If you are looking to trade forex online from Malaysia then you need to open an account with a retail forex broker.
The role of brokers in forex trading cannot be overemphasized. A good broker must keep your funds safe, execute your trades in a fair and cost-effective manner and provide a trading platform with the tools you need for analyzing the market.

There are many forex brokers that accept traders from Malaysia. The challenge, however, is that they are foreign brokers. These brokers are not locally regulated in Malaysia. Malaysia does not have any locally regulated forex broker. Most of the retail forex traders in Malaysia trade with foreign brokers that are not licensed by the Securities Commission Malaysia or the SCM.

Note: Since there are no locally regulated retail forex brokers in Malaysia, it is best to not trade till there are locally regulated brokers.

The Securities Commission Malaysia (SCM) is the financial watchdog in the country. Trading with brokers not licensed with them puts your money at risk. You are responsible for whatever happens to your money and are trading with unauthorized brokers at your own risk.

Comparison of Best Forex Brokers in Malaysia

Broker Regulation EUR/USD Spread (pips) Min. Deposit Inactivity Fees Withdrawal Fees Visit
XM Trading

MYR 22
MYR 66 after three months
Visit Broker

MYR 22
Visit Broker

MYR 440
Visit Broker

FSA (Seychelles), FCA, FSA (Labuan), CySEC, and FSCA
MYR 440
Visit Broker

FCA, CySec, and FSCA
MYR 220
MYR 22 after six months
MYR 13.4 for bank transfer
Visit Broker

MYR 440
MYR 220 after three months
Visit Broker

Best Forex Brokers in Malaysia

Here are our 6 Best Forex Brokers for traders in Malaysia that are safe based on our research & editorial review

  1. XM Trading – Overall Best Forex Broker Malaysia
  2. HotForex – Forex Broker with Zero Spread Account
  3. OctaFX – Forex Broker with Low Spreads
  4. Tickmill – Raw Spread Forex Broker
  5. FXTM – Well regulated Forex Broker with Micro Account
  6. AvaTrade – Forex Broker with Fixed spread Account

Now we are going to cover all these forex broker one by one using their features like trading conditions, regulation, fees support and many more.

#1 XM Trading – Overall Best Forex Broker Malaysia

EUR/USD Benchmark:
1.6 with Micro and Standard account
Trading Platforms:
MT4, MT5
Account Minimum:
MYR 22

XM Trading is regulated with top-tier regulatory bodies.

Regulation: They are licensed with the FSC of Belize, CySec (Cyprus), ASIC (Australia), and the FCA (UK). You are safe trading with this broker.

Fees: The average spread attached to instruments depends on your account type. For EURUSD, XM’s average spread is 1.7 for their Standard and Micro accounts. For Gold, the average spread is 3.5 pips for both accounts.

Trading conditions:

Islamic account: XM Trading offers an Islamic trading account. You can trade on this account without swap, rollover interest, and spread widening.

Number of instruments: 55+ currency pairs, 1,286 stocks, 10 commodities, 2 precious metals, 14 equity indices, 100 shares, and 5 energies are all available for you to trade with XM trading.

Order execution: You get real-time market execution with XM Trading. 99.35% of their trades are executed in less than 1 second. There is also no rejection of orders.

Negative balance: Trading CFDs is risky. You can lose all your money trading. Negative balance protection ensures you do not lose more than your initial trading capital in your trading account. XM Trading offers negative balance protection on all account types.

Support: There is no local phone number to call. However, there is a detailed FAQ section where you can find answers to your questions. If this is not enough, you can reach the broker via email. According to our test, you should get a response from them in about an hour.

XM Trading Pros

  • You can open an Islamic account
  • The minimum deposit is MYR 22 (RM21)
  • They are regulated with top-tier bodies
  • Hedging is allowed
  • Negative balance protection
  • MT4/MT5 trading platform is available

XM Trading Cons

  • You cannot trade Crypto CFDs
  • You might be charged currency conversion fees
  • There is no local mobile number or phone number on their contact page

#2 HotForex – Forex Broker with Zero Spread Account

EUR/USD Benchmark:
0.2 pips on average with Premium Account
Trading Platforms:
MT4, MT5
Account Minimum:
MYR 22

HotForex fees are competitive but not the lowest. Their Swap fees if you don’t open an Islamic account are also low compared to XM. If you need lower spread then you should open Zero account.

