How to Invest in Forex Without Trading In Malaysia
Best options to invest in Forex in Malaysia:
It is a certified claim that Forex investments in Malaysia are an important step to financial stability. But most investors are worried about the complexity involved in Forex trading in Malaysia. But do you know you can profit from Forex without trading by yourself?
What you need is concrete information about managed Forex accounts in Malaysia and how to invest in Forex without trading. And that is what you will get after reading this article.
Best Managed Forex Accounts in Malaysia 2024
Choosing the best-managed Forex accounts is the right way to get started with Forex investments in Malaysia. However, this is specifically for investors who want a professional to manage their account's trading activities. And only a safe and well-regulated broker can assure you of this offer. Here are the top 7 brokers offering their users managed Forex accounts in Malaysia.
RoboForex CopyFx
RoboForex is among the Forex trading platforms that offer their clients a way to generate passive income without trading. RoboForex CopyFx is an example of a managed forex account in Malaysia.
The RoboForex-exclusive investment platform CopyFX enables users to duplicate the trades of profitable traders. The CopyFX platform was created to increase your trading opportunities. A RoboForex account holder who lacks trading experience can use this option to mimic the trading methods of experienced traders.
Key features
The CopyFX platform by RoboForex incorporates leading trading platforms like MT5
The statistics for the CopyFX tool from RoboForex are sufficiently detailed. It is possible to view the various timeframes and data for each trader
RoboForex ensures you receive the trade history of any trader whose trades you wish to copy
To compare CopyFX capacities, users are free to open cent accounts
👍 Pros
• Because the RoboForex copy trading platform is so user-friendly, both beginners and experts can use it. It has an easy-to-use interface and a complex of well-balanced conditions for successful trading and investing
• RoboForex CopyFx offers top-notch analytics for controlling traders
• You can use the statistical data from Roboforex CopyFx, a managed forex account in Malaysia, to carefully examine each strategy before making a trading decision
• The minimum deposit is low; you can begin copying with just $10
👎 Cons
• RoboForex charges high commissions, and once more, the broker is licensed by an offshore organization
FxPro Pamm account
While investing in PAMM accounts provides an excellent source of passive income, you need a top broker like FXPro. It is a dedicated platform renowned for offering users a low-risk PAMM account with a fully automated trade system. The FxPro PAMM account is a great option for investors seeking managed forex accounts in Malaysia.
FxPro-managed forex accounts in Malaysia rely on the experience and knowledge of seasoned trading account managers. However, you don't need to worry about maintaining day-to-day trading activities. And this is because the system uses a management model that distributes trade sizes and client trading fund allocations.
Key features
With a FxPro PAMM, investors enjoy adaptable trading executions across a range of instruments, including forex, indices, metals, stocks, cryptocurrencies, and energies
FXPro offers a range of platforms, including MT4, MT5, and cTrader, as well as competitive spreads with no commissions
The PAMM account from FxPro integrates professional advisors, and you can get in-depth performance reports
FXPros’ managed Forex accounts in Malaysia are fully automated trade systems, and traders can select multiple PAMM managers
👍 Pros
• FxPro-managed forex accounts in Malaysia are run by experts
• Again, FXPro ensures owners of every managed forex account can withdraw from the PAMM at any time if they are unsatisfied with how the account manager is performing
• Account holders can spread their investments among various PAMMs to lower their risk
• The FXPro PAMM account offers a trustworthy trading environment and protects users from negative balances
👎 Cons
• The available trading instruments are just CFDs and forex; trading costs are high
IC Markets PAMM
Another broker offering the best-managed forex accounts in Malaysia is IC Markets. It is among the best investment platforms in Malaysia, offering investors over 232 instruments. These include Forex and CFDs on commodities, stocks, indices, bonds, futures, and cryptocurrencies.
Again, with an IC Markets PAMM account, account managers only need to worry about the trading activity; the software takes care of everything else. It is easy for traders because all IC Markets trading accounts are compatible with the MetaTrader 4, MetaTrader 5, WebTrader, and cTrader platforms.
Key features
Managers of managed forex accounts have a dedicated Multi Account Manager (MAM) to help carry out their tasks
The PAMM account from IC Market has a simple (fully customizable) interface and real-time reporting
Again, managed forex accounts in Malaysia offered by IC Markets are directly connected with the MetaTrader 4 Equinix server, allowing quick trade execution
Ten allocation strategies, including allocations by volume and the P/L feature, are available on the IC Markets PAMM account
IC Markets consistently upholds excellent trading costs, substantial leverage, and low latency connectivity
👍 Pros
• The MAM/PAMM accounts and deposit amount in the IC Markets PAMM account are unlimited
• Clients can see expert reporting analytics with ease
• The PAMM account from IC Market has a user-friendly (fully customizable) interface with real-time reporting for commissions and performance
• The PAMM accounts from IC Markets enable multiple master accounts by employing different strategies
👎 Cons
• The minimum deposit is a bit higher
Octa Copy Trading
Octa Copy Trading is another type of managed Forex account in Malaysia that you can trust. It is also identified as a managed account since you don't need to worry about the trading strategy. Therefore, the investor is spared the stress of building a strategy from scratch.
