How to choose the best Forex Broker in Malaysia

1) Check brokers reputation

Before signing up with a forex broker, do not forget to check the broker’s reputation. You can read user feedback about a specific broker on different social networking platforms such as Quora and Reddit. Checking the broker’s reliability score with some independent review websites, such as FXEmpire, ForexPeaceArmy or Trust Pilot, can also help you learn if a broker is trustworthy.

2) Check the regulatory status of a broker

Checking the regulatory status of a broker is crucial, even if it is well-reputed. Regulation makes brokers abide by certain rules. For example;

Some regulated brokers even hold funds insurance programs, offering the loss of compensation if the broker becomes insolvent. In Malaysia, the Central Bank of Malaysia (Bank Negara) is the prime regulatory authority regulating forex brokers in the country. Other regulatory bodies that exert control over the forex brokers in different jurisdictions include;

  1. Securities Commission Malaysia (SCM)
  2. Labuan Financial Services Authority (LFSA)

3) Choose a broker with at least 3-year existence in the forex industry

Traders should prefer to open an account with a well-established broker. That means a broker who has survived the market’s ups and downs for at least three years or more. Legal obligations such as regulatory compliance, liquidity assurance, and security measures can easily make an incompetent broker liquidate in less than a year or two.

4) Check deposit and withdrawal process

Besides offering multiple deposit and withdrawal methods, a broker should be fast enough to process the withdrawal of funds. Most brokers process deposits instantly. However, only a few of them release your funds in time. Therefore, it is imperative to check the real-time access to your funds before opening an account with any broker.

5) Check if your broker has an international presence

Most successful brokers do not remain confined to a domestic level. Usually, brokers need to pass through multiple security checks to carry out operations on the international level. If your prospective broker is also serving across the border, you can rest assured that the broker is well scrutinized and safe.

6) Contact Customer support

Customer support is one of the most crucial factors to assess the competency of a broker. However, it is often overlooked. Remember, successful brokers always pay special attention to customer services. Therefore, always try communicating with the customer support staff of your prospective broker and raise your concerns. Check if your broker addresses your concerns on time.

Best Forex Brokers In Malaysia

Given below are some best forex brokers in Malaysia.

How did we make the list of best brokers in Malaysia?

Given below are some factors that we considered while compiling the list of best forex brokers in Malaysia.

1) Checked the forex brokers’ Regulations

We have verified that all our listed brokers hold a valid license from the Bank Negara Malaysia (BNM) and Securities Commission Malaysia (SCM). First of all, we asked the concerned brokers to provide us with the company’s registration number. We then asked the officials of concerned regulatory bodies to confirm if these brokers are licensed. We also cross-checked the regulation status of the listed brokers on the website of the Bank Negara.

2) Confirmed the reputation of our listed brokers

We have confirmed our listed brokers’ good reputation from multiple channels, including the internet, newspapers, and personal references. We also read customer feedback on Reddit and Quora. We then checked the rating of our listed brokers on third-party websites, such as Trust Pilot. Once we had the information about all of our listed brokers, then we drafted identifiable patterns and excluded those brokers who didn’t meet specific criteria.

3) Tested the efficiency of deposit and withdrawal process

We also deposited different amounts with all of our listed brokers one by one using different payment methods. We then placed a withdrawal request. Honestly, all the listed brokers were quick to process deposits. We had no issue in the withdrawal process either.

4) Checked the availability of demo accounts

Considering the significance of demo accounts for a novice trader, we wanted to make sure that our listed brokers offer demo accounts. We, therefore, checked with each of the listed brokers and confirmed the availability of demo accounts. Traders can use demo accounts to learn different money management strategies and improve their trading skills. No doubt your confidence level automatically builds up knowing that you won’t lose your funds in any case.

5) Checked various services and features

We also explored different services and used various features offered by our listed brokers, such as risk management tools, trading cost, account types, research, and educational tools. We found our listed brokers meet the high industry standards.

6) Tested trading platforms

To test the useability of our listed brokers’ trading platforms, we tried using them personally. In addition to user-friendly trading interfaces, all brokers have advanced trading and risk management tools in place. Besides instant trade execution, our listed brokers also offer guaranteed stops with no slippage issues.

7) Used mobile trading platforms

Since our listed brokers also offer mobile trading platforms, traders do not have to worry about the need for mobility. The mobile trading platforms come with all the basic functions necessary for effective trading. Traders can download the mobile trading apps on their android or mac based mobile phones and tablets from the respective app store. i-e Apple Store, Google Play Store.

8) Contacted Customer Support

Last but not least, we also checked the level of customer support services offered by our listed brokers. We contacted customer support staff via different channels, including email, phone, and webchat. Except for the email, we received an instant response over the phone and live chat. We also received email support from all our brokers the next day of our inquiry which is not bad.

Forex Brokers in Singapore – FAQs

Is forex trading legal in Malaysia?

Yes, forex trading is legal in Malaysia. However, only licensed brokers are allowed to offer forex trading services in the country.

Do forex traders pay tax in Malaysia?

There are two categories of forex earnings concerning tax implications. If forex is your main stream of income, then you have to pay taxes. However, if you hold a swap-free Islamic account, your gains in an Islamic account are tax-free.

Who regulates forex trading in Malaysia?

The Bank Negara Malaysia and Securities Commission Malaysia are the regulatory authorities in Malaysia. In addition to formulating monetary policies, the bank regulates forex brokers under the following acts.

  1. The Exchange Control Act – 1953
  2. Money Changing Act – 1998

How many forex traders are there in Malaysia?

Since there is no information available on the internet, it is hard to tell the exact numbers of forex traders in Malaysia. However, the country has seen a massive increase in the number of live accounts opened over the last couple of years.

Can Malaysian residents sign up with a forex broker from abroad?

Yes, they can. However, clients should prefer opening an account with regulated brokers only.


As compared to other jurisdictions of the world, Malaysia has a few entry barriers in place. Therefore, a lot of forex brokers offer forex trading services across the country. However, most of them are good for nothing. Following the tips shared above, you can easily find the best forex brokers in Malaysia.