Forex trading is legal in Malaysia, and you can trade with licensed brokers who accept Malaysian clients. You can start trading Forex in Malaysia if you can afford between $10 and $100. The best time to trade Forex in Malaysia is during the overlap between the London and New York sessions, which is from 12:00 to 4:00 PM GMT.
How you come to understand Forex trading in Malaysia either makes it a complex or straightforward financial endeavor. You need in-depth knowledge to succeed in this market.
Navigate the regulatory landscape of Forex trading in Malaysia to discern its legality and compliance requirements. Gain insights into the financial prerequisites, discovering the minimum investment needed to venture into Forex trading within the Malaysian market. Embark on your trading journey in Malaysia by understanding the best times to engage in Forex activities, identifying reputable brokers suitable for beginners, and exploring platforms tailored to the unique needs of both novices and seasoned traders.
What is an Islamic Forex account?
An Islamic (swap-free) account is a type of trading account that complies with Sharia principles by avoiding interest and speculation.
What strategy should a Forex novice use?
Starting with technical strategies using simple moving averages or Bollinger Bands keeps it basic. Fundamental strategies based on economic data and events require more understanding. Copying trades from experienced traders via social trading platforms can also work for beginners.
How much money can I make from Forex trading?
Returns vary enormously depending on individual skills, strategies, money management and psychology. Most retail traders see average monthly wins of $300-5000.
Can Forex trading be a full time job?
Yes it's possible, but requires rigorous preparation and money management skills. Most professional traders start part-time before transitioning. It also helps having previous market or business experience, and treating it with discipline like any other career.
Forex, short for foreign exchange, refers to the global decentralized market where currencies are bought, sold, and exchanged. It is the largest and most liquid financial market in the world, with participants including banks, financial institutions, corporations, governments, and individual traders. Forex trading involves speculating on the price movements of currency pairs, aiming to profit from fluctuations in exchange rates.
Like other investment portfolios, Forex trading in Malaysia does not call for a sizable capital investment. You can start trading Forex in Malaysia if you can afford between 10 and 100 dollars, which is the minimum investment set by the broker. For instance, the minimal deposit at RoboForex, one of the top Forex brokers in Malaysia, is $10.
The majority of the top brokers offer demo accounts, which are no-deposit accounts that let you trade Forex for free. As a result, traders without the necessary funds to start trading can use the demo account while they accumulate funds to trade on a live account.
A demo account gives traders the chance to practice and get a sense of what currency trading is like. However, some brokers provide demo contests as a reward for traders who have become experts using the demo account.
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.
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:
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.
Before you start Forex trading in Malaysia, understand that it is high risk. Therefore, be mentally prepared for the worst before you begin trading Forex in Malaysia, and always remember to trade with money; you will not feel terrible losing.
You can get a smooth and successful start to your currency trading career by following the seven steps listed below.
Get a proper education about the Forex market
As a beginner, the proper thing to do is to get a solid understanding of the Forex market. Learn about, currency pairs, market analysis, trading strategies, and risk management. Also, learn everything there is to know about the various factors that affect the Forex market.
Research and choose a reputable broker
Finding a trustworthy Forex broker is just as crucial as learning how to trade currencies. The broker you select and the level of service they provide will determine how successful you are when trading Forex in Malaysia. Select a reputable Forex broker that is licensed and regulated by respectable financial organizations, and make sure they provide an easy-to-use platform, affordable spreads, and helpful customer support.
Open a trading account
Signing up for a trading account will involve providing the necessary identification documents. After opening a Forex trading account with a reputable broker, the next step is to work on your financial objectives and goals. Additionally, assess your financial goals before making currency investments or sales.
Practice with a demo account
When your account is fully set up, you may want to become familiar with Forex trading and the trading platform. Therefore, trading on a demo account will give you the necessary practice to start trading Forex. This enables you to test your trading strategies without putting any money at risk while getting acquainted with the platform. You do not need to be concerned about losing money on trades because you are not trading with actual money.
Deposit funds
Using the best payment method the broker offers, fund your trading account with a sum you feel comfortable with. Because trading involves risk, only use funds that you can afford to lose.
