Best Forex Brokers in Malaysia

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Updated: 12 August 2020

As forex trading gets popular among Malaysians, more and more platforms have also joined in the Malaysia market, wanting to capture part of the market share. However, it is important to choose the right forex broker in Malaysia, because when brokers increase, more illegal foreign exchange trading schemes are appearing too. This causes Bank Negara Malaysia (BNM) to release its guideline to spot illegal schemes.

It is important to know a few evaluation criterias when choosing a forex broker, and we have selected a few notable brokers based on these criteria, which are:

  1. Regulation
  2. Platform
  3. Customer Support
  4. Notable Achievements
  5. Cons of the platform
Brokers
Regulations
Platform
Customer Support
Notable Achievements
Cons of the platform
PepperStone
– ASIC
– ABN
– FCA
– Offers the Malaysian popular MT4, and the new MT5 which is the advanced version with enhanced functionality.

– Provides a cTrader platform with the user interface which offers an institutional feeling of trading for Malaysian Traders.

– Provides an educational section which shares trading guides, market, and economic analysis.
The customer support section of the website provides FAQs which is easy for new traders to read upon Voted Best Global Forex ECN Broker and Best Forex Trading Support – Europe in 2019 by Global Forex Awards Minimum deposit is higher than other platforms at $200 USD (RM840)

– Website is only available in English of Mandarin
eToro
– FCA – eToro is well known for its social trading platform which primarily focuses on copy trading

– Although not providing platforms like MT4, but the usability of the platform is robust and innovative, which makes it a popular broker for Malaysians as it is easy to use

– Has a variety of assets classes to trade from and not just forex
– Platform language available in Bahasa Melayu

– Has a blog section which is available in Bahasa Melayu which shares news and tips regarding the economy and trading
– It was awarded the best social trading platform and best platform for trading cryptocurrencies in 2019 by ADVFN

– It was once won the World Finance Award as the Most innovate trading platform in 2010 due to their inventions of social trading b
Minimum deposit is higher than other platforms at $200 USD (RM840)

– The platform is not available in Meta Trader 4 (MT4) or Meta Trader 5 (MT5)
PLUS500
– FCA
– CSEC
– ASIC
– FMA
– FSCA
– MAS
– The platform consists of more than 50 different forex pairs available for trading

– Low deposit of $100 for trading

– Popular for it’s easy to own platform

Has a variety of assets classes to trade from and not just forex
Platform language available in Bahasa Melayu, Traditional and Simplified Chinese – The parent company of PLUS500 is listed on the London Stock Exchange (LSE)

– Builds upon a strong brand reputation such as a sponsorship with Spanish football club Atlético de Madrid
Educational tools are limited when compared to other platforms

– Familiar platforms such as MT4 are not provided
TickMill
– FSA
– FCA
– CySEC
– Direct linkage to Meta Trader 4 (MT4), a popular electronic trading platform widely used by Malaysian Traders

– A low initial deposit of only $100

– Able to get $30 worth of no deposit bonus before trading

– One of the lowest trading fees among with withdrawals and deposit free of charge
-Platform language available in Bahasa Melayu

– Chat support available in Malay
Voted best trading experience by Forex Broker Awards 2020 Limited assets classes to be traded (only forex and CFDs available)

– Limited to only 2 trading platforms which is Meta Trader (MT4) and WebTrader

Best Forex Brokers in Malaysia

Types of Forex Brokers in Malaysia

This may not be common knowledge among Malaysians, but generally, forex brokers in Malaysia are divided into two types which are the dealing desk and non-dealing desk. Here are some tips on how to identify a dealing desk or non-dealing desk broker.

Dealing Desk

Dealing desk brokers (DD) are also known as the market makers, are the ones that stand in between you as a trader and the interbank market, which are the liquidity providers. Liquidity providers are such as hedge funds, banks, mutual funds, and more. What they do for their clients is that they take the opposite side of your trade, which is why they are called market makers. In simple terms, if you take a loss, meaning the broker will make a profit and vice versa.

The dealing desk brokers (DD) will profit from the bid and ask, which is what we forex traders call spread. Most of the DDs will set a fixed spread for their clients as they would want to maximize the profit as much as possible from the spread.

