Best FOREX Brokers in Malaysia for 2025

Best FOREX Brokers in Malaysia for 2025

Top Tips for Selecting the Best FOREX Brokers in Malaysia

Best FOREX Brokers in Malaysia 2025

After a deep dive into the pros and cons of each broker, here are the best FOREX brokers in Malaysia ranked according to different criteria:

1. ICM - Capital 91.10: Best Deposit and Withdrawal Broker

2. Tradeview: 90.00: Trusted broker that offers very low trading costs as well as comprehensive financial literacy materials for its clients.

3. XTB - 85.55: Best Customer Service Broker

4. IG - 85.45: Best Regulations Broker plus Convenient Platform

5. Saxo Bank - 80.09: Excellent Private Trading Platform

6. CMC Markets - 80.07: More than 9,000 Assets

7. ThinkMarkets - 80.05: Aimed at the Audience of Traders

What Is FOREX and Why Do We Need a Broker to Trade?

Not all traders, even experienced ones, know that the FOREX market is the largest financial market in the world. Some six trillion dollars’ worth of trade changes hands daily in all the thriving FOREX centers across the world. When we say 'centers', it's not that FOREX is traded in one physical place like a stock market headquarters. The FOREX world is a decentralized market that straddles global time zones, facilitated by rapid electronic communications. So, the word 'centers' refers to key financial capitals like New York and London, from which many institutional traders (they drive the bulk of all transactions) operate.
Retail traders make up a comparatively small proportion of overall trade. The FOREX market is open 24 hours a day and five days a week (Monday through Friday), except for international holidays. The best online FOREX trading firms act as a key entry point into this market for retail traders by enabling you to buy and sell through a trading platform.

Is FOREX trading Halal or Haram?

• Avoid paying interest as Shariah law strictly prohibits earning or paying interest (riba)
• FOREX trading could be considered gambling, which is Haram, but the majority of scholars believe FOREX trading is not the same as gambling
• FOREX trading must always be conducted transparently and fairly to align with Shariah principles
• FOREX trading involves the immediate exchange of currencies, which is viewed favorably from an Islamic 'hand to hand' perspective

How to Open an Islamic Account

How Do I Choose the Best FOREX Broker in Malaysia?

As we have mentioned, choosing the best FOREX broker for you is an involved process. There are so many excellent brokers around the world that it is negligent to engage with a shoddy broker through a lack of research. For a start, your broker must demonstrate an acceptable level of management oversight and operating standards, no matter where they are domiciled. How will you know this? 

• The broker must be regulated by a vigilant regulator. This is the key to finding a good broker. History has proven many times that when they are left to their own devices, badly run brokers can lose your money through scams or by going bust. We'll explain more later in the article.

• You must ensure that the broker you have selected offers you access to a compensation scheme in the event it goes under. This is not always possible, as only the most stringent tier-1 regulators demand this of brokers. However, there are still other ways you can ensure your broker is being honest. Even tier-2 regulators and beyond ask brokers to demonstrate that they are running a tight ship through reporting and disclosures.

• You must also check the strength of the broker's features and overall offering. This includes their trading platform, access to markets, and their speed of execution. 

• Having good liquidity is especially important in a market as fast moving as the FOREX market. You would want your broker to have good liquidity partners as well as strong customer support, trader-friendly account deposit and withdrawal methods and access to educational materials.

• Naturally, with Islam being Malaysia’s official religion, you will need to ensure that the broker allows for Shariah trading of FOREX through interest-free accounts.

Regulation and Licensing

We don't mind reiterating the importance of working with a broker that is regulated. It is the number one golden rule of choosing the best FOREX broker for you. Malaysia offers traders resident in the country a range of FOREX broker options from which to choose. Any internationally licensed FOREX broker can accept clients from Malaysia, but it is always a good idea for Malaysia-resident traders to seek out a broker that holds a Capital Markets Services License (CMSL) from the Securities Commission of Malaysia (SCM) or the lesser-known Labuan Financial Services Authority (LFSA). The central bank of Malaysia, Bank Negara Malaysia (BNM), also has authority over the local foreign exchange markets.

It's important to make sure that the broker you choose is regulated by a reputable authority. You can learn more about some of the best-regarded regulators by reading our article on regulation. However, if your local broker is regulated by a solid local regulator like the SCM and the LFSA, you don't have to use a broker with international regulation. Here are some major reasons why your broker needs critical oversight:

Fund safety: 

A regulated broker must comply with strict regulations to protect client funds, including segregating client funds from the company's own funds.

