Best Forex Brokers Malaysia 2022
Just north of the equator lies Malaysia, a country split by the South China Sea into two regions – the southern end of the Malay Peninsula, and the northern tip of the island of Borneo.
Blanketed in near-constant rainfall, Peninsular Malaysia’s lush rainforests are flanked on the coasts by dense forests of mangrove. It also hosts the capital city of Malaysia – Kuala Lumpur – a hugely important financial center in Southeast Asia and home to Malaysia’s own stock market, the Bursa Malaysia Exchange.
Here at BrokerNotes, we conducted extensive research and data collection on forex brokers, local regulatory agencies and stock exchanges, and Malaysian monetary policy to create this guide to help you pick the best forex broker for trading in Malaysia.
Choosing a forex broker in Malaysia
Whether you are an active trader with deep forex experience, or a beginner who is just getting their start in the forex world, choosing a well-regulated forex broker is crucial if you want to steer clear of forex scams. Not all regulatory licenses carry the same weight, however, and regulatory environments can vary widely from country to country.
Our Trust Score, a proprietary algorithm, ranks regulatory agencies and their respective countries into three groups, with Tier 1 indicating the most stringent (which is good) and Tier 3 the least. We collect comprehensive data on each broker, which results in a ranking from 1 to 99 of the broker’s overall trust (the higher a broker’s Trust Score, the better). Learn more about Trust Score at our sister site, ForexBrokers.com.
Financial regulation in Malaysia for online forex and contract for difference (CFD) brokers falls under the auspices of the Securities Commission Malaysia (SCM), a self-funded statutory body that is responsible for developing and regulating the Malaysian capital markets, and for overseeing the conduct of financial market participants.
Just a few miles off the coast of Borneo lies a small island named Labuan (officially the Malaysian Federal Territory of Labuan) with its own local regulator, the Labuan Financial Services Authority (FSA). The FSA in Labuan oversees forex and CFD brokers located in Labuan’s special economic zone, the Labuan International Business Financial Center (Labuan IBFC).
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 65% and 82% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Best forex brokers for trading in Malaysia
To help you find the best forex brokers, we curated a list of every broker that accepts new clients from Malaysia*. We conducted meticulous research on those brokers, using over 100 data-driven variables (including our proprietary Trust Score), resulting in this list of the overall best brokers in Malaysia:
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IG
- 9.7/10 Overall
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FOREX.com
- 8.7/10 Overall
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XTB
- 8.7/10 Overall
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AvaTrade
- 8.2/10 Overall
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Admiral Markets
- 8.1/10 Overall
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IC Markets
- 8/10 Overall
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XM Group
- 8/10 Overall
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Tickmill
- 7.8/10 Overall
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HYCM (Henyep)
- 7.7/10 Overall
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HFM
- 7.6/10 Overall
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Eightcap
- 7.2/10 Overall
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ThinkMarkets
- 7.3/10 Overall
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BlackBull Markets
- 7/10 Overall
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easyMarkets
- 7.3/10 Overall
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AxiTrader
- 7/10 Overall
Minimum Initial Deposit
£250.00 |
Trust Score Trust Score is a numerical rating (from 1 - 99) that represents a broker's overall trust.close
Highly Trusted |
Cost & Fundingexpand_moreexpand_less
| Average Spread EUR/USD - Standard | 0.86 (September 2022) |
| All-in Cost EUR/USD - Active | 0.5957 (September 2022) |
| PayPal (Deposit/Withdraw) | Yes |
| Skrill (Deposit/Withdraw) | No |
| Visa/Mastercard (Credit/Debit) | Yes |
Minimum Initial Deposit
$100 |
Trust Score Trust Score is a numerical rating (from 1 - 99) that represents a broker's overall trust.close
Highly Trusted |
Cost & Fundingexpand_moreexpand_less
| Average Spread EUR/USD - Standard | 1.0 (July 2022) |
| All-in Cost EUR/USD - Active | 1.0 (July 2022) |
| PayPal (Deposit/Withdraw) | Yes |
| Skrill (Deposit/Withdraw) | No |
| Visa/Mastercard (Credit/Debit) | Yes |
Minimum Initial Deposit
$0 |