Regulation: HotForex is considered a low-risk broker to trade with as they are regulated with 3 Top-tier regulators i.e. the FCA (UK), CySEC (Cyprus), and the FSCA (South Africa).

Fees: The typical spread for EURUSD is 0.2 pips with the Premium Account & lower with Zero account but it includes extra commission per lot. While that of CFD on Gold is 0.22 pips, and this spread applies across all Retail account types for this CFD instrument.

Trading Conditions:

Islamic account: You can open an Islamic trading account with HotForex. No swaps or rollovers but there is a carry charge applied on certain currency pairs for positions held beyond 7 days.

Number of instruments: HotForex offers up to 3,500+ trading instruments. 50+ currency pairs, 6 metals, 2 energies, 54 shares, 11 indices, 3 bonds, 5 commodities, 34 ETFs, and 945 DMA stocks are all available for you to trade. They have recently started offering more than 2000 physical shares for trading as well.

Order execution: HotForex offers market execution

Negative Balance Protection: HotForex’s negative balance protection makes sure you don’t lose more than your capital under highly volatile conditions. According to the broker’s website, no client of theirs is responsible for paying back a negative balance.

Support: HotForex’s support is 24/5. You can chat with a customer care agent via live chat on their website. They respond within a minute. You can also reach them via email. They respond here within 20 mins.

HotForex Pros

  • Islamic account is available
  • Tier-1 regulation
  • Good overall customer support
  • You need a minimum of MYR 22 to open an account.
  • Wide market range

HotForex Cons

  • No local mobile contact
  • You need as much as MYR 440 to open certain accounts.
  • You are charged MYR 220 per month as an inactivity fee.

#3 OctaFX – Forex Broker with Low Spreads

EUR/USD Benchmark:
0.6 pips
Trading Platforms:
MT4, MT5
Account Minimum:
MYR 440

OctaFX is regulated with only 1 Top-tier regulation I.e CySec (Cyprus).

Regulation: OctaFX was previous authorized by FCA UK, but they are no longer authorized.

Trading with OctaFX is moderately safe because of only one tier-2 regulation.

Fees: The typical spread for EURUSD and gold are 0.7 pips and 2.0 pips respectively with MetaTrader 4 & 5 account types. There is no extra commission per lot. So, their spread is quite low.

Trading conditions:

Islamic account: OctaFX also offers an Islamic trading account. No rollover or swaps but you pay commissions on trades. The amount of commission depends on the instrument and lot size you are trading.

Number of instruments: 35 currency pairs, 5 commodities, and 5 cryptocurrencies are the instruments offered by OctaFX. You can also trade up to 15 indices on their trading platform. The number of forex pairs & other CFDs is much lower as compared to other CFD brokers.

Order Execution: OctaFX’s trading platform has market execution of orders.

Negative Balance Protection: OctaFX offers negative balance protection. If for any reason your balance becomes negative, they adjust it to zero. This way, you do not lose beyond your trading capital.

Support: Their website has a live chat feature. You can contact them on it. The customer support email is also available. You should get a response from them in 30 minutes. OctaFX’s customer support is available 24/7.

OctaFX Pros

  • They offer an Islamic account
  • Regulated with CySEC
  • 24/7 customer support
  • No charges for deposit/withdrawal & local deposit & withdrawals are available

OctaFX Cons

  • They are not regulated with any Tier-1 regulation
  • You pay trading commissions with Copy Trading
  • No local contact number in Malaysia
  • Limited CFD instruments are available

#4 Tickmill – Raw Spread Forex Broker

EUR/USD Benchmark:
0.1 pips on Average Classic Account
Trading Platforms:
WebTrader, MT5
Account Minimum:
MYR 440

Tickmill is a safe broker to add your funds to. They are regulated with the FCA (UK), CySec (Europe), and FSCA (South Africa).

