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Forex trading is legal in Malaysia, however, you should trade with only brokers who are licensed by the central bank of Malaysia and/or the Securities Commission of Malaysia, or else you are trading at your own risk.
However, there are foreign brokers with top-tier regulations that accept clients from Malaysia. It is advised that you trade with brokers who have top-tier regulations.
We have compiled this list of the best forex trading apps in Malaysia to help you choose a broker. Notwithstanding, you are to do your due diligence to compare the trading conditions of each broker before choosing one.
| Broker | Regulation | Min. Deposit | Maximum Leverage | Visit |
|---|---|---|---|---|
| AvaTrade |
CySEC, FRSA, FSC BVI, ASIC, CBI
|
$100 (MYR 473)
|
1:400
|
Visit Broker |
| FXTM |
CMA, FSC Mauritius, CySEC, FCA UK, FSCA
|
$500 (MYR 2,300)
|
1:2,000
|
Visit Broker |
| Octa |
CySEC, FSRA Saint Lucia
|
100RM
|
1:500
|
Visit Broker |
| Tickmill |
FCS UK, CySEC, FSA Seychelles, LFSA, FSCA
|
$100 (MYR 473)
|
1:500
|
Visit Broker | HF Markets |
FCA, DFSA, FSCA, FSA, CMA
|
$100 (MYR 473) for pro account. Zero for others
|
1:2,000
|
Visit Broker |
| Pepperstone |
FCA UK, ASIC, DFSA, CMA, SCB, FSA BaFin
|
Nil
|
1:500
|
Visit Broker |
| XM |
CySEC, FSC Belize, FSCA
|
$5 (MYR 24)
|
1:1,000
|
Visit Broker |
Here are our 7 Best Forex Brokers for traders in Malaysia that are safe based on our research & editorial review
We have used factors like regulations, trading platforms, minimum deposits, funding methods, fees, available assets, and customer service to create this list of the best Forex brokers in Malaysia.
AvaTrade was established in 2006.
Regulation: It is regulated by the following regulatory bodies:
Fees:
Commission: No commission
Spread: the minimum spread for EUR USD is 0.9 pip.
Deposit and withdrawal fee: free
Inactivity fee: If your account has been dormant for three months, you will be charged an inactivity fee of $50 (MYR 236). After 12 consecutive months of inactivity, you will be charged an administration fee of $100 (MYR 473).
Trading conditions:
Number of instruments: 50 currency pairs, 600 stocks, 16 commodities, 15 cryptocurrencies, 60 ETFs, and 2 bonds.
AvaTrade Pros
AvaTrade Cons
Learn more AvaTrade in our AvaTrade review for traders in Malaysia.
FXTM is an online forex broker that was founded in 2011.
Regulation:
It is regulated by:
Fees:
Spread: Spread on the FXTM advantage account starts from 0.0 pip, while for the advantage plus account, and micro account, spread starts from 1.5 pip. The typical spread for EURUSD is 1.9 pip.
Commission: The advantage account has a commission that ranges between $0.4 and $2 (MYR 2 and MYR 10) per trade worth up to $100,000 (MYR 479,400). Other accounts are commission free.
Deposit and withdrawal fees: Deposit is free on FXTM; however, withdrawal with a card attracts a fee of $3 (MYR 14.38), while bank wire attracts a fee of £30 (MYR 143).
Inactivity fee: If your account is inactive for six months, FXTM will begin to charge you an inactivity fee of $5 (MYR 24) per month.
Trading conditions:
Number of instruments: 60 currency pairs, 100 stocks, 3 indices, 3 commodities, 5 spot metals.
FXTM Pros
FXTM Cons
Find more information about trading with FXTM in Malaysia in our detailed FXTM review.
Octa is an online Forex broker that was founded in 2012.
Regulation: They are incorporated in Saint Lucia by the Financial Services Regulatory Authority Saint Lucia and regulated by Cyprus Securities and Exchange Commission (CySEC) with license number 372/18
Fees:
Commission: Octa does not charge a commission.
Spread: Spread starts from 0.6 pip on both MT4 and MT5 accounts, the typical spread for EUR/USD is 0.9 pip.
Deposit and withdrawal fee: No deposit and withdrawal fees.
Inactivity fee: Free
Trading conditions:
Number of instruments: 35 currency pairs, 150 stocks, 10 indices, 3 energies.
Octa Pros
Octa Cons
Read more about trading on Octa Trading App in Malaysia in our detailed Octa review.
Tickmill was established in 2014.
Regulation:
Fees:
Commission: Tickmill charges a commission of 2 per side per 100,000 for the pro account and 1 per side per 100,000 for the VIP account. The commission is free on the classic account.
Spread: The pro and VIP accounts have a minimum spread of 0.0 pip, while the classic account has a minimum spread of 1.6 pip. The minimum spread for EURUSD is 0.1 pip.
