Octa - Best Forex Broker in Malaysia
TOP Forex Brokers Malaysia in 2024:
Octa - Best for overnight trading (no swap fees)
RoboForex - Best Forex broker for beginners ($10 min. deposit, copy trading)
Pocket Option - Best for Social Trading (top rated service by customers)
Eightcap - Best broker to trade directly from TradingView charts
FBS - A reliable broker with affordable offers (ASIC regulation, min. deposit 5$)
Forex trading in Malaysia is growing every day as residents learn about the available investment options. Traders Union has prepared a rating of the best Forex brokers in Malaysia based on multiple parameters such as safety, regulation, trading conditions, commissions, and expert feedback. In this rating, companies are compared in a convenient format, allowing traders to select the best company for their needs based on financial plans and capabilities.
For clients in Malaysia, it is crucial to work with a regulated broker. The brokers selected for this rating are those that either hold a license from the local regulator Securities Commission of Malaysia (SCM) or from one of the international regulators.
Warning:
There is a high level of risk involved when trading leveraged products such as Forex/CFDs. Between 65% and 82% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Here’s our list of the Best Forex brokers Malaysia for 2024. Our Traders Union experts considered several factors before creating a thorough index. All of the brokers on our list are fully regulated by the International financial regulatory bodies!
While a single broker on the list represents a decent option, it's essential to look at the additional features.
| Broker | Overall Score | Regulation | Accepts Malaysian citizens | Minimum Deposit | Advantages | |
|---|---|---|---|---|---|---|
8.86 |
FSCA, MISA, CySEC |
From USD 25 |
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9.71 |
FSC |
$10 |
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9.57 |
MISA |
$5 |
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9.04 |
ASIC, SCB, CySEC, FCA |
100 USD |
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8.98 |
CySEC |
€10 |
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8.92 |
CySEC |
USD 10 |
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8.8 |
ASIC, FCA, FSCA, VFSC |
$50 |
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8.74 |
FCA, CYSEC, FSCA, SCB |
100 (USD, EUR, GBP, CHF) |
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8.68 |
From 0 US dollars |
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8.62 |
ASIC, CySEC, and FSA |
$200 |
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8.57 |
BVI FSC |
From 0 USD |
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8.52 |
ASIC, FSC, CySEC, DFSA |
$5 |
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8.47 |
FinaCom |
$100 / €100 |
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8.37 |
FSA, LFSA, FSCA, CySEC, FCA |
100 US dollars |
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8.32 |
$1 |
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8.22 |
BVI FSC, CySEC |
FSC - $1. CySEC - €200/€1 |
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8.17 |
FSC |
50 USD |
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8.12 |
The Financial Commission |
10 USD, 10 EUR |
|
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8.06 |
VFSC |
$100 |
|
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8 |
FCA, CySEC, ASIC, JSC, CIPC |
$1 — $100, $250 |
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| Octa | RoboForex | Pocket Option | Eightcap | FBS | TeleTrade | |
|---|---|---|---|---|---|---|
Trading platform |
MetaTrader4, MetaTrader5 |
MT4, MT5, R MobileTrader, R StocksTrader, R WebTrader |
Pocket Option, MT5, MT4 |
MT4, MT5 |
MT4, MobileTrading |
MT4, MT5 |
Leverage |
Up to 1:500 |
1:2000 |
1:1000 for MT4/MT5; |
Up to 1:500 |
1:3000 |
1:500 |
Instruments |
32 currency pairs, 10 cryptocurrencies, 3 CFDs on energy resources, 10 indices, gold, silver and +150 CFDs on stocks |
Forex (currency pairs), ETFs, index CFDs, oil CFDs, CFD on European and U.S. stocks, real securities |