Fair trading practices: 

A regulated company must adhere to strict guidelines ensuring products and services are offered fairly and without manipulation, helping create a level playing field for all clients.

Transparency: 

Regulated brokers are required by law to be transparent with clients, which assures you of safe, fair trading. In practice, this looks like brokers admitting openly that FOREX trading is highly risky and you could lose your money.

Fraud busting: 

Regulatory authorities protect clients from fraudulent activities and scams and ensure that FOREX brokers operate within set guidelines that safeguard their clients' interests.

To ensure that your broker is legit, you can follow these steps:

• Ask if the broker is licensed to sell you the investment

• Check if the broker is registered with a top-tier regulator or at least the applicable regulator in your area

• Ask if your broker is part of a compensation scheme

• Check your statements regularly to ensure that everything is in order

Remember that it's important to comply with all applicable requirements, including any self-regulatory organizations to which brokers belong, and not just those mentioned here.

One of the first things to do in identifying if a FOREX broker is, indeed, regulated by the SCM is to ascertain the registry number from the disclosure text at the bottom of the broker's Malaysia homepage. The second thing is to look up the firm on the SCM website to validate the current regulatory status of the FOREX broker in Malaysia.

Leverage

Depending on the regulator that your broker works under, you will encounter different policies relating to leverage. Key regulators have implemented specific rules to limit the leverage offered to retail traders as a means of consumer protection. Remember, even if your broker is not regulated by these international brokers, if they are regulated by a competent local regulator, that’s a good enough start.

Here are selected leverage rules according to some key regulators:
SCM in Malaysia:
The maximum leverage ratio allowed for trading on margin in Malaysia can be up to 1000:1, but this ratio could vary depending on the account's equity level. For example, accounts with over 5,000 CCY can be moved to a leverage of up to 400:1, while larger accounts with more than 50,000 CCY can be moved to a more conservative leverage of 100:1.
Financial Conduct Authority (FCA) UK: 

30:1 for major currency pairs

20:1 for non-major currency pairs, gold, and major indices

10:1 for commodities (excluding gold) and non-major equity indices

5:1 for individual equities and other reference values

2:1 for cryptocurrencies

These limits are in place to reduce the risk of significant losses for retail traders.

Australian Securities and Investments Commission (ASIC) Australia:

30:1 for major currency pairs

20:1 for non-major currency pairs, gold, and major stock market indices

10:1 for commodities other than gold and minor stock market indices

5:1 for equities (stocks) and other underlying assets

2:1 for cryptocurrencies

Swiss Financial Market Supervisory Authority (FINMA) Switzerland:

FINMA has not set specific leverage limits like the FCA or ASIC. However, Swiss brokers must adhere to rigorous capital and risk management requirements, ensuring they don't offer excessively high leverage that could endanger their solvency or their clients' funds.

It's worth noting that these rules apply to retail clients. Professional or institutional clients might have access to different levels of leverage, depending on the regulatory environment and the broker's policies. As we can see, leverage is a double-edged sword because you can make a lot of money, but you can just as easily become financially ruined!

Stop Out

A stop out is an unwanted situation where your broker freezes your account because you are on the verge of going into the negative on your trading account. This means things have not gone well for you, and it's a way for the broker to protect you from financial ruin while retaining any margin they may have extended to you. Here are the common stop out percentages:

Stop out of 0%: 

Your broker won't close any of your positions, even if your margin level reaches rock bottom. This is because some brokers allow you to end up in the red, which means you might owe them money if your trades keep losing.

Stop out of 50%: 

Once your equity dwindles to half of your used margin, the stop-out alarm goes off. Your broker steps in and starts closing your trades, beginning with those least profitable. This continues until your margin level bounces back above the stop-out level.

Stop out of 100%: 

When your margin level hits 100%, your broker takes the drastic step of automatically closing all your open positions. In some setups where the broker separates margin-call and stop-out levels, the margin call happens at 100% and the stop out at 50%. If your margin level plunges to 50%, your trading platform springs into action with a stop out, closing your trade at the market price.

Keep in mind that the specific percentage and the order in which positions get closed can vary from broker to broker. So, it's crucial for traders to know their broker's stop-out policy. It's worth noting that while stop-out measures are designed to shield traders from going into the red, they can also result in substantial losses, especially in volatile markets where positions are swiftly closed automatically, especially if the market suddenly reverses post-stop out. That's why you should always employ protective strategies like setting stop-loss orders and avoiding excessive leverage.