Regulation: On their Asian website, we discovered they are regulated with the Financial Services Authority of Labuan Malaysia with license number MB/18/0028. They are further regulated by the FCA, CySEC, FSCA, and FSA of the Seychelles.

Fees: Tickmill offers low spread. The typical spread for trading EURUSD is as low as 0.1. It is also very low for gold CFDs. The spread for trading the precious metal is as low as 0.09.

With this low fee there is extra commission per lot of MYR 16 for forex. But the fee is still low overall when compared to other forex brokers.

Trading Conditions:

Islamic account: Tickmill offers a swap-free Islamic trading account. All you need to do is request for one. According to their website, they process this request in one business day. If you are trade and hold certain instruments beyond three nights, then a swap applies. The charge ranges from MYR 0.01- MYR 220 depending on the instrument you are trading. WTI (Oil) has the lowest swap with USDTRY being the highest at MYR 220.

Number of instruments: Tickmill offers a good range of instruments. You get to trade 60+ currency pairs, 3 cryptocurrencies, 8 stock indices, oil, 4 bonds, and 2 metals.

Order execution: Tickmill’s order execution speed is 0.20seconds. This is the average as seen on the broker’s website.

Negative balance protection: All Tickmill clients are offered negative balance protection. However, the broker reserves the right not to the protection if your negative balance is due to fraud or market abuse.

Support: In our review, we can say the overall support is good. It is available 24/5. We tested their live chat feature but no response because the customer support was closed. So you should reach them during business hours. They also responded to our emails within 25mins.

Tickmill Pros

  • Swap-free Islamic account is available
  • Tier-1 regulation with FCA
  • No deposit/withdrawal charges

Tickmill Cons

  • You need a minimum of MYR 440 to open a trading account.
  • You are charged an inactivity fee
  • The market range is not wide.
  • No local contact

#5 FXTM – Well regulated Forex Broker with Micro Account

EUR/USD Benchmark:
0 pips for EUR/USD at Minimum
Trading Platforms:
MT4, MT5
Account Minimum:
MYR 220

FXTM offers 40+ currency pairs. They also have a large number of stocks from the US, Europe, and Hong Kong.

Regulation: FXTM is regulated with the FCA (UK), CySec (Europe), CMA (Kenya), FSC (Mauritius), and the FSCA (South Africa). You can trade with this broker safely.

Fees: FXTM’s trading fees for EURUSD is an average spread of 0.1 pips. That of gold is relatively high at 9.0 pips.

Trading conditions:

Islamic account: FXTM offers a swap-free option on all their accounts. This option is only available on their MT4 accounts. This option is not available in all countries. Our review shows that the swap option is available for Malaysian clients. According to our live chat with them, the broker stated that the swap-free option complies fully with the no-riba tenets of Sharia Law.

Number of instruments: There is over 100 of them. You also get to trade 5 metals, 6 FX indices, and 11 spot indices.

Order Execution: FXTM offers both instant and market execution. Market execution is available on their Advantage and Advantage Plus accounts only. We were able to access their performance statistics on order execution. FXTM executes trading orders speedily.

Negative balance protection: FXTM corrects negative balance as a usual practice but it is done with discretion. Requests for negative balance correction are usually evaluated.

Support: There is a live chat feature programmed to answer FAQs only, no live agent is available. For a quick response, reach FXTM via WhatsApp and email. It takes about 25mins to get a response via email.


  • You need at least MYR 44 to open an account
  • Tier-1 regulation
  • Islamic account is available
  • Good overall customer support


  • You need MYR 2200 to open other account types
  • No local contact
  • You pay an inactivity fee on your trading account.

#6 AvaTrade – Forex Broker with Fixed spread Account

EUR/USD Benchmark:
0.9 Fixed Spread
Trading Platforms:
MT4, MT5, Web Trading, AvaTradeGO
Account Minimum:
MYR 4400

AvaTrade is CFD and Forex broker. They are offering trading platforms like AvaTradeGo, MT5 and MT4.