Trust Score Trust Score is a numerical rating (from 1 - 99) that represents a broker's overall trust.close
Highly Trusted |
Cost & Fundingexpand_moreexpand_less
| Average Spread EUR/USD - Standard | 1.07 (Q3 2022) |
| All-in Cost EUR/USD - Active | 1.04 (Q3 2022) |
| PayPal (Deposit/Withdraw) | Yes |
| Skrill (Deposit/Withdraw) | Yes |
| Visa/Mastercard (Credit/Debit) | Yes |
Minimum Initial Deposit
$100 |
Trust Score Trust Score is a numerical rating (from 1 - 99) that represents a broker's overall trust.close
Highly Trusted |
Cost & Fundingexpand_moreexpand_less
| Average Spread EUR/USD - Standard | 0.91 (Aug 2020) |
| All-in Cost EUR/USD - Active | 0.61 (Aug 2020) |
| PayPal (Deposit/Withdraw) | Yes |
| Skrill (Deposit/Withdraw) | Yes |
| Visa/Mastercard (Credit/Debit) | Yes |
Minimum Initial Deposit
$100 |
Trust Score Trust Score is a numerical rating (from 1 - 99) that represents a broker's overall trust.close
Trusted |
Cost & Fundingexpand_moreexpand_less
| Average Spread EUR/USD - Standard | 0.8 (July 2021) |
| All-in Cost EUR/USD - Active | 0.7 (July 2021) |
| PayPal (Deposit/Withdraw) | Yes |
| Skrill (Deposit/Withdraw) | Yes |
| Visa/Mastercard (Credit/Debit) | Yes |
Minimum Initial Deposit
$200 |
Trust Score Trust Score is a numerical rating (from 1 - 99) that represents a broker's overall trust.close
Trusted |
Cost & Fundingexpand_moreexpand_less
| Average Spread EUR/USD - Standard | 0.62 (August 2021) |
| All-in Cost EUR/USD - Active | 0.62 (August 2021) |
| PayPal (Deposit/Withdraw) | Yes |
| Skrill (Deposit/Withdraw) | Yes |
| Visa/Mastercard (Credit/Debit) | Yes |
Minimum Initial Deposit
$5 |
Trust Score Trust Score is a numerical rating (from 1 - 99) that represents a broker's overall trust.close
Trusted |
Cost & Fundingexpand_moreexpand_less
| Average Spread EUR/USD - Standard | 1.6 (Aug 2020) |
| All-in Cost EUR/USD - Active | 0.8 (Aug 2021) |
| PayPal (Deposit/Withdraw) | No |
| Skrill (Deposit/Withdraw) | Yes |
| Visa/Mastercard (Credit/Debit) | Yes |
Minimum Initial Deposit
$100 |
Trust Score Trust Score is a numerical rating (from 1 - 99) that represents a broker's overall trust.close
Trusted |
Cost & Fundingexpand_moreexpand_less
| Average Spread EUR/USD - Standard | 0.51 (August 2022) |
| All-in Cost EUR/USD - Active | 0.31 (August 2022) |
| PayPal (Deposit/Withdraw) | Yes |
| Skrill (Deposit/Withdraw) | Yes |
| Visa/Mastercard (Credit/Debit) | Yes |
Minimum Initial Deposit
$100 |
Trust Score Trust Score is a numerical rating (from 1 - 99) that represents a broker's overall trust.close
Trusted |
Cost & Fundingexpand_moreexpand_less
| Average Spread EUR/USD - Standard | 0.6 (Sept 2021) |
| All-in Cost EUR/USD - Active | 0.6 (Sept 2021) |
| PayPal (Deposit/Withdraw) | No |
| Skrill (Deposit/Withdraw) | Yes |
| Visa/Mastercard (Credit/Debit) | Yes |
*It’s important to note that with the exception of licensed onshore banks and primary market makers in Malaysia that cater to non-residents, retail forex and CFDs are not formally regulated in Malaysia, and it’s considered unlawful for residents to use unlicensed forex brokers under the Exchange Control Act (ECA) of 1953, according to Malaysia’s central bank. However, despite warnings from the local regulator in Malaysia for residents to avoid using certain scam brokers, there are still many forex brokers regulated in other countries that continue to accept clients in Malaysia.
Malaysia’s financial markets
Forex traders may recognize the Malaysian ringgit (MYR) as Malaysia’s national currency, which in 2005 was unpegged from the U.S. dollar (USD) and replaced with a managed float system, similar to existing central bank monetary policies all around the world. Malaysia’s central bank, Bank Negara Malaysia (BNM), retains sole authority for issuing and regulating the ringgit.
Malaysia’s primary stock market is the Bursa Malaysia Exchange (previously the Kuala Lumpur Stock Exchange), based in Kuala Lumpur. The Bursa Malaysia Exchange provides trade execution for Malaysian stocks, fixed income products, funds, and exchange-traded funds (ETFs), as well as derivatives via the Bursa Malaysia Derivatives (BMD) marketplace.
Aiming to promote Malaysia as an international hub of Islamic finance, Bursa Malaysia has established an Islamic Market to provide a Sharia-compliant trading platform and associated financial products.
To learn more about Sharia-compliant trading products, feel free to take a look at our guide to Islamic Accounts.
Is trading forex legal in Malaysia?
Yes, there are many foreign brokers regulated in other countries that accept Malaysian residents. Despite messaging from the Malaysian government via the central bank (which states that it is an offense to trade forex with an unauthorized dealer under the Exchange Control Act (ECA) of 1953 and warnings from the local regulator (SCM) about potential scam firms, it is legal to trade forex in Malaysia.
