Best forex brokers in Malaysia in 2024

While many forex brokers catering to clients in Malaysia offer an excellent service, the ones in our toplist go the extra mile.

Popularity of the best forex brokers in Malaysia

Interested in what others think? Here's how many people chose these brokers at BrokerChooser in the last 6 months.

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.

Forex brokers can charge commissions, spreads and financing fees.

When it comes to commissions, there are two different fee structures forex brokers normally use:

1. 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.
2. 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.

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.

And now, let's see the top forex brokers for Malaysian residents one by one, starting with the winner, Fusion Markets.

Recommended for forex traders looking for low fees and a chance to use the MetaTrader 4 platform

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74-89% of retail CFD accounts lose money

Recommended for forex and CFD traders who value easy account opening and free deposit/withdrawal options

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70.64% of retail CFD accounts lose money

Recommended for forex and CFD traders who are familiar with the MetaTrader trading platforms

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74-89% of retail CFD accounts lose money

Recommended for forex traders looking for great account opening and customer service

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75.1% of retail CFD accounts lose money

Recommended for forex traders looking for low fees who are familiar with the MetaTrader 4 platform

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72% of retail CFD accounts lose money

Recommended for forex traders familiar with the MetaTrader trading platforms

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74-89% of retail CFD accounts lose money

Recommended for forex and CFD traders looking for an advanced trading platform with many research tools

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71% of retail CFD accounts lose money

Recommended for forex and CFD traders familiar with the MetaTrader trading platforms

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74-89% of retail CFD accounts lose money

Recommended for forex and CFD traders familiar with the MetaTrader and IRESS trading platforms

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72.5% of retail CFD accounts lose money

Recommended for forex and CFD traders familiar with the MetaTrader trading platforms

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74-89% of retail CFD accounts lose money

Answer a few questions and get a personalized broker list!

• We checked whether the broker is regulated by a trusted regulator,
• Compared fees (including spreads, withdrawal fee, commission),
• Compared the number of currency pairs,
• Checked order routing and research,
• Opened an account and tested the platform (charting, features, usability, customer service).

Save hours of research!

Our expert team has done all the work for you, and reviewed brokers based on BrokerChooser's unique methodology.

BrokerChooser evaluates 9 key areas for all brokers including fees, safety, ease of account opening, education, and trading platforms. We check more than 600 criteria for each broker and finetune our methodology every year based on our own and our users' experiences. We have more than 100 brokers reviewed on our site and our team of analysts examines more than 60,000 data points overall.

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).