Regulation: Your funds are safe with AvaTrade. The broker is regulated by ASIC (Australia), CySec (Europe), CBI (Ireland), PFSA (Poland), FSC (British Virgin Islands), FFA (Japan), and FSCA (South Africa).

Fees: Typical spread for EURUSD is 1.3pips. That of gold is lower at 0.34pips

Trading conditions:

Islamic account: AvaTrade swap-free Islamic account for Muslim clients. Islamic trading account requests are processed within 1-2 business days.

Number of instruments: AvaTrade grants you exposure to a wide range of instruments. They have 60+ currency pairs, 20+ FX options, 600+ stocks, 30+ indices, and 50+ ETFs.

Order execution: In a document about their order policy, it is stated that AvaTrade strives to offer high speed within limitations of technology and communication links

Negative balance protection: You cannot lose more than the money in your trading account as AvaTrade offers negative balance protection.

Support: There is a local phone number to call. We tested the number and found it functional. You can also contact AvaTrade by sending an email. We got a response within 30minutes.

AvaTrade Pros

  • Islamic account is available
  • There is a local mobile contact
  • Tier-1 regulation
  • Wide market range

Avatrade Cons

  • Minimum deposit is MYR 440
  • The inactivity fee is high

SCM’s CFD Licensing in Malaysia

The SCM oversees financial regulation in Malaysia. They require brokers register under their CFD regulations and report their transactions. The issue is that many foreign brokers do not find these regulations good for business & their profits. This is because any broker licensed under the SCM can only offer CFDs on indices, commodities, and equities. They cannot offer CFDs on forex. This is why these foreign brokers operate in Malaysia unauthorized locally.

There are only two locally licensed brokers in Malaysia – Phillip Futures and CGS-CIMB. They both do not offer forex CFDs.

This shows why traders in Malaysia trade with foreign forex brokers though it is risky. The brokers available locally do not provide the same range of instruments offered by foreign brokers.

In addition, foreign forex brokers run strong online advertising campaigns online that attract traders. They do not need to be in Malaysia to make traders aware of them.

Beyond prohibiting forex CFDs, here is more information for you about SC’s CFD regulations. So, by trading with these unregulated brokers, you are doing so at your own risk.

1) Types of CFDs allowed
According to SC’s guidelines for CFDs, chapter three of the documents states that a broker can only offer shares and indices CFDs. Forex CFDs are not allowed in Malaysia yet.

2) Financial requirements
Here are the financial requirements for a capital market service license (CMSL) holder restricted to offer CFDs only. These parameters are they are on SC’s document on guidelines on CFDs:

  • Minimum paid-up capital and shareholders’ funds of RM10 million at all times.
  • Minimum 50% of total shareholders’ funds in the form of liquid capital at all times.

For a CMSL holder who is licensed for both activities of dealing in derivatives and clearing, who wishes to offer CFDs? The financial requirements are as follows:

  • Minimum paid-up capital and shareholders’ funds unimpaired by losses of RM10 million at all times.
  • Minimum adjusted net capital: The higher of – RM500,000; or – 10% of aggregate margins at all times.

For a CMSL holder who is licensed for dealing in derivatives and wishes to offer CFDs? The financial requirements are as follows:

  • Minimum paid-up capital and shareholders’ funds of RM10 million at all times.
  • Minimum adjusted net capital: The higher of – RM500,000; or – 10% of aggregate margins.

3) Leverage restrictions: A maximum of 10:1 leverage is permitted for index shares CFD and 5:1 for non-index shares CFD. 20:1 is the maximum leverage index CFD.

4) Reporting requirements: CFD providers are required to submit a monthly report. They are required to submit this report on the 15th of every month or any day specified by the SC. These are the SC’s reporting requirements:

Where the CFD provider is a CMSL holder for dealing in derivatives

  1. A statement of financial condition;
  2. A statement of income or loss; and
  3. A statement of adjusted net capital.

Where the CFD provider is a CMSL holder for dealing in derivatives restricted to CFD –

  1. A statement of financial condition;
  2. A statement of income or loss; and 10
  3. Computation of liquid capital

The above requirements are a key part of the SC’s regulations for CFD providers.