With a low spread and minimum deposit, managed forex accounts in Malaysia under Octa offer the best copy trading services. With a minimum investment of $25, you can start copying traders on the OctaFX social trading app. However, remember that the minimum deposit can change based on location and the payment method.
Key features
Excellent for scalping, hedging, and automated trading, OctaFX is a good ECN DMA broker option
The OctaFX CopyTrading app lets you conveniently invest almost any amount for any term
OctaFX offers top trading platforms MT4 and MT
A trader can manually close any copied trade at any time
👍 Pros
• On OctaFX, all setups are simple and intuitive, and you can quickly deposit money and withdraw profits whenever you want
• You can view each trader's performance and review their trading methods to filter traders based on their profitability
• You can diversify your portfolio among traders and set your potential risk rate
• OctaFX is accessible to all traders because of its low minimum option and competitive spread
👎 Cons
• If you're looking for a wide range of assets, they might not be the best option because they only offer a limited number of base currencies
FBS Copy Trading
With FBS copy trading services, you can earn from what is known as "managed Forex accounts" in Malaysia. A managed Forex account is simply an account where the holder does not have to create the trading strategies they are profiting from. And this is possible with the FBS Copy Trade App, which, in other words, increases your chances of being a successful trader.
FBS is among the leading Forex brokers, offering users social/copy trading platforms with cryptocurrency trading features.
Key features
FBS's copy trading service provides a feature that allows you to copy the trades of the most successful traders, who use various trading tools to prevent losing money
FBS Copy Trade accepts deposits and withdrawals using more than 100 payment methods
You have access to a tool that lets you view your unique investment history and create a list of your favorite traders
There is 24/7 support in different local languages
👍 Pros
• You can follow the trades of seasoned Forex traders, and before copying them, you can review their trading history and results
• Copy trading on FBS does not incur any additional costs
• Easy-to-use mobile trading platforms and apps provide excellent overall market coverage
• Quick customer service
👎 Cons
• The FBS copy trading service's statistics on traders you might copy from are scanty
Forex4You
Forex4you is a top managed forex account provider and copy trading broker. This platform offers a wide range of passive and active trading services, an excellent reputation in brokerage, low minimum deposits, and a wide range of assets to trade. The main advantages of Forex4you include excellent trading conditions, no trading restrictions for algorithmic trading, a great social trading platform Share4You, respectable insurance policies, and great customer support. This platform does have some downsides, including a lack of MT5 integration.
eToro
eToro is a top managed forex account provider and broker. This platform offers full regulation, no management fees, and the ability to keep all of your profits. The main advantages of eToro include access to forex managed funds, access to crypto and stocks, and a low minimum deposit for copy trading. This platform does have some downsides, including a high minimum investment to use CopyPortfolio.
Still, eToro is one of the best social trading and copy trading platforms in the world, especially when it comes to foreign exchange. This platform’s unique managed forex trading service is very easy to use, and you can easily search for the right forex traders to managed your portfolio.
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.
What are Forex Managed Accounts?
Managed accounts services are excellent for passive investing with the leading forex brokers of 2023. Essentially, a managed forex account is a type of currency trading account that a professional trader or money management team will use to make trades on your behalf. Such accounts charge a fee for this service, but that fee is often quite negligible and can definitely be worth it.
A managed forex account can take the burden of day trading off the plate of passive investors and less active traders as such accounts provide access to different markets and assets beyond stocks and bonds. Nevertheless, any trading account should be considered high risk as the objective is usually to better optimize investment capital and take advantage of more frequent opportunities to make money in the markets. This is where utilizing the benefit of a more experienced trader or trading team to work on your behalf can pay off.
Because there is a large amount of online free and paid information about learning how to trade and do it yourself, most traders do not consider workable alternatives. They also frequently fail to assess the degree of difficulty and time commitment required to learn how to trade themselves. By using a managed forex account investors can continue to receive revenue from their company while their money is working for them generating extra income. Think of it like owning a boat. How many ex-boat owners can you find that will recommend it as a good idea? Maybe renting a boat would work fine.
