Best Time to Trade Forex in Malaysia

Understanding the Forex trading sessions is crucial for traders seeking to know the best time to trade Forex in Malaysia. The Forex trading session refers to the specific time when the financial markets are active on different continents. This raises the question: what time does the Forex market open in Malaysia?

The Malaysian Forex market is open from Sunday through Friday at 5 p.m. Eastern Standard Time (EST).

Malaysia falls under the GMT+8 time zone, which means the Forex market hours differ from the central trading sessions. Here's a breakdown of the Forex trading sessions in Malaysia:

Read on to discover the best time to trade Forex in Malaysia. But before that, let's break down the different time zones in Malaysia.

Time Zones in Malaysia

Malaysian Standard Time (MST), or GMT+8, is the applicable time zone, and Malaysia does not observe daylight saving time. While there is only one “time zone” in Malaysia, traders should understand that not all hours of the day are equally suitable for trading. To know when various trading sessions begin and end, traders must be familiar with time zones in countries like London and America. It aids traders in making trading plans and seizing trading opportunities that present themselves during overlapping sessions.

Since Malaysian traders can trade whenever they want, they should not limit themselves to opening positions only in the morning or late at night. Although no particular time zone governs Forex trading, traders can benefit from the differences in time zones. This is because different time zones affect when to trade currencies.

Additionally, the Malaysian time zone appears to be ahead the moment the Forex trading sessions begin in other time zones. However, traders should research the time the market opens in the various Forex trading sessions and integrate it into Malaysian local time (GMT+8) to know when to start Forex trading. As was mentioned earlier, Malaysia Time is eight hours earlier than the Coordinated Universal Time reference. Therefore, you must increase Coordinated Universal Time by eight hours to determine the local standard time.

What is the best time to trade Forex in Malaysia?

Based on analysis, the best times to trade Forex in Malaysia are during the London and New York sessions. And this takes place from 4:00 PM to 1:00 AM (the following day) GMT+8 and from 9:00 PM to 6:00 AM (the next day) GMT+8. Research indicates that the majority of traders are active during this time, and trading volume is very high.

However, this pales in comparison to the volume of trades that are active when two sessions overlap. So the best time to trade Forex in Malaysia is between 8 and 11 a.m. EST. And this is when the European and American trading sessions overlap, which corresponds to 9 p.m. to 12 a.m., GMT+8, in Malaysian time. And the majority of the daily trading volume in the global Forex market tends to occur when these sessions overlap.

Although trading activity varies depending on the time of day, the Forex market is open twenty-four hours a day, five days a week. The Malaysian Forex market is open from 9 a.m. to 5 p.m. local time. Note that weekends and federal holidays are off-limits to trading on Malaysia's Forex market. Traders should remember these holidays and adjust their trading strategies, especially those who automate trades.

Best time to Trade Forex - TU Research

According to TU experts, traders seeking the best time to trade Forex in Malaysia should start by knowing the best Forex brokers and different Forex trading sessions. Next, learn about the best trading days of the week and the best time to trade Forex in Malaysia. Then, research the best currency pairs to trade during this time.

While this can be daunting and confusing for new traders, TU experts surveyed 2,500 experienced Forex traders. The results of this research explain the best time to trade Forex in Malaysia after choosing a broker.

Results of a survey on the days of the week with the best trading:

According to the research carried out by TU experts, the best times to trade Forex in Malaysia, as rated by top traders, are:

• 11% = 0.00 to 6.00 GMT (8.00 a.m. to 2.00 p.m GMT+8)

• 38% = 6.00 to 12.00 GMT ( 2.00 p.m. to 8.00 p.m. GMT+8)

• 20% = 12.00 to 18.00 GMT ( 8.00 p.m. to 2.00 a.m GMT+8)

• 31% = 18.00 to 0.00 GMT ( 2.00 a.m. to 8.00 a.m GMT+8)

The above results do not negate the fact that the best time to trade Forex in Malaysia is when Forex trading sessions overlap. And this makes 9 p.m. to 12 a.m. (GMT+8) the best Malaysia Forex market hours. So you could include Wednesday and the time stated above in your list of active trading periods.

