How to Choose the Best Stock Broker in Malaysia?

10 mins/15 July 2021

As we get into a time where information could be gathered quickly, stocks become an investment vehicle for people to preserve their wealth or grow it. For Malaysians, we’re not short of options when it comes to buying shares. In investing, there’s no certainty in a guaranteed profitable investment. However, it is essential to select a suitable stockbroker to give you the security to rely on to secure your profits.

The Best Stock Brokers in Malaysia

  1. FXTM
  2. Vantage FX
  3. Tickmill

#1 FXTM

Trader Rating
What We Liked
  • Tried and trusted with more than 2 million existing clients.
  • Beginner-friendly ‘Cent’ account allows new traders to try out trading in small size.
  • $10 minimum opening balance (Cent account).
  • Competitive pricing with no commissions on ECN accounts.
  • Institution-grade infrastructure ensures reliable and fast trade execution.
  • Winner of the World Finance Best Trading Experience award 2020.
  • User-friendly mobile apps, perfect for those who want to trade on the move.
  • 24-hour customer support available in 18 different languages.
  • Islamic Account for Shariah-compliant trading.
  • Free demo account.
  • Lots of additional extras including Trading Signals and FXTM Pivot Point Strategy.

FXTM is a leading online broker. It uses ground-breaking technology to give clients a competitive edge when trading the markets. The platform is well designed and packed full of innovative features. The FXTM trading experience is a combination of user-friendly functionality and powerful software tools. It’s no surprise the broker has been picking up a heap of industry awards.

FXTM Awards Malaysia

Source: FXTM

FXTM is different and in a good way. Many of the features on offer have been developed in-house and are unique to the broker.

Visiting the platform to try out its service using a demo account is highly recommended. There’s no charge for signing up and practicing trading using virtual funds is always to be recommended.

One of the best examples of how FXTM is reshaping the sector is the Cent account. You can start trading with as little as $10 and minimise the risk of blowing up your account as you take the step-up from virtual to live trading.

There is a difference between trading virtual and real funds and the Cent account helps FXTM clients develop an effective trading psychology.

FXTM also has a market-leading approach to transparency of reporting. The broker provides a range of data on how effective its own processes are. This is a neat feature that confirms the broker is on the same side as its clients and confident that it is doing a good job.

Broker Fees

FXTM offers four types of account types, Standard, Shares, ECN Zero and Cent. Each offers slightly different T&Cs, but all are super-competitive.

FXTM Services Malaysia

Source: FXTM

Trading Limit

FXTM offers floating leverage, which means clients can set their own trading limits. In line with the rules set out by the regulatory body that oversees FXTM’s operations, the maximum leverage terms for FXTM clients in Malaysia is 1:30.

FXTM Quotes Malaysia

Source: FXTM

Features

Regulation

Exinity Limited (www.forextime.com) is regulated by the Financial Services Commission (FSC) of the Republic of Mauritius with an Investment Dealer License bearing license number C113012295.

Platform

Clients of FXTM are provided with a choice of two of the world’s most popular retail trading platforms, MetaTrader4 (MT4) and its sister platform MT5. Both are available in desktop, WebTrader and mobile app format, which means FXTM clients can keep in touch with the markets 24/7.

MT4 is packed full of powerful software tools that take trading up to another level. It comes with a default offering of 30 indicators and the razor-sharp graphics are ideal for spotting trade entry points.

FXTM Calculator Malaysia

Source: FXTM

Other indicators are available from third-parties. Many are free of charge and tapping into the MetaTrader online community is a great way for traders to share ideas on strategies and markets.

The MetaTrader 5 platform has eight more indicators than MT4, more time-frame settings and an economic calendar. It also supports multiple-thread optimisation modes, but the MT4 and MT5 platforms, in truth, complement rather than compete with each other.

Deciding between two high-spec platforms like MT4 and MT5 comes down to personal preference and FXTM has a dedicated page on its website where it outlines the relative strengths of the two. The good news is that the demo account of both platforms is free of charge and easy to set up.

The MT platforms form the user-interface for FXTM clients, but a lot of the good things about FXTM go on behind the scenes.

The FXTM Invest Copy Trading service offers a different approach to trading. It’s popular with beginners and those who don’t have the time to develop and manage their own strategies. Instead, you can copy the trading activity of other trading strategies and there are over 5,000 to choose from. The minimum opening balance for copy trading is only $100 and the best bit is that you only pay commissions on profitable trades.

Customer Support

FXTM invests heavily in client support and was awarded the Best Trading Experience accolade at the World Finance Awards in 2020.

The broker also provides free of charge online trading courses and a range of seminars and webinars with in-house experts.

The FXTM customer support team provides its service in 18 languages and can be contacted 24 hours a day. Clients can also take advantage of having a dedicated account manager, which helps individuals get the most from their trading. It’s possible to contact them via email, telephone and live chat.