Develop a trading plan
Make a trading plan that is clearly defined and includes your objectives, risk tolerance, entry and exit strategies, and money management guidelines.
Implement risk management and keep emotions in check
To reduce potential losses and prevent overleveraging your positions, set stop-loss orders. Additionally, develop the ability to keep emotions out of your trading decisions. If you allow your emotions to interfere with your trades, impulsive decisions may be the result. Stick to your trading plan and avoid making decisions based on fear or greed.
Note:
You can start trading with real money as soon as you feel confident in your abilities. As you gain experience, gradually increase from small positions at first. Analyze your trades while keeping a close eye on the market. Recall that Forex trading entails a high level of risk and that you could lose more money than you invested. Having a well-thought-out strategy, discipline, and caution are essential when trading.
The best time to trade Forex in Malaysia is during the overlap between the London and New York sessions, which is from 12:00 to 4:00 PM GMT. You must understand how the hours of the Forex market correspond to Malaysian local time to take advantage of the best time in local time. Therefore, convert the time in the session to Malaysian time when selecting the trading session.
The Forex trading session and time zone are the main factors determining the best time to trade currencies in Malaysia. And there are 4 Forex trading sessions.
Sydney (Pacific session)
Trading window: 2:00 to 7:00 GMT
Tokyo (Asian sesision)
Trading window: 23:00 to 9:00 GMT
London (European session)
Trading window: 8:00 AM to 5:00 PM GMT
New York (American session)
Trading window: 12:00 to 22:00 GMT
Malaysia has a single time zone that extends across the whole country. While it is 7 hours ahead of Eastern Standard Time, it is 2 hours ahead of Greenwich Mean Time (GMT). Since Malaysia does not observe daylight saving time, unlike other nations, its time is 6 hours ahead of EST and 1 hour ahead of GMT during the summer months.
The best time to trade on the Forex market if you want to trade on individual Forex sessions is during the London session. Due to the high volume of trading and the fact that there are more buyers than sellers, the spreads are tighter.
Below is data from the research carried out by TU experts showing the volume of trades during the four Forex trading sessions.
London = 35%
New York = 20%
Tokyo = 6%
Sydney = 4%
Forex Trading Malaysia is growing by the day as residents learn about the true wealth of investment options available to them. Malaysia also has very forward policies towards Forex trading, and residents can use any internationally regulated Forex broker.
While there’s a wide variety of Forex brokers available in Malaysia, few residents know about the advantages of holding a Capital Markets Services License (CMSL). The Securities Commission of Malaysia (SCM) is the financial regulatory body in Malaysia, and they offer the licenses.
Pocket Option was launched in 2017. The broker gives its clients access to trade currency pairs, commodities, stocks, cryptocurrencies, and indices. To operate in the financial markets, the company has developed its own unique trading platform. In addition, Pocket Option clients can trade in MT5. The broker’s service is available in more than 95 countries and regions globally. Pocket Option’s top priority is the high quality of customer service, constant improvement of trading technologies, and financial innovations.
The company's clients get access to many bonus offers, and participate in a profitable affiliate program. Thanks to unique rewards, traders can increase their profile level and purchase resources in Pocket Option's own Market store to increase their profitability while trading.
PocketOption offers a maximum leverage of 1:100 on its MT5 Forex account.
The company behind the Pocket Option website that provides brokerage services is PO Trade (SV) Ltd, which is registered in Saint Vincent and the Grenadines, considered to be a Caribbean offshore tax haven. The company says on its website that it is regulated by the International Financial Market Relations Regulation Center (IFMRRC), which is not an official regulatory authority.
Founded in 2014, Tickmill focuses on innovations, allowing customers to trade not only manually but also using the services for automatic copying of transactions by their more experienced colleagues.
Tickmill’s focus on innovation is what the company is proud of and why traders choose it. A selection of basic training materials makes the broker a suitable option for those who have just started to master Forex trading.
Tickmill is a brokerage company that attracts traders with low spreads and comfortable trading conditions. It offers users a spread from 0.1 pip for the currency pairs of EUR/USD. The broker is also suitable for experienced traders who prefer both manual and automated trading.