Derivatives and Trading volume reported by the SC

According to the SC, the volume of derivatives traded in the year 2018, 2019, and 2020 are RM13.52 million, RM13.11 million, and RM18.03 million respectively.

Which are the regulated CFD brokers in Malaysia?

As stated earlier, there are only two locally regulated brokers in Malaysia. They are:

  • CGS-CIMB Futures Sdn.Bhd: They are a licensed holder clearing and dealing in derivatives. Their license number is eCMSL/A0066/2007. They have been licensed since 28, September 2007. Their licensed status is valid and they have 98 representatives.
  • Phillip Futures Sdn.Bhd: Phillip Futures are a licensed broker. Their regulated activities include clearing and dealing in derivatives. Their license number is eCMSL/A0233/2008. They have been licensed since 8, September 2008, and have 42 representatives.

How to choose the best Forex Broker in Malaysia

1) Tier-1 regulation
The brokers on this list are not regulated locally. Foreign bodies like the FCA (UK), CySec (Europe), ASIC (Australia), and the FSCA (South Africa) regulate them. While it is risky to trade with these foreign brokers, you are safer trading with a broker with tier-1 regulation, rather than trading with a broker that is only regulated with offshore regulations such as the Seychelles or the British Virgin Islands.

For example, the FCA page of XM broker has been pictured below. We can see that XM broker is licensed by the FCA under the name Trading Point of Financial Instruments UK.

Forex Broker Regulation

Any foreign broker you will choose must be regulated by either the FCA or ASIC. They are tier-1 regulatory bodies so they can be trusted.

Also, you must note that because a broker is regulated with Tier-1 regulation does not mean that your account will be registered under FCA or ASIC for example. Your broker may register your account under Offshore regulations, and this is a common practice including with brokers like OctaFX, HotForex, FXTM etc.

2) Overall Fees

Fees can be divided into trading and non-trading fees. Trading fees include spreads and commissions while non-trading fees could be deposit/withdrawal charges, inactivity fees, or currency conversion fees.
The combination of these two fees affects your final profit or loss. You must go through your broker’s website to know the spreads and commission charged on trading instruments. For example, a spread page looks like the picture below:

Spread in Forex

Before choosing a broker, you should always their spreads against other brokers. Here is a breakdown of the spreads charged by the brokers on this list:

Comparison of Typical Spreads of Best Forex Brokers in Malaysia

Broker Stock CFDs (in pips) CFDs on Gold (in pips) Forex (EUR/USD)( in pips) Equities (in pips)
XM Trading 0.5 0.35 1.7 0 for a selection of 100 shares
HotForex 0.3 0.25 0.2 0 for a selection of 901 shares
OctaFX NA 0.3 1.6 NA
Tickmill 0.45 0.09 0.1 NA
FXTM 3 (Minimum) 0 (Minimum) 0 (Minimum) NA
Avatrade 0.13 0.29 0.9 NA

You can check the typical spread charged by a broker by going to their website. They will usually have a page which shows the typical spread charged by them for each instrument.

For example, here is a screenshot from XM’s website which shows their minimum spread as well as typical spread.

XM Spread Table

Swaps are not charged on Islamic accounts except for exotic currency pairs after a period of time. Timeframes and charges depend on your broker.

Most brokers do not charge for deposits/withdrawals but middlemen such as banks or alternative payment platforms may charge. Make sure to check with your payment platform to know how much they charge.

Finally, inactivity fees are charged when there is no trading activity on your account over a period of time.
Timeframes and charges differ from broker to broker so it is important to contact your broker’s customer support about their fees for each instrument that you want to trade. Ask them about their spread with each account type, commissions, Swap, Inactivity charges, deposit & withdrawal fees with your method of choice.

3) Deposits and Withdrawals
You need to pay more attention here. HotForex, OctaFX, FXTM, and other brokers on this list may be popular. However, they are not regulated by the Securities Commission Malaysia (SCM). Due to this, they are not authorized to operate and are on SCM’s list of blacklisted investors. This is why deposits/withdrawals via your local bank might be risky & you may not be able to transfer via bank deposits.