Commissions and Fees in Malaysia

Trading fees can be tricky to keep track of, so it's important to compare them with industry standards. Here are some fees of which to be aware:

Spreads: 

There are two main kinds of spread, one is fixed, and the other is variable. The spread refers to the difference between two prices, such as the bid/ask rate in a currency exchange rate. An example of a good spread is 1.4 pips for the EUR/USD (the narrower the better, this means that a spread of 1.4 pips is better than a spread of 2 pips). You can learn more about this concept in this article.

Commission: 

This is the service charge that brokers require for carrying out transactions on behalf of their clients.

Rollover fees: When you leave a trade open overnight, the broker normally charges a rollover fee for the facility of holding your trade open for that period. This is because they assume the risk of the market changing adversely. You should know as a Muslim trader that it is Haram to pay conventional rollover fees. This is why you should only trade with a broker that offers Islamic swap-free trading. Just be aware that the spreads are likely to be wider.

Withdrawal and deposit fees: 

Some platforms might charge fees for depositing or withdrawing funds. Pay attention to this. It's important to be aware of these and any associated limits or conditions.

Subscription or inactivity fees: 

Certain platforms have monthly charges or fees for inactive accounts. Ensure you're aware of these potential costs.

To keep track of trading fees, you can follow these steps:

• Research different brokers and trading platforms.

• Compare the fees and charges of each platform.

• Choose a platform that offers competitive fees and suits your trading needs.

Remember that trading fees can have a significant impact on your trading profits, so it's important to choose a platform that offers competitive fees and suits your trading needs.

Tradable Assets and Instruments

Retail trading offers a diverse range of financial instruments, each with its own set of opportunities and challenges. Although this is a FOREX article, we think you should know about the other financial assets out there for when you are ready to diversify. Here are the most common tradable assets and instruments. Before we go on, Islamic traders, remember that common instruments such as bonds, futures, and CFDs are not open to you because the nature of these assets is to speculate on underlying assets you do not own, or to receive interest, which is Haram. Be sure to check that your broker provides Shariah-compliant trading accounts to trade these financial assets:

• FOREX

With the largest trading volume globally, the FOREX market allows you to speculate on the future movements of currency prices, trading pairs like EUR/USD, GBP/JPY, and many more.

• Commodities

Whether it's precious metals like gold and silver, or energy commodities like oil and natural gas, commodities trading offers a chance to profit from the tangible assets that drive global economies. Be sure to check which ones are Shariah-compliant first.

• Equities or Stocks

These represent ownership in a company and constitute one of the most popular avenues for retail traders, given their potential for substantial returns and the thrill of being a part of the corporate world. Remember you cannot, by Shariah finance laws, invest in companies that deal in gambling or alcohol.

• Indices

These are baskets of stocks representing a particular market or sector, like the S&P 500 or the Nasdaq, giving traders exposure to broader market movements.

• Cryptocurrencies

Digital coins like Bitcoin, Ethereum, and countless altcoins offer both high rewards and volatility.

Payments, Deposits, and Withdrawals in Malaysia

FOREX Trading Customer Service

Technical Aspects of the Broker’s Website

One of the major differentiating factors among brokers is speed of execution. This does not come easily, as brokers must invest in the infrastructure to make it happen. From a technical aspect, you should be on the lookout for websites with 

• low latency, 

• high uptime, and 

• rapid execution.

When it comes to sharing sensitive personal information online, such as a credit card, cyber security is paramount. You should, therefore, always look out for 

• SSL certification,

•  two-factor authentication, and

• don't forget to use a strong password. 

Trading Platforms, Tools, and Features

When choosing a trading platform, you should consider a range of features that cater to both novice and seasoned traders. Here are some elements to keep in mind:

• Shariah-compliant accounts: You should be able to access a swap-free account that is consistent with the dictates of Shariah Law.

• Technical analysis tools: The platform should have robust technical indicators to help traders make informed decisions.

• Customization and user interface: You should be able to customize the platform according to your preferences, allowing you to set up your trading environment precisely how you want. We find that the products from the MetaTrader suite, especially MT4, offer excellent features for this purpose.

• Platform accessibility: A top-notch trading platform should offer flexibility in terms of access, whether it's web-based or a downloadable application.

• Risk-management tools: Trading inherently comes with risks, and a high-quality platform should provide instruments that allow traders to set stop-losses, take-profits, and other risk management tools.

