Top Malaysian Forex Brokers

Trading forex (currencies) in Malaysia is popular among residents. Before any fx broker in Malysia can accept forex and CFD traders as clients, they must hold a Capital Markets Services License (CMSL) from the Securities Commission of Malaysia (SCM), which is the financial regulatory body in Malaysia. SCM’s website is sc.com.my. We recommend Malaysian residents follow the SCM on Twitter, @SecComMY.

Established in 1993, SCM is Malaysia’s financial markets regulatory body. In April 2018, SCM issued guidelines for Contracts for Difference (CFD) providers including brokers offering derivatives, under the Capital Markets Services Act of 2007, which will become effective July 1st 2018. As a result, we expect more regional brokers will register with SCM in order to acquire a CMSL. For a historical breakdown, here’s a link to the Securities Commission Malaysia’s webpage on Wikipedia.

Best Forex Brokers List Malaysia

To find the best forex broker in Malaysia, we created a list of regional brokers, then ranked brokers by both trustworthiness, as well as their Overall ranking from the ForexMalaysia.com 2018 Review. The result is our top forex brokers list for Malaysia.

How to Verify SCM Authorisation

To identify if a forex broker is regulated by SCM, the first step is to identify the register number from the disclosure text at the bottom of the broker’s Malaysia homepage.

Next, look up the firm on the SCM website to validate the current regulatory status of the broker in Malaysia. Here is the official page with the public register of license holders on SCM.

It’s also worth noting that Bank Negara Malaysia, which is the Central Bank of Malaysia that regulates money service businesses and forex dealers, issued guidelines for digital currencies (cryptocurrency) requiring companies to comply when dealing with crypto assets.

Top Malaysian Forex Brokers

Top Malaysian Forex Brokers

The Malaysian Controversy

Currency trading became legal just recently in Malaysia. The Malaysian government started to slowly give in and legalized the trade. Be aware that some parts of Malaysia allow the trade to a certain point and if you cross that legal line you can find yourself at the other side of the law. The best way is to research the laws and regulations that apply to your area of business and start from there.

After you analyzed and asked around about the legal boundaries, you can move to selecting a fine Malaysian Forex broker to enter the market.

The Authority on Malaysian Brokers

As we already stated, the Malaysian Forex broker market might have some unresolved issues, but still the authorities make an effort to implement a steady regulation, and they are committed to the task.

The Central Bank “Negara Malaysia” is in charge of the national currency – the Malaysian Ringgit. The government discussed at great length trading of the national currency and the currency exchange in the past. By now, the Malaysian government permitted Forex trading in their country, and the regulation was left to the Securities Commission in Malaysia under the purview of the Central Bank.

Their scope of responsibilities includes exchange of traded products, Forex exchange, and overall broker operation in the country. Nevertheless, the regulation is still not quite clear, given its recent creation date.

The bank issues licenses for brokers and protects the investments and personal data of traders. Brokers work under very strict conditions which made experts from the UK and Cyprus believe that Forex trade is impossible in such an environment. However, the bank proved them wrong. The bank controls over 50 Forex brokers Malaysia which are quite successful.

The Bank handles anything that has to do with the financial trading market like complaints from traders, brokers, or financial agencies.

After all this confusion, let us clearly state that Forex trading is legal in Malaysia. It works under national financial laws. As a developing country, Malaysia permits its residents to trade in foreign currencies with registered Forex accounts that should be opened with licensed onshore and offshore banks, as well as with International Islamic Banks.

The Central Bank came up with innovation in the business that is not that usual in the Western world. Residents can open a joint account. This means that two or more people are allowed to trade with their money together. In that way, they can enlarge their capital in the Forex market.

This move of the Central Bank tries to encourage Malaysians to enter the business since they are now hesitant due to legal-illegal ups and downs, and they are not familiar enough with the market. The majority is also not that wealthy to have the extra money to invest, but by joint forces, they can manage to play in the Forex league.

You can join the Malaysia Forex brokers as a foreigner, too. Take the chance to be one of the pioneers in the Malaysian market given that Malaysia is predicted to become very successful in global Forex trading in a few years.