For bank payments, foreign brokers in Malaysia like OctaFX generally accept payments via Online payment gateways where you can pay instantly.

Example of deposit at OctaFX Forex Broker

These brokers in Malaysia offer alternative payment methods which many traders use other than bank transfer. It could be e-wallets like Skrill, Neteller, and PayPal. You could also use online payment channels like iPay88 and eGHL.

Contact your broker to know more about their payment methods if your preferred methods are unavailable.

4) Range of Trading Instruments

You should make sure that your broker offers the trading instruments that you want to trade. The larger the range of trading instruments, the better it is. A lot of forex brokers have started to offer cryptocurrencies as well, and you should try to trade with a forex broker that does offer it since they are attractive trading instruments.

For example, OctaFX offers 32 currency pairs, 10 indices, 5 commodities, and 30 cryptocurrencies. The range of cryptocurrencies offered by OctaFX is very large, so you should consider it if you want to trade cryptocurrencies.

Forex Broker Trading Instruments

In contrast, HotForex offers 53 currency pairs, 6 metals, 4 energy CFDs, 23 indices, 54 shares, 5 commodities, and ETFs. Hence, in comparison to OctaFX, HotForex has a much wider range of trading instruments. However, HotForex does not offer cryptocurrencies. If you want to trade cryptocurrencies, then OctaFX is a better option.

If you’re looking to trade a particular trading instrument such as GBP/USD, then you should also compare the fees associated with different forex brokers. For example, the spread that you’ll be charged for trading GBP/USD through OctaFX is 0.9 pips, and through HotForex is 1.6 pips, and through Pepperstone is 0.6 pips.

Hence, if you’re looking to trade only GBP/USD, then you should trade with Pepperstone since they offer the lowest fees (spread).

5) Customer Support

Customer support is an essential part of a brokerage. The better the customer support is, the better your trading experience will be. You should always check if the broker offers  customer support in your language (Melayu or English or your preferred language). Before signing up with a broker, you should contact customer support and ask them to clarify any issues or doubts that you may have. This will give you an idea of the kind of customer support that the broker offers.

For example, OctaFX offers customer support through live chat and email. They do not offer customer support through phone call. Their customer support is available in Melayu as well as English.

We contacted OctaFX’s customer support team at the time of writing this review, and we received a response within 5 minutes. A response time which is under 5 minutes is usually considered to be good enough.

You may have to wait longer if you contact them through email.

This is how you check whether the customer support offered by a broker is good enough for your needs.

6) Leverage

As a trader, you have the option of using leverage on each of your trades. Leverage allows you to increase the size of your position without betting more money. Usually, CFD brokers operating in Malaysia offer very leverages. You can use leverage of up to a maximum of 1:3000 depending on the broker.

However, using leverage can greatly increase the risk associated with your trade. Leverage can multiply the loss that you face if your trade moves in an unfavourable direction. Hence, you should only use a maximum leverage of 1:10 (for forex instruments) and even lower for other types of asset classes, despite the broker offering much higher leverage. This is to help you reduce the risk of your trade.

You can check the maximum leverage offered by a broker on their website. For example, below is a screenshot from XM’s website where they state that they leverages up to 1:888.

XM Leverage

FAQs on Best Forex Brokers in Malaysia

Which Forex Broker is legal in Malaysia?

There are no legal forex brokers in Malaysia for retail traders. All the brokers are foreign brokers that are unregulated in Malaysia. So traders are trading with these brokers are their own risk.

Which Forex Broker is the best in Malaysia?

Any forex broker that is regulated by multiple tier-1 & tier-2 regulations are considered low risk. Then the comparison is based on fees, support, account features, withdrawals etc. There are some brokers like HotForex, FXTM etc. that are regulated under multiple regulations, but not in Malaysia.

Which Forex Broker has low fees?

HotForex, Tickmill & OctaFX have moderate to low trading fees as per our research.

XM Trading is the #1 Rated Forex BrokerRead More