Types of Forex Investment Accounts
The main types of managed forex accounts that are offered by brokers include forex copy trading, PAMM accounts, MAM accounts, advisory services, managed portfolios, and some other rarer types of accounts. It is worth noting that some of these “types” of managed accounts are technically not managed accounts at all, but are very closely related, as they utilize the expertise of more experienced market participants.
Forex Copy Trading
Copy trading can be a part of a managed forex account, but it is a concept all of its own. Copy trading is simply the process of finding an expert trader with high profits and mimicking each and every one of their trading movements. Many traders will monitor major exchange networks and follow famous traders in order to make the best possible trading choices. Some platforms even automate this process, like eToro. You might be able to request that the manager of your managed account uses copy trading.
PAMM/MAM Accounts
PAMM, or Percent Allocation Management Module, is an account management system that uses ratios to determine volume and returns. The activity of the account owner, such as trades, profits, and losses, is split between managed portfolios using the PAMM ratio.
MAM simply refers to Multi-Account Manager accounts. These accounts make it possible for a money manager to assign different ratios of leverage to different subaccounts, if the investor prefers. This makes managed accounts owners who have a high-risk tolerance gain better opportunities to invest.
Advisory services
Advisory services can be a part of a managed forex account, but such services are very different from simply having an account. With a basic managed forex account, you can briefly consult with your money manager and leave the entirety of trading to them. With advisory services, you’ll be able to meet with a financial advisor. That financial advisor will provide holistic portfolio recommendations to help you build your wealth. Such advisors with offer consultations that detail strategies, best practices, and market recommendations. When you open a managed account, you might be able to receive advisory services for free.
Managed Portfolio
A managed portfolio is an investment portfolio that a professional forex trader or financial expert will make investments through on behalf of a client. Managed portfolios are pretty much synonymous with managed accounts, though it is worth noting that managed portfolios tend to include a diverse range of investments that go beyond just forex trading. Typically, a client will pay a financial advisor a flat fee or monthly fee to manage their account and make trading choices, though this fee will be based on the size of the portfolio itself.
Generally, a 1% to 2% annual fee applies.The manager will usually take a portfolio allocation approach with a focus on more traditional assets, such as stocks, bonds, ETFs, and mutual funds.
Other Services
Managed forex accounts can include individual accounts, which are solo accounts based on an individual client’s financial goals and requests. Such accounts typically require a minimum deposit of around $10,000 to get started. Pooled accounts are also quite popular among newbie investors. Pooled accounts deal with a number of different investors in one single account. A client can open an account that is managed by one investor, who oversees the trading decisions of the entire account. Usually, the minimum deposit for such an account is a lot lower at about $1,000 to $2,000 to get started.
How much can I earn?
While how much you can earn from a managed forex account in Malaysia is uncertain, investors can anticipate earning returns of 10–20% annually. Investors can earn passively if the managed forex account (copy trading or PAMM) in Malaysia is operated by experts. The prowess of the trading strategies of the managers of these accounts can earn 30–50% per month, but any investment account can’t guarantee any return.
The profits from a managed forex account in Malaysia depend on the manager's skills; the type of account and management fees also contribute. Remember that managed forex accounts come with risk, even though some traders have experienced higher returns in exceptional market circumstances.
What are typical minimum investments?
While managed Forex accounts in Malaysia typically require a minimum investment of $100 to $500, some brokers charge as much as $1,000 - $5000. It should be noted that the minimum investment refers to the specified smallest amount of money needed to purchase or invest in a security, asset, or opportunity.
FAQs
How much does a forex account manager charge?
The average fee charged by forex account managers is between 10% and 40% of the profits generated. This means that if a trader makes a profit of $10,000, the account manager will take $1,000 to $4,000 as their fee.
How do I open a forex managed account?
You require a reputable and licensed Forex broker, such as FxPro, XM, or IC Markets, to open a managed Forex account. Verify the managed account provider's track record of success before allowing them to manage your account on your behalf. Next, finish filling out an application form, offering some monetary and personal data, and assenting to the account's terms and conditions.
Which broker is best for forex investments in Malaysia ?
Top brokers like RoboForex, Tickmill, IC Markets, eToro, FxPro, AvaTrade, Exness, and PocketOption are among the top picks for Forex investments in Malaysia.
What are the best Forex investments in Malaysia?
Forex investments for different Malaysians might not be the same since these investments can be affected by the economic climate, geopolitical situation, and time. However, the main focus in forex trading is on currency pairs like EUR/USD, GBP/USD, USD/JPY, GBP/CHF, GBP/JPY, USD/CHF, and GBP/NZD. To make the best Forex investment, you should consider your financial situation, risk tolerance, and investment goals.
Team that worked on the article
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.
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.
Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO).