Malaysia Forex Trading Brokers

Written by Miro Nikolov

Miro Nikolov

Miro Nikolov is the co-founder of TradingPedia.com and BestBrokers.com. His mission is to help people make profitable investments by giving them access to educational resources and analytics tools.

, | Updated: November 4, 2025

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• Jump to:
• Main features of the best Malaysia Forex brokers
• Forex Legislation
• Financial Regulators
• Payment Methods
• Trading Software
• Mobile Trading
• FAQ
›

Our team of expert traders has tested numerous regulated and trustworthy forex brokers that accept Malaysian traders and has compiled a top list of the best among them. Each broker operating in Malaysia received a quality score based on several factors, including Trustpilot rating, regulation, fees and commissions, available trading platforms, customer service, and more.

1. 

   Plus500 US

   Rating: 4

   This content applies only to Plus500 US and clients from the United States. Trading futures involves the risk of loss.

2. 

   eToro

   Rating: 4.2

   61% of retail investor accounts lose money

3. 

   Fusion Markets

   Rating: 4.8

   74-89% of retail's CFD accounts lose money

4. 

   FP Markets

   Rating: 4.9

   73.85% of retail investor accounts lose money

5. 

   Global Prime

   Rating: 4.7

   74-89% of retail CFD accounts lose money

6. 

   XM Group

   Rating: 3.8

   72.82% of retail investor accounts lose money

Below you can find a comprehensive comparison table of forex brokers for traders in Malaysia. We rank them based on several factors, including regulation, spreads and commissions, Trustpilot rating, trading instruments, trading platforms, and deposit and withdrawal methods.

Our team has thoroughly evaluated all brokers listed below using TradingPedia’s exclusive methodology.

Main features of the best Malaysian forex brokers

Malaysia is a federal constitutional monarchy in Southeast Asia with a population of 32.4 million and a gross domestic product of US$354.3 billion in 2018. The country’s economy has undergone a dramatic transformation over the last five decades, from one that relied primarily on exports such as tin and rubber to one that is among the fastest-growing in the region.

An attractive investment destination, Malaysia appeals to foreign investors with its developed infrastructure, political stability, and undervalued currency, the Malaysian ringgit (MYR). The country boasts a thriving financial sector as its government has adopted policies that aim to promote foreign investment and market competition.

The capital, Kuala Lumpur, is home to the Kuala Lumpur Commodity Exchange (KLCE) and Bursa Malaysia, the local stock exchange whose main index is the Kuala Lumpur Composite Index (KLCI). The KLCI has a market capitalisation of US$397 billion and tracks the performance of thirty large companies, including Axiata Group Berhad, AMMB Holdings Berhad, and Digi.com Berhad.

Malaysia has established strong trading partnerships with other Asian countries such as South Korea, Thailand, Taiwan, Singapore, Japan and China, though it also maintains a prominent partnership with the United States. All these factors have shaped Malaysia into an investor-friendly country.

Until recently, it was illegal for Malaysians to trade on the forex markets. However, due to the immense interest among residents, the country’s authorities introduced a new set of rules to regulate these activities locally. Malaysian retail traders can use the services of brokerage firms as long as they are locally licensed and compliant with the country’s laws.

Malaysia forex legislation

Trading currency pairs is a popular activity among Malaysia’s residents. Internationally licensed brokerages can service customers from the country, but it is still recommended for them to receive the authorisation of the local regulator, the Securities Commission of Malaysia (SCM).

Several pieces of legislation have shaped the financial sector in the country, starting with the Exchange Control Act of 1953. This legislation introduced guidelines on how Malaysian residents can trade commodities such as precious metals, foreign currencies and securities. It also outlines the restrictions applying to such trading activities. Additionally, it regulates the import and export of commodities.

The second important piece of legislation is the 1993 Securities Commission Act, which led to the establishment of the Securities Commission of Malaysia (SCM). This legislation authorises the SCM to issue licences and supervise companies that deal in securities.

