Risk Warning: Your capital is at risk. Statistically, only 11-25% of traders gain profit when trading Forex and CFDs. The remaining 74-89% of customers lose their investment. Invest in capital that is willing to expose such risks.

Best Forex Brokers in Malaysia

Forex brokers in MalaysiaMalaysia has recently become an economic powerhouse in Asia and surrounding regions. However, this has come with its own set of challenges some of which have seen citizens lose their hard-earned money who have blindly fallen prey to various scams and fraudsters.

Learning lessons the hard way seems easy when the ruse of a fraudster befalls a victim. Forex trading shouldn’t work in such a cynical way. Malaysian Forex brokers and Forex trading in Malaysia are relatively still new ideas.

Malaysia is still lagging in its legislation and regulation procedures. Having full power and jurisdiction over the regulatory bodies is the best way to ensure investment protection. Yet, Forex is still deemed illegal by local government officials. Due to the country’s stringent Sharia laws, this act is highly condemned by most local Islamic leaders. Through it all, in a turn of events, it is a growing rose in the middle of the desert. There has been a rise in the Forex trading indexes which was not the case some years ago. Thankfully, Malaysia is changing and there is a new wave of perspective on how foreign values like Forex trading are viewed. In the past, it was deemed illegal to engage in Forex trading and it could earn you jail time. Go through the table below to get an idea of some of the top Forex brokers in Malaysia.

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1XM2009
ASIC, FSC Belize
55

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MM
5 $1:1000N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
2RoboForex2009
FSC Belize
109

Payment systems

NDD, ECN

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  • NDD
  • ECN
  • STP
  • MM
-1:2000N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
3EXNESS2008
FCA, CySEC
67

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NDD, ECN

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  • NDD
  • ECN
  • STP
  • MM
-1:2000N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
4Alpari1998
FSC Belize, NAFD
22

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ECN
100 $1:1000N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A100 %
5FXOpen2005
ASIC, FCA
90

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ECN, STP

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  • ECN
  • STP
  • MM
10 $1:500N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A1 %

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Malaysian Forex Trading History

Forex trading in Malaysia

Malaysia is relatively new in the scene of Forex Trading but recently has had major boosts and fame amongst Forex traders. The concept might be new for the market, but Bank Negara has been involved in Forex trading since the 1980s. The 1994 bailout played a crucial role in helping put a firm grip on the FX trading regulation and legality.

Forex traders in the country have consistently achieved the tremendous success that has forecasted them to an oriented market with lucrative investments to manage large funds. Several traders in Malaysia have been successful in formulating trading strategies that guarantee insane profits as well as reducing trading overall risks. Many high-profile Malaysian traders turned into multi-million trading accounts from small amounts of trading capital within very short periods. This has helped project Malaysia as a favorable destination for Forex brokers.

Important Milestones in the Malaysian Forex Market

Up to June 1967, The Currency Board was the only authority mandated to issue currency and monitor its performance against foreign currencies. It was the only body with the responsibility of initiating strategies related to currency control. The same year saw the Malaysian dollar gain against the sterling pound which depreciated by 14.3%. In March 1968, there was a major crisis in the gold International exchange that brought the industry to its knees. In October of the same year, a new formula was put in place for exchange rate quoting. Later that year, Forex Trading became suspended following speculations on Deutschemark.

In October 1970 sawForex Trading stopped altogether, and in the period between August to December of the same  year, the cessation continued even further leading to the suspension of converting USD to gold

In June 1972, due to massive failures of the local currency, The USD was adopted for a short period as an intervening currency. In February 1973, the USD depreciated deeper, and new support rates were set up. After three months in the same year, the Brunei and Singapore dollar become convertible. In early 1974, the standard deals were changed from Value Spot to Value Today.

August 1975 saw the change of currency name to Malaysian Ringgit and the following month, the system of floating rate became based on basket currencies. It was in the 1970s that the number of Forex brokers in the country increase rapidly.

In March 1989, SWIFT was implemented in the financial system of Malaysia, and in December 1992, Ringgit become denoted by RM.

In February 2001, the Ringgit Operations Monitoring System was established.

July 2005 saw the Ringgit peg replaced by the USD. On the 21st of July, the float system replaced the ringgit peg to USD. This was to better Malaysia’s position to benefit from structural changes occurring within the region as well as internationally.

In October 2007, the link between USD CHATS and RENTAS to settle the bonds of the US dollar was established.

In August 2010, quotes between MYR and RMB on China Foreign Exchange Trade System (CFETS) are established for the first time.

July 2016 in Kuala Lumpur saw MYR/USD becomes the reference rate

 

Malaysian Regulation of Forex Brokers

Initially, Forex trade in Malaysia had been banned by authorities and deemed illegal. Anyone who would be found trading Forex would be subject to heavy fines and even face incarceration. Recently, Malaysia has been more open to Forex trade but this is still in its early stages. Being an Islamic country, it is bound by Sharia laws and FX traders should therefore ensure that the broker of their choice is compliant with Sharia laws and Islamic religious beliefs.

Malaysia's Forex regulatory agency is still in its infant stages. Besides, the regulatory authority is littered with confusion and unspecified mandates. The Malaysian Central Bank has the responsibility of managing the Malaysian currency, the Ringgit. The Malaysian Securities Commission ensures adherence to the law and regulates and supervises all financial companies in the country. There is, however, no precise agency mandated with the responsibility of directly regulating Forex Brokers. As stated earlier, it is still a new concept in the country and thus it lacks an adequate regulatory framework for Forex.

The Bank Negara, Malaysian Central Bank, plays a major role in regulating online trading websites and traders. It provides licenses to Malaysian Forex Brokers as well as safeguards Malaysian traders against mischief and unscrupulous dealings in the Forex market by ensuring that their data is protected against personal data and investments in the Forex industry.

