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Top 5 forex brokers in Malaysia in 2023
- Fusion Markets is the best forex broker in Malaysia in 2023 - One of the lowest commissions on the market. Wide range of currencies. Low withdrawal fee.
- Capital.com - Low forex fees. Wide range of currencies. Superb account opening process.
- IC Markets - $3.5 commission per lot plus 0 spread. Wide range of currencies. Low withdrawal fee.
- Tickmill - $2 commission per lot plus low spread. Rich selection of currency pairs. Low withdrawal fee.
- CMC Markets - 0.7 pips average spread cost. Immense number of currency pairs. Low withdrawal fee.
How did BrokerChooser select the best FX brokers in Malaysia?
- We checked whether the broker is regulated by a trusted regulator,
- Compared forex fees (i.e. spreads and commission),
- Checked the number of currency pairs,
- Looked into minimum deposit requirements,
- Opened an account and tested the platform (charting, features, usability, customer service) with real money.
While many forex brokers catering to clients in Malaysia offer an excellent service, the ones in our toplist go the extra mile.
| Broker | FX commission per lot | Minimum deposit | Account activated in | Forex fee class |
|---|---|---|---|---|
| Fusion Markets | $2.25 commission per lot per trade | $0 | 1 day | Low |
| Capital.com | No commission is charged | $20 | 1 day | Low |
| IC Markets | $3.50 commission per lot per trade | $200 | 1 day | Low |
| Tickmill | $2.00 commission per lot per trade | $100 | 1 day | Low |
| CMC Markets | No commission is charged | $0 | 1-3 days | Low |
Best forex brokers
Fee comparison at the best forex brokers in Malaysia
How much you have to pay in fees for a given currency trade is a key broker selection criteria. See the spreads charged by these online brokers for the most popular currency pairs.
| Fusion Markets | Capital.com | IC Markets | Tickmill | CMC Markets | |
|---|---|---|---|---|---|
| EURUSD spread | 0.0 | 0.6 | 0.0 | 0.2 | 0.7 |
| GBPUSD spread | 0.2 | 1.3 | 0.0 | 0.5 | 0.9 |
| AUDUSD spread | 0.0 | 0.6 | 0.0 | 0.1 | 0.7 |
| EURCHF spread | 0.6 | 2.3 | 0.0 | 0.9 | 2.5 |
| EURGBP spread | 0.3 | 1.5 | 0.0 | 0.4 | 1.1 |
Best forex brokers
Non-trading fees at the best forex brokers in Malaysia
| Fusion Markets | Capital.com | IC Markets | Tickmill | CMC Markets | |
|---|---|---|---|---|---|
| Account fee | No | No | No | No | No |
| Inactivity fee | No | No | No | No | Yes |
| Withdrawal fee | $0 | $0 | $0 | $0 | $0 |
Best forex brokers
Currency pair selection offered by the top forex brokers in Malaysia
| Fusion Markets | Capital.com | IC Markets | Tickmill | CMC Markets | |
|---|---|---|---|---|---|
| Currency pairs (#) | 85 | 138 | 61 | 62 | 338 |
Best forex brokers
What makes a top forex broker?
These are the key selection criteria used by our broker analysts:
- First of all, fair forex fees.
- A good selection of currency pairs.
- A great forex trading platform with advanced charting.
- Educational tools to guide you through the basics of trading.
If you're a beginner, be careful with foreign currency trading as forex products are complex and risky, therefore not suitable for everyone.
Is forex trading legal in Malaysia?
We, at BrokerChooser only recommend brokers that have enough safeguards to be considered safe. Here are a few tips and insights into the safety and legality of foreign currency trading in Malaysia.
Several internationally regulated forex brokers accept clients from Malaysia. An additional layer of safety is provided by the Capital Markets Services License (CMSL) issued by the Securities Commission of Malaysia, or SCM, which is the country's regulatory body.
The SCM, established in 1993, is a subsidiary of Bank Negara Malaysia (Malaysia's central bank) and regulates the securities market. The SCM issued new guidelines on Contract for Difference (CFDs) in April 2018, which covers brokers offering forex and other derivative products. However, most brokers operating in Malaysia work under an international license rather than a Malaysian one.
Another authority in the region is the Labuan Financial Services Authority (LFSA), which is the regulator of the Labuan International Business and Finance Centre (IBFC). Labuan has been designated as a financial center and free-trade zone by the Malaysian government. Here is list of brokers licensed with them.
The official religion of Malaysia is Islam and local forex brokers are obliged to offer special accounts that adhere to the Sharia law. Islamic foreign currency accounts will not charge interest on open positions held overnight, but on the other hand, some Islamic accounts will charge commission or offer wider spreads than a traditional forex account.