Binary options and CFDs on currency pairs, cryptos, indices, stocks, and commodities |
CFDs on currency pairs, cryptocurrencies, indices, stocks, commodities, and precious metals |
Forex, indices, metals, futures contracts |
Forex, metals, indices, energies, stocks, cryptocurrencies |
Spread |
0.6 points |
0 points |
1.2 point |
0 points |
0.2 points |
0.8 points |
Trust management |
||||||
Margin Call / Stop Out |
25% / 15% |
60% / 40% |
30% / 50% |
80% / 50% |
40% / 20% |
70% / 20% |
Cent accounts |
||||||
Replenishment / Withdrawal |
Bank transfer, Neteller, Skrill, Visa/MasterCard, Bitcoin, cryptocurrency, instant bank transfer, local banks, e-wallets | SEPA, Bank transfer, Skrill, Neteller, AdvCash, Perfect Money, Visa/Mastercard, AstraPay, NganLuong Wallet, JCB. | Bank transfers, bank cards, cryptocurrencies, Skrill, Neteller, AdvCash, Perfect Money, and other e-wallets | Visa, MasterCard, POLI, wire transfer, BPAY, UnionPay, Skrill, Neteller, BTC and ETH wallets, PayPal, WorldPay, FasaPay, PayRetailers, and PSP | Cards: Visa, MasterCard; e-wallets: Skrill, Neteller, Wire Transfer, Rapid Transfer | Visa, MasterCard, Skrill, Neteller, Fasapay e-wallets and bank transfer |
Trading features |
All trading strategies are allowed; MT4 account with a floating or fixed spread. |
Negative Balance Protection; No swaps on Islamic accounts, a pleasant affiliate program: each market participant gets up to 20% loyalty; One Click Trading. |
Free signals; |
Free 30-day demo account; |
Advisors; Hedging; Protection against a gap. |
Cryptocurrency trading; Social trading. |
Account currency |
USD, EUR | USD, EUR, GOLD | USD | AUD, USD, GBP, EUR, NZD, CAD, and SGD | EUR | Euro, dollar |
Contests and bonuses |
Contests on demo accounts on MT4 with the opportunity to win real money; bonus from 10 to 50% of the deposit amount; Status program; Trade and win program | Welcome Bonus | Deposit bonus; Cash back; Tournaments; Promo codes; Gem mining, etc. |
Bonuses in the form of rebates from Traders Union | Yes | Yes |
Octa is an international broker that strives to provide favorable and transparent conditions to all Forex traders, regardless of their experience and trading skills. So, spreads start from 0.6 pips, there are no commissions for replenishment and withdrawal of funds, and all trading strategies are allowed. The broker offers bonuses and regularly holds contests on demo accounts, the winners of which receive real, not virtual, money. The Octa brokerage company does everything to provide clients with a comfortable working environment. For trading, the most popular platforms among traders — MT4, MT5 — are provided. You can make trades from any device, including those operating on mobile platforms. Web terminals are also available. The broker does not have cent accounts. However, demo accounts can be opened on the aforementioned platforms. The broker's website is informative and well structured. Here, a novice and experienced trader will find a lot of useful information such as training, high-quality analytics, Forex news, and an economic calendar. The support service works promptly and answers questions within a few minutes.
Over the years, this broker has shown itself to be a reliable and trusted partner. RoboForex provides clients with the best conditions: tight spreads from 0 pips, the highest execution speed, and micro-accounts with a lot of 0.01. The positive feedback from real traders about RoboForex, instant withdrawal of funds, and operational support are what impress me about this broker. The brokerage company offers quality services to both beginners and seasoned traders. Over the years of cooperation with RoboForex, the broker has not received any significant claims against it. Therefore RoboForex is quite popular among Traders Union clients. All financial issues and claims on the broker's work are resolved by the company's representatives as quickly as possible and within minimum time. RoboForex always meets its clients and partners halfway. Following the mass of positive reviews about the work of roboforex.com, Traders Union recommends this company as a trusted broker with a high trust rating.
