The Lowest Spread Broker in Malaysia 2020

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Updated: 26 August 2020

What is a Spread Broker?

As a trader, if you are using a brokerage firm or individual to help you in trading, then you need to understand what is a spread. It is also crucial that you find the lowest spread forex broker available.

Every broker you appointed will work based on commission and fee while trading. This is where a spread comes. By definition, a spread is a difference between the bid price and the asking price for the trade. The bid price is the price you will receive by selling a trade, while the asking price is the price you pay when buying a trade.

Some brokers could also charge you with both commission and a spread for every trade they make. In contrast, some brokers may claim to offer commission-free deal while widening the spread on each trade. A spread is basically how your brokerage firms or individuals make money.

Just like the brokerage fee, you must compare the spread of each brokerage before deciding on selecting them to work with

What is a Good Spread in Forex?

There are two levels of spread, which is high and low. It is safe to say that the smaller the spread of a broker, the better.

High Spread

A high spread means there is a significant difference between the bid and the asking price. A higher than usual spread generally indicates one of two things, high volatility in the market or low liquidity due to out-of-hours trading.

Low Spread

A low spread means there is a small difference between the bid and the asking price. It is preferable to trade when spreads are low, like during the major forex sessions. A low spread generally indicates that volatility is low, and liquidity is high.

Types of Spread in Forex

Besides the high and low spreads, you also need to understand the two types of spreads available in forex trading. Let us have a look at the differences below.

Fixed Spreads

Fixed spreads stay the same regardless of what market conditions are at any given time. In other words, even if the market is volatile, the spread is not affected. It stays the same. Fixed spreads are offered by brokers that operate as a market maker or “dealing desk” model.

Variable/Floating Spreads

As the name suggests, variable spreads are always changing. With variable spreads, the difference between the bid and ask prices of currency pairs are continually changing. As this type of spread is usually offered by non-dealing desk brokers who have no control over the trades, spreads will widen or tighten based on the supply and demand of currencies and the overall market volatility.

Lowest Spread Forex Broker

How To Minimize Spread?

Fortunately, as a trader, there are two possible ways you can take to minimize the spread of your trade.

  1. Trade at the right time
  2. Always trade at the most favorable trading hours when many buyers and sellers are actively on the market. This is when demand for the business increases, and brokers will often narrow their spreads to seize the opportunities.

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  3. Avoid Trading Un-Popular Currencies
  4. Brokers will usually compete for business when you trade popular currencies, such as the GBP/USD pair. If you trade a thinly traded currency pair when demand is low, brokers will take the advantage to widen the spread of your trades.

    Now, let us take a look at the list of the lowest spread forex brokers in Malaysia for 2020.

Compare and Find The Lowest Spread Broker in Malaysia

Below is the list of forex brokers that are available in Malaysia. Please note that the brokers are rated by their whole platform performances, services, fees, and spreads.

Forex Broker
Average Spread EUR/USD – Standard
Minimum Initial Deposit
Major Currencies Pairs
Overall Performance
IG
0.700
£250 (RM1,352.95)
EUR/USD,
USD/JPY,
GBP/USD,
USD/CHF,
AUD/USD,
USD/CAD,
NZD/USD,
GBP/EUR,
EUR/CHF,
EUR/JPY
5 Stars
Saxo Bank
0.600
$10,000 (RM42,520)
GBP/USD,
USD/JPY,
EUR/USD,
USD/CHF,
USD/CAD,
NZD/USD,
AUD/USD
5 Stars
Pepperstone
1.130
$200 (RM850.30)
EUR/USD,
GBP/USD,
AUD/USD,
USD/CAD,
USD/CHF,
USDJ/PY
5 Stars
City Index
0.800
£50 (RM270.700
EUR/USD,
USD/JPY,
AUD/USD,
EUR/CHF,
EUR/GBP,
EUR/JPY,
GBP/USD,
NZD/USD,
USD/CAD,
USD/CHF
4.5 Stars
FOREX.com
1.00
$100 (RM425.15)
GBP/USD,
USD/JPY,
EUR/USD,
USD/CHF,
USD/CAD,
NAZ/USD,
AUD/USD
4.5 Stars
XM Group
1.600
$5-100 (RM20-425)
EUR/USD,
USD/JPY,
GBP/USD,
USD/CHF,
USD/CAD,
AUD/USD,
NZD/USD
4.5 Stars
Plus500
0.600
€100 (RM492.01)
USD/EUR,
USD/GBP,
USD/CHF,
USD/JPY,
USD/CAD,
USD/AUD,
USD/NZD
4 Stars
Skilling
0.700
$50(RM200)
EUR/USD,
GBP/USD,
USD/JPY,
USD/CAD,
EUR/GBP
4 Stars
IC Market
1.100
$200 (RM850.30)
EUR/USD,
GBP/USD,
AUD/USD,
USD/JPY,
USD/CAD
EUR/GBP,
EUR/AUD,
GBP/JPY,
CHF/JPY,
NZD/JPY
4 Stars
FXPro
1.58
$100(RM400)
USD/EUR,
USD/GBP,
USD/CHF,
USD/JPY,
USD/CAD,
USD/AUD,
USD/NZD
4 Stars
XTB
0.78
0
EUR/USD,
GBP/USD,
USD/CHF,
USD/JPY,
AUD/USD,
NZD/USD,
USD/CAD
3.5 Stars

The Lowest Spread Broker in Malaysia

Why Does Low Spread Matter in Forex?

As a forex trader, you know you need to find the right broker before you start investing. However, do you understand why it matters?

Low spread in forex matters because the spread is an opportunity cost that can reduce the amount of profit that can be captured from the daily range. The higher this percentage or opportunity cost, the greater the chance of real financial loss to the trader.

In simple terms, with a low spread broker in forex, the better the chance for you as a trader to profit. Thus, this is why it is essential to find the lowest spread forex broker possible.

Conclusion

Choosing the right broker is crucial for every new trader in the forex. Always compare the lists of brokerage fees and spread available in Malaysia before you start deciding to work with them. Remember to choose the one that offers you the lowest spread broker possible.

Also, forex trading requires a long journey to success. It is crucial for you always to take the right steps and always be patient. Get yourselves prepared with comprehensive trading skills before you start investing.