Best forex brokers
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And now, let's see the top forex brokers for Malaysian residents one by one, starting with the winner, Fusion Markets.
#1 Best forex broker
Fusion Markets
Recommended for forex traders looking for low fees and a chance to use the metatrader 4 platform
| Fusion Markets snapshot | |
|---|---|
| Minimum deposit | $0 |
| Mobile app score | 3.8 stars |
| Inactivity fee | No |
| Currency pairs | 85 |
| Deposit methods | Bank transfer, Credit/debit cards, Neteller, PerfectMoney, Jaton, PayPal, Mifinity |
| Withdrawal fee | $0 |
| Read review | For a detailed analysis of Fusion Markets services, check out our review for 2023 |
#2 Best forex broker
Capital.com
Recommended for investors and cfd traders looking for a great trading platform and excellent customer service
#3 Best forex broker
IC Markets
Recommended for forex and cfd traders who value easy account opening and free deposit/withdrawal options
| Capital.com snapshot | |
|---|---|
| Minimum deposit | $20 |
| Mobile app score | 4.9 stars |
| Inactivity fee | No |
| Currency pairs | 138 |
| Deposit methods | Bank transfer, Credit/debit cards, Apple Pay, PayPal |
| Withdrawal fee | $0 |
| Read review | For a detailed analysis of Capital.com services, check out our review for 2023 |
#4 Best forex broker
Tickmill
Recommended for forex traders looking for low fees who are familiar with the metatrader 4 platform
| IC Markets snapshot | |
|---|---|
| Minimum deposit | $200 |
| Mobile app score | 3.8 stars |
| Inactivity fee | No |
| Currency pairs | 61 |
| Deposit methods | Bank transfer, Credit/debit cards, PayPal, Neteller, Skrill, UnionPay, Bpay, FasaPay, POLI, Rapidpay, Klarna, Bitcoin wallet |
| Withdrawal fee | $0 |
| Read review | For a detailed analysis of IC Markets services, check out our review for 2023 |
#5 Best forex broker
CMC Markets
Recommended for forex and cfd traders looking for an advanced trading platform with many research tools
| Tickmill snapshot | |
|---|---|
| Minimum deposit | $100 |
| Mobile app score | 3.8 stars |
| Inactivity fee | No |
| Currency pairs | 62 |
| Deposit methods | Bank transfer, Credit/debit cards, Neteller, Skrill, dotpay, Paysafecard, Sofort, Rapid by Skrill, PayPal |
| Withdrawal fee | $0 |
| Read review | For a detailed analysis of Tickmill services, check out our review for 2023 |
Best forex brokers
Forex broker fees in Malaysia
Forex brokers can charge commissions, spreads and financing fees.
When it comes to commissions, there are two different fee structures forex brokers normally use:
- All currency trading fees are included in the spread except the financing rate. Basically, think of it as the broker giving you a wider spread than it gets from the forex market.
- You get the market spread, but you pay a commission based on the traded amount. This model is usually used by ECN brokers.
The second version is more transparent, but this doesn't always mean it's more expensive.
When you trade forex on leverage and hold your position overnight, a fee will be charged. This is called the financing cost. Financing costs change daily, and can add up if you hold your positions for a longer period.
If you don't know how forex trading works, take a look at our forex education articles.
If you feel a bit more comfortable with forex trading, we suggest you also check out our list of the best forex brokers.
Still unsure? Use our broker finder tool for a personalized broker recommendation.
Best forex brokers
FAQ
Is forex taxable in Malaysia?
Income from forex trading is taxable in Malaysia as income tax. However, capital gains are exempt from tax. If you trade with a swap-free Islamic account and you are not getting your main income from trading, any gains on your trades should be tax-free.
Is forex halal in Malaysia?
Forex trading is halal in Malaysia if you use an Islamic account. As Sharia law prohibits the accumulation of interest, traders with Islamic forex accounts do not pay or receive interest rates. Also transactions based on Islamic finance must be carried out without delay, transactions have to be executed immediately, and transaction cost should also be paid at the same time.
What is the best time to trade forex in Malaysia?
Just like on other markets, the best time to trade is when the market is volatile. The best trading hours move across the globe as the four biggest forex markets in different time zones, New York, London, Sydney and Tokyo, open and close around the clock. The New York/London markets overlap (8 to 12 EST) has the heaviest volume of trading and is best for trading opportunities. The forex market in Malaysia is open 24 hours a day for 5 days a week from Sunday 5pm EST (Monday 5am Malaysia) until Friday 4pm EST (Saturday 4am Malaysia).
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