Best Forex Proprietary Trading Companies in Kuala Lumpur
The best Forex prop firm in Kuala Lumpur - Topstep
Best Forex Prop Firms in Kuala Lumpur:
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Topstep - Recognized in Kuala Lumpur for its trader development programs and funding opportunities
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FTMO - Known in Kuala Lumpur for its robust trader evaluation process and competitive profit-sharing schemes
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FundedNext - A prominent name in Kuala Lumpur, offering traders access to substantial capital and a platform to hone their trading skills
This article will delve into Forex prop trading in Kuala Lumpur. This rating includes companies with offices in Malaysia or accepting clients from the country. Through comprehensive comparisons and insights, we provide you with a guide to the city's best Forex proprietary trading accounts.
What Is Prop Trading?
Proprietary trading (also known informally as Prop trading) refers to when a financial institution such as a commercial bank, a brokerage firm or even an investment bank directly trades or invests in activities in the stock market. These organizations can trade bonds, stocks, commodities, derivatives, currencies, and other instruments.
These institutions use their own funds for trading and investing in the stock market and not their clients’ money. So on top of the commission from processing trades for their clients, they can earn the full profits from engaging in the trades as well.
Top 3 prop trading accounts in the Kuala Lumpur
Topstep
With its brand power and reputation as an industry innovator and one of Inc 5000’s fastest-growing companies, Topstep has earned the trust of many traders. To participate in the funded account program, all traders begin with the Trading Combine. You can open a real-time simulated futures account with $150K, $200K, or $300K buying power.
During the Trading Combine, you can earn a funded trading account if you demonstrate consistent profitability and manage risk appropriately. Using Topstep's capital, you can trade in real time without personal financial risk, with funds provided by Topstep.
As quickly as within eight trading days, traders can qualify to receive a funded account (the amount of funding provided is determined by the Trading Combine plan)
The first $5,000 in profits you make can be withdrawn in full, and 90% of profits exceeding that amount can be withdrawn
With Topstep, payout requests are processed on a daily basis (payout requests made prior to 10 a.m. CT are processed on the same day)
Topstep’s trader development services include instruction from professional traders, tools, and daily live videos, along with personalized analytics on performance and bonuses for traders
Trading platforms supported include TSTrader, TradingView, NinjaTrader, Sierra Chart, MultiCharts, R|Trader Pro, and many more.
For a $50k account, Topstep pricing starts at $165 per month. $100k accounts cost $325 per month, and $150k accounts cost $375. Free trials are also available for 14 days.
FTMO
FTMO offers an opportunity for traders to potentially manage significant capital by demonstrating their trading skills. Their evaluation process consists of two stages - a Challenge and Verification - designed to identify disciplined traders with consistent performance.
The Challenge is the first step, where traders must adhere to specific Trading Objectives assessing risk management and trading ability. Successfully completing the Challenge allows progression to the Verification stage.
During Verification, traders continue exhibiting compliance and stable results as a final confirmation of their capabilities. Upon passing both stages, traders become official FTMO Traders with access to accounts of up to $200,000.
FTMO also offers an Account Swing option allowing weekend position holding and trades during releases. Consistent profitability leads to Scaling Plans growing balances by 25% every 4 months, incentivizing long-term growth.
For accessibility, FTMO provides a Free Trial experience without financial commitment. Traditional payout ratios are 80%, increasing to 90% under Scaling Plans. FTMO offers flexible payout options, allowing traders to request payouts on-demand after a minimum of 14 days, with the ability to select their own Profit Split Day and make changes up to three times.
To support their traders, FTMO provides a comprehensive suite of tools and resources. These include custom trading apps, performance analysis, multilingual support, educational resources, and performance coaching. FTMO maintains exceptional conditions such as low costs, 1:100 leverage, reimbursable fees, and major platform flexibility across instruments. Traders can freely utilize preferred strategies.
FundedNext
FundedNext offers skilled traders an opportunity to showcase their expertise and potentially manage a substantial trading account. Through a structured challenge system, successful participants can start trading with up to $200,000 in capital and retain up to 95% of the profits generated.
The firm provides three distinct challenge types: Evaluation, Express, and Stellar (+Stellar Lite), each tailored to accommodate various trading styles and preferences. These challenges are designed to identify and nurture trading talent, offering different profit targets, time constraints, and profit split arrangements. Traders can increase their profit split by participating in the scale-up program and opting for exclusive add-on features. The cost of the most affordable 5k account at Stellar Lite Challenge is only $32 and the fee is refundable.
FundedNext distinguishes itself by offering a range of features to support and incentivize traders, including a 15% profit share from challenge phase profits, no time limits on the challenge phase, and a unique approach to drawdown calculation based on account balance.
The firm supports multiple trading platforms, such as MetaTrader 4, MetaTrader 5, and cTrader, while providing advanced tools, expert advisors, and robust security measures.
