Best Forex Brokers in Malaysia

filippo ucchino Filippo Ucchino calendar Last Updated: February 2022 timer 13 min read
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At InvestinGoal, we adhere to strict standards to ensure an unbiased review process. We conduct our reviews by examining each broker’s offering and performance across 4 key categories. A final rating is produced for each forex broker based on a total of 187 data points. Learn more about our review process and methodology.

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.


CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
Between 74-89% of retail investor accounts lose money when trading CFDs.
You should consider whether you can afford to take the high risk of losing your money

Forex Brokers Malaysia Best For Minimum Deposit
OctaFX Algo Traders $5
XM No requotes $5
Oanda Beginners No minimum deposit
HotForex Overall Trading Features $5
FBS Low Spreads $1
Instaforex Overall Trading Experience $1
Pepperstone Day Traders $200
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:

Next in our collection of the top Malaysian forex brokers is OctaFX. They are also regulated by two highly trusted regulatory bodies in the form of both the FCA in the UK and CySEC in Europe. They are reputed within the industry as offering some of the best swap-free services around. In fact, in 2015 they were recognized by as the “Best Forex Islamic Account” providers.

To that end, Micro, ECN, and Pro accounts are available with minimum deposits starting at $100 and reaching $500 for a pro account. It is also worth noting that every account is available as a swap-free account. The accounts utilize the top trading platforms of MT4, MT5, and cTrader.

MYR deposits are accepted and can be made through local banks, Billplz, and Help2Pay services with an excellent exchange rate of 3 MYR per $1 USD available. Spreads also start from a highly competitive 0 pips across the board and the trading conditions feature no changes at all when it comes to Islamic account trading.

In terms of OctaFX bonus offers, a 50% deposit bonus is made available on each deposit.

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74-89% of retail CFD accounts lose money

XM is renowned as one of the best forex brokers in the world and is available to Malaysian forex traders. They are again regulated by some of the foremost authorities in the industry in the form of FCA, CySEC, and ASIC. They were also awarded the “best forex broker in Australasia” award along with numerous others.

Opening an XM account, you will be faced with a wide choice of 6 account types. Minimum deposits on these account types range from $5-$100 depending on account, or you can also opt for a shares account with a minimum deposit of $10,000. These deposits can be made through wire transfer, credit card, or eWallet although no MYR deposits are facilitated.

If you would like to try out the broker, you can avail of their full demo account. This, together with the XM Micro account offers a great path to get into forex trading in Malaysia and around the world.

Spreads at XM can start from as little as 0 pips in many cases, and the XM Islamic account follows all of the same conditions of the regular accounts with no mark-ups, higher spreads, or additional commissions.

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73.57% of retail investor accounts lose money

Oanda is one of the few brokers to be regulated in the USA by the CFTC as well as the NFA, and globally through the FCA, MAS, ASIC, and IIROC. A who’s who of top regulators for a much trusted broker.

They offer just one account type but it is available with no minimum deposit at all. Perfect if you are new to the forex trading market. Another suitable point here is you can open positions for as low as just one currency unit ($1 or equivalent base currency), although no MYR deposits are available.

With that said, deposits can be made through wire transfers, major credit cards, and eWallets. Fully operational Oanda demo accounts are available to try as are Islamic accounts on request.

Spreads with this broker are low, starting from just 1 pips and trading is through MT4 trading platform. .

You may find that some additional fees are placed on the Islamic account in place of the swap fee, and at the moment there is unfortunately no bonus offering in place.

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73.50% of retail investor accounts lose money

HotForex is another globally recognized forex broker and top choice for you as a Malaysian trader. They are well regulated by both CySEC and ASIC and offer a wide choice of 6 forex account types to choose from.

Again here, this includes a micro trading account with a minimum deposit of only $5 ideal for new traders, a premium account with a $100 minimum, a zero spread account, and an auto trading account you can try for a minimum deposit of $200. If you are interested in copytrading this is available through HFCopy with a minimum of $100 deposit to copy, or $300 if you want others to copy your trades.

When it comes to deposits, MYR is available through local bank transfer. In other cases, you can use your major credit card or eWallet methods. Either way, a fully realistic demo account is accessible as is an Islamic account where needed.

Spreads here start from a competitive 0 pips across the board although some additional fees may apply on Islamic accounts. You can offset these through cash rebates, 100% bonuses, and the higher leverage that HotForex try to offer along with many real prize winning trading contests.