Deposit and withdrawal: Free
Inactivity fee: Free
Trading conditions:
Number of instruments: 60 currency pairs, 500 stocks, 20 indices, 6 commodities, 10 cryptocurrencies, 5 bonds.
Tickmill Pros
Tickmill Cons
Read our Tickmill review for traders based in Malaysia to learn more about Tickmill trading platform.
HF Market was founded in 2010 and is incorporated into Saint Vincent & The Grenadines IBC number 22747 IBC 2015.
Regulation:
HFM is also regulated by the following bodies:
Fees:
Commission: HFM charges commission on their zero account only. This account attracts a commission of $3 (MYR 14.38) per turn, per lot.
Spread: The spread for the zero account starts at 0.0 pip for the pro account; the spread starts at 0.5 pip; and it starts at 1.2 pip for the cent and premium accounts.
Deposit and withdrawal fee: Deposit and withdrawal on HFM are free, with the exemption of bank wire transfers below $100 (MYR 473).
Inactivity fee: If your account is dormant for 6 months to one year, you will be charged an inactivity fee of $5 (MYR 24) per month. For accounts that have been inactive for 1-2 years, HFM will charge an inactivity fee of $10 (MYR 48) per month.
For accounts that have been dormant for 2-3 years, HFM will charge $20 (MYR 96) per month. Accounts that are dormant for more than three years will attract an inactivity fee equivalent to the previous year plus $10 (MYR 48). HFM will keep charging an inactivity fee until your account balance gets to zero.
Trading conditions:
Number of instruments: 50 currency pairs, 90 stocks, 10 indices, 4 commodities, 30 ETFs, 5 spot metals.
HF Market Pros
HF Market Cons
Learn more about the HF Markets trading platform in our HF Markets review for traders based in Malaysia.
Pepperstone was established in 2010.
Regulation:
Pepperstone is also regulated by the following bodies:
Fees:
Commission: Pepperstone charges a commission of $2.80 (MYR 13.42) for the razor account, while the standard account is commission free.
Spread: The average spread for EURUSD on the razor account is 0.0 – 0.3 pip, and for the standard account, the average spread is 1.1 pip.
Deposit and withdrawal: Free
Inactivity fee: Free
Trading conditions:
Number of instruments: 60 currency pairs, 20 stocks, 20 indices, 30 commodities, 100 ETFs.
Pepperstone Pros
Pepperstone Cons
Learn more about Pepperstone trading platform and conditions in our Pepperstone review for traders based in Malaysia.
XM was founded in 2009 and has multiple regulations.
Regulation:
They are regulated by:
Fees:
Commission: No commission on the standard, micro, and ultra-low accounts.
Spread: For XM Standard and Micro accounts, the spread starts at 1 pip, while for the Ultra Low account, the spread can go as low as 0.6 pip. The minimum spread for EURUSD is 1.6 pips.
Deposit and Withdrawal fee: Free
Inactivity fee: If your trading account is dormant for up to 90 days, you will be charged a monthly inactivity fee of $5 (MYR 24). Dormant accounts with a zero balance will be archived after 90 days
Trading conditions:
Number of instruments: 50 currency pairs, 1000 stocks, 20 indices, 8 commodities, 3 precious metals, 30 cryptocurrencies, 3 energies.
XM Pros
XM Cons
Read more about XM Trading platform for Malaysian traders, checkout XM review.
There are two types of forex trading apps. Some forex brokers have both while some support just one type. Let us break them down:
1) Third-Party Trading Apps: These trading apps are developed by other companies for forex brokers. These companies allow CFD brokers to host their trading services on their trading apps. A prominent example is MetaTrader 4 and MetaTrader 5 mobile developed by MetaQuotes.
Another common third-party mobile trading app is cTrader mobile developed by Spotware Systems. These companies are not brokers. However, they partner with brokers globally so traders can use the app through their clients.
2) Proprietary Trading Apps: Proprietary trading apps are developed by forex brokers independently. This is not done in conjunction with third parties so the names of these trading apps vary from broker to broker.
For example, CMC Market’s app is called the ‘Next Generation Platform’ while other brokers just name their apps after their companies just name it after their company (like AvaTradeGO and XTB’s Station)). Because these apps are developed by brokers individually, their trading conditions and interface are never the same too.
There are some pros that come with using forex trading apps. We look at a few in this section.
Ease: It is easier to trade forex with trading apps. In the past, traders needed an office and a desktop to analyze the market. To get key economic news, they have to read newspapers. In addition, access to industry experts was so difficult. They have to make a number of calls to get advice. A single proprietary trading app can perform all of these functions and much more.