Rules and Regulation
Regulation
There is no direct requirement for licensing of prop firms to provide services to residents of the country. To work on the local market, registration is enough. Foreign companies can also provide their services to traders from Malaysia without licenses. The only requirement for market participants is the compliance with Sharia law.
Investor protection
If you work with the national prop firm, you can apply to the following local regulators:
- MIDA (the Malaysian Investment Development Authority);
- FAA (the Finance Accreditation Authority);
- SAC (the Shariah Advisory Council);
- Local law enforcement bodies.
If traders work with foreign prop firms and brokers, they file complaints with regulators at the place of their registration. Traders can also apply to self-regulatory organizations and regional regulators.
Taxation
A progressive tax rate applies in the country, increasing from 1% to 30% based on taxable income. Income of residents up to MYR 5,000 is not taxable. There are also certain religious nuances. Capital gains on Islamic accounts are not taxable and a different accrual model is applied to them.
Is Forex prop trading a good idea in Kuala Lumpur?
Forex prop trading, an abbreviation for proprietary trading, is a financial practice where traders utilize a firm's capital to trade instead of their funds. This model is gaining traction in global hubs, including Kuala Lumpur, as it presents a unique blend of trading opportunities and challenges.
👍 Pros
• Zero personal risk. The standout advantage of Forex prop trading is eliminating personal financial risk. Traders can showcase their skills, strategies, and market insights without jeopardizing their capital. This becomes a significant draw, especially for budding traders apprehensive about initial heavy investments
• Reputable firms. Kuala Lumpur's financial market has seen an influx of several well-established international prop trading firms. Their global stature brings a robust framework of advanced trading technologies, profound market insights, and invaluable educational resources. Collaborating with these giants offers traders in Kuala Lumpur a chance to be a part of the global trading ecosystem
👎 Cons
• Strict eligibility criteria. A significant deterrent for many is the challenging entry barriers these prop trading firms set. Candidates must often demonstrate a proven track record, exhibit advanced trading skills, and sometimes even undergo rigorous assessments. Such stringent requirements ensure the firm's capital is in seasoned hands but can be intimidating for newcomers
• Strict trading guidelines. Prop trading doesn't offer free rein. Firms impose a detailed set of rules and protocols. Though established to uphold legal compliance and risk management, these guidelines can sometimes be perceived as restrictive. They are designed to preserve the trading process's integrity but might limit a trader's flexibility in decision-making
How to choose a prop trading account in Kuala Lumpur?
When choosing a prop trading account in Kuala Lumpur, consider the following:
Reputation matters. Gauge a firm's reputation. Use platforms like TrustPilot to check out forums, groups, and YouTube reviews
Your trading style. Suppose the prop firm's restrictions align with your trading style. Some cater more to scalpers, while others favor swing traders
Long-term potential. Remember, initial steps with any prop firm might be less lucrative. They wish to evaluate your capabilities before entrusting you with funds
Is prop trading in Kuala Lumpur free?
While prop trading in Malaysia enables traders to attract funds and capitalize on more significant trading amounts, realizing that there are typically subscription fees is pivotal. These fees range between $75 to $500. Prop firms might grant traders access to their capital, but they also claim a share of the profits. This arrangement lets traders access more substantial money, amplifying their potential profits. When weighing the potential benefits against the fees, consider factors such as the firm's reputation, trading conditions, and support services.
FAQs
Is prop firm legal in Malaysia?
Yes, prop trading firms are legal. Although they may not be registered in Malaysia, many allow Malaysian citizens to access their funded accounts.
Is there a list of prop trading firms?
Companies like 3Red Partners, Akuna Capital, Belvedere Trading, Chicago Trading Company, FTMO, and Lux Trading Firm rank among the best proprietary trading firms.
How much do prop firms pay traders?
On average, prop traders can earn approximately $122,000 annually.
Which is the most trusted prop firm?
Some of the most reputable prop firms include Traders With Edge, City Traders Imperium, 3Red Partners, and Akuna Capital.
Methodology for compiling our ratings of prop firms
Traders Union applies a rigorous methodology to evaluate prop companies using over 100 quantitative and qualitative criteria. Multiple parameters are given individual scores that feed into an overall rating.
Key aspects of the assessment include:
Trader Testimonials and Reviews. Collecting and analyzing feedback from existing and past traders to understand their experiences with the firm.
Trading instruments. Companies are evaluated on the range of assets offered, as well as the breadth and depth of available markets.
Challenges and Evaluation Process. Analyzing the firm's challenge system, account types, evaluation criteria, and the process for granting funding.
Profit Split. Reviewing the profit split structure and terms, scaling plans, and how the firm handles profit distributions.
Trading Conditions. Examining leverage, execution speeds, commissions, and other trading costs associated with the firm.
Platform and Technology. Assessing the firm's proprietary trading platform or third-party platforms it supports, including ease of use, functionality, and stability.
Education and Support. Quality and availability of training materials, webinars, and one-on-one coaching.
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Alamin Morshed is a contributor at Traders Union. He specializes in writing articles for businesses who want to improve their Google search rankings to compete with their competition.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.
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