Best Forex Brokers Malaysia Reviewed in 2023

Forex/CFD brokers are unregulated for Malaysian retail traders. However, many Malaysians still trade forex with unlicensed brokers, so we reviewed the trading conditions and modus operandi for informative purposes only.

Foreign forex brokers offer OTC derivatives (like Contract for Difference-CFD), which carries substantial risk for retail traders.

Although some of the international forex brokers who have large trading volumes accept to open accounts for Malaysian traders, but you trade at your own risk as these are not licensed by local regulator.

Note: This content is only for education. You must check the legality of the derivative instruments & forex trading in your own jurisdiction, and not trade any instruments which are unregulated. Also, don’t trade via any brokers which are not approved by your local regulator.

Trading CFDs carry very high risk, and most of the CFD traders lose their capital.

List of Forex Brokers in Malaysia

Note, traders based in Malaysia should avoid trading forex or other forms of derivatives via unlicensed brokers (which are in this list or any other list).

This list is for information only, to understand which foreign forex brokers operate in this region. You should engage with any forex broker with caution, as no broker has been approved for offering forex or CFDs in Malaysia.

HF Markets – Forex Broker with Multiple Regulations
FXTM – Forex Broker that has commission-based Accounts
FxPro - Offers cTrader Forex Platform
XM - Forex Broker that offers Islamic Account
IC Markets – Forex Broker with ASIC License
Tickmill - Low-Cost Forex Broker
Pepperstone - Forex Broker with multiple Licenses

When you trade CFDs you don’t own the underlying instrument; you are only settled in cash for the price difference between when you opened/closed the CFD position.

Most CFD traders use leverage, and this carried substantial risks for all traders. You should not trade any such instruments unless there is a local regulation in your country.

Also, you should note that most forex brokers will register clients under offshore regulations, which is standard practice. This carries risks for all traders who trade with these brokers.

1. HF Markets – Forex Broker with Multiple Regulations

HF Markets

HF Markets SV Ltd (HFM) is unregulated or not licensed to operate in Malaysia and operates from outside jurisdictions where they are under regulatory supervision by:

FCA -United Kingdom
DFSA - Dubai
FSA - Seychelles
CMA - Kenya

Traders based in Malaysia are advised to not trade with them until HFM is locally regulated.

Trading Costs

The entry-level trading account at this broker is the HFM Cent Account with no minimum deposit needed. The spreads they have mentioned are from 1.2pips and there are commissions.

HFM also has listed Zero and Premium accounts on their website, and these have no minimum deposit.

The HFM Zero Account Gold & Forex spreads are listed from 0.0pips with a mandatory commission of $3 per side on FX and $7 per side for gold ounces.

The HFM Premium Account has spread from 1.2pip, no minimum deposit, & no commissions.

The HFM Pro Account requires a $100 USD starting deposit, spreads start lower from 0.5pip, and no commissions.

HFMs account opening agreement doesn’t specify an actual percentage charged for currency conversion fees. There is a $5/month inactivity fee on dormant HFM accounts.

Trading Conditions

CFDs HFM offers are in 7 Asset Classes- FX, Commodities, Bonds, ETFs, Indices, Stocks, Crypto.
Base currency: USD, EUR, JPY,NGN
MT4, MT5, HFM mobile app platforms.
Up to 1:2000 Leverage
Swap-free accounts
5th decimal
Maximum open orders: 500
Market Execution
Margin call: 50%
Stop out level: 20%

Customer support

HFM support channels are available for 5 days, meaning they don’t work on weekends.

Telephone trading is available on all HFM accounts so traders who are their clients can place trades via telephone call.

Every HFM trader/account is assigned a Personal Account Manager. For online channels traders can reach help via LiveChat, email, or telephone call.

More Information on HFM

HFM Pros	HFM Risk Factors (not limited to these)
HFM has one Tier-1 regulation from FCA UK	HFM is not licensed in Malaysia. Traders who have registered with them are doing so at their own risk.
	1:2000 leverage increases chances of losing
	Customer help channels unavailable on weekends Advertisement
	Inactivity fee

2. FxPro – Offers cTrader Forex Platform

FxPro

FxPro Global Markets Ltd (FxPro) is unregulated in Malaysia & operates from The Bahamans. The parent group of FxPro is under regulation from these bodies:

The Securities Commission of the Bahamas (SCB) regulation
FCA UK
CySEC Cyprus

Trading Costs

To start trading, the entry-level account is the FxPro Standard Account requiring an initial deposit of $100 USD. While there is no commission, spreads on majors start from 1.2pip.

For lower spreads the FxPro Raw and FxPro Elite Accounts have spreads from 0.0pip when trading major FX Pairs. However, commission of $3.5per side is mandatory and initial deposit is $1,000.

The FxPro offers their lowest spread with Pro Account from 0.6pips on majors and 1pip on the average, without you paying commissions to trade.

Trading Conditions

CFDs on 6 Asset Classes- FX, Futures, Indices, Shares, Commodities, &Crypto.
Base currency: USD, EUR, GBP, ZAR, CHF, PLN, AUD, JPY
MT4, MT5, cTrader, FxPro mobile platforms.
Up to 1:200 Leverage
Swap-free accounts
Margin call: 25%
Stop out level: 20%

Customer support

FxPro support is available 24/5 but not on weekends.

The contact methods are LiveChat or you can request a callback or send an email to the contact on their website.

Pros & Cons of FxPro

Pros	Cons Advertisement
FxPro has one Tier 1 regulation - FCA	FxPro is not Licensed in Malaysia
cTrader platform	No 24/7 support
No inactivity fees	$100 minimum deposit for traders in all regions
	25% margin call level increases risk

3. XM – Forex Broker that offers Islamic Account

XM Global Ltd. (trading name- XM) is unregulated in Malaysia but operates from Belize. XM claims to be licensed with:

Financial Services Commission Belize
CySEC Cyprus

XM says on their website that it offers Islamic Account.

Trading Costs

The XM Micro Account is XMs starter account; with a $5 minimum deposit, zero commissions, and spreads from 1pip. Here 1 lot = 1,000 units of CFDs

Second is the XM Standard Account with spreads from 1pip and lot sizes are the 100,000 units standard.

Third is the XM Ultra Low Account where spreads start from 0.6 pips and there is no commission.

For dormant XM trading accounts, $5 is charged every month.

Trading Conditions

CFDs on 5 Asset Classes: Forex, Stocks, Commodities, Equity Indices, Cryptocurrency.
Account currency: USD, GBP, EUR, JPY, CHF, ZAR, AUD, HUF, PLN, SGD
MT4, MT5, XM mobile
Up to 1:1000 leverage
Islamic Account
Negative Balance Protection
Maximum open orders: 300
Hedging allowed
Margin call: 50%
Stop out level: 20%

Customer support

XM help channels are available via LiveChat, email, or Phone call.

Pros & Cons of XM

Pros	Cons
Negative Balance Protection	XM is not licensed in Malaysia, so traders in this region are engaging with their own risk
	High Inactivity fee
	High leverage
	Low number of simultaneously open orders

4. IC Markets – Forex Broker with ASIC License

IC Markets brand name belongs to Raw Trading Ltd who are unregulated in Malaysia and operate from Seychelles.

IC Markets Group is regulated under:

Financial Services Authority (FSA) Seychelles
Cyprus Securities and Exchange Commission (CySEC)
Securities Commission of the Bahamas (SCB)
Australian Securities and Investments Commission (ASIC)

Trading Costs

IC Markets most basic account is the Standard Account with $200 starting deposit, zero commissions paid and spreads from 0.6 pips.

The other account is Raw Spread (from 0pip) Accounts, which can be opened on either on MetaTrader or cTrader platforms.

Spreads on the MetaTrader Raw Spread Account start from 0pip with a $3.5/side commission. For cTrader commissions drop to $3/side.

Trading Conditions

CFDs on 7 Asset Classes: Forex, Commodities, Indices, Bonds, Crypto, Stocks, Futures
Account currency: USD
MT4, MT5, cTrader
Up to 1:1000 leverage
Islamic Account
Maximum open orders: 200 for MT4/5 & 2,000 for cTrader
Hedging allowed
Stop out level: 50%

Customer support

IC Market support is available through via LiveChat, email, and telephone lines in Australia.

Pros & Cons- IC Markets

One Tier-1 regulation- ASIC Advertisement	IC Markets is not licensed in Malaysia
Islamic Account	High leverage
No inactivity fees	No proprietary trading platform
50% stop out level	High $200 starting deposit

5. Tickmill – Low-Cost Forex Broker

Tickmill Ltd are unregulated in Malaysia. Their parent group operates from the United Kingdom.

The broker is licensed under these regulations:

FCA United Kingdom
DFSA Dubai
CySEC Cyprus
FSA Seychelles
FSCA South Africa

Trading Costs

Entry level account at Tickmill is Classic Account. $100 starting deposit, spreads from 1.6pip and zero commissions are its main features.

There is also a Tickmill Pro Account characterized by $100 starter deposit, spreads from 0 pip, and $2/side commission levy.

On their website, Tickmill mentions that VIP Account is its flagship account and starting deposit with it is $0. But conditions include a minimum account balance of $50,000. The spreads under this account are from 0pip, and $1/side commission.

Trading Conditions

CFDs on 6 Asset Classes: Forex, Stock indices, Commodities, Bonds, Crypto, Shares
Account currency: USD, GBP, EUR, ZAR
MT4, MT5, Tickmill mobile
Islamic Account
Hedging allowed
Margin call: 100%
Stop out level: 30%

Customer support

Tickmill support is on from Mon- Fri and can be reached through LiveChat, email, & telephone call.

