Best Forex Brokers in Malaysia 2023

As Malaysia’s forex trading scene continues to grow and evolve, finding a reputable and reliable forex broker becomes increasingly important.

In this article, you will find the best forex brokers in Malaysia.

Several factors were considered in order to create the list of the following brokers:

• Availability, credibility and reliability in Malaysia
• The Minimum Deposit requested
• Availability of local deposits
• If Islamic Accounts were accepted
• Spreads charged by the broker
• Leverage in place
• If bonuses were available

Overview of the Best Malaysian Forex Brokers in 2023

Best Forex Broker in Malaysia Reviews

Here is our collection of what we feel are the best Malaysia broker choices for you as a forex trader:

Is Forex Trading legal in Malaysia?

Officially within Malaysia, the only legal regulation is that people can only register with a financial services company that is regulated within Malaysia and compliant with the laws of the country.

With that said, given that forex trading is relatively new to Malaysia, there are not yet any brokers that are regulated by the SCM (Securities Commission of Malaysia).

Trading as a Malaysian forex trader is still not illegal and some of the Forex brokers that we have listed provide the very best in terms of regulatory oversight from top-tier bodies such as CySEC, the FCA, or ASIC.

How to trade forex in Malaysia

If you want to trade forex within Malaysia then the process is in fact quite straightforward since the regulations are still quite new and allow for no particular restrictions in terms of what a forex trader can do or what a broker can offer.

The only other key step beyond choosing the correct Malaysian forex broker for you is to submit the relevant documents to begin trading. These will typically include your proof of ID and Residency.

From there, you are ready to begin trading.

Malaysian trader? Here’s what to look for in a forex broker

Although there are currently no particular set of stringent rules in place from the SCM and everything is routinely left at the discretion of the trader and broker in terms of what is offered in bonus, leverage, and account type terms, there are still a few things that you should try and look out for when choosing the best forex broker to deal with.

1. Stick with regulated brokers

Always try to choose a regulated forex broker like any of the top brokers listed above. The SCM have not yet officially regulated any themselves, but you can very much trust the listed brokers regulated by some of the top bodies worldwide like CySEC, ASIC, and the FCA.

It is good practice to deal with these and any who are also ESMA compliant for the most trusted experience and to avoid offshore regulated or non-regulated brokers where you can.

2. Look for the best Islamic Account

The Muslim population in Malaysia is more than 50%. This, along with the fact that Islam is the official religion mean there is always big demand for Malaysian Islamic forex trading accounts.

Since swap or overnight broker fees are considered Haram when it comes to Sharia law, you should be looking to open an Islamic account that will not feature any of these fees in order to be fully compliant.

If you are unsure or interested to learn more about this topic, you can read our best Islamic forex brokers guide for more information.

3. Choose the Broker before choosing the Bonus

One of the biggest final things to be sure of is that, since forex broker bonuses are legal in Malaysia, you do not get blinded by that fact.

This means choosing a broker that best suits your trading needs above considering what types of bonus they offer.

Being tempted by a big bonus offer can leave you dissatisfied in other areas when it comes to future trading and so you should really not base your broker decision on that. Also, always make sure you read the terms and conditions first.

Finally, you should take advantage of any no deposit bonus opportunities offered by a broker as a great chance to see what they can offer.

How to verify if a forex broker is regulated in Malaysia

Although there are not any forex brokers officially regulated by the SCM as of yet, this may well be possible in the future. In that case, you should take the opportunity to check this page for any further developments.

Checking registration with the other top regulatory bodies can also be as simple as a couple of clicks and a search of the following links:

• FCA
• ASIC
• ESMA

Keep in mind if you are wondering about ESMA regulation, this depends on the country, but if they have registered in a European country, they will typically be ESMA compliant.

Is forex trading taxable in Malaysia?

Forex trading in Malaysia is taxable. That is because all revenues should be declared through your ITN (Income tax number) and these are unique to each person and issued by the IRBM (Inland Revenue Board of Malaysia).

More information on the precise filing processes can be found here.

With that said, since forex trading is new to Malaysia, there is still a considerable grey area related to revenues and capital gains taxes, particularly if the broker you trade with is located outside of Malaysia.

[Disclaimer: we are not accountants, we have done internet research. Due to these grey areas, we strongly suggest you contacting Malay local authorities before proceeding]

Can I trade forex with a small initial deposit in Malaysia?

Yes, many forex brokers offer accounts with a low minimum deposit requirement, allowing traders to begin trading with a small initial investment. However, starting with a small deposit may limit your trading options and increase the risks associated with high leverage.

How can I learn forex trading in Malaysia?

There are numerous resources available for learning forex trading in Malaysia, including online courses, webinars, seminars, books, and educational websites. Many forex brokers also provide educational materials and demo accounts to help beginners get started in forex trading. Additionally, joining local trading communities or online forums can provide valuable insights and support from fellow traders.

Key Takeaways: What Is the Best Malaysian Forex Broker?

Choosing the best forex broker in Malaysia depends on several factors, such as regulation, trading platforms, deposit and withdrawal methods, spreads, leverage, and customer support. From our list of recommended brokers, all are excellent options for Malaysian traders, offering various features tailored to the Malaysian market.

When selecting a broker, prioritise those regulated by reputable authorities, offering Islamic accounts, and providing a suitable base currency. Moreover, consider a broker’s educational resources and customer support to help you navigate the forex trading landscape more effectively.

Remember, while bonuses and promotions can be tempting, your primary focus should be on finding a broker that meets your individual trading requirements.