Non-Dealing Desk

Like how its name suggests, the non-dealing desk (NDD) is the opposite of the dealing desk as they linked both you as a trader and the interbank who provides the market liquidity, whereby NDD acts as the platform. There are two types of NDD:

1. Straight through processing (STP)

  • The STP system directly links you to the liquidity providers
  • They charge fixed or variable spreads
  • Price of the exchange are quoted by the liquidity providers
  • The trades execution are done automatically by the platform, and there’s no requote

2. Electronic Communication Network (ECN)

  • ECN system has also been called the upgraded version of STP.
  • It not only links you to the liquidity providers but also other participants of the ECN
  • They charge variable spreads and/or commission
  • Price of the exchange is quoted by both liquidity providers and other ECN participants
  • The trades execution are done automatically by the platform, and there’s no requote

Here’s a direct comparison between dealing Desk and Non-Dealing Desk:

Comparison
Dealing Desk
Non-Dealing Desk (STP + ECN)
Conflict of interest
There will be a conflict of interest as the broker will take a loss if the trader gains No conflict of interest as a broker only acts at the platform for both liquidity providers and traders
Re-quotes
Re-quotes do happen when odds are against the broker’s favor Re-quotes do not happen as orders are filled according to market rate as provided by liquidity providers
Liquidity
Slower due to an additional line of intermediary which is the broker itself Faster due to orders filled quickly by electronic platforms according to market rate
Spreads
Charges a fixed rate, so doesn’t matter if the market is volatile, the rate will be the same, which offers consistency. STP = Fixed or variable rate

ECN = Variable rate or commission based

As rates may vary from time to time, the cost for trading might be more expensive than the dealing desk as time goes by.

Awareness

There’s no direct confirmation from the brokers themselves which types of brokers they are. But it is important to understand potentially what type of brokers you might be dealing with and this will give you an idea how to spot one if any situation arises.

Best Forex Broker With Free Bonus in Malaysia

When talking about free stuff, everyone will get excited about it. I mean, who doesn’t, right? As a new trader in Malaysia, you will have the feeling of excitement about your new trading journey and at the same time filled with anxiety on your first trades, thoughts such as would it be profitable or not? A free bonus is more commonly known as the no deposit bonus, whereby you only need to open a trading account with a respective platform and receive money to start trading.

Remember, the more the free bonus doesn’t mean it is the best platform to trade, therefore you should always go through a few strict evaluation criteria before determining the platform is the right one for you.

Here are some of the best-rated brokers with a free bonus:

Broker
Regulations
Bonuses
Terms & Conditions
Customer Support
TickMill
– Seychelles Financial Services Authority (FSA)

– Financial Conduct Authority (FCA)

– Cyprus Securities and Exchange Commission (CySEC)
The platform offers a no deposit bonus of $30 – To withdraw the profits made with the no deposit bonus, Malaysian Clients will need to deposit $100

– The bonus can only be used for trading purposes
– Platform language available in Bahasa Melayu

– Chat support available in Malay
XM Forex
– International Financial Services Commission (IFSC)

– Cyprus Securities and Exchange Commission

– Australian Securities and Investments Commission (ASIC)
The platform offers a no deposit bonus of $30 – To withdraw the profits made with the no deposit bonus, Malaysian Clients will need to trade at least 0.1 standard lot or 10 micro-lots in 5 round turntables

– The bonus can only be used for trading purposes
– Platform language available in Bahasa Melayu

– Chat support available in Malay

Best Forex Brokers

Best Forex Broker With Low Spread and for Scalping in Malaysia

Scalping in forex is a technique used by traders to trade in the short term, to make a profit. Typically, traders that adopt this strategy will aim for the busiest times of the day, looking to profit from those movements in peak hours. For Malaysian traders, the strategy is suitable for those that could afford to spend hours in front of the charts, to capture the movement at the right time.

How does scalping relate to low spreads then? Well, traders that adopt the scalping strategy execute trades multiple times a day and with that, the commission paid by the traders will amount to a lot a day, which is why a broker with low spread is important to minimize the trading cost. It is important to select your trades at the right time To profit from the strategy.

1. Pepperstone

You might have seen this platform mentioned more than once, Pepperstone is well regarded in the forex industry and is a top 1 forex broker. For Malaysians that want a platform with low spread and wish to implement the scalping strategy, it is recommended to go for their razor account instead of their standard account, as the average EUR/USD spread is from 0.0 to 0.3 pips, making it a popular option among scalping traders.

2. XTB

  • XTB offers both fixed and variable spreads on their major currency exchange pairs, the spreads are priced competitively and it will vary depending on either taking a standard or pro account
  • The broker is registered and authorized by the Financial conduct authority (FCA)
  • It also provides educational tools made available for newbies or even seasoned traders

Conclusion and Thoughts

It is important to have a good forex broker in Malaysia for your trading needs, but always remember that there’s no perfect broker, only the most suitable broker. Forex trading is not a safe investment, every time you place a trade, there will be a risk of you losing it. So remember to build up your skills with the broker that you can trust, and build consistency with it. There’s no shortcut to success, the same goes for trading, and as always, happy trading!