What is Forex exactly and what do best Malaysian Forex brokers offer

As we identified the responsible institution behind the Forex trading market that grants you legal protection and security we can move onto explaining the business in general.

The Forex trading market is a major player in the global economy with a turnover of billions of dollars on a daily basis. The amount of money speaks for itself, and that is the largest indicator of the market’s success. Trading in currencies can be defined as sophisticated gambling and is, therefore, attractive and profitable but also risky.
As a newcomer, you should be aware that risk is always a part of the game. Study the market for a while before you invest real money.

The Malaysia Forex brokers, just like other fine brokers, offer, first of all, a demo account for practice. A demo account grants you virtual money to invest and to test the grounds without any risk of losing real money.

After you had familiarized yourself with the account, the interface, and how trading works, a reliable Forex broker Malaysia should offer you a standard professional account with more options.
If you want the best Malaysian Forex brokers, look for the ones who offer various platforms since the software platform will be your primary tool in the business. The platform should display all available currency pairs and a chart with trend movements (the movement of pips in the market, indicating if the value of the currency goes up or down). The amazing thing in this business is that you can do business around the clock on weekdays. It is a dynamic environment that changes every second and that is the charm of the business.

Like many others, best Malaysian Forex brokers offer the Stop Loss option for your account. The option will appear as soon as you make an investment. The Stop Loss is especially beneficial for beginners who are still inexperienced to handle their finances without help. The Stop Loss offers you to put a limit on your investments and at what point to take the profit without incurring further losses.
You can set the option manually so it automatically sells if things start to go south.

Forex Terminology: Leverages and Spreads

In the currency trade, spread refers to the difference between two currencies. For example 1EUR equals 4.558 MYR. The spread would refer to the difference of 3.558.
The Malaysian top brokers offer narrow spreads, i.e. 0.3. This is something you should look for as a beginner. The above-mentioned spread would be a little bit too high for a beginner and increases the risk of loss. Trade in currencies that are closer in value to each other. Those pairs are the most traded in the world.

Leverage is the amount of money you can borrow in proportion to the money you invested. Malaysian brokers offer leverages that range from 1:50 to 1:500. This means that for every dollar invested you can get $50 to $100 depending on the leverage your broker offers.

Leverage policy is a regular tool for operation in the business, but it does not diminish the risk of debt. Leverages are to be handled carefully. Ideally, ask someone more experienced on that matter.
The deposit requirements vary among the best Malaysian Forex brokers. Deposits can range from $1 to $1,000 or more, again depending on the broker you choose.

Customer Support

As a newbie, you will probably have a lot of questions and concerns. Forex brokers Malaysia should have a customer support system if they operate under regular standards. The customer support should help you with your issues and give you guidelines for your actions. Make sure that your Malaysia Forex broker has well-prepared and friendly staff.

Experienced Traders

All the above stated also applies to the experienced and professionals. In addition, you can look for brokers that offer wider spreads in their currency pairs, a larger currency pair variety, and if you are a real pro, a VIP account to really fit your needs.

Conclusion

We hope that this was helpful for all those who are interested in the Malaysian market. Traders are advised to be cautious with brokerage companies and should always look for registered, official, and widely-recognized brokers in Malaysia, who are under the strict control of national authorities, and hence can be trusted.

Forex Malaysia Broker

What Are Your Options For Forex Brokers Malaysia?

Malaysia is not an entirely popular destination when it comes to Forex trading. Malaysia is known as a country that deals in import and export of raw materials and commodities, which include oil that accounts for up to 40% of the Government’s revenue. Malaysia is also famous for its proximity to Singapore, a global financial hub. While Malaysia does not have the global significance as its neighboring nation, Malaysia in its right has built up a modern infrastructure that is fuelled by a robust and stable economy, which has resulted in higher standards of living and increased the influx of foreign investments.

Malaysia is primarily an Islamic nation with over 60% of the Malaysian population following the religion with strong Islamic ideals. Therefore, several aspects of Forex trading are against the core Islamic values, which necessitates the need for Malaysian traders to trade with Sharia compliant Forex brokers. The Malaysian Government has also enforced several restrictions on trading the Ringgit (Malaysian currency), which adds to the overall confusion regarding the legality of FX trading in the country. Regardless, Malaysian Forex traders may indulge in Forex trading, provided they follow all the existing laws of the country that govern trading and investments.