There are also over 163 Appointed Overseas Offices (AOOs) for banks and brokerages that are licensed to deal with non-residents in Malaysia for financial services such as forex trading, per the Central Bank of Malaysia’s FX Policy.
Is Metatrader 4 legal in Malaysia?
Yes, the Metatrader platform, including MetaTrader 4 (MT4) and MetaTrader 5 (MT5), developed by MetaQuotes Software Corporation, is licensed to hundreds of brokers around the world and is legal to use in Malaysia.
However, the regulatory status of the forex broker that is offering MetaTrader in Malaysia (or any platform, for that matter) must be checked on a case-by-case basis, to determine whether the broker is authorized by the local regulator, the SCM.
Is Forex Trading taxable in Malaysia?
Yes, forex trading is taxable in Malaysia, as capital gains are taxable events. Residents of Malaysia are responsible for reporting their worldwide income, whether from local investments or from trading forex with a foreign broker. It is best to consult with your local accountant to best determine how to treat your reportable taxable gains from forex trading in Malaysia.
Which forex broker is the best in Malaysia?
IG is the best broker for forex trading in Malaysia. Out of all brokers we rank on BrokerNotes that accept Malaysian residents, IG stands out from the competition in almost every category and is consistently top-ranked in the areas that matter most. Though not regulated in Malaysia, IG has obtained the highest Trust Score possible for a forex broker.
IG offers a wide range of currency pairs (including forex options) and complex order types for advanced trading strategies, while still catering to beginners with its rich forex educational courses, making it a compelling choice for Malaysian investors.
Which broker has the best mobile app?
IG offers the best mobile app for forex trading in 2022. With the IG Trading app, forex traders gain access to a well-designed platform that comes packed with features like alerts, sentiment readings, and sophisticated charting capabilities.
Neck and neck with IG is Saxo Bank, which ranked as the best forex broker in the overall mobile trading category in 2022. Saxo Bank’s SaxoTraderGO web and mobile platforms provide a powerful selection of tools combined with top-notch research in a highly unified cross-platform experience.
Which broker is best for beginners?
IG is the best broker for beginners in 2022, thanks to its vast selection of comprehensive educational resources. IG has a massive variety of content for beginners across various media formats such as videos, articles, and podcasts, including in-house content from IG’s DailyFX news portal.
IG’s high-quality educational content is bolstered by interactive courses that allow you to track your progress while learning how to trade forex and CFDs. IG has even developed a standalone mobile app (in addition to their award-winning IG Trading app) dedicated to helping beginners learn about the financial markets.
BrokerNotes.co 2022 Overall Rankings
To recap, here are our top forex brokers accepting residents of Malaysia as clients for 2022, sorted by Overall ranking.
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Forex Risk Disclaimer
There is a very high degree of risk involved in trading securities. With respect to margin-based foreign exchange trading, off-exchange derivatives, and cryptocurrencies, there is considerable exposure to risk, including but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or related instrument. It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable, or that they will not result in losses. Learn more about foreign exchange risk.
About the Author
Steven Hatzakis
Steven Hatzakis is the Global Director of Research for BrokerNotes.co and ForexBrokers.com. Steven previously served as an Editor for Finance Magnates, where he authored over 1,000 published articles about the online finance industry. A forex industry expert and an active fintech and crypto researcher, Steven advises blockchain companies at the board level and holds a Series III license in the U.S. as a Commodity Trading Advisor (CTA).
John Bringans
John Bringans is the Senior Editor of BrokerNotes.co and ForexBrokers.com. An experienced media professional, John has close to a decade of editorial experience with a background that includes key leadership roles at global newsroom outlets. He holds a Bachelor’s Degree in English Literature from San Francisco State University, and conducts research on forex and the financial services industry while assisting in the production of content.
Joey Shadeck
Joey Shadeck is the Content Strategist and Research Analyst for BrokerNotes.co and ForexBrokers.com. He holds dual degrees in Finance and Marketing from Oakland University, and has been an active trader and investor for close to ten years. An industry veteran, Joey obtains and verifies data, conducts research, and analyzes and validates our content.
IG
Saxo Bank
CMC Markets
Interactive Brokers
TD Ameritrade
FOREX.com
City Index
eToro
Swissquote
Plus500
FXCM
FP Markets
OANDA
Capital.com
Markets.com
Pepperstone
FxPro
DooPrime
Fineco Bank
HFM
BDSwiss
Vantage
Trading 212
Moneta Markets
Trade Nation
ACY Securities
Eightcap
ThinkMarkets
BlackBull Markets
VT Markets
easyMarkets
TMGM
Exness
Spreadex
IronFX
RoboForex (RoboMarkets)
Trade360
AxiTrader
GKFX
Vestle
TeleTrade
FXOpen
OctaFX
Forex4you
LegacyFX
FXPrimus
Alpari
GBE brokers
TopFX
ATFX
UFX
Libertex (Forex Club)
Xtrade
Tradeo
