Trading forex in Malaysia used to be illegal. But the environment has changed for the better since then, and here are 5 recommended brokers to legally trade in Malaysia.

Brokers today are freely and legally offering their services to Malaysian traders. Unfortunately, fraud brokers are still in existence running their schemes. Thus, before opening an account, you may need to make sure that the broker is legit. There are also other factors you should take into consideration, but the main things when it comes to trading in Malaysia are the broker's presence in the country and the availability of Islamic account.

malaysian forex brokers

For a broker to be considered ideal for Malaysian traders, here are the three criteria and why the matter:

 

Registered Under a Malaysian Government Agency

For typical financial service providers, it is recommended for Malaysian traders to check if a broker holds a Capital Markets Services License (CMSL) from the Securities Commission of Malaysia (SCM). But the agency is specifically for brokers that deal in capital markets.

As for forex trading in Malaysia, the regulation is actually confirmed by the central bank, Bank Negara Malaysia. Back in February 2012, the authority stated that the buying and selling of foreign currency in Malaysia is allowed and the transactions are to be conducted with licensed commercial banks, Islamic banks, investment banks, as well as international Islamic banks.

Malaysia has several financial regulators that issue licenses for trading providers. Aside from the Securities Commission of Malaysia (SCM) that specifically deals with securities market, there are also Bursa Malaysia (a stock exchange), Malaysia International Islamic Financial Centre (MIFC), Shariah Advisory Councils (SAC), and Labuan Financial Services Authority (Labuan FSA or LFSA).

Forex brokers who want to operate legally in Malaysia are mostly registered as Money Brokers with LFSA. Established in 1996, the statutory body is responsible for the development and administration of the Labuan International Business and Financial Centre (Labuan IBFC) to promote and develop Labuan as an international center for business and financial services. Labuan IBFC complements Malaysian financial industry through its strong regulatory and supervisory functions that are developed in accordance with international standards.

Based on the official statement by LFSA, licensed Labuan Money Brokers are mediators that bring together and match clients with their counterparties in the money or forex market. They provide the necessary means to facilitate transactions and be paid in the form of commission fees.

 

Operates in Malaysia

Not only holds a license from local agencies like LFSA, a good broker for Malaysian traders should operate in the country and has a headquarter or at least a branch office there. This is to strengthen their presence in the Malaysian finance industry as well as optimize their service for clients who need offline consultations.

 

Offers Islamic Account

Malaysia is globally known as a Muslim country that has anchored Islam in its constitution as a state religion. Therefore, it is crucial for a forex broker in Malaysia to ensure that their service adheres to Sharia Law. This is usually accommodated into an Islamic or swap free account that eliminates swap rates for overnight positions.

Now that we have discussed all the important parameters to choose a good broker in Malaysia, here are 5 popular names that fit most (or even all) criteria:

 

Tickmill

Tickmill is a global brand that offers premium trading products and services with transparency and innovative technology. Their retail trading conditions are among the most well-known in the industry. With a strong track record of robust financial results and promising growth since its establishment in 2014, Tickmill has put its name as a trusted market leader in forex and CFD brokerages.

Here are some specifications that make Tickmill a recommended broker for Malaysian traders:

🏢BrokerTickmill
📝Company NameTickmill Asia Ltd
💼Malaysian RegulationLabuan Financial Services Authority (LFSA) with License Number: MB/18/0028
📬Office Address in MalaysiaUnit B, Lot 49, 1st Floor, Block F, Lazenda Warehouse 3, Jalan Ranca-Ranca, 87000 Labuan F.T
🕋Islamic Account

 

IFC Markets

A leading brokerage company in forex and CFD markets, IFC Markets has been existing for 16 years and counting in the market. The broker provides world-class services for traders with unique advantages that are exclusive and offered by IFCM only. Some of them are NetTraderX analytical platforms, PAMM accounts, Portfolio Quoting Method, and Synthetic Instruments.

Here are some specifications that make IFC Markets a recommended broker for Malaysian traders:

🏢BrokerIFC Markets
📝Company NameIFC Markets Ltd
💼Malaysian RegulationLabuan Financial Services Authority (LFSA) with License Number: MB/20/0049
📬Office Address in MalaysiaLevel 14B & 14C, Main Office Tower, Financial Park Complex, Jalan Merdeka , 87000 Labuan F.T
🕋Islamic Account

 

ICM Capital

Another broker that fit the criteria for Malaysian traders is ICM Capital. Originally a London-based company, ICM Capital has expanded to many countries since its invention back in 2009. The company claims to always follow industry best-practice to maintain high standards of governance, compliance, and consistency. One of their main services is the ECN trading condition which combines advanced technology with deep liquidity.

Here are some specifications that make ICM Capital a recommended broker for Malaysian traders:

🏢BrokerICM Capital
📝Company NameICM Capital (Labuan) Limited (formerly known as ICM Trader Limited)
💼Malaysian RegulationLabuan Financial Services Authority (LFSA) with License Number: MB/18/0029
📬Office Address in MalaysiaOffice Suite 1623, Level 16 (A), Main Office Tower, Financial Park Complex, Jalan Merdeka, 87000 F.T., Labuan
🕋Islamic Account

 

Hirose

Hirose was founded in 2010 to provide forex and CFD trading services to global clients. One of their strong advantages is coming from their root as a Japan innovation. Although they are mostly known as Hirose Financial UK, but under Hirose Group, the broker has actually expanded to other markets like Malaysia.

Here are some specifications that make Golden Brokers a recommended broker for Malaysian traders:

🏢BrokerHirose
📝Company NameHirose Financial MY Limited
💼Malaysian RegulationLabuan Financial Services Authority (LFSA) with License Number: MB/15/0006 and approval to conduct digital financial services related business.
📬Office Address in MalaysiaLevel 2, Lot 19, Lazenda Commercial Centre, Phase 3, 87007 F.T. Labuan
🕋Islamic Account

 

Deriv

Founded in 1999, Deriv has an undeniable experience when it comes to providing forex trading services. They offer CFDs and other derivatives on forex, stocks, indices, cryptocurrencies, and commodities to millions of clients across the globe. With a motto of "make trading accessible to anyone, anywhere", Deriv's goal was to break free of high commissions that are typically present in traditional brokers. Despite the cost-cutting measure, they aim to deliver a first-class experience for their traders.

Here are some specifications that make Deriv a recommended broker for Malaysian traders:

🏢BrokerDeriv
📝Company NameDeriv (FX) Ltd.
💼Malaysian RegulationLabuan Financial Services Authority (LFSA) with License Number: MB/18/0024 and approval to conduct digital financial services related business.
📬Office Address in MalaysiaLot No.F16, First Floor, Paragon Labuan, Jalan Tun Mustapha, 87000 Labuan F.T
🕋Islamic Account

 

Trading in Malaysia has become popular not only because of the regulation presence but also successful stories from the local people. Learn more about the inspirations in 8 Successful Malaysian Traders Revealed.