Is Forex Trading Legal & Are Malaysia Forex Brokers Regulated?

Malaysia had initially outlawed the concept of Forex trading by terming it as an illegal activity that included hefty fines and even incarceration if a person is deemed to have indulged in FX trading. However, over the recent years, Malaysia has slowly opened up to the idea of Forex trading, but the concept in itself is still in primitive stages of development in the country. Being a nation that adheres to Islamic ideals, a majority of traders from Malaysia should carefully contemplate the legality of FX trading according to their religious beliefs, and ascertain whether the broker of their choice is Sharia compliant.
As far as regulation of Forex brokers is concerned, the Malaysian regulatory agency is still in its primitive stages, and there is an awful lot of confusion regarding the actual regulatory authority for Malaysian Forex brokers. The Bank Negara, which is the Central Bank of Malaysia, is responsible for managing the Ringgit currency, while the Securities Commission of Malaysia is in charge of regulating and supervising financial companies. However, there isn’t any particular agency that is responsible for regulating Forex brokers, as the country hasn’t updated its rulebook to incorporate the concept of Forex trading into its regulatory framework.

How Do I Choose A Malaysian Forex Broker?

The lack of regulatory oversight can be dangerous for investors, as there is a significant amount of potential for scams and broker irregularities. Several companies have based their FX operations in Malaysia due to the lack of any regulatory guidelines and have exploited the loophole to siphon off millions of dollars from traders around the world.
The lack of any regulatory framework also deters the Malaysian authorities from supervising the conduct of its member companies, since brokers are free to set up their headquarters in the country to provide services to an international audience. Therefore, the Malaysian Government can only intervene if the company is found to be in violation of the state’s laws regarding the legality of FX trading for its citizens. A highly deregulated market is suitable for scammers to make quick profits from unsuspecting traders.
On the contrary, there are genuine and reliable Forex brokers that offer authentic Forex brokerage services to Malaysian traders. There are both local as well as international brokers that provide a safe and secure trading environment that is completely void of any financial malpractices. Of course, as a trader, you should be willing to put in the effort to research on numerous Forex brokers to understand their pros and cons, before deciding to take the plunge and investing your hard-earned money. We have compiled a list of Malaysian Forex brokers that we believe should be able to provide you with excellent services without making any compromises on safeguarding your trading capital

Best Online Forex Brokers – List

  1. FBS Forex
  2. Tifia Forex
  3. Lite Forex

Some of the mainstream Forex brokers also have their representative offices in both Malaysia as well as neighboring Singapore; therefore, traders can choose a broker within their proximity if they are worried about investing huge funds with an overseas Forex broker. Irrespective of the legality of FX trading in the country, Malaysian-based Forex brokers do tend to follow all the basic laws of the country to ensure that their clients do not contradict the rules in any manner.

The Popularity Of Forex Trading In Malaysia

Malaysia is new to the Forex trading scene, but the country has witnessed a meteoric rise in popularity among retail traders from different backgrounds. Although the concept is new to the market, the Bank Negara had its fair share of Forex trading history by being actively involved in the market during the 1980s. Perhaps the failures of the central bank due to its over speculation and subsequent bailout in 1994 had played a vital role in determining the legality of FX trading in the country.
Malaysian Forex traders have been consistently achieving tremendous success, which has indeed exposed them to a lucrative investment oriented market for managing large funds. A majority of Malaysian traders seem to have formulated successful trading strategies that not only guaranteed of insane profits but also helped in reducing the overall risk of trading. Several high-profile Malaysian traders have been in the news for turning small amounts of trading capital into multi-million dollar trading accounts within a short period, which has certainly put Malaysia on the world trade map.

Can I Make Profits Through Malaysian FX Brokers?

With a sound trading strategy, any amateur trader can turn into a professional investor and rake in a good amount of profits without succumbing to greed and compounded losses. After all, every Forex trader should have a fair understanding of how the markets work, to stay away from market volatility that can incur irrevocable losses.
Before trading, it is the duty of every trader to perform adequate research before venturing into the markets. Always consult with certified legal and financial consultants in your country to determine whether Forex trading is considered as a legitimate and viable business opportunity in your jurisdiction. It is always safe to stay away from legal troubles, as Forex trading is considered to be highly risky on its own, and traders should ensure complete peace of mind while tackling the highly volatile Forex markets.