Key findings of the research conducted by TU experts on the best time to trade Forex in Malaysia:

• Wednesday was cited by the majority of respondents as the best day of the week to trade Forex. However, note that this day is not typically the busiest and most liquid day for currency trading

• Results from the survey also show that the best time to trade Forex in Malaysia is:

  • 2.00 p.m. to 8.00 p.m GMT+8 (6.00 to 12.00 GMT)

  • 2.00 a.m. to 8.00 a.m GMT+8 (18.00 to 0.00 GMT)

• Traders using long-term strategies vote that Wednesday and Monday are the best days to trade Forex

Best Forex Pairs to Trade in Malaysia Trading Sessions

The most volatile conditions for the Forex market are during the Sydney and Tokyo, Tokyo and London, and London and New York overlaps. And this overlap, which raises the volatility of the Forex market, offers traders an opportunity to buy or sell the following currency pairs.

• EUR/USD

• GBP/USD

• AUD/USD

• NZD/USD

• USD/CAD

• USD/JPY

• GBP/JPY

Analysis showing the best time to trade Forex in Malaysia per the Forex trading sessions:

Using a demo or a live account with minimal trading volumes and leverage, a trader must determine whether the preferred currency pair fits their strategy.

A trader in Malaysia should think about the following elements before selecting a currency pair:

• The broker's trading terms (spread, commission, slippages, order execution speed, etc.) for each currency pair

• Accessibility to news and research materials about the selected currency pair

• Risk management components the broker provides

Best Forex Brokers in Malaysia

1

9.4/10

Go to broker

Your capital is at risk.
Your capital is at risk.

Minimum deposit:

$1

Bonus for deposit:

0%

Regulation:

ASIC, FCA, DFSA, BaFin, CMA, SCB, CySec

Review

Pepperstone (Pepperstone.com) was founded in 2010 in Melbourne, Australia, by professional traders who were not satisfied with the quality of services provided by most brokers. The founders decided to avoid many of the disadvantages of competitors, including high commissions, delayed execution of orders, etc. The founders therefore focused on improving the technical component. The company has set itself the goal of changing the “rules of the game” and setting the bar high for online trading.
Today, Pepperstone offers clients all over the world some of the best technological solutions and favorable trading conditions. The company also provides professional tools that help traders not only master the fine art of trading, but also significantly increase trading efficiencies. In addition, Pepperstone’s platform is scrutinized by seven regulatory authorities, including ASIC (Australian Securities and Investments Commission, AFSL No.414530), FCA (UK Financial Conduct Authority, 684312), DFSA (F004356), BaFin (151148), CMA (128), SCB (SIA-F217), and CySec (388/20). Moreover, with Pepperstone, clients' assets are maintained in aggregated accounts with several major, global banking institutions. These facts confirm the reliability of the company and guarantee the safety of the client's capital.

Pros/Cons

•Attractive trading conditions;

•Fast order execution - 30 ms on average;

•1,200+ trading instruments;

•Low fees; and

•No inactivity fee.

•Support service works only 24/5;

•No cent account;

•Not available to US clients;

•Limited passive trading opportunities;

•Limited analytical materials available on the site. The only way to resolve this issue is to connect to trading signals;

•No news section; and

•Demo accounts can only trade for free for one month only.

Study Review

2

9.2/10

Go to broker

Your capital is at risk.

Minimum deposit:

$1

Bonus for deposit:

0%

Regulation:

FCA, ASIC, FSCA, SCB, and FSA

Review

Trade Nation has been on the market since 2014 and has an expanded network of representative offices that provide their services to traders from over 190 countries. Its clients can both trade CFDs and use spread betting. The company allows hedging, scalping, social trading, and trading by signals. Trade Nation offers more than 1,000 financial instruments that can be traded with fixed or floating spreads on its in-house TN Trader platform or MetaTrader 4. The broker’s activities are regulated by FCA 525164 (Financial Conduct Authority | the UK), ASIC 422661 (Australian Securities and Investments Commission), FSCA 49846 (Financial Sector Conduct Authority | South Africa), SCB SIA-F216 (Securities Commission of the Bahamas), and FSA SD150 (Financial Services Authorities | Seychelles). None of the offices works with U.S. traders.

