Best Forex Brokers in Malaysia

Like in many other countries, forex trading has been gaining popularity in Malaysia with a growing number of people showing interest in trading forex alongside other financial markets. One of the crucial things for both beginners and experienced traders is to select a forex broker that best aligns with their trading needs. Above all, it is crucial to select a broker that has regulations from reputable organisations. Positively, forex trading in Malaysia is fully regulated by the local regulator, the Labuan Financial Services Authority (Labuan FSA). In this review, we will be looking at some of the Best Forex Brokers in Malaysia that are regulated by the FSA, focusing on their key features. But first, here is a brief background of forex trading in Malaysia.

A Brief Overview of Forex Trading in Malaysia 

Understanding the dynamics of forex trading in a country is important as it can influence the criteria a trader uses to select a broker. Forex trading in Malaysia is fully legal and a regulated sector. The regulatory environment in Malaysia for forex trading is overseen by the Labuan Financial Services Authority (FSA). It regulates brokers that offer trading services in Malaysia. 

Our criteria for selecting the brokers we list here will heavily consider if they are regulated by the FSA. We will also consider other factors that are relevant to Malaysian traders. For example, we will consider the availability of Islamic accounts as Islam is the main religion in the country. Below are the criteria we will use to make our selections for the best forex brokers in Malaysia.

Our Criteria For Choosing The Best Forex Brokers in Malaysia

• Regulation - Before considering anything else, we will first check if a broker is regulated by the Labuan FSA. We will also check the other regulations that the broker has.
• Spreads and Other Fees - We will compare the spreads offered by the various brokers to see which ones stand out. Generally, lower spreads and fees mean a better trading experience for investors. 
• Trading Platform Available - We will also consider the trading platform offered by a broker. Traders usually prioritise a trading platform that is fast and has advanced tools but is also user-friendly.
• Collection of market Products - A diverse selection of products enhances trading opportunities and offers flexibility. Investors can diversify their portfolios as they see fit.

These are the key factors we will consider when making our selections for the best forex brokers in Malaysia. With that, here are some of the best forex brokers in Malaysia. 

Tickmill

Tickmill is a leading global forex and CFD broker that is regulated by the Labuan FSA with the license number MB/18/0028. Additionally, it is regulated by other top financial authorities such as the FCA in the UK, the FSA in Seychelles, and the CySEC in Cyprus. Understandably, Tickmill is one of the top choices for traders in Malaysia. 

Moreover, Tickmill offers Malaysian traders access to a wide range of markets including forex, stock indices, metals, bonds, commodities, and cryptocurrencies. To trade these markets, traders can choose between a variety of trading platforms. investors can use include MetaTrader 4, MetaTrader 5, and Tickmill Trader, alongside mobile apps. 

Tickmill's spreads are generally competitive, though slightly higher than some of its rivals. The Classic Account offers spreads starting at 1.6 pips with no commission. In contrast, the Raw account offers spreads from as low as 0.0 pips plus a commission of $3 per side per lot. Both of these accounts charge swap fees for holding positions overnight. However, Tickmill also provides its Muslim traders with Islamic accounts that allow them to trade without having to pay swap charges. 

On another note, Tickmill supports Melayu, the language spoken in Malaysia. The minimum deposit to start trading with this broker is $100 and there are a variety of payment options including Neteller, WebMoney SticPay, Skrill, Bank Transfers, Crypto Payments, and more.

72% of retail investor accounts lose money when trading CFDs with this provider.

Deriv

Deriv is another leading global broker regulated by the Labuan FSA with the license number MB/18/0024. This broker is also under the regulation of the MFSA of Malta, the BVIFSC of the British Virgin Islands, and the VFSC of Vanuatu. 

Malaysian traders with Deriv gain access to a broad range of market products. With Deriv, investors can trade CFDs on forex, commodities, exchange-traded funds, stocks & indices, cryptocurrencies, and derived indices. To trade these markets, Deriv offers a variety of platforms, including Deriv MT5, Deriv X, Deriv cTrader, SmartTrader, Deriv GO, Deriv Trader, and Deriv Bot. Further, Deriv's trading fees are competitive. When trading forex, the spreads on this broker site are as low as 0.5 pips on major currency pairs with no commission required. 