LiteForex, Lite Forex Broker, LiteForex Malaysia

LiteForex Review

LiteForex Investments Ltd, founded in 2005, is domiciled in Cyprus and regulated by CySEC. They also have a Marshall Islands branch which is subject to a more flexible, looser regulatory regime.  LiteForex is one of the leading brokerage companies with traders of different levels from all over the world and listed as one of the top 100 companies according to World Finance. There are over half a million LiteForex traders doing business out of offices in several countries.

LiteForex is an old and well-established Forex broker. At the time of this review, LiteForex has been in the market for over 12 years.

Accounts

There are four different floating spread trading accounts at LiteForex. With a minimum deposit of $10 traders can open a CENT account which is geared towards fairly new traders who are just starting out or who have traded in a demo account and are confident about moving on. These accounts minimize trading risks as deposits are denominated in cents. The maximum leverage in a CENT account is 1000 and a minimum lot is 0.1. This account comes with a 30% deposit bonus. The account may be based in USD, EUR, CHF or Russian Rubles.

Account Types
Account Types

There are four different floating spread trading accounts at LiteForex. With a minimum deposit of $10 traders can open a CENT account which is geared towards fairly new traders who are just starting out or who have traded in a demo account and are confident about moving on. These accounts minimize trading risks as deposits are denominated in cents. The maximum leverage in a CENT account is 1000 and a minimum lot is 0.1. This account comes with a 30% deposit bonus. The account may be based in USD, EUR, CHF or Russian Rubles.

The Forex CLASSIC account was designed for the traders who have trading experience who follow their tried-and-true strategy using four-digit quotes. The CLASSIC account has a floating spread starting from 1.8 points and offers a maximum leverage of 500 to 1. It requires a minimum deposit of $50 and there are no commissions payable. There is a 30% deposit bonus for this account. The account may be based in USD, EUR, CHF, GBP, Russian Rubles or Polish Zloty. The account offers annual interest of 3.5% on equity unused as margin.

The ECN Forex account uses technology which provides full transparency and protection against non-trading risks.

ECN (Electronic Communications Network) is a unique e-technology for Forex trades with no broker intervention. ECN broker is a kind of a platform where a trader’s each order is matched with an opposite order either within the company or at the broker’s contractor. This account has a $50 minimum deposit and maximum leverage of 1:400.  A social trading feature element is offered with this account type. The account offers annual interest of 7.5% on equity unused as margin.

The fourth account is the PAMM account which was developed for managing Forex investors’ funds. It combines all the advantages of both management and investing including transparency, safety and convenience which provide wide earning opportunities to both investors and managers. The minimum deposit is $200 and maximum leverage is 1:200. There is no commission.

Assets

A very wide range of assets may be traded with LiteForex. Approximately 60 Forex currency pairs are offered, as well as several precious metals and crude oils. The major cryptocurrencies and global stock market indices can be traded, and CFDs are offered on many leading shares from the NYSE, NASDAQ, XETRA and Russian stock markets.

Bonuses/Promotions

LiteForex is loaded with interesting bonuses and promotions all running at the same time. Although Cyrpus has recently acted to ban any new bonuses or promotions, LiteForex Marshall Islands is still offering them.

At the time of this review, a 200% deposit bonus is offered to all traders.  A $100 deposit is required as a minimum, and the CLASSIC and CENT accounts are solely eligible.

A 30% “Non-Stop Bonus” is also awarded for each promocode-activated deposit over $100 in any trading account in the first 24 hours following its opening. A bonus of 15% will be paid into the account for next deposits over $100 upon qualifying, after the first 24 hours.

There is also a “zero fees” system whereby any payment fees due to a payments system incurred when making a deposit are added to the depositor’s account as an existing credit.

Members of the VIP club are eligible for spread rebates of up to 35% on trades taken.

Traders with a demo account can participate in a monthly competition whereby the first 10 traders with the highest balance value win in contest prize amounts up to $2500.