#2 Vantage FX

Trader Rating
What We Liked
  • Trade 300+ markets in forex, commodities, crypto, shares and indices.
  • Free demo account.
  • Islamic Account for Shariah-compliant trading.
  • Super-tight spreads including 0.0 pips trading on RAW ECN accounts.
  • Institution-grade trade execution infrastructure.
  • User-friendly platform.
  • Exclusive FX promotions and affiliation schemes.
  • Choose from two market-leading platforms.

Vantage FX has been operating for over 10 years. It has enough of a track record to be trusted and an appetite for upgrading what brokers offer their clients. It is a neat blend of user-friendly functionality and high-level trading tools. The platform has been designed by traders for traders and has everything needed for its clients to be successful.

In only a relatively short period of time, the broker has picked up a whole list of industry awards. It does the simple things well but has a track record of bringing in new innovative features to improve the quality of service to its clients.

Vantage FX Awards Malaysia

Source: Vantage FX

One way to try out the Vantage FX trading experience is to take a few moments to set up a free demo account. It takes moments to do and will give you a first-hand insight into how the broker is pushing the boundaries of what can be offered to clients.

Another really neat feature is that when it comes to setting up a live account and trading real cash, Vantage FX offers new clients a 50% welcome bonus.

Vantage FX Lower Costs Malaysia

Source: Vantage FX

Broker Fees

Vantage FX’s super-aggressive approach to pricing is best demonstrated by its RAW ECN account, which has spreads as low as 0.0 pips and just a $3 commission. All the other accounts have similarly competitive T&Cs.

Trading with Vantage FX is about more than low prices. The quality of trade flow is backed up by the broker having access to deep pools of market liquidity and offering VPS hosting. All this adds up to the broker providing a high-grade and cost-effective way to trade the markets.

Vantage FX Offers Malaysia

Source: Vantage FX

Trading Limit

Malaysian clients of Vantage FX’s have accounts set with a default maximum leverage of 100:1. Those running more aggressive strategies can apply to scale this up to as high as 1:500.

Vantage FX Leverage Malaysia

Source: Vantage FX

Features

Regulation

The broker operates under license from a range of global regulators, including the FCA, ASIC and CIMA.

Vantage Global Limited is authorised and regulated by the VFSC under Section 4 of the Financial Dealers Licensing Act [CAP 70] (Reg. No. 700271) and is registered at iCount Building, Kumul Highway, Port Vila, Vanuatu.

Clients’ funds are held in a segregated account with Australia’s AA rated National Australia Bank (NAB).

Vantage FX Autotrade Malaysia

Source: Vantage FX

Platform

The industry-leading MetaTrader4 and MetaTrader5 platforms, which are ideal for beginner and experienced traders alike, are both available at Vantage FX. The Vantage FX trading experience is very much about having access to your account anywhere, anytime.

The MT4 and MT5 Apps by MetaQuotes are fast, reliable and compatible with both Android and iOS devices. All Vantage FX clients can experience the same trading functionality on their mobile device as they do on their desktop machines. Features include one touch trading, a variety of order types and instant access to over 300 markets.

There are three more third-party platforms on offer, ZuluTrade, DupliTrade and MyFXBook Autotrade. Each offers a different way of investing in the markets and provides support for those looking to use the ideas of others and take part in social trading and copy trading.

Customer Support

Education and learning are hot topics at Vantage FX. If you’re looking to develop your trading skills, then the broker offers a dedicated section for those looking to learn how to spot trading opportunities.

The award-winning Vantage FX customer support team can be contacted around the clock by phone, live chat and email. The team is are multi-lingual and available to clients on a 24/5 basis.

#3 Tickmill

Trader Rating
What We Liked
  • Low-cost trading.
  • Award winning 24/5 customer service — ideal for beginners.
  • Powerful research tools that help traders identify trade entry and exit points.
  • User-friendly website.
  • Free demo account with no time-limit.
  • Low minimum opening account balance of just $25.
  • Regulated by Labuan Financial Services Authority (Labuan FSA).
  • Promotional offers including cash-prize demo account competition and a $30 welcome account offer where the broker gives you real cash to trade with.
  • Islamic Account for Shariah-compliant trading.

Why Tickmill Malaysia

Source: Tickmill

Tickmill is an ideal option for beginners. Registering for an account is made easy and those still considering their options can practise using the free demo account on offer. If you want to start trading real cash straight away, the minimum account opening balance is only $25.

Once set up, you’ll soon discover why Tickmill keeps picking up new clients. The platform provides access to a wide range of asset groups and financial markets across the world. Client protection is a key consideration and the good news is that Tickmill is regulated by Tier-1 authorities.

It’s little surprise that Tickmill has won a host of industry awards, which include:

Tickmill is a great place to start trading. It’s a trusted broker with a track-record of introducing innovative features, and you can head here to try it out.

