payment methods the broker offers.
Popular payment channels are Visa, Mastercard, and Wire transfers. Bank-wire transfers are famous means of payment in Malaysia because of the low fees compared to other methods. Online methods are also available but not frequently used. They include Neteller, Skrill, Perfect Money, Web money, etc
The funds get credited to the account within minutes, depending on the method used. Third-party charges may apply, but brokers HARDLY deduct fees for funding accounts.
These help you devise successful techniques that earn you money.
Notice:
The payment methods depend on your country of residence. Forex Brokers offer all kinds of methods separately for each country.
Use analysis and strategies
Find out different trading strategies that suit your desired currencies. Carry out analysis, including price history checks and economic information about the country.
These help you devise successful techniques that earn you money.
Some popular strategies and analyses are:
1. Trading based on economic releases
Some traders listen to economic news in their country of choice. And they place trades based on these reports. This approach requires market sentiment understanding. Participants react differently to the news, and such traders need to anticipate reactions to place successful trades.
2. Price action trading
Price action trading is among the non-complex forex trading strategies. The trader makes decisions based on the prices they see on the chart. The indicators used here are mostly candlestick stick movement. Though it also requires study and practice, it is not as complicated as most technical trading styles.
3. Fundamental analysis
This is another common approach and involves a thorough analysis of the economy behind your chosen currencies. In this case, the trader’s area of interest will be the country’s GDP, inflation rate, employment rate, export, import, and everything that affects the country’s exchange rate. Information on these areas helps the trader predict the rise or fall of the currency value.
Make profit
Success in forex trading depends on several factors, such as:
- Good broker with low fees
- Using the right strategy
- Money and risk management
If you properly combine all these, it won’t be long before you start to realize a good profit in the trades.
You can then increase the capital by reinvesting the profit or simply withdrawing the funds.
It is always best and most hassle-free to withdraw through the same means you deposited. That is, if you funded the account with a Mastercard, it’s better to withdraw the profit using the same card. That way, you avoid any delays and complications that may arise.
Conclusion: The best Forex Brokers are available in Malaysia
Forex trading is a profitable venture in Malaysia as long as you trade within your country’s regulations.
Our final recommendations:
- Work with only brokers whose licenses are globally recognized.
- Choose low-cost brokerage firms so that you get to keep the better part of your profit. We have recommended some of them in this guide.
- Avoid high leverage, as this is too risky and can lead to significant loss or debt.
FAQ – The most asked questions about Forex Broker Malaysia:
Which underlying assets are available for traders in Malaysia?
Traders in Malaysia can access many underlying assets. For example, they can trade forex, cryptocurrency, stocks, commodities, indices, metals, etc. Several brokers operate in Malaysia that allow you to trade these underlying assets. However, the leading brokers among them include the following.
IQ Option
BlackBull Markets
Pepperstone
RoboForex
Why should I trade Forex in Malaysia?
Traders in Malaysia have a very high chance of making money from forex trading. It is because forex trading allows traders to tap the opportunities of currency fluctuations. A wise trader can benefit from these fluctuations and earn money.
Besides, forex trading is completely legal for Malaysian traders. So you only need to choose a broker who supports forex trading and offers the best services.
What should I check for in a broker in Malaysia for forex trading?
To get the best forex trading experience in Malaysia, a trader would need a broker who offers him the best trading services. You can consider several factors, like the broker’s minimum deposit amount and fees. Besides, you should also consider whether the broker takes a long time to process your withdrawals. Additionally, the features offered by the broker also hold significance.
Last Updated on January 6, 2024 by Arkady Müller