And also for demo account holders, with the Fighting contest, anyone using available trading tools can be part of the contest where ten participants showing the most effective trading over the contest period will be considered as the winners.

An interesting promotion is the ability to get back a deposit fee when making a deposit with a credit card.

Partners have several of their own contests.  In the Weekly Sprint, a partner who is first to collect 50 lots inside his referral group, can become one of the 30 most successful partners who will share the prize fund of $600. The weekly contest ratings are posted on the site.

There is also a multi-rebate of 1.5 pips for each referral made to a Partner or Referral accounts.

Some of the winners of these contests are interviewed and their insights are posted on the site.

Education

There are some good tutorials on various Forex related subjects in addition to a host of interesting and informative articles.  Missing were live webinars which can be quite informative.

Using the economic calendar, LiteForex’s clients will always be abreast of the latest news and will make their trading on the Forex market more deliberate and successful.

Experienced experts at Claws&Horns provide traders with all sorts of analysis, the latest forecasts, unique reviews, expert opinions and many other analytical materials that are indispensable to trading success and are free to LiteForex’s clients.

Advantages

  • Choice of Trading Accounts
  • High Interest on Unused Deposit
  • Demo Account

Disadvantages

  • No Live Webinars

LiteForex Website

Click here

HotForex Broker, Hot Forex Malaysia

HotForex has gained a reputation as being one of the best in the industry in providing client satisfaction and has won many industry awards over the last 7 years.  The trading features and services they offer are continually being improved to tailor to individual traders, where each account has an account manager, and the promotions team always works with award programs and offering bonuses.

HotForex is a straight through processor that is able to work with all types of traders, including scalpers and automated traders.  HotForex has managed to attract a broad-based global clientele by offering multiple language capabilities and has a dedicated Malaysian team.

BONUSES OFFERED:

For all HotForex Bonus information click here.

100% Supercharged Bonus:  This is the bonus that gives you back money for every lot that you trade.  For every lot that you trade you earn a rebate of  2 USD that is loaded directly to your trading account on a daily basis.
100% Credit Bonus:  This is the bonus that extends your leverage even more.  What happens is that the stop out level on your cash balance as zero, meaning you can reach further.

ACCOUNT TYPES:

Micro:  A good entry-level account for a trader who wants a leverage of up to 1:1000 and a minimum deposit of 5 USD.  The variable spreads start from 1 pip on the majors allowing a trader to get an easy and profitable start into trading.  The only downside to this account is that a trader can only hold open 150 simultaneous orders and the lots per trade are quite limited, but if this becomes an issue, you can always upgrade the account.

Premium:  This is the next level of account with a minimum deposit of 500 USD and a leverage of up to 1:400.  With this account, the lots per trade are greatly increased, and the spreads are tighter.  If you have traded before and you are looking for a new broker that will offer you competitive pricing on a variety of instruments, this account could be something for you.

Zero:  This is the account that offers 0 spreads on some of the pairs.  Note that zero spreads are only available on currency pairs that have significant liquidity and the other more exotic pairs will maintain the normal spreads.  As with the Premium account, the Zero account allows traders to keep 60 trade standard lots per position, but with a reduced leverage at 1:200.  This is a good account for those starting out but requires a slight increased minimum deposit from the Micro account at 100 USD.

Fixed:  The fixed account offers traders more predictable spreads by fixing them.  This removes small amounts of uncertainty for the trader so an exit from a trade can be easier to calculate in advance.  If this is something you feel would benefit your trading style and appetite for risk, then you are lucky. This is not an account that is offered by many brokers.  The minimum deposit for this account is 500 USD and the maximum leverage is 1:400.

There are two other accounts available with HotForex that we have chosen not to review because we don’t believe that they offer unique enough features and can only be differentiated by minimum deposit amounts.    To read about all about types, click here.

TRADING PLATFORMS

HotForex offers the download of the MT4 software, but if you prefer a web-based solution or mobile app, then Forex provides a number of custom-made software solutions to enhance your trading experience. Mobile access is 24/7, and they employ the latest SSL encryption technology for security.

