For this article, we reviewed and tested 5 forex brokers accepting Malaysian clients. The Securities Commission of Malaysia (SCM) is the organisation tasked with regulating Forex brokers operating in Malaysia.

However, brokers are not mandated to receive a license from the regulator.

We opened a real account with each broker and deposited between $4000-$8000. Then, we placed live trades in the popular instruments to determine the actual spreads.

We also contacted each broker’s customer support team to resolve the issues we encountered. Finally, we withdrew our funds to assess whether the withdrawal process is smooth.

We finally chose the best forex brokers based on the trading data collected and our experience as traders.

SCM-Licensed Forex Brokers in Malaysia

Forex brokers in Malaysia are authorised and regulated by the Securities Commission of Malaysia (SCM). SCM’s website is www.sc.com.my. We suggest that investors and traders follow the regulator on Twitter, @SecComMY, to get the latest news and updates.

In April 2018, SCM issued guidelines for Contracts for Difference (CFD) providers, including brokers offering derivatives, which came into effect on July 1, 2018. Therefore, more brokers are likely to seek a Capital Markets Services License (CMSL) from the SCM in future.

However, traders should keep in mind that being licensed by SCM is recommended but is not mandatory. In addition, the SCM allows brokers licensed in other respected jurisdictions to serve Malaysian residents.

SCM has no maximum leverage cap for brokers, with some brokers offering up to 400:1 leverage of Forex trades. The downside is that there is no deposit compensation scheme if a broker goes bankrupt.

Some of the key highlights of trading with SCM-regulated brokers:

🏦Malaysia RegulatorSecurities Commission of Malaysia (SCM)
📊Max. LeverageNo Max. Leverage
🛡️Is It safe to tradeYes
🔒Negative Balance ProtectionNo Negative Balance Protection
💰Compensation SchemeNo Compensation Scheme

Best Forex Brokers in Malaysia

We tested and reviewed 5 forex brokers serving Malaysian traders by opening live accounts, depositing real money, and placing real trades to identify the best forex brokers. We wanted to accurately assess the actual spreads, commissions, trading platforms, deposit and withdrawal conditions, trader education, and customer service provided by each broker. 

  • XM Group – Best Overall Forex Broker in Malaysia
  • AvaTrade – Best Forex Trading Platform Malaysia
  • FP Markets – Best MT4 Broker in Malaysia
  • IG – Best Forex Broker for Beginners in Malaysia
  • Interactive Brokers – Most trusted broker in Malaysia

Of the five brokers above, only Interactive Brokers is licensed by SCM.

Best Overall Forex Broker in Malaysia

We picked XM Group as the overall best forex broker in Malaysia. XM offers a comprehensive trading package with the added benefit of being pretty accessible due to its low minimum deposit requirement. The account opening process is smooth, and the broker offers multiple deposit and withdrawal methods naming the process smooth. XM Spreads are competitive at 1.15 on EUR/USD, and there are no limits on trading strategies. Additionally, the broker provides great education and trading tools, including video tutorials, webinars, Autochartist and more.

Best Forex Broker for Beginners in Malaysia

The best Forex broker for beginners is IG due to its in-depth educational materials offered to traders in multiple formats. New traders can learn about the markets and trading via educational videos, articles, live webinars, and market analyses.

IG also offers a demo account that traders can test their strategies before deciding to open a live account and risk their hard-earned cash.

Best MT4 Broker Malaysia

The best MT4 broker in Malaysia is FP Markets, an MT4 broker that offers the popular MetaTrader 4 platform and does not have a proprietary trading platform.

The broker provides both the web version of the MetaTrader 4 and the desktop and mobile applications, which are easily accessible to traders.

Malaysian Forex Brokers List & Review

Below are the details of the tests we conducted on each broker in our review.

Forex BrokerSCM RegulatedAbout Our TestOur Review
XM GroupN/ADeposit Amount: Over €5,000
Total Trade: 12 trades
XM Group Review
AvaTradeN/ADeposit Amount: Over €4,000
Total Trade: 12 trades
AvaTrade Review
FP Markets N/ADeposit Amount: Over €6,000
Total Trades: 12
FP Markets Review
IGN/ADeposit Amount: Over €4,000
Total Trades: 12
IG Review
Interactive BrokersYesDeposit Amount:
Over
Total Trades: 12
Interactive Brokers Review

FAQ & more on Malaysian brokers

Best Forex Brokers for beginners in Malaysia

IG is the best broker for beginners in Malaysia due to the detailed and well-structured educational content offered to IG clients. The broker offers easy-to-follow trading courses that are delivered using video, audio and text catering to all types of learners.

No deposit bonus forex brokers in Malaysia

XM Group is the best no deposit forex broker in Malaysia, given its long-running $30 account opening bonus. Traders qualify for the bonus just by opening their accounts and not depositing funds into their accounts.

Author of this review

By George Rossi

Author of this review

I am a well-rounded financial services professional experienced in fundamental and technical analysis, global macroeconomic research, foreign exchange and commodity markets and an independent trader.

Now I am passionate about reviewing and comparing forex brokers.

Everything you find on BrokerTested is based on reliable data and unbiased information. We combine our 10+ years finance experience with readers feedback. Read more about our methodology

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