The bank has a strict transparent working policy for Forex traders. Experts believed that such strict measures would against the market and cannot function properly. However, Bank Negara has been able to handle the criticism and has succeeded in its regulation. Today, the bank handles more than 50 well-known officially registered brokers in the country. The bank also handles complaints from traders and brokers and financial agencies with financial trading activities.

The Bank Negara was established to offer financial services, which would catapult the country's potential growth to turn into a 1st world already- developed country come the year 2020. The establishment considered financial trading local currency in the Forex market having the ability to trigger the nation's competitiveness in the markets globally.

Requirements to be a Forex broker in Malaysia

Malaysian Regulation

It is not illegal to do Forex trading in Malaysia. It is done under the national financial laws of the country. After its economic module program for economic growth, Malaysia has provided the Bank of Negara an opportunity to engage in this market. Since it is a developing country, Malaysia hopes to give its residents permits to freely trade in this foreign currency market. The accounts should, however, be convenient and official Forex accounts that are licensed or approved by Islamic banks. It, however, raises eyebrows why Malaysia allows a specific Forex account to be opened by its residents -a joint account. People can group up and trade the money in joint accounts. This module was created for traders to come up with huge capital for Forex trading. The policy is however selective as it is not easy for the locals to raise such huge sums of money. Transacting with a Malaysian broker from another country could prove futile due to language barriers and account management. However, let’s not crucify the country as it is still growing and there is a Forex trading room for improvement.

Limitations and comparisons to other countries

While Forex trading is still evolving in Malaysia, the UK and the U.S. can be termed as stable in this industry. In terms of investments in security, Malaysian investors have to bear more risks as compared to the UK which has a stable regulator, FCA. While residents from most of the EU countries are allowed to open foreign accounts, Malaysia has stringent laws that are based on Sharia Law. Forex trading accounts are owned by groups and not individuals. The trading laws are government-friendly putting little focus on the brokers compared to other countries like the USA.

As far as Forex Brokers regulations are concerned, the regulatory agency in Malaysia is still in the early development stages, leading to confusion and mismanagement regarding the actual Forex Brokers regulatory authority.

The Malaysian Central Bank manages the Malaysian Ringgit currency, while the Securities Commission of Malaysia supervises and regulates financial companies. The UK Forex brokers are normally under the regulation and supervision of the Financial Conduct Authority (FCA). The CFTC and NFA have come up with a strict regulatory framework that leaves every FX broker in the US with no option but to adhere to ethical practices in the market. This is with the sole aim of safeguarding the integrity of financial markets in the US.

The following is a summary of the entire regulatory guidelines that are enforced by both CFTC and the NFA in the USA: Every Forex broker who operates in the USA must strictly be a CFTC member as well as should be under the control of the guidelines of the NFA. Despite Malaysia being new in the Forex industry, it has witnessed a tremendous rise in popularity and fame amongst retail traders.

While the concept is new to the markets, Bank Negara has been actively and kinetically in the markets since the 1980s. The Central Bank's 1994 subsequent bailout failures and speculation have perhaps played a crucial role in the determination of the country’s FX trading legality. Over the past few recent years, an important change has been witnessed where Forex brokers in the USA have a good reputation around the whole world in general. Criticisms and approvals met their way into the USA Forex brokers because they dared to make changes in their regulatory slews. Ultimately, the USA Government’s inquisitive and proactive nature has come up with a Forex trading market that is highly regulated. This has ensured the safety of traders' funds from fraudulent dealings and unnecessary risk placement.

Popular Forex Brokers in Malaysia

And now this is the best part of Forex trading-finding a reliable broker. Malaysia has a plethora of them, and here are some of the most sort after brokers:

FXTM

This is one of the most popular Forex brokerage firms in Malaysia due to the numerous benefits that it offers to their client. As a client of FXTM, you will get several benefits including:

  1. Marvelous bonus system with pop-ups of new types of bonuses.
  2. Good reputation with a strong regulation
  3. Superb customer support services
  4. Strict NO re-quotes
  5. Fast and efficient trade management system
  6. Excellent leverage 888:1.

 

AvaTrade

Avatrade comes with advantageous features for all Forex traders. Below are its pros:

  1. Organized customer support with the support of various languages.
  2. Options to trade and test your skills with a demo account
  3. Low spreads.
  4. A bonus system.
  5. Supports several software types to choose from.

AvaTrade has been in the game for a long and has garnered preference and popularity among FX traders. In addition, they have:

  1. Plus 500

  2. highly regulated brokers in the market.
  3. Only needs an investment as low as $100.
  4. 24/7 friendly customer support and professional help.
  5. Regulated by the CYSEC, FCA, and the ASIC.
  6. Accessible proprietary trading platform.
  7. On iOS, Windows, and Android devices.
  8. Availability of Web trader

Conclusion

The Malaysian Forex industry has experienced success stories and received accolades from Forex traders. This has elevated them in the world as one of the countries with good Forex regulations. However, it does come with its challenges like compliance with the Sharia Law. Also, its regulatory authority is still in its infant stages and hence may not be able to easily curb crises that may arise from financial unpredictable storms.

Successful trading strategies have been enacted by most Malaysian traders. The strategies have yielded insane profits and helped curb scam cases that come with this industry. Many high-profile Malaysian Forex traders have appeared in the news for transforming small cash into loads of money putting Malaysia into the Forex trading world map. Find more information about the Malaysia FX trading market at topbrokers.com.


Risk Warning: Your capital is at risk. Statistically, only 11-25% of traders gain profit when trading Forex and CFDs. The remaining 74-89% of customers lose their investment. Invest in capital that is willing to expose such risks.