DEPOSITS AND WITHDRAWALS

HotForex accepts all major credit and debit cards, bank wire transfers, and additional Internet money services. As is the case with all Forex brokers, you need to submit proper ID prior to a withdrawal application. You can request a proprietary debit card that can be used for direct purchases or withdrawals at ATMs and are all funded by your account balances.

SUPPORT FOR NEW TRADERS

You are able to speak to bilingual customer service representatives who speak more than a dozen languages 24×5 via phone, email, live chat, or Skype. HotForex has an education center filled with training materials, videos, charting tools, free signal alerts, daily commentary and lots more for both beginners and experienced traders.

TRADING FEATURES

  • regulatory compliance by the FSC in Mauritius and CySEC in Cyprus
  • deposits are safely segregated to Tier-1 international bank accounts
  • they have traditional trades in Forex pairs, stocks, commodities, and indices with over 200 asset choices in 20 markets
  • binary options can be accessed with a single click from the HotForex website
  • MT4 trading platform format
  • account types are – micro, Premium, and VIP
  • specialized accounts
  • the ability to connect with other traders to discuss strategies through their social trading feature
  • they support multiple deposit methods
  • quick withdrawal applications through debit card
  • 24 x 5 customer service support and the website in 25 languages

COMPANY & REGULATION

The company was formed in 2008 and has its headquarters in Mauritius, and they have dual regulatory compliance and CySEC regulations are applicable to its operations in Cyprus.

SUMMARY

HotForex has gone the extra mile to provide customers with a first-class service.  Hotforex has competitive spreads and leverage, special account features, customized trading platforms for all operating systems, social trading, and it all comes with quality support materials.  HotForex deals in binary options, in traditional Forex pairs, commodities, stocks, and indices.

Based on our experience, favorable testimonials, and industry awards, you will have to look very hard to find another broker that tries this hard to win over the client.

 

HotForex Broker Website

HotForex

 

 

Choosing a Forex Broker

The choice of a forex broker is the next step after making a decision to start forex trading.  It is a crucial element and should be done carefully to ensure that you get a forex broker that offers the best services, the right leverage, spreads, conditions, and is legally registered to allow you to trade in the location where you live.  Here are some common and important questions that you should ask when choosing a forex broker:

Is the forex broker a non-dealing desk or dealing desk broker?

A dealing desk forex broker is one who interferes with your orders, by monitoring them and then often puts a trade in against them.  On the other hand, the non-dealing desk broker offers you a direct access to the foreign exchange markets.  The main difference between the two is that the dealing desk brokers usually have fixed spreads while non-dealing desk brokers have variable spreads as they are getting the rates from a liquidity provider.

What is the maximum leverage that the broker offers?

Leverage is additional capital from a liquidy provider (usually a well-known bank) that a broker offers you so that you are able to hold a larger order in the market. It is given in terms of a ratio like 50:1.  Leverage is used because the movements in the currency markets, so if traders did not have access to leverage the gains would be too small.  Brokers usually offer leverage anywhere from 200:1 to 800:1, depending on what liquidity provider they are doing, and also dependent on your experience as a trader. When it comes to leverage, traders need to be very careful and understand it well.

Leverage is important to understand because it can either work for you or against you.  It’s advisable that for retail traders with a little experience to be careful with the amount of leverage that you use in your trades because the risk exposure can be significant. As your trading history grows, and the broker sees that you are trading successfully, they could offer you increased leverage on your account.

DO FOREX BROKERS OFFER TOOLS FOR ME TO USE IN MY TRADING?

Brokers usually offer forex tools like calculators, economic calendars as well as trading signals so that you have all your trading information in one view.  The main tool that any trader will be using is either MetaTrader 4 or 5, or the platform that is offered by the broker for the purpose of researching and enacting the trades.

When you sign up with a broker, ask the account manager what tools you will have access to for free, and which they will charge you for.  This is often posted on their website, but having this discussion with the broker before you have made your first deposit will get you more from them for free.

How wide are the spreads?

The spread is the difference between the buying price and the selling price.  It is with this difference that a broker makes their money. Different brokers will offer different spreads and the difference is often determined by the kind of broker you are going to trade with, and also the deal they have with their liquidity provider.

What type of accounts does the forex broker offer?

