| Summary Table | |
|---|---|
| ⚖️Regulator | Securities Commission of Malaysia (SCM) |
| 💰Negative Balance Protection | No |
| 💰Compensation Scheme | No |
| 🎮Is it Safe to Trade? | Yes |
| 💱Leverage Allowed | No Limit |
Forex Brokers in Malaysia, one of the most emerging markets in South East Asia, are increasing as the country is showing great potential as a financial hub. Despite the fact that forex trading is no longer illegal in Malaysia, the concept is relatively new and the market is still very young.
Officially, forex brokers operating in this country are not regulated. However, the Securities Commission in Malaysia oversees the exchange of traded products, including securities, futures, and high leveraged products like forex.
Forex trading is not exactly legal in Malaysia but is considered a grey area. Local residents are advised to trade with a broker who is authorized and regulated by the Securities Commission of Malaysia (SCM) – https://www.sc.com.my/
If you want to learn more about forex trading and how it works, click here to visit our Beginners Guide to Forex.
Forex Regulation in Malaysia
The Securities Commission of Malaysia (SCM), is the regulatory body for all financial services and activities in Malaysia. The SCM is a national self-regulatory organization that was first established on 1 March 1993 under the Securities Commission Act 1993, with investigative and enforcement powers. Nevertheless, it is not required to get authorization from the SCM in order to offer financial services and forex trading to the residents of Malaysia.
However, it is advised to choose a regulated broker with a Tier 1 license like Cysec, FCA, FSCA, or ASIC to make sure your funds are protected.
Best Forex Brokers in Malaysia
Through our thorough review process we chose the following brokers that stand out for their services in Malaysia:
- OctaFX – Best for Education, Copy Trading, and Local Support
- Pepperstone – Best Overall and Most Trusted Forex Broker
- BlackBull Markets – Best Web Trading Platform and Instrument Collection
- Vantage – Great for Professional and New Traders
- Avatrade – Best for Beginner Traders, Great Mobile App
OctaFX
Pepperstone
BlackBull Markets
Vantage
Avatrade
Learn2Trade
CryptoSignals
1000pipbuilder
DDMarkets
Etoro
1.
OctaFX
- Best for Education, Copy Trading, and Local Support
Regulated By:
SVGFSA(octafx.com), CySec(octafx.eu)
Leverage:
1:500
Min. Deposit:
$25
Trading Instruments:
250+
2.
Pepperstone
- Best Overall and Most Trusted Forex Broker
Regulated By:
FCA , ASIC, CYSEC, BAFIN, CMA, DFSA, SCB
Leverage:
1:30
Min. Deposit:
$200
Trading Instruments:
1000+
3.
BlackBull Markets
- Best Web Trading Platform and Instrument Collection
4.
Vantage
- Great for Professional and New Traders
Regulated By:
ASIC, CIMA, VFSC
Leverage:
1:500
Min. Deposit:
$200
Trading Instruments:
1000+
5.
Avatrade
- Best for Beginner Traders, Great Mobile App
Regulated By:
ASIC, JFSA, FSCA
Leverage:
1:400
Min. Deposit:
$250
Trading Instruments:
250+
Malaysia Forex Brokers Comparison
| Broker Name | Accepts Malaysia Residents |
Regulated by the SCM | Minimum Deposit |
Visit Broker |
|---|---|---|---|---|
| OctaFX | Yes | No | $25 | Visit Site |
| Pepperstone | Yes | No | $200 | Visit Site |
| BlackBull Markets | Yes | No | $200 | Visit Site |
| Vantage | Yes | No | $200 | Visit Site |
| Avatrade | Yes | No | $100 | Visit Site |
| XM | Yes | No | $5 | Visit Site |
| IC Markets | Yes | No | $200 | Visit Site |
| XTB | Yes | No | $5 | Visit Site |
| ActivTrades | Yes | No | $200 | Visit Site |
| FP Markets | Yes | No | $200 | Visit Site |
Methodology
All brokers listed on our website are regulated by at least one financial regulator and have never been reported as a scam. We analyze more than 3000 data points across 8 key focus areas.
Our reviews are a combination of data research and working alongside the brokers. All information provided by the brokers are double-checked to guarantee 100% accuracy and that we remain unbiased.
2023 Review Methodology
For our 2022 Forex Broker Review, we assessed, rated, and ranked 45 international forex brokers over a three-month time period. Each broker was graded on 108 different variables and, in total, over 100,000 words of research were produced.
While encouraged, broker participation was optional. Each broker had the opportunity to complete an in-depth data profile and provide executive time (live in person or over the web) for an annual update meeting.
All data submitted by brokers is hand-checked for accuracy. Ultimately, our rigorous data validation process yields an error rate of less than 0.1% each year, providing site visitors with quality data they can trust. Learn more about how we test.
Forex Risk Disclaimer
There is a very high degree of risk involved in trading securities. With respect to margin-based foreign exchange trading, off-exchange derivatives, and cryptocurrencies, there is considerable exposure to risk, including but not limited to, leverage, creditworthiness, limited regulatory protection, and market volatility that may substantially affect the price or liquidity of a currency or related instrument. It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable, or that they will not result in losses. Learn more at Wikipedia.
Chad Smith
Director of Research & Analysis
Chad Smith is the Director of Research & Analysis here at ForexBrokerListing.com.
Chad previously served as an Editor for a number of websites related to finance and trading, where he authored a significant number of published articles about trading and the impact of technology in transforming investing as we know it.
Overall, Chad is an active fintech and crypto industry researcher with more than 15 years of trading experience, and you can find him teaching his dog how to trade in his free time.