Pros/Cons

•Licensed activities in compliance with international laws and trading rules;

•No requirements for the initial deposit;

•Account types with floating and fixed spreads;

•Partnership programs with different reward models;

•No brokerage fees for deposits and withdrawals;

•Cent and demo accounts;

•Negative balance protection for retail clients.

•Technical support isn’t available in instant messengers;

•Traders cannot choose a servicing division;

•Fixed spreads are subject to trading hours and change three times a day.

Study Review

Rules and Regulation

• Licensing in Malaysia
  Forex trading in Malaysia is regulated by the Securities Commission Malaysia (SC) under the Capital Markets and Services Act 2007. The regulatory framework aims to ensure market integrity, investor protection, and financial stability in the Forex market. Investors should trade with licensed brokers, conduct due diligence, and stay informed about their rights and protection to mitigate risks associated with Forex trading.

• Investor protection in Malaysia
  Forex investors in Malaysia are protected by the Securities Commission Malaysia (SC), which regulates the Forex market and ensures the integrity of the financial system.
  Malaysia has policies to protect Forex investors:

  • licensing of Forex brokers;
  • restrictions on Forex trading.

• Taxation in Malaysia
  Forex taxation in Malaysia is governed by  the Inland Revenue Board Malaysia (IRBM), which administers the country's tax laws. Forex traders are required to report their trading income to the IRBM and pay income tax on their profits at the applicable tax rates. Malaysia has progressive income tax rates, ranging from 0% to 30%, depending on the individual's total taxable income.

Time to Pause Forex Trading in Malaysia

While you try to figure out the best time to trade Forex in Malaysia, remember that there are times you should not trade. The best times to trade Forex in Malaysia are when there is a lot of liquidity, as you must have read in the earlier section. However, the worst times to trade Forex in Malaysia are:

• Late on Sunday and in the wee hours of Monday

• Whenever there is unusual price movement, major news events, holidays, and when there is less liquidity in the Asian sessions

• When you are too busy to monitor the trades

• Additionally, if you are ill, traveling, or attending events

Expert Opinion

Igor Krasulya Author at Traders Union

The analysis provided on overlapping trading sessions is accurate, but I would caution traders not to focus solely on these periods. Some of the most profitable trading opportunities can occur when volatility is lower, such as during Asian trading hours. It's about finding high-probability setups and trades that fit your strategy, not just chasing volatility.

Generally, the London and New York sessions overlap tends to offer the greatest trading opportunities. However, trading the Tokyo and Sydney overlap can also yield strong results given the more limited participation. This period allows for news-based plays or breakouts to really excel.

Above all, it's crucial for Malaysian traders to backtest ideas rigorously using a demo account first. Market conditions and profitable trades can vary between regions. Develop a trading plan suited to one's own schedule and risk tolerance. Don't fall into the trap of overtrading just because certain times are deemed "most active". Quality is better than quantity.

FAQs

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Team that worked on the article

Peter Emmanuel Chijioke

Contributor

Peter Emmanuel Chijioke is a professional personal finance, Forex, crypto, blockchain, NFT, and Web3 writer and a contributor to the Traders Union website. As a computer science graduate with a robust background in programming, machine learning, and blockchain technology, he possesses a comprehensive understanding of software, technologies, cryptocurrency, and Forex trading.

Having skills in blockchain technology and over 7 years of experience in crafting technical articles on trading, software, and personal finance, he brings a unique blend of theoretical knowledge and practical expertise to the table. His skill set encompasses a diverse range of personal finance technologies and industries, making him a valuable asset to any team or project focused on innovative solutions, personal finance, and investing technologies.

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