• Performance and reliability: Beginner traders especially need a platform that operates seamlessly with minimal downtimes or glitches. This ensures a smooth trading journey, allowing them to focus on market movements rather than technical hiccups. Truthfully, this is true for all traders. There's no reason to accept glitchy platforms.

• Learning and educational resources: If your chosen broker is the best trading platform in Malaysia, they will offer an experience that is not only intuitive but also comes with tutorials, and guides to assist you in navigating any challenges you might face.

To select the perfect trading platform, here’s some advice:

• Determine your trading style and needs.

• Research different platforms and compare their features.

• Test the platforms with a demo account to see which one suits you best.

• Choose a platform that offers the features you need and is user-friendly.

• Ensure that the platform is reliable and has a good reputation in the industry.

Remember that the trading platform you choose can have a significant impact on your trading success, so it's important to choose wisely.

Ask Other Traders on Our Network

Arincen’s Website is home to a social network of traders who feed off each other’s investment successes. Through social copy trading, successful strategies are quickly replicated in the community. This friendly rivalry leads to more strategies being trialed and implemented as traders try to stay ahead of the game. Many of the traders who have made a home of Arincen’s website will happily attest to the value of the trading community Arincen has created.

FOREX Trading Scams and How to Avoid Them

It is an unfortunate reality that fraudulent activity features heavily in the history of the trading world. FOREX scams used to be rife, but with improved oversight and regulation, they have been reduced significantly.
One of the most pervasive and dangerous FOREX scams remains the spread differential scam that is perpetuated by unscrupulous brokers themselves. This is as good a reason as any for you to ensure that your broker is regulated properly.
With the spread differential scam, brokers write code into their pricing and quoting interfaces that inflates the spread between buy and sell to the broker’s advantage. It is very hard to spot by a retail trader unless you have a very strong grasp of prevailing spreads, and you can prove the inflation of your broker’s spreads over a period. This is beyond the capability of the average trader.
To protect yourself, it is best to spend a lot of time making sure the broker is in good standing with a top-tier regulator that can perform all the checks and oversight on your behalf. For Malaysia-based FOREX traders, make sure you follow the social feeds of the SCM as you will receive warning notices should the regulator come to know of a new scam.

Will Your Money be Protected if Your Broker Becomes Insolvent?

The Dos and Don’ts of FOREX Brokers

1. The FOREX brokerage firm cannot recommend a buy or sell;
2. The FOREX brokerage firm must not provide price or market expectations (rise/fall);  
3. The FOREX firm cannot control your financial dealings (deposit/withdrawal);
4. The FOREX brokerage firm should not “manage” your portfolio under any circumstance;
5. The FOREX brokerage firm cannot grant a client a bonus unless there are clear terms guiding it beforehand;
6. The brokerage firm must not use bank accounts not under its name; and
7. FOREX brokerage firms cannot have or offer the service of account managers.

Which FOREX Broker Has the Best Platform?

Which FOREX Broker Charges the Lowest Fees?

You will find that ICM charges the lowest fees in the market on its ECN account.

Which FOREX Broker Offers the Most CFDs?

Which FOREX Broker Offers the Most Assets?

Which FOREX Broker is Best for Professionals?

Who is Arincen and What Do we Do?

Conclusion

Arincen’s review methodology

The team at Arincen collected more than 120 pieces of data covering in excess of 100 licensed FOREX companies. Data collection was done in three ways:

1. Companies’ Websites.

2. Other Websites that have ranked FOREX companies.

3. A survey questionnaire (referred to here as Survey “1”) we had sent to the companies invited to participate in the exercise. We have identified 13 criteria for our assessment, each containing several aspects and carrying its own relative weight. These include licensing, deposits and withdrawals, number of assets, etc.      

Afterward we validated the data by: 

1.  Registering with FOREX companies as a secret shopper and/or as Arincen.

2.  Survey number “2,” in which we asked these companies’ customers for important feedback and experience. 

The next step saw us evaluate and rank each company, relying on the arduous work of 15 Arincen employees. We were careful in ensuring the most accurate assessment possible, including considering different languages, as well as the various mobile-app operating systems, e.g., Apple, Samsung etc. 

To add credibility to our research project, we sent a final and third survey (referred to here as Survey “3”) to enable participating FOREX companies to evaluate our own research and whether it accurately reflects the realities on the ground. We were fortunate enough to receive a mark of 9.9 out of ten! We have kept to a minimum the margin of error, which stood at a measly 1%.  To learn more about how we came up with the evaluation, please click here.