Tickmill is regulated by the Seychelles Financial Services Authority and the UK Financial Conduct Authority. The broker is also regulated by the Cyprus Securities and Exchange Commission. All this is a guarantee of the reliability and safety of funds for a trader.
Exness Trading Company has been working in the Forex market since 2008. The broker’s activity is managed by Nymstar Limited, a company registered in the Republic of Seychelles. The broker holds the leading position in Forex ratings. The broker currently has CFDs available for cryptocurrency, stocks, more than 120 currency pairs, energy and metals. Exness’s service provides favorable working conditions for traders: low commission, instant execution of orders and withdrawal of funds. An infinite leverage makes it possible to earn on small deposits up to $999. There are several options for opening an account depending on the traders’ needs. A demo account is available - a training account that is useful for both beginner level traders and professional traders.
Choosing the right broker is not a simple task for new traders in Malaysia, as they have to take into account many nuances. Each of those could considerably impact your trading successes or your profit. Trading instruments that the broker offers traders from Malaysia, trading conditions and the quality of educational materials need to be evaluated. Availability of a demo account or a cent account you can use to practice is an important advantage.
RoboForex is a brokerage company that was founded in 2009. It provides services to financial markets in 169 countries. More than 3.5 million users are RoboForex clients. RoboForex is a leading software developer in the Forex industry and one of the best Forex brokers based on client reviews.
RoboForex is recognized as a reliable partner by the most respected financial market experts. The company has won numerous prestigious awards. The RoboForex group of companies has an international license to provide services from FSC Belize (license No. 000138/437). RoboForex charges trading fees. The fees are charged as the spread.
Exness operates legally in more than 130 countries, fully complying with local laws in all jurisdictions. The Exness group of companies holds licensed issued by the following regulatory authorities: FCA , 730729 (UK), CySEC, 178/12 (Cyprus), FSA, SD025 (Seychelles), CBCS, 0003LSI (Curacao and Saint Martin), FSC , SIBA/L/20/1133 (British Virgin Islands), FSC, GB20025294 (Mauritius), FSCA, 51024 (South Africa), CMA, 162 (Kenya). The broker is also a member of the Financial Commission, providing up to EUR 20,000 insurance coverage per client in the event of a force majeure. The company’s monthly trading turnover totals $325.8 billion USD.
You can use eToro to invest in more than 3,000 stock assets, including at zero fee. Trading is available in mobile apps and on the web platform on any device. You can deposit and withdraw money via debit/credit cards, bank transfer and electronic payment systems. The broker offers margin trading, various bonuses and partner rewards.
The leverage on eToro varies depending on the type of asset and the registered office chosen for trading. In particular, traders, who chose the office regulated by CySEC or FCA can trade indices with a leverage of 1:10-1:20, ETFs – 1:5. The company with a license of the Seychelles regulator offers a leverage of 1:100 for the most traded indices and 1:10 for non-major indices and ETFs. eToro is a multi-asset investment platform. The value of your investments may go up or down.
Paper trading refers to a simulated platform that allows you to buy and sell stocks with virtual money. You can track your trade records, profits and losses, and strategies in one convenient tool. Trading in financial markets requires the right choice of a broker, as security of traders’ funds, their profit and opportunities depend on it. Before you start working with a company, it is important to comprehensively assess it.
eToro is an international brokerage company offering services all across the world. Every registered office adjusts the conditions to suit local traders to enable them to trade on beneficial conditions. The minimum deposit depends on the country of residence of a trader. In particular, the minimum deposit for residents of the US and UK is $50, Europe – $50, Israel – $10,000.
The minimum deposit for overseas territories of the UK and France is $1000, for all other countries – $200. The broker provides retail clients with a negative balance protection and restrictions on opening positions with insufficient margin. The clients can also contact the Financial Ombudsman Service. Investments of traders from a number of European countries are protected by compensation funds.
Revolut offers commission-free trading with no minimum deposit requirements. Stocks, cryptocurrencies, and precious metals are available for trading. Client funds are kept on segregated accounts, which is a guarantee of their safety. Since fractional share trading is available at Revolut and there is no brokerage commission per transaction per month, you can start with a minimal investment. Deposits can be made in 28 currencies, but the broker translates them into USD since trading is only on the US stock market.
