Malaysia, a country with over 33 million inhabitants, suffered an economic downturn during the Covid-19 pandemic, but the economy has recovered. The IMF forecasts a 4.5% growth in Real GDP for 2023 and local inflation at an acceptable level of 2.9%. During the pandemic lockdown, many citizens sought alternative sources of income, and the trading of foreign currency pairs gained popularity.
A recent article in 2022 disclosed there are 215,000 active forex traders in Malaysia with volume turnover exceeding $76 million monthly. The brokerage community regards Malaysia as a promising market, primed for development, but local regulators are extremely concerned about the possibility of scams and shady business practices. The local agencies are rigorous in policing the local market and restrictive in issuing licenses.
The Securities Commission of Malaysia (SCM), a Tier-2 regulator on par with regulators in Israel and South Africa, overseas activity in all financial markets in concert with Bank Negara Malaysia, the country’s central bank. They prefer that you deal with a locally approved institution or broker as long as the entity offers an Islamic account. It is permissible to trade online with an overseas broker, but it is highly recommended that the chosen broker is a heavily regulated business.
Choosing the best forex broker for your needs can be a daunting challenge, but it need not be. We continually canvass the brokerage industry for top-of-the-line brokers that consistently demonstrate excellent performance and compliance with strict regulatory regimes. For your review, we have listed our four favourites on the global scene. Each broker below has an admirable reputation and has garnered several awards from significant industry rating firms.
The Top 7 Forex Brokers in Malaysia
#1Octa
What We Liked:
- Easy to use platform and impressive 24/7 customer support
- Competitive pricing and tight trading spreads
- Low minimum deposit requirement of $25
- MT4, MT5, and cTrader trading dashboards
Since being founded in 2011, Octa has built up an impressive global client base and now reports more than 40m accounts have been opened. The broker’s success is due to it offering an ideal package to beginner and intermediate traders and a high-quality trading experience. The platform is easy to use, and an extensive range of educational and research materials are available for clients.
The ‘big three’ trading platforms, MT4, MT5, and cTrader, are all available, which means traders can find the route to the market that suits them best. Those who need to contact customer support can take advantage of the 24/7 coverage the broker offers and their commitment to respond to requests within 30 seconds. The robust all-round package is backed up by aggressive pricing, tight variable bid-offer spreads in most markets, and zero commission trading on some accounts.
#2FBS
What We Liked:
- Low-cost trading and no inactivity fees
- Easy account opening process and $5 minimum opening balance
- Excellent educational materials and high-quality customer service
- Leverage up to 1: 3,000
FBS does an excellent job of covering the basics by offering reliable and low-cost trading but also provides other features which make it attractive to a wide range of traders. The well-thought-out approach has been reflected in the broker now having in excess of 27m users signed up from more than 150 countries.
A range of asset types can be traded, from stocks to crypto and forex to commodities. Leverage can be extended to 1: 3,000, and accounts can be opened with as little as $5. The tight trading spreads and zero-commission policy make trading cost-effective, but the broker is about more than low prices. The 24/7 customer services team offer support in 14 different languages, and the neat Forex Analytics tool generates and shares trading ideas as opportunities appear in the currency markets.
#3Tickmill
What We Liked:
- Exceptional trading experience
- Super-competitive pricing, no withdrawal fee, no inactivity fee
- Extensive range of assets to trade, including futures and options
- Insightful market research and access to Signal Centre and Autochartist analysis tools
- Client safety: funds are stored with top-tier banks with Negative Balance Protection.
Tickmill offers one of the highest-quality trading experiences in the market. Having been established by a group of well-regarded industry professionals, the broker rightly takes pride in how it has been built ‘by traders, for traders’. The firm consistently ranks as one of the most cost-effective in the market and extends that competitive pricing policy across an impressive range of instrument types.
Clients can also draw on high-end research tools such as Signal Centre and Autochartist, which analyse market events to highlight trading opportunities. Security of funds is another area where Tickmill scores highly. Six different agencies regulate Tickmill, with clients also benefitting from an insolvency-based insurance policy.
#4IG
What We Liked:
- Major footprint across the world with 20 global offices
- Heavily regulated and also traded on the London Stock Exchange
- Continually ranked number one or in the top three in the industry
- Extensive asset portfolio with 17,000+ items to choose from
If size and prestige matter to you, the IG Group may be a great choice. It opened its doors for business in 1974 and has never looked back. It has the capital and size to do many things, from offering one of the largest asset portfolios of 17,000+ markets and a variety of trading platforms to suit the tastes of its 239,000+ registered customers.
You may trade with CFDs or own assets directly. The choice is yours, and the firm supports your effort with one of the most in-depth Learning Centres among all global brokers. Lastly, the firm has earned a lengthy list of awards and industry recognition over the years for excellence in all phases of service delivery. With IG, the biggest can be the best.
#5FXGT
What We Liked
- Emphasis on ease of use
- Hassle-free account opening
- Spreads as tight as zero pips
- Innovative analysis tools
#6XM
What We Liked:
- Regulated by five agencies, including the FCA in the UK and ASIC in Australia
- Above-average research and educational support
- Low minimum deposit requirements
- Top-tier customer service department
The XM Group is a global broker that began operations in 2009. It is not a behemoth like IG, but the management team strives to offer high-quality service. On the positive side, the firm has a reputation for having a very responsive customer service group, further supported by excellent research and an above-average educational learning centre.
The company also chose to offer the very popular MT4 and MT5 family of trading platforms, both online and mobile versions. It does not have a proprietary trading system, and its asset portfolio, although strong in stocks, is about average for the industry. High quality for a smaller operation equates to average spreads, but the firm complies with five regulatory agencies, including the FCA in the UK and ASIC in Australia.
#7FXPro
What We Liked:
- Experienced broker on the global scene since 2006
- Regulated by four agencies, including CySEC for the EU and the FCA in the UK
- Broad portfolio offering of 2,100+ financial instruments
- MT4, MT5, and cTrader platform trading options supported
Long revered as one of the top forex brokers in the industry, FXPro was founded in 2006. Over the intervening years, its customers have executed more than 635 million orders on its various trading platforms. Its headquarters are in Cyprus, and it complies with the regulations issued by CySEC, the FCA in the UK, the FSCA in South Africa, and the SCB in the Bahamas. The firm offers 2,100+ assets for trading on its platforms, which include MT4, MT5, and cTrader, both direct and mobile. Customer service is top drawer, and awards have been plentiful.
#8XTB
What We Liked:
- Major global presence with 13 offices worldwide since 2002
- Complies with four agencies, including the FCA and CySEC, and is on the Warsaw Stock Exchange
- MT4 family of platform products and proprietary xStation 5 trading platform
- 2,200+ trading assets enjoyed by 615,000 clients by year-end 2022
XTB was founded in Poland in 2002 and is listed on the Warsaw Stock Exchange, ensuring high transparency and credibility. It complies with the FCA in the UK, CySEC in Cyprus, the FSC in Belize, and the KNF in Poland. Over 2,200 instruments are offered for trading with tight spreads on MT4 platform products or the firm’s highly recognised proprietary platform, xStation 5. XTB is a large, experienced broker known for reliability and is often recognised for excellence in all phases of its business model.