While Deriv does not support Melayu, it does support English which is widely spoken worldwide. The minimum deposit to start trading with Deriv is as low as $5, and they offer various payment methods. These include bank transfers, e-wallets, cryptocurrencies, mobile money payments such as MPesa, and more.

Amana App

Amana App is another noteworthy forex broker regulated by the Labuan FSA in Malaysia. It offers a compelling range of features including a deep collection of market products. On this broker site, traders can invest in CFDs on forex, cryptocurrencies, oil, and gold alongside ETFs and stocks. Such a variety of trading instruments is a welcomed feature that traders crave. There is only one trading platform available to use, the in-house-built Amana App.

Unfortunately, this broker does not state the spreads that traders from Malaysia can expect on the website. On a good note though, the broker provides Islamic accounts, which are swap-free, to accommodate Muslim traders in Malaysia. On a positive note though, the Amana App website is available in full Arabic and English. Customer support is also available in Arabic and English with a phone number specifically dedicated to clients in Malaysia.

As we mentioned, Amana App is licensed and regulated by the Labuan FSA with the license number MB/18/0025. The broker also has regulations from the CySEC in Cyprus, the FCA in the UK, and the CMA in Kenya. 

Exfor

Exfor is another forex broker operating in Malaysia and regulated by the Labuan FSA, with the reference number LL17698. Notably, this broker only has regulations from one other organisation, the SVGFSA. While the broker's Labuan FSA regulation is a positive thing, obtaining a license from a more widely recognized regulator like the FCA could enhance its credibility.

Exfor offers a diverse selection of tradable assets for investors to explore. These include Fforex pairs, metals, commodities, indices, and shares. To trade these markets, investors can use a variety of trading platforms. These include MetaTrader 4 and MetaTrader 5, as well as mobile versions of these platforms for iOS and Android.

There are two accounts that traders can use while trading, the standard account and the pro account. The standard account offers traders spreads starting from as low as 1.5 pips for major currency pairs with no commission charged. On the other hand, the pro account offers slightly lower spreads from 1.2 pips for major currency pairs, again with no commission.

Notably, the minimum deposit on this broker site is $100 for the standard account and $3000 for the pro account. There are only two languages supported by this broker which are English and Spanish. 

HonorFX

To close out this list, we have HonorFX. This broker is regulated by the Labuan FSA under the license number MB/21/0072. Additionally, it is regulated by the FSC in Mauritius and is registered with the Saint Lucia FSRA.

HonorFX offers Malaysian traders a diverse selection of trading instruments totalling over 275 products. These include forex, indices, stocks, and futures. To trade these markets, investors can use one of three accounts. The Standard account offers traders spreads from 1.5 pips for major currency pairs. In contrast, the ECN account offers raw spreads to traders when they invest. Lastly, the Premium account has spreads from 1.8 pips for major currency pairs.

Interestingly, only the Premium account is swap-free among the three accounts. Further, the minimum deposit required depends on the account a trader chooses to use. The standard account requires a minimum deposit of $1,000 while the ECN account requires a higher $10,000. Meanwhile, the premium account has a minimum deposit of $2,000. Positively, this broker supports Melayu alongside English and other languages.

Closing Remarks

The forex market in Malaysia is a dynamic and regulated space offering a variety of opportunities for traders. The Labuan Financial Services Authority (FSA) oversees this space and sets the guidelines for market participants to follow. Choosing the right forex broker is critical for traders in Malaysia. Above all, traders should first prioritise brokers that are regulated by the Labuan FSA. 

Traders should also consider factors such as competitive spreads, trading platforms, and collection of market products. For Muslim traders, it is also crucial to consider the availability of Islamic accounts. The brokers discussed here offer unique features and are regulated by the Labuan FSA. Nonetheless, as each trader has their own different trading preferences and needs, it is important for everyone to do their own research before investing. Ultimately, the best forex broker in Malaysia depends on each individual’s choice.