Interactive Brokers Interactive Brokers provides clients with a wide range of services, allowing them to engage in both active trading and investments. At the same time, the broker charges a fee for an inactive account, and that's not convenient for passive investors. The US and Canadian investors are the main target audiences of the company. Interactive Brokers customer support will help you resolve claims made to the company.
Interactive Brokers is militantly developing, offering services to investors regardless of their trading experience. For this purpose, the broker doesn’t ask for a fixed minimum deposit but has margin requirements for accounts of various structures to make trading financially safe.
Forex prop trading, also known as proprietary trading, refers to the practice of trading financial instruments using a firm's capital rather than personal funds. In Malaysia, prop trading programs offer both advantages and disadvantages for aspiring traders.
One of the main benefits of Forex prop trading is the opportunity to trade with no risk to your capital. But one of the challenges is the difficulty in qualifying for these programs. Prop trading firms often have stringent requirements and criteria that traders must meet to be eligible for their funding.
Topstep is an international proprietary trading company registered in the USA. The company has been providing financial services since 2012 and offers exclusive trading terms for clients from different countries. Topstep provides financing of real trading accounts of its clients if they prove the skill to make trades and manage risks on a simulation account. Traders can trade CME Group futures and currency pairs. Trading on real accounts is carried out through the ECN broker Equiti Capital.
Interactive Brokers is militantly developing, offering services to investors regardless of their trading experience. For this purpose, the broker doesn’t ask for a fixed minimum deposit but has margin requirements for accounts of various structures to make trading financially safe.
Fidelcrest Fidelcrest offers 13 accounts to suit different types of traders, providing access to more than 1,000 financial instruments. Known for its robust training programs and exceptional support services, the prop firm offers profit splits of up to 90%.
There are two main accounts available at Fidelcrest, Micro Trader and Pro Trader, both of which offer Normal and Aggressive settings. Each risk type is funded at three different levels.
Depending on the risk type, the Micro account has funding between $25,000 and $50,000. A difference between the two lies in the profit targets, the minimum number of trading days, and the maximum loss limits. Micro Trader, for example, has a maximum overall loss limit of 10% and a profit target of 5%. There is a maximum loss of 20% with Aggressive risk, and a maximum profit target of 15%.
SurgeTrader offers 75% profit splits to funded traders who meet their trading criteria. It's the perfect prop firm to diversify your investment portfolio with a variety of tradeable assets. SurgeTrader has only one phase of evaluation, unlike many other prop firm trading entities. Traders of all skill levels can choose from six packages. With its Starter Package, you get $25,000 in instant funding and a 10% profit target. There’s a maximum trailing drawdown of 5%. The Starter Package is ideal for beginners who want to avoid aggressive accounts. With a $1 million funding size and 75% profit split, the Master Package is the highest-tier account. A 10% target is set, along with a four-percent daily loss limit and a five-percent maximum trailing drawdown. If you have a lot of confidence in your abilities, this package may be for you.
Additionally, this prop firm offers a wide variety of tradable securities, including crypto and gold, as well as popular stock indices. It’s possible to leverage up to 1:10.
Copy trading in Malaysia is a legal practice for regulated brokers. Traders can trade international markets with little to no cost and access more than 500 instruments using copy trading apps in Malaysia.
RoboForex lets traders earn passive income through automated trading. Offering over 12,000 instruments and eight asset types, RoboForex is the best copy trading platform for traders with minimal trading experience.
On RoboForex, you can specify the copy trading options based on your preferred functions. Thus, only the transactions pertaining to your specified parameters will be copied. With a minimum investment of $10, you can invest in indices, commodities, stocks, Forex, and cryptocurrencies.
RoboForex has a Traders Rating tab where you can find the top traders to copy. If you have any specific asset or instrument preferences, you can filter the results based on your desired factors. The broker offers different search parameters, including the lifespan of the account, profitability, and risk level.
You can check a particular trader's transaction history and later their open transactions once you've subscribed to a signal provider.
