Searching for a trading broker in Malaysia?
We have you covered.
With this collection of the best forex brokers the country has to offer. Here you are sure to find one that fits your trading needs.
Making your Malaysia forex broker search as easy as possible starts with choosing from one of these top choices, any of which can be opened both quickly and easily.
|Forex Brokers Malaysia||Best For||Minimum Deposit|
|Oanda||Beginners||No minimum deposit|
|HotForex||Overall Trading Features||$5|
|Instaforex||Overall Trading Experience||$1|
|IC Markets||Scalpers||No minimum deposit|
|eToro||Social and copy trading||$200|
Table of contents
Is Forex Trading legal in Malaysia?
This is a very valid question and concern since not very long ago forex trading in Malaysia was not legal.
Now however, the rules are changing.
You will find that 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).
With that said, 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 key steps 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.
Top 9 Best Forex Brokers in Malaysia
Here is our collection of what we feel are the best Malaysia broker choices for you as a forex trader:
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, that 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 it 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 broker officially regulated by the SCM as 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:
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?
The simple answer to this question is yes.
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 issues 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 is 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]