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71.24% of retail investor accounts lose money

Next on the list of the best Malaysian forex brokers is FBS. As with all of our brokers they are well-trusted and fully regulated by both CySEC and the IFSC. This is an excellent broker with 5 account choices including a great Cent account offering that may be just perfect for new traders. These account types also include an ECN account.

Minimum deposits with the broker start from just $1 reaching up to $1,000 depending on your account choice and although MYR deposits are unavailable, funding via wire transfer, credit card, and eWallet are all available. Every account can also be made swap-free where needed.

Although FBS do add an additional admin fee if you hold a position for more than 2 days with a swap-free account, this can be somewhat balanced by the fact they have a comprehensive bonus offering that includes a 100% deposit bonus and contests including some particularly aimed at Islamic traders during Ramadan.

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74-89% of retail CFD accounts lose money

Starting our list of the best forex brokers in Malaysia is Instaforex. They are a well-known and award winning broker particularly within Asia having won more than 19 awards and counting related to being the “best broker in Asia”.

Beyond this, they are also very well regulated by multiple regulatory bodies including the FCA, ASIC, and CySEC. When it comes to account types you will have a total of 6 to choose from. Instaforex minimum deposits here range from a bargain $1 up to $1,000 depending on account type. The account types available include 2 cent accounts, a Standard Account, 2 ECN accounts, and a scalping account.

You can deposit MYR through wire transfer within local banks and you can also utilize a fully functioning demo account to try out the broker. This is ideal, in combination with really low-risk cent accounts to help new forex traders get to know the market.

Finally, an Islamic account type is available though there is an additional fee that replaces the swap fee. Instaforex also offers 4 bonuses to traders. This includes a 100% first deposit bonus.

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61.14% of retail investor accounts lose money

Pepperstone are another of the standard bearing top brokers offering service to Malaysian forex traders. They are regulated by the top authorities of FCA and ASIC and are one of the most chosen ECN brokers around.

They have two available account types that can be opened with a minimum deposit of $200. These are the Standard and ECN Razor account types which are also both available as Islamic accounts. For account deposits, wire transfers, credit cards, and eWallets are all accepted methods of funding although no MYR deposits are available.

Spreads with Pepperstone start from 0 pips and trading is available through MT4, MT5, or cTrader and you are welcome to try the Pepperstone demo account first.

On the Islamic accounts, an admin fee will be applied on positions held for more than 10 days and no Pepperstone bonus amount is currently available.

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74-89% of retail investor accounts lose money when trading CFDs

IC Market regulated by CySEC and ASIC represent another of the best Malaysian forex broker choices for any traders. They offer 2 account types in their Standard and Raw Spread accounts, both of which can be opened with no minimum deposit.

These accounts can be easily funded through wire transfers, major credit cards, or eWallet methods although no MYR deposits are accepted. On the minimum deposit, although there is none in place, the broker do recommend depositing at least $200.

Spreads with IC Markets start from the bottom at 0 pips and with the option of trying a demo account and opting for an Islamic account through MT4, MT5, or cTrader platforms. Within this Islamic account most conditions remain the same. The only change is an admin fee added on positions open for more than one day.

At this time IC Markets does not provide for any kind of bonus offering.

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74-89% of retail CFD accounts lose money

Last but not least on our listing of top Malaysian broker choices is eToro. Known the world over, they are regulated well by CySEC, FCA, and ASIC. They are well known of course as a top broker for social trading and a particularly good fit if you are new to the sector.

One account type is offered that can also be made swap-free though in this case the minimum deposit would increase from $200 to $1,000 with trading available through the brokers own user-friendly trading platform.

Spreads at eToro typically start from 1 pip though they can be higher. Deposits are catered for through wire transfer, credit card, and eWallets, though no MYR deposit option is available.

You will be glad to know that while there are no bonus offerings, trading conditions remain the same on Islamic accounts.

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68% of retail investor accounts lose money

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]

About the Author

Filippo Ucchino

Co-Founder - CEO - Broker Expert
Filippo is the co-founder and CEO of He has 15 years of experience in the financial sector and forex in particular. He started his career as a forex trader in 2005 and then became interested in the whole fintech and crypto sector.
Over this time, he has developed an almost scientific approach to the analysis of brokers, their services, and offerings. In addition, he is an expert in Compliance and Security Policies for consumers protection in this sector.
With InvestinGoal, Filippo’s goal is to bring as much clarity as possible to help users navigate the world of online trading, forex, and cryptocurrencies.

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