Best Prop Trading Firms In Malaysia
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If you're too busy to read the entire article and want a quick answer, the best Forex prop firm in Malaysia is Hola Prime. Why? Here are its key advantages:
- Is legit in your country (Identified as United States
) - Has a good user satisfaction score
- Transparent terms of profit distribution
- Support for Shariah requirements
Best Forex prop firms in Malaysia:
- FundedNext - Beginners-friendly offers (free trial, trade copier software is allowed)
- Hola Prime - A prop trading firm licensed by the FSC of Mauritius that provides funding up to $500,000 with the potential to scale accounts to $4 million
- SabioTrade - Best for those who want to work as non-staff traders with up to 90% of profit
- Instant Funding - Prop firm offering instant funding with account sizes up to $80,000
- FTMO - One of the largest prop companies with favorable conditions (profit split up to 90%)
Prop trading gives traders in Malaysia the opportunity to trade with capital from companies in exchange for a share of the profits. This is attractive to those looking to increase their trading volumes without using their own funds. In this article we present five leading prop trading companies, their account terms, profit sharing models, and fee structures. These companies differ in their requirements for traders and their approach to risk management, so choosing the right firm is key to successful trading.
Best Forex prop firms in Malaysia
Prop trading is the trading of financial instruments using the firm’s capital rather than the trader’s personal funds. If you are a Malaysian trader looking for proprietary trading firms, we have compiled a list of the top 5 options available to you. These proprietary trading firms have been carefully selected based on their features, regulations, and benefits for Malaysian residents.
| Available in Malaysia | Funding Up To, $ | Profit split up to, % | Min Trade Days | No-Evaluation | Free Evaluation | Open an account | |
|---|---|---|---|---|---|---|---|
| Yes | 4 000 000 | 95 | 2 | No | No | Open an account Your capital is at risk. |
|
| Yes | 4 000 000 | 95 | 2 | Yes | No | Open an account Your capital is at risk.
|
|
| Yes | 200 000 | 90 | No time limits | No | No | Open an account Your capital is at risk.
|
|
| Yes | 2 500 000 | 90 | 3 | Yes | No | Open an account Your capital is at risk.
|
|
| Yes | 2 000 000 | 90 | 4 | No | No | Open an account Your capital is at risk. |
Rules and regulations
There is no mandatory licensing requirement for prop firms in Malaysia to provide services to local traders. It is enough to be registered in the country, and foreign companies can also work with Malaysian traders without a license. The condition for all participants is compliance with Shariah laws.
Investor protection
Traders working with domestic investment companies can file complaints with local regulators:
MIDA (Malaysian Investment Development Authority).
FAA (Financial Accreditation Authority).
SAC (Shariah Advisory Council).
Law enforcement.
When working with foreign prop firms, traders file complaints with regulators in the country where the firm is registered, or with self-regulatory and regional organizations.
Taxation
Forex trading is classified as business income. If you trade Forex as your main job, your gains fall under business income. This income is taxed between 0% and 30%, depending on how much you earn. Income up to 5,000 MYR is not taxed. Only those who trade frequently and rely on it for a living are taxed this way.
Offsetting Forex losses for business owners. If you're running a business and trade Forex as part of it, you can use your trading losses to lower your overall taxable income. This means if you had a rough trading year, you could still reduce your taxes.
Tax relief from international earnings. Malaysia has agreements to help avoid being taxed twice on Forex earnings from abroad. If you're trading and earning from other countries that have agreements with Malaysia, you can claim relief or credits to reduce your tax burden.
Extra tax on using foreign brokers. If you use a broker from another country, any commission fees you pay might have a 10% withholding tax. Keep this in mind when calculating your net profit, as it could affect what you take home.
How to choose a prop trading account in Malaysia
Regulation and security. Make sure the prop trading account is regulated by the SCM (Securities Commission Malaysia) or international regulators. Also check for encryption protocols and segregation of client funds to protect capital.
Trading style. Choose an account that suits your style and preferences. Prop firms may have different trading strategies, risk management approaches, and available instruments. Assess how well the firm supports your trading method.