Then there is the 1998 Money Changing Act, which all foreign exchange brokers looking to operate on Malaysian soil must comply with. This legislation also clarifies that the forex trading sector is not regulated by the country’s central financial institution, Bank Negara Malaysia (BNM).

To prevent confusion, we should specify that the BNM is tasked with regulating the local currency, MYR. It also licences exchange businesses but does not regulate the trading activities themselves.

The Capital Markets and Services Act consolidated the Securities Industry Act of 1983. It took effect in September 2007. Its main purpose was to introduce a unified licensing system for capital market intermediaries that deal in securities and derivatives.

The Malaysian Securities Commission introduced new regulatory guidelines in the summer of 2018, aimed particularly at trading in derivatives such as the CFD. Under these rules, companies that offer CFDs to local traders are required to obtain a licence for dealing with derivatives from the SCM.

This move was intended to bring in more international forex and CFD brokers who would seek to obtain licences from the local regulatory authority. Accordingly, licensed CFD brokers must adhere to various financial requirements.

For example, such firms are expected to have at least RM10 million in paid-up capital, which corresponds approximately to US$2.5 million. They must also meet the minimum stipulated threshold for adjusted net capital, which should exceed RM500,000, or around US$124,000.

Firms that are already authorised to provide forex trading in the country can offer CFDs under their existing licences as long as they notify the regulator of their intention to do so. There is no need for them to apply for a separate derivatives licence. Meanwhile, brokerages that want to offer only CFD trading must comply with slightly different requirements. For instance, they should always hold at least 50% of their shareholders’ funds as liquid capital.

In line with regulatory frameworks worldwide, CFD brokers are expected to educate their customers so that they better understand the risks inherent to this financial instrument. All licensed firms should contribute to the regulator’s Capital Market Compensation Fund, intended as a means of recourse in case a broker goes bankrupt.

This way, affected traders will get their funds back. Each company should contribute RM30,000 (US$7,500) to the compensation fund upon receiving its licence, but there is also an annual fee of RM5,000 (around US$1,250). The minimum margin requirements are 20% for non-index shares, 10% for index shares, and 5% for index CFDs.

Malaysia financial regulators

There are several entities that oversee the financial sector in the country, starting with Bank Negara Malaysia (BNM). This entity was founded in January 1959 and has its headquarters in Kuala Lumpur. Its chief responsibility is to control all aspects related to the local currency, the Malaysian ringgit (MYR).

The ringgit was initially pegged at a fixed exchange rate against the USD as a means to cope with its significant depreciation after the Asian financial crisis of 1997. The central bank decided to abandon the peg for a floating exchange rate system in the summer of 2005. The ringgit gradually appreciated in relation to the USD in the years that followed. The central bank is also actively engaged in foreign exchange trading activities within Malaysia.

The Securities Commission of Malaysia (SCM) is the primary overseer of forex trading in the country. It was established in 1993 after the enforcement of the Securities Commission Act. The SCM reports directly to the Malaysian Ministry of Finance and is mandated to regulate companies that deal with securities and futures contracts on Malaysian soil.

Then there is the Shariah Advisory Council of the BNM, founded in May 1997. Its mandate is to ensure compliance with Shariah banking principles, which is necessary since the official religion in the country is Islam.

Over 61% of the Malaysian population is Muslim. Consequently, foreign exchange brokers operating in the country must be Shariah-compliant and offer Islamic accounts to their local customers. These accounts are swap-free, meaning that they are exempt from overnight interest rates in line with Shariah principles.

Malaysia forex payment methods

Nearly all brokers that operate on the Malay market offer their customers the option to sign up for demo accounts, topped up with virtual credits they can use to practise and test strategies. In many cases, traders can refill their demo balance as many times as they wish.

For real trading, however, you need to open a live account and deposit funds into it. There are several ways to do this, but most Malaysian traders prefer to use their cards, with Visa, Maestro and Mastercard being the most broadly available options.

