The short answer to this question is yes, but only with a registered and approved financial institution. The official ruling is that you are only allowed to trade currency legally in Malaysia with licensed institutions, of which there are several. There are some that say that this rule only applies to physical currency and retail Forex Trading, especially online, does not fall into that category because online, you trade theoretical currency. That is why this is considered a tricky question requiring explanation and not just a simple yes or no. The easiest way to trade Forex in Malaysia legally is to use one of the approved institutions, and maintain an Islamic account.
A law states that it is not allowed for any Forex trader in Malaysia to deal in currencies without an authorized broker in Malaysia. This approach is particularly attractive in the forex market because of its high liquidity, competitive spreads, and around-the-clock availability. Strictly speaking, to offer trading services within Malaysia, the broker must hold a capital market service license (CMSL) from the SCM. This licence only permits the broker bitbuy canada review to offer CFD Shares, indices and commodities. Our tests found Fusion Markets averages 0.22 pips and has a commission of $2.25. Just as impressive is their average execution speed of 77 for market orders and 79 for limit orders.
These include the Australian Securities and Investments Commission, the Monetary Authority of Singapore, the Cyprus Exchange and Securities Commission, and the Financial Conduct Authority of the UK. It should be noted that the government is relaxing the rules of trading forex in Malaysia. To become a stock broker, one must be at least 21 years old with an HSC or equivalent educational attainment. An applicant also needs to be certified by the Securities Commission Malaysia (SC) and has over two years of experience as a partner, apprentice, remisier, authorized assistant or authorized clerk.
They are regulated by one of the major regulators like CySEC (Europe), ASIC (Australia) or the FCA (UK). You are trading at your own risk when trading with foreign-regulated brokers, and there is a high chance of scams if a broker is totally unregulated. FXTM offers a 7-day swap-free option on all accounts except for FX Exotic pairs.
A list of the Top 7 Offshore Forex Brokers in Malaysia
All of these platforms delivered similar spreads with no price lag in my tests, so you won’t get penalised for choosing one platform over another. IC Markets is my top choice for low spreads, achieving excellent results for both Standard and Raw account spreads in my trading cost test and scoring 9/10. The broker achieved lowest spreads on its Standard account with EUR/USD averaging 0.73 pips in our tests, making it my best account for spread-only pricing with no commissions.
We also test the functionality of the available platforms, the number and types of tradable instruments, the reliability of customer support, and the quality of the research and educational materials. In terms of tools, it is worth choosing a broker that incorporates those third-party tools that enhance its own services. For instance, services like TradingCentral and Autochartist afford traders a deep and penetrating insight into currently unfolding trading setups. There is also DupliTrade, which provides comprehensive pepperstone forex solutions to those interested in copy trading. The broker has invested heavily in the development of its excellent proprietary FxPro Trading platform, which features more than 90 technical indicators, drawing tools, and other chart configurations. The broker also incorporates the renowned MetaTrader 4, MetaTrader 5, and cTrader.
- It allows you to compare the performance of various strategies and check their average returns, maximum drawdown, average losses, and more.
- The forex market is a high-risk financial market and forex traders are exposed to a high risk of financial losses.
- We recommend Plus500 because it offers a robust and user-friendly app that boasts an impressive range of trading tools and a simplified user interface.
- 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.
- HF Markets, Tickmill & Octa have moderate to low trading fees as per our research.
- Some conservatives may feel that speculation on the forex market might equate to Gharar.
Best for CFD Traders: Vantage Markets
HFM provides a wide selection of assets, allowing traders in Malaysia to diversify their portfolios easily and capitalize on opportunities in different markets. Moreover, several security measures are taken to protect clients and their funds, including Fund segregation and SSL Technology. Trading instruments and Products include Forex, Shares, Indices, Commodities, and, Cryptocurrencies with access to MetaTrader Suite and Proprietary Platforms offered. Investing in financial instruments, commodities, and other assets carries inherent risks, and there is a possibility that you may lose your entire investment.
Eightcap is a regulated broker, being regulated by ASIC, CySEC, FCA, and SCB. The broker provides a couple of useful trading tools and services for traders, including AI-powered Economic Calendar Capitalise.ai, FlashTrader, and ForexVPS. XM provides access to the popular MetaTrader 4 (MT4) and MetaTrader 5 (MT5) platforms, enhanced with proprietary indicators that offer advanced trading tools. The broker supports various trading styles, such as scalping, automated trading, and copy trading. Traders can also benefit from educational resources, market analysis tools, and webinars to enhance their trading knowledge and skills.