Brokers usually have demo accounts, which are free accounts where you can practice your strategies and trading, and real accounts that are funded by your bank account or credit card.  To read more about demo accounts, we have a section on the what they are, and some of the best brokers that offer them.

When it comes to real accounts, brokers will sometimes have different tiers of accounts for you to select from.   Based on how much capital you intend to deposit with the broker, the account size will be bigger, and you will get more access to account managers, data, signals and ultimately lower spreads and higher leverage.

What is the minimum initial deposit that the broker allows?

Brokers have different minimum deposits starting as low as $5 and going up to $500.  I would always recommend that you consider that you only want to deposit an amount of money that you are comfortable losing because while trading can be very successful, it can also be very unsuccessful.

Does the broker have a demo account?

A demo account is very helpful especially for forex beginners as well as for the professionals for testing different trading strategies.  Some demo accounts will be time limited, where after your demo period you will be encouraged to sign up for a funded account.  Most brokers allow you to keep your demo account once your real account is created.

Does the forex broker offer customer services?

It is important that you choose a broker that offers customer service since you will be able to communicate.  It is safe to say that all brokers offer customer service 5 days a week, it is only the more advanced accounts that will give you access to a dedicated account manager and weekend assistance.

Does the broker offer bonuses to first timers?

There is a controversy about if giving bonuses away for first-time traders should be allowed.  Some regulators in Europe have decided that it should be stopped, while others around the world still allow it.  That said, some brokers offer bonuses based on the amount that you deposit to your account, and others give you offers or run tournaments.  Some offer no deposit bonuses to get your started.

Important note:  do not rely on bonuses because they are often come with fine print and are used as a mechanism to drive in new customers.  You will not be able to withdraw them.

 

Top Malaysia Forex Broker

  1. FBS Forex
  2. LiteForex
  3. HotForex
  4. JustForex
  5. TifiaForex

Malaysia Forex Brokers

One of the most beautiful countries and economic centers of south-east Asia witnessed a growth in the capital market just like the western world. Many feel attracted to the potentially lucrative business opportunities available there. Many others, on the other hand, still feel skeptic about untraditional ways of conducting business and are concerned about frauds and scams.

This article wants to break prejudices of conservative Malaysians and familiarize them with the business. Of course, many businesses work under pretences and look for taking your money, but we will explain to you how to find decent companies that are among the best Malaysian Forex brokers.

Top Forex brokers Malaysia will offer you fair conditions and fair trade. You just have to know the criteria that need to be met. If you are interested in the Malaysian market, either as a trader or just a market analyst, we have some useful tips for you coming up.

The Malaysian Controversy

Currency trading became legal just recently in Malaysia. The Malaysian government started to slowly give in and legalized the trade. Be aware that some parts of Malaysia allow the trade to a certain point and if you cross that legal line you can find yourself at the other side of the law. The best way is to research the laws and regulations that apply to your area of business and start from there.

After you analyzed and asked around about the legal boundaries, you can move to selecting a fine Malaysian Forex broker to enter the market.

The Authority on Malaysian Brokers

As we already stated, the Malaysian Forex broker market might have some unresolved issues, but still the authorities make an effort to implement a steady regulation, and they are committed to the task.

The Central Bank “Negara Malaysia” is in charge of the national currency – the Malaysian Ringgit. The government discussed at great length trading of the national currency and the currency exchange in the past. By now, the Malaysian government permitted Forex trading in their country, and the regulation was left to the Securities Commission in Malaysia under the purview of the Central Bank.

Their scope of responsibilities includes exchange of traded products, Forex exchange, and overall broker operation in the country. Nevertheless, the regulation is still not quite clear, given its recent creation date.

The bank issues licenses for brokers and protects the investments and personal data of traders. Brokers work under very strict conditions which made experts from the UK and Cyprus believe that Forex trade is impossible in such an environment. However, the bank proved them wrong. The bank controls over 50 Forex brokers Malaysia which are quite successful.

The Bank handles anything that has to do with the financial trading market like complaints from traders, brokers, or financial agencies.

After all this confusion, let us clearly state that Forex trading is legal in Malaysia. It works under national financial laws. As a developing country, Malaysia permits its residents to trade in foreign currencies with registered Forex accounts that should be opened with licensed onshore and offshore banks, as well as with International Islamic Banks.

