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.