Flexibility: Apart from the convenience that trading apps bring, they also offer flexibility. With mobile apps, you can trade on the go, analyze the market, and monitor your positions. You can do these while you are in a car, hanging out with friends, or taking a walk. This will not be possible if all that was available for trading are desktops.
Notifications: Price alerts and notifications are a major advantage of forex trading apps. You can set an alert that lets you know when prices have hit certain levels. This saves you a lot of time and allows you focus on other things.
Furthermore, you can set notifications for news releases as well. Instead of checking manually on websites. You can get an automated notification of key economic data, releases, and events.
Personalization: Most forex trading apps allows traders to arrange trading tools, charts, indicators, and colors in a way that suits them. Being able to customize your app makes you ‘feel at home’ with the app, making trading more convenient.
Efficiency: Placing trades on mobile phones is often efficient and quicker than desktop. This is not about execution speed. It is that with a few swipes, you can set your take profit and stop loss targets quickly. Because the desktop versions of trading platforms are designed differently, it often takes more than a few clicks to place your trade.
Though forex trading apps are very useful, they also have some disadvantages. If you really want to be a proficient trader, you cannot use mobile apps alone. Here is why:
Size of the Screen: This is a major challenge with using mobile apps. They do not give a good view of past price movements, especially on higher timeframes. This experience is not so good. Many traders use up to two or more desktops to have a full view of the market. You cannot do this on mobile devices, not even a tablet.
Difficult to Focus: Mobile trading apps can lead to a lot of distractions. This could come from notifications from social media apps, a message, or a call. These interruptions are not good for traders and can affect long-term performance. Desktops do not have these issues.
Execution Speed: Forex trading apps have improved over the years. However, there could be risks of your app crashing when trading. In addition, mobile networks might not be very reliable. This affects execution speed and leads to latency.
Overtrading: Because it is easy to access charts on the go, mobile apps heighten the tendency to trade more. This in turn increases your chances of losing more money. To deal with this, you need to be disciplined and stick to your trading plan.
Here are the things to look out for when choosing a forex trading app:
When choosing a broker, it is vital that you know if they are regulated in Malaysia and who their foreign regulators are. This is because regulators protect your rights as a trader.
Forex trading in Malaysia is regulated by the central bank of Malaysia. It is advised that you trade with brokers who are regulated by the central bank of Malaysia; otherwise, you will be trading at your own risk.
You can also look out for brokers who are regulated by top-tier regulatory bodies like the FCA UK and ASIC. However, top-tier regulation is not all there is to look out for.
You should also find out which regulator your account will be opened with. This is because some regulators with top-tier regulation, open accounts for residents of countries where they do not have regulation under offshore regulation of other countries like the Bahamas and Seychelles.
These offshore regulations come with fewer restrictions, and if you ever have issues that require a court case with your broker, the hearing will take place in the country where your account is regulated.
Ensure that your account is regulated under onshore regulations from countries like the UK, USA, and Australia. You should also do your due diligence to check if the broker is lying about their regulations.
The broker you consider should have trading platforms that are readily available on any type of device.
This way, if one platform is down, you can trade on others, and if you misplace or change your device, you can still trade.
Before trading on a broker’s live account, you should practice using their demo account. As such, you should consider choosing brokers who have demo accounts that you can practice with.
If you are a trader who prefers to trade with small amounts of money then you may want to consider brokers that have little or no minimum deposit.
If you hope to trade with large amounts, then the minimum deposit may not be an issue for you.
The fees a broker charges are another important factor to consider when choosing a broker because high fees can affect your profit negatively.
Some brokers charge a commission for allowing you to use their trading platform to execute trades. Check for those who charge competitive commissions.
Most brokers charge a spread. The spread is the difference between the ask and bid prices. For example, to trade EURUSD at 1.1500/1.1502 means that the broker will sell EURUSD to you at 1.1501, but 1.1500 is the true market price. The difference is 0.0001 pip, which is 0.1 pip. This difference is called a spread, and your broker profits from it.
The wider the spread, the more it eats into your profit; as such, consider brokers that charge tight spreads.
Other fees brokers charge include inactivity, administration, research, etc. Not all brokers charge these fees, so you can try to avoid them.
Brokers who offer a wide range of currency pairs make it possible for you to carry out all your Forex trading with them without going through the stress of searching for a new broker when you want to trade certain pairs.
The diversity of currency pairs also makes it possible for you to hedge your investment using different currency pairs.
The same goes for the number of assets. It is usually advised that you trade with brokers that offer a wide range of assets.
Your preferred broker should have customer service that is available all the time and through various means. This way, anytime you run into problems, you can rectify them quickly and easily.
You may want to consider brokers who offer various means of deposit and withdrawal.
This is because there are times when you may need a fast deposit, like when you have received a margin call. If you find yourself in this situation and the deposit methods available take a long time to process, your open position may be closed before you are able to fund your account.