Pros & Cons- Tickmill

Tier-1 regulation FCA	High $100 starting deposit
Islamic Account Advertisement	High spread
Low commissions	No 24/7 support
100% margin call rule

6. Pepperstone – Forex Broker with multiple Licenses

Pepperstone Markets Ltd in unregulated in Malaysia and they operate from the Bahamas and other locations.

Pepperstone Group holds licensed under these jurisdictions:

Securities Commission of The Bahamas
FCA UK
ASIC Australia

Trading Costs

Pepperstone Standard Account with $200 minimum deposit, zero commissions and EUR/USD average spread around 1.1pip.

Pepperstone Razor Spread Account has $3.5/side commissions and lower spreads.

Trading Conditions

CFDs on 6 Asset Classes: Forex, Commodities, Indices, Shares, ETF, Crypto
Account currency: USD, GBP, EUR, CHF, AUD, JPY, NZD, SGD, HKD, CAD
MT4, MT5, cTrader, TradingView
Islamic Account
All strategies allowed
Margin call: 90%
Stop out level: 50%

Customer support

Pepperstone Group offers support through LiveChat, email and telephone.

Pros & Cons- Pepperstone

Pros	Cons
One Tier-1 regulation ASIC	Pepperstone is not licensed in Malaysia
Islamic Account	No 24/7 support
90% margin call	No beginner friendly account types
cTrader	No proprietary platform
No inactivity fee	High minimum deposit

Our Methodology for the Researching Forex brokers in Malaysia

Note that none of the forex brokers that accept traders in Malaysia are licensed locally. These brokers register clients under foreign regulations.

But we have compared them to list the facts about these brokers in our research. You should not trade forex or CFDs via these brokers or any other broker, as this carries high risk for traders.

a. Regulation: Forex brokers get their licenses from multiple regulators, both foreign tier-1 & offshore island regulations.

Only forex brokers that have a license to operate within a jurisdiction are considered safe for traders in that region. All other brokers are high risk & should be avoided.

Regulators from developed economies like the United Kingdom (UK), are considered Tier-1 and more credible than those from emerging economies.

b. Trading Costs: Forex Brokers generally charge fees through spreads and commissions. Spreads is the difference in the bid & ask prices quoted on the broker’s platform. Commission is the outright cost for traded volume.

Below is an example of a typical contract specification at a broker. The broker on its website has mentioned the spreads they charge under each account type they offer.

Similar account types across brokers have differing spreads & commissions. Some brokers also charged inactivity fees.

c. Trading Conditions: These include leverage offered to traders (which mainly encourages more trading activity & increases the risk for traders) and the percentage to which equity falls before a margin call is received.

Also, factors like the stop-out level, which is the percent equity falls to before all your open positions are closed.

Swap-free accounts are another factor in trading conditions. Brokers charge the cost for overnight funding.

d. Customer Support: Most brokers offered customer support via different methods to onboard clients.

The most common methods we found on the websites of most forex brokers were LiveChat, Telephone & email. Some brokers had no support on weekends.

How do Malaysian Traders Open Forex Trading Account

Traders who are trading in this region are doing so via foreign unlicensed brokers. This is very risky, especially for those who don’t understand the risks involved with leveraged CFD trading.

Based on our research, these are the common steps followed by traders when opening a currency trading account with CFD brokers.

Selection of a Broker
Registration via website or app & upload KYC documentation on mobile app or web platform
Wait for forex trading account to be approved by the broker’s compliance
Deposit to fund account for trading.

Note that in jurisdictions where forex trading is regulated, like under ASIC, they have strict compliance requirements for CFD brokers. Any broker who is regulated cannot onboard inexperienced clients.

The brokers are required to carry out checks, to test the financial adequacy of their retail client. If the client registered does not qualify, then the broker has to reject the client’s application.

But when brokers register clients under offshore regulation, these brokers can avoid these compliances or lower them. This is very risky from a client’s perspective because traders who are likely to lose money can still register with the broker & trade.

Frequently Asked Questions – Forex Brokers Malaysia

What is Forex Trading?

Forex trading is the speculation on the rise and fall in exchange rate of one currency against another. If the speculator is right, they make a profit and if they are wrong, they lose money to the broker (if it is a market maker).

Brokers provide traders with leverage, which amplifies the risk for traders. Most of the forex trading done by retail traders involves leverage, which is very risky.

Are forex brokers Licensed in Malaysia?

No, all forex brokers accepting Malaysian traders are unregulated & operating without a license from local regulators. Only stock and futures brokers licensed by SC Malaysia are considered legal.

All traders who trade with foreign forex brokers are doing so at their own risk.

Which forex broker has low fees generally speaking?

For spread only accounts, XM has low spreads under one account type. For commission-based trading, Tickmill has low commission accounts.

Which broker has Swap Free Account?

Swap-free accounts mean there is no overnight swap charge. Multiple brokers that are in this list have Swap free accounts.

Disclaimer: The above is a sponsored post, the views expressed are those of the sponsor/author and do not represent the stand and views of Outlook Editorial.