Broker Fees

Trading costs at Tickmill are incredibly low. There are three different trading accounts to choose from, but each has very impressive T&Cs.

The spreads for the Pro and VIP accounts stand out because they begin at 0.0 pips. Those who trade using the VIP account will find those tight spreads are then backed up by trading commissions as low as $1 per lot, per side.

Why choose Tickmill Malaysia

Source: Tickmill

Trading Limit

Maximum leverage settings are in line with the regulatory restrictions of Labuan Financial Services Authority (Labuan FSA). Traders can adjust leverage to suit them and the maximum leverage is 1:500.

There are no restrictions on types of trading strategy, which means scalping and hedging are allowed.

Features

Regulation

The Tickmill group of companies is a serious operation. It employs more than 200 people worldwide.

The firm’s office in Malaysia can be found at Office No. 5, Unit 25,1st Floor Paragon Labuan, Jalan Tun Mustapha, 87007 Labuan F.T.

The different Tickmill entities are regulated in some of the world’s most reputable financial jurisdictions, including FCA, CySEC, FSA and FSCA.

Clients in Malaysia register for accounts with Tickmill Asia Ltd, which is authorised and regulated by the Labuan Financial Services Authority. The firm has licence number: MB/18/0028

Tickmill License and Regulation Malaysia

Source: Tickmill

As the Tickmill site states: “Labuan FSA acts as the central regulatory, supervisory and enforcement authority of the international business and financial services industry in Labuan. The authority plays a vital role in ensuring all entities operating under Labuan IBFC abide by the highest financial standards”. (Source: Tickmill)

Platform

Designed specifically for traders, the MetaTrader 4 platform is a user-friendly and powerful trading dashboard. It is packed full of sophisticated order management tools which help you control your positions quickly and efficiently.

Combining MT4 with Tickmill’s enhanced trading conditions, you’re able to use a trusted trading platform to access spreads as low as 0 pips and execution times of 0.20s.

An impressive list of additional services is also on offer. AutoChartist, Myfxbook and Pelican trading provide the ideal support for both beginner and experienced traders.

Tickmill map Malaysia

Source: Tickmill

Customer Support

Tickmill provides its clients with a wide range of educational materials. Choose from ebooks, video tutorials, infographics and specialists sections focussing on technical and fundamental analysis.

If you find you need to contact the multi-lingual Tickmill customer service, that can be done via telephone, email and live chat.

How to Choose a suitable stockbroker

Below will be a breakdown of how you choose a suitable stockbroker in Malaysia:

1. Identifying Your Needs

Since you have set a mind into investing in stocks, you need to be clear on whether you would like to invest in Malaysian stocks or overseas stocks. It is because most Malaysian trading platforms do not offer the option to trade foreign stocks (like the US market), and you will need to use a separate trading platform to do so.

Why Malaysia Stocks?

  1. Tax. You do not need to pay capital gain tax for investing in Malaysian shares. Hence, all profits are yours to keep.
  2. Politics and economics. As Malaysians, we can easily understand political or economic changes in the country. As the saying goes, invest in things you know the most.
  3. Accessibility. Malaysians can directly invest in Bursa Malaysia by signing up for a local stockbroker. Fees are generally lower as well when investing locally.

Why US stocks?

  1. Diversification. When investing in US stocks, you generally increase your global exposure as big companies operate on a worldwide scale.
  2. Currency. When owning US stocks, your stock value pegged to the dollar known for its stability.
  3. Liquidity. The US market has the largest stock market globally, proving the high liquidity of exchange, which is why it is the most popular country to invest in the world.

2. Regulation

When selecting a broker, you want to have one that gives you peace of mind during trades. When selecting a Malaysia brokerage, make sure it’s regulated by Securities Commission Malaysia (SC) or Bank Negara Malaysia (BNM). If it’s an overseas stockbroker, ensure that it’s regulated by governing bodies such as the Financial Conduct Authority (FCA).

Even though a stockbroker might offer you many benefits, but if financial governing bodies do not authorise it, it is still risky. There were cases of fraud happening or withdrawal unable to proceed.

3. Platform

Ensure that the trading platform has most functionalities that a stockbroker should have like charts, fundamental data, ratios, and more.
It is essential that the user experience of the platform is user friendly, with the addition of a mobile version would be plus as it will be more convenient for you to monitor your stock performances.

Educational sections of the platform will be essential for investors, whether seasoned or new, as daily produced market information will be helpful in your stock analysis.

4. Customer Support

The website needs to have tutorials for newbies and a FAQ section.

An efficient customer support line is also required to solve crucial issues. Hence, be sure to check the reviews on their supports as well.

Conclusion

It is essential to select a good stockbroker; it doesn’t matter if you invest in the Malaysia or US stock market. Once you’ve chosen a suitable broker, remember to hone your skills and knowledge so that your efforts do not go to waste. And as always, happy trading!