While it is haram to pay riba on trades, Some forex brokers offer swap-free accounts that are compliant with Islamic principles of no riba, these brokers offer accounts that eliminate overnight interest charges. some brokers in Malaysia with Islamic accounts are Octa, HF Markets, XM and AvaTrade among others.
Leverage in forex trading amplifies your potential profits and losses. While it can magnify your gains, it can also lead to significant losses if the market moves against you.
In Malaysia, The SCM does not regulate the forex brokers so there is no maximum leverage that the forex brokers must adhere to. Most forex brokers offer high leverage from 1:400 to 1:2,000 and some even offer 1:unlimited.
Some high-leverage forex brokers in Malaysia that offer high leverage are HF Markets – 1:2,000, FXTM – 2,000, and XM Trading – 1,000. With a forex leverage of 1:1,000, this means that if you deposit RM100, you can control up to RM100,000 worth of trade value.
Spread in forex trading is the difference between the bid price and the ask price of a currency pair.
The bid price is the price at which you can sell a currency. Ask price is the price at which you can buy a currency.
For example, if you want to buy euros (EUR) using US dollars (USD). Your forex broker may quote you the following prices for the EUR/USD currency pair:
-Bid price: 1.1050
-Ask price: 1.1052
The spread in this case is 2 pips, which is the difference between the bid price and the ask price.
The spread is essentially the broker’s fee for facilitating your trade. While it is a revenue source for forex brokers, it is a charge to you, the trading. To reduce your trading costs, it is best to trade with a broker that charges low spreads.
Choosing the right low-spread forex broker depends on various factors, including your trading style, budget, and desired features. Here’s a breakdown to help you navigate the options:
Top Low Spread Forex Brokers in Malaysia:
1) Tickmill: Offers tight spreads starting from 0.1 pips with commission-based accounts and raw spreads from 0.9 pips.
2) AvaTrade: Known for its consistently low spreads averaging around 0.9 pips on major pairs like EURUSD.
3) Octa: Provides tight spreads (as low as 0.9 pips on EUR/USD) and commission-free trading on all instruments.
To find out more about low spread forex brokers in Malaysia, checkout our detailed review on Best Low Spread Brokers in Malaysia.
Trading apps do not generate money independent of forex brokers. Most of the fees you will pay will go to your broker. It does not matter if the app is proprietary or from a third-party.
Brokers make money from trading apps in multiple ways. However, we can simplify all of them into trading and non-trading fees. Trading fees are the money you pay to your broker for every trade you make. It does not matter if you won the trade or lost. You will pay these fees.
Spreads, commissions, and swaps are the main trading fees charged by brokers on trading apps. Spread is the difference between the buy and sell price of the CFDs you are trading. Swap is the fee you pay for holding your trades overnight while commissions are usually charged where spread is low.
If you are trading on MT4/MT5 on your mobile device, you will see the amount commission and swap you are charged per trade. Non-trading fees are not connected to trading. They include account inactivity fees (if you don’t place a trade for a certain period), currency conversion fees, etc.
Finally, not all brokers have the same fee structure for their trading apps. A broker may have a low spread account on MetaTrader or offer a commission-free package on their proprietary trading app. Furthermore, inactivity fee is not the same too. Some brokers charge it, some don’t.
So make sure you research your broker’s fee structure before signing up on their trading app.
Avatrade, HFM, XM, Octa, Tickmill, Pepperstone, and FXTM are some of the best Forex trading apps in Malaysia. This is because they are all regulated by Tier 1 and Tier 2 financial regulators and have trading apps on both iOS and Android, they also have features like negative balance protection and commission-free trading options, making them good choices for forex trading.
Yes, Forex trading is legal in Malaysia, however, most forex brokers operating in Malaysia are not regulated by the Securities Commission of Malaysia (SCM). Trading with these brokers is at your own risk as the foreign regulations customer protection rules may not cover clients based in Malaysia.
Yes, AvaTrade, Octa, HF Markets, Pepperstone, Tickmill, XM and FXTM all support MT5 application and their accounts integrate with the platform. You can use MT5 on the web or mobile devices (Android and iOS).
MYR 50, This is the least minimum deposit requirement we have seen in Malaysia, and it offered by HF Markets. Other forex brokers may require higher amounts for you to trade on their platform. For example, Octa requires a minimum deposit of MYR 100, while Plus500 requires MYR 500, AvaTrade requires MYR 478 ($100) and FXTM requires as high as MYR 2,300 ($500).
Overall, the amount required to start forex trading in Malaysia depends on the forex broker you have chosen.
AvaTrade is the best Forex trading app for beginners in Malaysia. The broker offers commission-free trading on forex, has only one account type with demo for practice, offers free deposits/withdrawals as well as negative balance protection to ensure you do not lose more than the money you invest.