Pocket Option constantly expands the range of its products and services. It was incorporated in 2017 and has shown its client-oriented approach within the first year of operation. Traders got the opportunity to trade in mobile apps, place pending orders, and earn on partnership programs. In 2019, the broker offered trading Forex on MetaTrader 5, and in 2023 it added trading CFDs on MetaTrader 4. All accounts for trading binary options are assigned the Newbie, Beginner, Experienced, Master, Pro, and Guru status subject to the deposit. Accounts without deposits are called Strangers. The higher the level, the more opportunities traders get. Trading conditions are the increase of percentage payment for successful trades and a trade amount that ranges from $1,000 to $20,000. Other advantages are priority withdrawals, gifts, personal manager services, trading strategies, etc. MT4 and MT5 for Windows, Android, macOS, Linux, and WebTrader are available for trading Forex. A separate MT5 account is designed for trading CFDs on stocks. The broker earns a little markup on spreads. There are no additional trading fees. Pocket Option doesn't charge non-trading fees and offers over 50 payment methods that allow traders from many regions to choose an option with minimum transaction fees.
There are a variety of institutions that oversee Forex market regulation in Malaysia. The Bank Negara Malaysia, the Malaysian central bank, first started operations in 1959. Another regulator authority is the Malaysian Investment Development Authority.
A few other regulatory bodies also oversee Forex trading in Malaysia. These include the Securities Commission of Malaysia, the Finance Accreditation Agency, and the Shariah Advisory Council.
All individuals residing in Malaysia who wish to commence trading activities must be familiar with and abide by the regulations set forth by the government. These regulations include The Exchange Control Act of 1953, The Securities Commission Act of 1993, and The Money Changing Act of 1998.
These individuals must comprehensively understand these regulations to conduct their trading activities legally and effectively. It is also essential to know that SCM has provided no regulation to any broker, meaning you must check for other regulators.
Forex is legal in Malaysia, but traders and brokers must follow certain rules. The broker must be shariah-compliant and licensed by the relevant bodies. Some may consider paying taxes on income from trading as a limitation, but that applies to almost all countries.
Using an unregulated Forex broker in Malaysia is illegal and could incur fines and punishment. Follow the following steps to check whether they are regulated.
Check the broker's website for information on their regulation
Copy the licensing or certification numbers
Counter-check with the official regulator's databases on the regulation
In Malaysia, Forex trading is regulated by the Securities Commission Malaysia (SCM), Malaysian Investment Development Authority (MIDA), Finance Accreditation Agency, and Shariah Advisory Council (SAC).
Best PAMM brokers in Malaysia
Note:
that when it comes to taxes, it's crucial to seek the assistance of local tax professionals!
In Malaysia, income from Forex trading is subject to taxation by the Inland Revenue Board. Unlike capital gains, which are generally tax-exempt, income from Forex trading is taxed according to income tax regulations, based on your residency status. Individuals are classified as residents if they fulfill specific criteria, such as residing in Malaysia for up to 182 days.
Residency status is significant because non-residents are only taxed on income derived from Malaysia, whereas Malaysian tax residents are taxed on their worldwide income. In Malaysia, the tax rate on Forex trading profits is progressive, meaning it rises with your profits. For residents, the tax rate can reach up to 30%, while non-residents are subject to a fixed tax rate of 28% on their Malaysian income.
| Taxable income band MYR | Tax rate |
|---|---|
5,001 to 20,000 |
1% |
20,001 to 35,000 |
3% |
35,001 to 50,000 |
6% |
50,001 to 70,000 |
11% |
70,001 to 100,000 |
19% |
100,001 to 400,000 |
25% |
400,000 to 600,000 |
26% |
600,001 to 2,000.000 |
28% |
2,000,001+ |
30% |
While Forex markets are open all day long during the weekdays (they close for the weekend), the best time to trade is at the world's leading stock markets' peak hours. A high number of active traders makes the markets highly volatile, which is the easiest time to make profits.
Since different parts of the world have various time zones, the opening to closing hours is called sessions. Let’s look at the sessions in Malaysian time.
The Asian session comprises Tokyo, Hong Kong, and Singapore and opens at 7 AM Malaysia time and ends at 4 PM. The pairs that do well most in this session are USD/JPY, AUD/JPY, and NZD/JPY.
The London session is also called the European session because it signals the start of financial activities on the continent. London Session Forex time in Malaysia starts at 4 PM and ends at 1 AM. It is the best time for trading GBP/EUR pairs involving GBP and EUR.