Alpari has established itself as a stable and reliable broker, providing its services on Forex for over 20 years. The broker is widely popular among professional traders due to its wide range of trading accounts and instruments and convenient and practical services for investing—PAMM accounts and portfolios. Beginning traders will find quality support, training courses, and favorable trading conditions at Alpari. This prevents Muslim customers from paying or receiving interest when holding open positions for several consecutive days. Other than that, swap-free accounts function like standard trading accounts, the chief difference being the absence of swap charges.
- That is why it is a good idea to select a broker that offers you a decent amount of Asian instruments, such as stocks of regional companies, commodities, ETFs, currency pairs, and others.
- With high leverage, and cheap trading costs I think FXTM is a great choice if you’re a scalper.
- OANDA Corporation has commission-free trading, which is the preferred choice for new traders as the cost structure is simpler and easier to track while trading.
- On the other hand, those who need more guidance in trading would benefit from the traditional method, as a representative will assist customers on this matter.
- The broker in Malaysia with the best trading apps is IC Markets from my testing.
Leverage Caps in Malaysia
After choosing a trading broker, the next step is to verify that they are licensed to operate in Malaysia. Visit the broker’s website and look for their regulatory information, usually found in the footer section. This should include their license number and the name of the regulatory body. Ensure that the broker claims to be regulated by the Securities Commission Malaysia (SC) or another recognized authority. XM is the go-to broker if you’re serious about leveling up your trading skills.
Axi provides access to 220+ trading instruments, including forex, shares, indices, commodities, and cryptocurrencies. It offers the popular MetaTrader 4 (MT4) platform, complemented by innovative tools like Autochartist, MT4 NextGen, and the Axi Copy Trading app for social trading. Additionally, the broker is set to launch its proprietary Axi Trading platform to enhance its offerings for both beginner and professional traders. Established in 2008, Exness is a globally recognized forex and CFD broker, known for its instant deposit and withdrawal services. The broker provides access to over 230 trading instruments, including forex, cryptocurrencies, stocks CFDs, commodities, and indices, making it a versatile choice for traders worldwide.
Pepperstone: Best Overall Forex Broker
Even if your risk tolerance is high or you have enough money to trade CFDs, we caution that you do not put too much money in CFD trading because it is very risky. Most of the CFD traders lose their money, it is very hard to make a profit from forex trading. In contrast, HF Markets offers 53 currency pairs, 6 metals, 4 energies, 54 CFD stocks, 23 indices, 3 bonds, 5 commodities, 34 ETFs, 19 cryptocurrencies, and 945 DMA stocks. Hence, in comparison to Octa, HF Markets has a much wider range of trading instruments. Having multiple xm forex review account types can offer you the flexibility to trade, and generally brokers have different fees structures for different account types.
Applicants must satisfy various capital and operational requirements to gain approval from the SCM. HF Markets and Tickmill also offer commission free trading on some account types, like the HF Markets Premium Account and Tickmill Classic Account. All the popular forex brokers that Malaysian traders trade with are not legal in Malaysia.
✅ Halal-Friendly Trading or Islamic Trading (Swap-Free Accounts)
Trading Futures and Options on Futures involves a substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. Opinions, market data, and recommendations are subject to change at any time. Some brokers have embraced cryptocurrencies, accepting Bitcoin, Ethereum, and other digital currencies. This payment method is known for its speed and low fees, providing a modern and secure option for traders who are familiar with digital assets. We verified each broker’s licenses with the Securities Commission Malaysia (SC) and other international regulatory bodies to ensure they operate within legal frameworks that protect traders’ interests.
The broker supports MetaTrader 4 (MT4) and MetaTrader 5 (MT5), offering advanced charting tools, automated trading capabilities, and a user-friendly interface. XM is well-known for its educational resources, including webinars, tutorials, and daily market analysis, making it an ideal choice for both beginner and experienced traders in Malaysia. AvaTrade is a globally trusted Forex broker providing services to traders in Malaysia. Founded in 2006 and regulated by multiple top-tier authorities, AvaTrade provides access to over 50 currency pairs with competitive spreads and no commissions.