IC Markets is one of the most cost-effective trading platforms in the market due to its low commission rates. Plus, it has phenomenal order execution features and multiple opportunities for you to earn passive income.
It also offers additional copy trading services in partnership with Autotrade, MyFxBook, and ZuluTrade.
IC Markets doesn't own a proprietary copy trading platform and offers its services through strategic partnerships with top social trading platforms - ZuluTrade and MyFxBook Autotrade.
Since IC Markets has no proprietor platform, you'll have to utilize one of the partners. The easiest way is to use ZuluTrade.
You'll first open an account on ZuluTrade and provide the necessary information. Then, verify the account since you can't trade with an unverified account.
Once you log in, you'll access the most successful signal providers in the Top Traders section. They are divided into various categories like return growth dynamics, number of copiers, and the amount under management.
You can also search for traders using filters such as criteria such as performance, slippage, and experience.
eToro is a market leader in Forex trading. It was one of the first brokers to offer copy trading as an investment and launched in 2010.
eToro offers the best copy trading services. You'll not need to open a new account for copy trading, and you'll access the web version of the broker or trading app on your phone.
Once you log into your eToro platform, you'll access profiles of top successful traders based on our editors and special algorithms. In addition, you'll be able to choose a trader to copy using various filters, including risk score, returns, period and assets under management.
Forex is halal, meaning that it’s acceptable within Islamic law.
If you trade with a proper strategy and Islamic account, then the act is halal. On the other hand, if you trade with a regular interest charging account and no system, the act could be considered gambling and haram.
One way to understand whether or not Forex is halal is to know the definition of gambling. Gambling in Islam is where individuals speculate on an event. And they have almost no control over the outcome. So, if you’re constantly making sure the odds are in your favour with Forex trading, then you can avoid being a gambler.
Another way to ensure that you keep your activity halal is to use an Islamic Forex account. These accounts allow Islamic traders to trade without interest. As a result, Muslim traders can follow Islamic law while trading Forex. These Islamic accounts are known as swap-free accounts.
Yes. You can trade with international brokers that are not grounded or regulated by the Malaysian Forex regulator, like FSCA. So, if you must trade with Forex traders, ensure they have a license from a reputable regulator (FCA, Cysec, etc.).
Even though there are rules and regulations in place to safeguard investors, it is still important for Forex traders to educate themselves and create a sound trading strategy. Forex trading is a very risky and volatile market, so traders should be ready to put in the time and effort necessary to learn about risk management, technical analysis, and other crucial facets of trading.
Yes. But it depends on what you call minimum, as each broker offering Forex trading services sets a minimum investment on its platform. And this is within the range of $5 to $100. Top brokers that offer low minimum investments also have options for cent accounts, copy trading, PAMM, and demo accounts. Prop firms are another choice that enables the trader to trade with a funded account, removing the need for them to put their own money at risk. But this option is strictly for experienced traders.
Numerous variables affect how much money you can make trading Forex in Malaysia. This includes:
The experience of the trader
The amount invested
Trading environment
And the consistency of the trader
Research has shown that the typical monthly income for a retail trader is between $300 and $5000. However, there is no evidence that this is constant because the foreign exchange market is unpredictable, and you might learn a different amount each month.
Forex trading provides Malaysian individuals with a powerful opportunity to potentially generate income from global currency fluctuations. However, it is important to proceed with caution as leverage can dramatically increase both gains and losses.
For newcomers, it is highly recommended to start by extensively researching the market and opening a demo trading account to experiment risk-free. Taking the time to learn proper money and risk management techniques is essential before committing real capital. Copying experienced traders can also help reduce the learning curve.
Choosing a reputable and trusted broker is also critical due to the risks involved. Look for those licensed by the SCM and other top regulators that can ensure trader protection and compliance.
Overall, Forex is best approached as a long-term endeavor requiring commitment to learning. It may take months or even years of experience to become consistently profitable. But with a measured, step-by-step approach focusing on education alongside low-risk demo trading, Malaysian individuals stand the best chance of determining if Forex market participation can become a viable part of their wealth accumulation strategy over the long run.
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).