Some Malay-friendly brokers also accept UnionPay credit/debit cards. Malay traders can apply for one at a branch of Public Bank Berhad or AmBank, both of which are authorised to issue UnionPay cards. The exact waiting time depositors must endure depends on the particular bank.

When using a card, you must open the deposit page of the broker and select this method from the list of supported options. You then complete the operation by entering your card number, expiry date, name and CVC – i.e., the last three digits printed on the signature strip at the back of the card.

Of course, you should also specify the amount you wish to transfer before you complete the payment. Card deposits are convenient in that they are typically processed instantly, although the operation may require one or two working days in some instances. Make sure the sum you transfer meets the minimum and maximum deposit requirements of your Malay brokerage.

A bank transfer is another method preferred by traders from this market, accounting for nearly half of all online payments in the country. There are two ways to complete a bank transfer – you can either do it in person at a branch of your bank or from the comfort of your home by logging into your online banking account. Online bank transfers are supported by most banks in Malaysia, including Bank Negara, AmBank, Public Bank Berhad and Maybank2u.

E-wallets are another widely offered payment option for Malay traders, who refer to them as ‘dompet digital’. Most forex brokers work with Neteller, PayPal and Skrill. Some also support Perfect Money, whose platform is available in Malay.

When using this method, payers are redirected to the system of their chosen e-wallet, which allows for instant and anonymous money transfers. All four e-wallets are usually supported for withdrawals as well. FasaPay is another suitable payment option for traders from Malaysia, albeit a less common one.

Popular trading software in Malaysia

After you have determined which brokerages serve clients from Malaysia, you need to check which trading platforms they implement. The software a broker relies on is essential for the trading experience it provides to its customers. The simpler the interface, the better, especially if you are new to forex trading. An overly complicated platform may lead to trading mistakes that could ultimately cost you.

Another thing you should check is compatibility, since some platforms may not work on the operating system you are using. Your broker of choice should also give you the option to trade on the go, so make sure its software is mobile-friendly.

Most brokers on the Malaysian market seem to prefer the MetaTrader 4 platform, developed by MetaQuotes, because it is the easiest to work with. It has a very user-friendly layout along with various advanced analysis tools and a practical chart station with three types of charts – bars, candlesticks and lines. Additionally, traders can install it on any desktop computer that uses the Linux, Microsoft Windows, or Mac operating systems.

MT4 is the favourite of many Malay traders who explore the forex markets. However, those who want access to a more versatile selection of financial instruments should opt for a brokerage that implements the MetaTrader 5 platform, since it also supports options, bonds, stocks and futures. Either platform has its version of WebTrader, which is browser-based and removes the need to download additional software.

Mobile trading in Malaysia

In an era when smartphones have become an inseparable part of people’s day-to-day lives, forex brokers are striving to compete with each other by facilitating the optimal trading experience on the go. Malaysians are very keen on mobile technologies as well.

In 2015, there were over 14 million smartphone users in the country, which corresponded to around 48% of the population at the time. This number is expected to jump to over 20 million people in 2020. Having said that, the country’s 4G connection is far from impressive speed-wise at 14.83 Mbps on average.

Brokers serving the Malay market normally offer native apps that are compatible with Android and iOS. The MetaQuotes platforms MetaTrader 4 and MetaTrader 5 have also been optimised for trading on the fly, giving traders instant access to the full functionalities of the desktop versions.

Smartphone and tablet users can download the applications either directly from the websites of the brokerages or from the mobile content platforms Google Play and the App Store. Traders can keep themselves informed when they are away from their desktop computers, since the apps feature real-time quotes for the forex markets.

There are also different types of trade orders, detailed trading histories, and the option to open positions from charts. The mobile version of MT4, in particular, can display four charts within a single window on iPads. Best of all, Malay is supported for the benefit of non-English-speaking users from the country.