Choice of instruments. Review the list of instruments available for trading. An account with a wide selection of currency pairs, commodities, indices, and other assets will allow you to diversify your strategy.
Reputation. Study customer reviews and the firm’s reputation. Choose a company with a positive history and a well-deserved reputation.
Customer support. Assess the level of customer support provided for the account. High-quality support will help resolve any issues and eliminate possible technical difficulties.
Is prop trading free in Malaysia
Prop trading in Malaysia allows traders to raise funds and work with large capital, but it is not completely free. Typically, firms charge a subscription fee ranging from $75 to $500.
Prop firms have requirements and rules for traders, giving them access to their capital to trade on behalf of the firm. In return, traders give the firm a portion of their profits, which allows them to trade with larger amounts.
The subscription fee covers administrative costs and access to the firm’s platforms and resources. The amount of these fees varies depending on the company’s services. Traders should research the fee structure before joining a prop firm.
Prop trading in Malaysia requires a fee, but the access to capital and resources may justify the cost.
Check payout frequency and support resources for beginners
When you're new to Forex prop trading in Malaysia, don’t just pick the firms that promise the biggest funding. Instead, focus on their trading conditions. The best prop firms for beginners often balance account sizes, reasonable profit goals, and longer evaluation phases, which can make your early days less stressful. One detail that often gets missed is how often payouts happen. Some firms only pay out once a month, even if they offer big amounts. For newcomers, a firm that offers weekly payouts can keep you motivated and help cover everyday costs while you build your trading skills.
Also, pay attention to the kind of support and learning resources the firm provides. Beginners should look for firms that not only give you capital but also offer webinars, training programs, and experienced mentors. This means you’re not just trading with funds – you’re getting valuable advice from seasoned traders who understand the challenges. Choose a firm with an active community where you can talk to other traders, share your strategies, and get feedback. Having this kind of support can turn setbacks into learning moments and keep you on track.
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.
Conclusion
Prop trading in Malaysia offers opportunities for traders looking to work with large capital and increase their profitability. Choosing the right prop firm requires evaluating the terms of profit sharing, available trading instruments, and the support the company is willing to provide. The companies discussed in this article offer a variety of account types and terms, allowing you to choose the best option depending on your strategy and experience. Considering the potential benefits and risks, working with a prop firm can be an effective tool for achieving your trading goals. The key is to carefully study the terms and weigh all possible costs and benefits before making a decision.
FAQs
What types of accounts do prop trading firms offer?
Prop firms often offer several types of accounts: demo accounts for practice, accounts with a fixed amount of capital, and progressive accounts where the capital increases as requirements are met. The choice of account depends on your experience and trading goals.
What are the risks of working with foreign prop firms?
Risks may include difficulties with legal protection and dispute resolution, since the company is subject to the laws of another country. It is recommended to research the legal features and fee structure in advance, as well as read reviews.
How much capital is usually available for trading in prop firms?
Amounts can vary from a few thousand to hundreds of thousands of dollars, depending on the terms of the company and the success of the trader. Typically, the initial capital is determined by the account level and can be increased as requirements are met.
Is it possible to combine working with prop trading and trading on your own accounts?
Many prop firms allow traders to trade their own accounts in parallel, but it is important to review the company's privacy policy as some firms may restrict or control outside trading.
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Team that worked on the article
Parshwa is a content expert and finance professional possessing deep knowledge of stock and options trading, technical and fundamental analysis, and equity research. As a Chartered Accountant Finalist, Parshwa also has expertise in Forex, crypto trading, and personal taxation. His experience is showcased by a prolific body of over 100 articles on Forex, crypto, equity, and personal finance, alongside personalized advisory roles in tax consultation.
Chinmay Soni is a financial analyst with more than 5 years of experience in working with stocks, Forex, derivatives, and other assets. As a founder of a boutique research firm and an active researcher, he covers various industries and fields, providing insights backed by statistical data. He is also an educator in the field of finance and technology.
As an author for Traders Union, he contributes his deep analytical insights on various topics, taking into account various aspects.
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).
