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How to choose the best Forex broker in Malaysia?

Forex trading has become an increasingly popular field. A lot of traders have managed to make a fortune and established themselves as one of the wealthiest people in the world. Forex has engulfed almost the whole world, and Malaysia is no exception.

Malaysia is a developing country that attracts investors, many of whom are operating in the Forex market. However, Forex traders have a hard time, given the stringent restrictions that have been set in recent years by the Central Bank of Malaysia (Bank Negara Malaysia). This article will be divide into two sections: in the first one, we will talk about the main regulations and regulatory boards in Malaysia and the second – how to choose a top forex broker in the country.

Check the list of trusted Malaysian Forex brokers

Labuan Financial Services Authority (LFSA) provides the license for FX brokers in Malaysia. It is the central and primary entity in Malaysia. It should be noted that Forex trading is gradually developing in Malaysia, hence not a lot of brokers have relevant licenses. We have carried out a thorough research about regulated Malaysian Forex brokers so that you can see the best forex brokers operating in Malaysia.


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Forex regulations in Malaysia

When it comes to Forex regulations in Malaysia, the main laws created to facilitate foreign exchange trading and other activities are the Stock Exchange Control Act of 1953, the Securities Commission Act of 1993, and the Money Exchange Act of 1998. If you want to get a Forex license in Malaysia, compliance with these laws is mandatory. The minimum authorized capital is 5,000,000 Malaysian ringgits (about 1,047,855 euros). The average term for obtaining a license is 6 months.

The Stock Exchange Control Act of 1953

The current act is a guide for Malaysians how they should execute transactions related to goods, currencies, securities. It also imposes some restrictions. Besides, it also regulates the import and export.

Securities Commission Act 1993

This law gives the Malaysian Securities Commission the authority to license and regulate the securities business.

Money Exchange Act 1998

The Money Exchange Act 1998 is mainly related to licensing and regulation by the responsible committee of any money exchange business. This regulation sets out the rules that forex brokers who want to work in Malaysia must strictly follow.

Bank Negara Malaysia (BNM)

BNM is the central bank of Malaysia and everything related to the country’s currency is a responsibility of the bank. BNM also helps the government on the financial situation of the economy. It is actively involved in all activities related to foreign exchange trading in Malaysia.

Malaysian Securities Commission

This commission was formed in accordance with the Law on the Securities Commission of 1993 and reports to the Minister of Finance. This body regulates the securities business in Malaysia. Functions of the Malaysian Securities Commission: Supervision of exchanges, control of central depositories; Registration of investment projects in Malaysia, corporations, with the exception of recreational clubs not listed.


What to look for when choosing a Forex broker in Malaysia?

Choosing a good broker is not an easy task. It requires hard effort and experience actually to find one. In the following sections, we will bring forward some of the key characteristics of a trusted forex broker in Malaysia.

Regulated broker

It would seem that all brokers are required to provide services within the framework of the law and relevant directives, but there are a lot of unregulated brokers. The most reliable and trustworthy Forex brokers regulate their activities within the framework of the law: they are controlled by local and international authorities. If the broker works according to undefined rules, then the law is not written to him, and this may affect the trading activities of the trader. Try to comply with safety standards – choose a Malaysian Forex broker whom you can trust. If you strictly adhere to the rules and established standards, then demand the same from the broker, since only a serious attitude to doing business can serve as a guarantee of mutual success.

Low spreads

So what is a spread? If we take bid and ask prices for any currency pair or another asset and calculate the difference between them, we will get a spread. If the spread offered by the Forex broker in Malaysia is very high, you should beware. Many brokers just make money at your expense by offering you high spreads. It is better to cooperate with a broker who has low spreads.

High leverage

Let’s try to understand the meaning of the term leverage. Everything is very simple: it gives you the right to trade a large amount of currency with a minimum amount of topping up a trading account; thus, your purchasing power is incredibly increasing. Leverage is presented in the form of a ratio. For example, a ratio of 1:1000 means that your purchasing power is increased 1000 times. Having replenished your trading account with €1000, you get from the broker the opportunity to trade €1000000. High leverage is a great chance to earn money, traders who cannot deposit large sums of money into their trading accounts, get the right to increase their income with high leverage. But remember, with such trading, there is always a risk of losing significant funds; therefore, you should always be very careful about your large leverage.

Quick execution

If you want to trade in highly volatile markets, such as the Forex market, it is very important that your chosen Malaysian Forex broker can quickly respond to your orders and execute transactions as efficiently and efficiently as possible. Downtime and delays in this type of trade can cause a lot of problems.

Selection of different types of trading accounts

Malaysian broker’s offer of several types of trading accounts is a definite plus. Each trader trades in his own characteristic way, and if he is offered different types of accounts, then it becomes possible to realize different financial ambitions, as well as achieve different trading results. A good broker always understands that freedom of choice is the key to long-term cooperation. Traders do not like restrictions – freedom is dear to them.

Demo accounts

If you are new to trading, it is best to try your hand at a demo account, gradually moving to a real trading account. If the Forex broker Malaysia does not offer you such an opportunity, it is better to avoid cooperation with it. When using a demo account, you are trading virtual money, but you are also surrounded by the atmosphere of trading market realities. You trade calmly, but at the same time you are not threatened with losses, you are not exposed to risks. A demo account is the right way to study the Forex market because first, you need to learn how to develop your own trading strategy. When you feel that you are completely ready to trade on a real account, only then you will begin a real trading career.

Variety of trading tools

We have already said that traders do not like restrictions. The more trading tools a Forex broker offers, the more opportunities appear for traders. You need to choose a broker in Malaysia that offers not only major but also minor, as well as exotic currency pairs, precious metals and other commodities. Gold is, for example, a very popular trading tool in times of economic and political instability.

Reliable trading platforms

The best Forex market brokers, as a rule, offer the best trading platforms. A good platform provides you with quick access to technical and fundamental analysis, an excellent security system, automated trading and various visualization tools such as graphs and charts. With its help, the trader should be comfortable to trade. A popular and functional platform can be called MetaTrader 4, which is able to satisfy the requirements of even the most sophisticated trader.

Automated trading

Automated or algorithmic trading gives the trader huge benefits. A trader can develop and implement his or her strategy or adapt the strategy of another trader for himself. Some trading platforms contain software that automatically executes transactions based on a strategy developed or adapted by you.

The advantage of automated trading is that you are not tied to the monitor of your computer all day. You do not need to wait for the right opportunity to complete a transaction, because the automatic trading system does it for you. Please remember that this system operates in accordance with the strategy developed or adapted by you so that there is always the possibility of losing your invested funds or earned profit.

Deposit and withdrawal of funds

Each trader needs to carefully choose a Malaysian Forex market broker since it is very important that the broker quickly and efficiently provides the process of depositing and withdrawing funds from the trading account. If you can quickly deposit funds into your account, then this will help you to effectively respond to the situation with your open trading positions, since stability is not provided for in the Forex market. If you need to withdraw funds for any reason, the withdrawal process should always be quick and easy so that you can receive your money in just a few working days. Some of the fraud Forex brokers have problems with withdrawing the money, so always avoid such brokers.


Feedbacks and reviews from the users are the best way to determine the authority of a Forex broker in Malaysia. If there are too many negative reviews and bad reactions from users, then most likely you are dealing with a scam broker. Complaints about the problems with trading should not be ignored.


In this guide, we reviewed the main regulations in Malaysia, as well as the guide for choosing a decent Forex broker. Always invest the time carefully reviewing a particular broker in Malaysia to avoid any further complications. This way, you will be protected from any misunderstanding.