America has various sessions, but New York is known as the official one. In summer and spring, the New York session Forex time opens at 8 PM Malaysian Time and ends at 5 AM Malaysian time. In fall and winter, it starts at 9 PM and ends at 6 AM Malaysian Time. If you trade during the day, go for pairs involving AUD, NZD, HKD, and JPY, and for night USD, GBP, EUR, and CHF.
Ensure the broker is regulated by the SCM or a reputable international authority to protect your funds and ensure fair trading practices.
Look for a user-friendly platform with the tools and features you need for effective trading.
Compare spreads, commissions, and other fees to find a broker with competitive pricing.
Check the range of currency pairs and other financial instruments offered to ensure they align with your trading goals.
Consider brokers that provide educational materials and resources to help you improve your trading skills.
For Malaysian beginners, starting a Forex trading career with a demo or cent account, or utilizing copy trading, can be an excellent method to learn and acquire experience. Demo accounts enable traders to practice trading strategies in a risk-free setting, using virtual funds. Cent accounts, on the other hand, enable traders to trade with small amounts of real money, lowering the risk while still offering a genuine trading experience. Copy trading involves duplicating the trades of seasoned traders, enabling beginners to learn from their strategies and decisions.
| Broker | Demo | Cent | Copy Trading | |
|---|---|---|---|---|
We evaluate and assess each broker using over 100 objective criteria, resulting in an average score for each Forex broker, which characterizes all aspects of its work. We also take into account its trading volume, which we have access to thanks to hundreds of thousands of traders of our Union. We also take into account reviews on brokers by their traders, which we curate on our website. As a result, according to our unique algorithmic matrix, which is applied to all companies, our program impartially calculates the overall average for each company and its position in the rating. This makes our rating system the most objective and independent in the Forex market.
Table of categories of criteria for evaluating Forex brokers
| Criteria category name | Criteria number in category |
|---|---|
Financial |
38 |
Reliability |
27 |
Security |
18 |
Trading conditions |
15 |
Customer support |
9 |
Malaysia is a developed financial center, providing residents with numerous options for choosing a reliable, regulated broker for Forex trading. This includes brokers licensed not only by global financial regulators but also by local ones. You can always verify the validity of such a license on the regulator's website. After narrowing down the list of suitable brokers, it makes sense to look at the detailed structure of commissions and spreads, available trading pairs and assets, and also test the trading platform of each broker on a demo account. If more than one broker remains on your list after this, opening accounts with each and identifying nuances in practice is a possible option.
Yes, it is legal for Malaysians to trade Forex through licensed and regulated brokers.
Yes, leading brokers do offer swap-free Islamic accounts tailored specifically for Muslim traders as per Sharia principles.
Most brokers offer up to 1:500 leverage based on regulatory requirements.
Regulated local brokers are licensed by Malaysian authorities, offer depositor insurance protection, localized services and avoid risks from dealing with offshore brokers illegally targeting Malaysians.
Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.
The area of responsibility of Mikhail includes covering the news of currency and stock markets, fact checking, updating and editing the content published on the Traders Union website. He successfully analyzes complex financial issues and explains their meaning in simple and understandable language for ordinary people. Mikhail generates content that provides full contact with the readers.
Mikhail’s motto: Learn something new and share your experience – never stop!
Olga Shendetskaya has been a part of the Traders Union team as an author, editor and proofreader since 2017. Since 2020, Shendetskaya has been the assistant chief editor of the website of Traders Union, an international association of traders. She has over 10 years of experience of working with economic and financial texts. In the period of 2017-2020, Olga has worked as a journalist and editor of laftNews news agency, economic and financial news sections. At the moment, Olga is a part of the team of top industry experts involved in creation of educational articles in finance and investment, overseeing their writing and publication on the Traders Union website.
Olga has extensive experience in writing and editing articles about the specifics of working in the Forex market, cryptocurrency market, stock exchanges and also in the segment of financial investment in general. This level of expertise allows Olga to create unique and comprehensive articles, describing complex investment mechanisms in a simple and accessible way for traders of any level.
Olga’s motto: Do well and you’ll be well!
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). Mirjan is a cryptocurrency and stock trader. This deep understanding of the finance sector allows her to create informative and engaging content that helps readers easily navigate the complexities of the crypto world.