The Central Bank came up with innovation in the business that is not that usual in the Western world. Residents can open a joint account. This means that two or more people are allowed to trade with their money together. In that way, they can enlarge their capital in the Forex market.

This move of the Central Bank tries to encourage Malaysians to enter the business since they are now hesitant due to legal-illegal ups and downs, and they are not familiar enough with the market. The majority is also not that wealthy to have the extra money to invest, but by joint forces, they can manage to play in the Forex league.

You can join the Malaysia Forex brokers as a foreigner, too. Take the chance to be one of the pioneers in the Malaysian market given that Malaysia is predicted to become very successful in global Forex trading in a few years.

What is Forex exactly and what do best Malaysian Forex brokers offer

As we identified the responsible institution behind the Forex trading market that grants you legal protection and security we can move onto explaining the business in general.

The Forex trading market is a major player in the global economy with a turnover of billions of dollars on a daily basis. The amount of money speaks for itself, and that is the largest indicator of the market’s success. Trading in currencies can be defined as sophisticated gambling and is, therefore, attractive and profitable but also risky.
As a newcomer, you should be aware that risk is always a part of the game. Study the market for a while before you invest real money.

The Malaysia Forex brokers, just like other fine brokers, offer, first of all, a demo account for practice. A demo account grants you virtual money to invest and to test the grounds without any risk of losing real money.
After you had familiarized yourself with the account, the interface, and how trading works, a reliable Forex broker Malaysia should offer you a standard professional account with more options.

If you want the best Malaysian Forex brokers, look for the ones who offer various platforms since the software platform will be your primary tool in the business. The platform should display all available currency pairs and a chart with trend movements (the movement of pips in the market, indicating if the value of the currency goes up or down). The amazing thing in this business is that you can do business around the clock on weekdays. It is a dynamic environment that changes every second and that is the charm of the business.

Like many others, best Malaysian Forex brokers offer the Stop Loss option for your account. The option will appear as soon as you make an investment. The Stop Loss is especially beneficial for beginners who are still inexperienced to handle their finances without help. The Stop Loss offers you to put a limit on your investments and at what point to take the profit without incurring further losses.

You can set the option manually so it automatically sells if things start to go south.

Forex Terminology: Leverages and Spreads

In the currency trade, spread refers to the difference between two currencies. For example 1EUR equals 4.558 MYR. The spread would refer to the difference of 3.558.

The Malaysian top brokers offer narrow spreads, i.e. 0.3. This is something you should look for as a beginner. The above-mentioned spread would be a little bit too high for a beginner and increases the risk of loss. Trade in currencies that are closer in value to each other. Those pairs are the most traded in the world.

Leverage is the amount of money you can borrow in proportion to the money you invested. Malaysian brokers offer leverages that range from 1:50 to 1:500. This means that for every dollar invested you can get $50 to $100 depending on the leverage your broker offers.

Leverage policy is a regular tool for operation in the business, but it does not diminish the risk of debt. Leverages are to be handled carefully. Ideally, ask someone more experienced on that matter.
The deposit requirements vary among the best Malaysian Forex brokers. Deposits can range from $1 to $1,000 or more, again depending on the broker you choose.

Customer Support

As a newbie, you will probably have a lot of questions and concerns. Forex brokers Malaysia should have a customer support system if they operate under regular standards. The customer support should help you with your issues and give you guidelines for your actions. Make sure that your Malaysia Forex broker has well-prepared and friendly staff.

Experienced Traders

All the above stated also applies to the experienced and professionals. In addition, you can look for brokers that offer wider spreads in their currency pairs, a larger currency pair variety, and if you are a real pro, a VIP account to really fit your needs.

Conclusion

We hope that this was helpful for all those who are interested in the Malaysian market. Traders are advised to be cautious with brokerage companies and should always look for registered, official, and widely-recognized brokers in Malaysia, who are under the strict control of national authorities, and hence can be trusted.

Top Malaysia Forex Broker

  1. FBS Forex
  2. LiteForex
  3. HotForex
  4. JustForex
  5. TifiaForex