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Now that forex trading is officially permitted in Malaysia, traders should find the country relatively easy to operate in as a result of its unusually liberal trade policies and laws, although the concept of online retail forex trading remains relatively new in the country.
Remember to carefully consider your needs and the safety of your funds as you consider thebest forex brokerthat offers services in Malaysia. Not all brokerages are created equal.
Trading Forex in Malaysia: What You Need to Know
Things to Consider Before You Open a Forex Account
Trading Forex in Malaysia: What You Need to Know
Malaysia offers a local market with notable business potential for forex brokers, so several have established offices in Malaysia. Still, relatively few of them offer customer support or websites translated into Malay, so you may need to understand English to have a broader selection of brokers to deal through.
Local traders will be familiar with the Malaysianringgit (MYR)that serves as Malaysias national currency. According to the Bank for International Settlements (BIS), the ringgit accounts for roughly 0.4% of daily turnover in the forex market and was ranked 25thamong 2016s most actively traded currencies.
The country also offers decent financial regulatory oversight by Securities Commission Malaysia (SCM)that was established under the Securities Commission Act 1993. The SCM regulates futures and exchange-traded products, although forex products are not formally regulated yet.
The SCM does, regulate how brokers operate in Malaysia, and the National Bank of Malaysia (Bank Negara) manages the Malaysian ringgits value. Bank Negara has committed itself to promoting a stable, sound and progressive financial sector.
Furthermore, traders of the Islamic faith may find Malaysia a particularly good place to openIslamic swap free trading accountsthat comply with Sharia law since Islam is Malaysias official religion. Malaysias strong financial services sector specializes in providing Islamic investment products and Islamic accounts. Also, the Islamic Financial Services Act (2013) requires such services to comply with Sharia law.
Since not all online brokers are equal, the most important things to be confident about before opening a forex account is that the broker is secure and offers the services you require. The bullet points below describe the more common considerations youll want to review before you select a broker as a trading partner.
The primary consideration when choosing a broker should be the security of your funds deposited as margin. Select a well-regulated broker with at least one reputable regulatory body overseeing its operations and that segregates client accounts from its own.
Most foreign brokers accepting clients from Malaysia will be overseen by one or more good regulatory agencies, such as the National Futures Association (NFA) and the Commodity Futures Trading Commission (CFTC) in the United States or the U.K.s Financial Conduct Authority (FCA).
Online brokers will typically act either as market makers oraselectronic communications network (ECN) brokers. Market makers take the other side of your trades, while ECN brokers pass on the best price of a selection of market makers who use its electronic communications network.
ECN brokers typically show narrower variable spreads but may charge a per trade commission, while market makers often have wider fixed spreads but no commission.
The difference between the bid price and the offer price in a brokers quotation is known as the dealing or bid/offer spread. Since spreads and commissions add a cost to trading, active traders will want to keep them down as low as possible, while less active traders typically seem less sensitive to such considerations.
Ideally, you want to find a broker that offerstrading softwarewith a customizable interface and that has the analysis features you require, as well as runs on the desktop, mobile or web platform you prefer.
Virtually all of the best online forex brokers will support using thepopular MetaTrader 4and 5 trading platforms developed by MetaQuotes that offers a complete technical analysis functionality with numerous valuable trading tools, including a wide range of third-party expert advisors (EAs) and custom indicator software that you can use or purchase. Some brokers also offer access via cTrader, NinjaTrader, their own proprietary platforms and social copy trading platforms like ZuluTrade.
Most traders, especially those with less experience, know the importance of being able to communicate promptly with their brokers customer support staff in case errors or issues arise. Traders new to the broker can also appreciate material on how to use their trading platforms.
These written and visual aids can be a major plus for traders with less experience. Even more advanced traders may appreciate having access to a high-quality news feed and market analysis performed by professionals.
If you want to deal through thebest online brokerageavailable to Malaysian forex traders, choose from among the well-regulated brokers described below. Some of them even have offices in Malaysia and a website translated into Malay.
In general, reputable international brokers who have established a Malaysian presence would probably be ideal. This is because local representation often encourages brokers to behave more responsibly due to the greater risk of regulatory and/or other legal action being taken against them in Malaysia if clients complain.
Spreads start as low as $1But vary based on trading volume
It is well-regulated in the United States by the NFA and CFTC, and it is also regulated in seven further jurisdictions that include Canada, Australia, the U.K., Singapore, Japan, Hong Kongandthe Cayman Islands.
Although youre not able to communicate with them or view their website in Malay, Malaysian clients are welcome to open an account at FOREX.com.
Doing so requires just a $250 minimum deposit, and micro lot trading is supported.
The broker keeps client accounts segregated from its own funds, and it provides the Islamic account option most Malaysian traders prefer.
When it comes to trading platforms, the broker offers desktop, mobileandweb-based offerings.
They also offer MetaQuotes popular MetaTrader4 and 5 platforms and NinjaTrader, as well as its own Advanced Trading Platform and Web Trading platform.
FOREX.com only allows clients to trade forex using a rather low maximum leverage ratio of 50:1, and you can find out additional information at FOREX.com.
eToro is a social trading platform which provides forex products and to retail clients, and has for over 10 years. With over 10 million account holders worldwide, eToro creates a community for users to be a part of.
eToros most popular trading features for forex trading are CopyTrader, CopyPortfolios, and the Social News Feed.
With the Social News Feed, you can access a Twitter-like feed to trader updates.
With CopyTrader and CopyPortfolio, you can find a successful trader and copy the strategy they use. You can copy up to 100 traders; this feature is easy to set up and access.
Traders discuss the markets, their strategies, and are able to get alerts based on certain market factors.
easyMarkets allows traders to invest in forex and offer traders the unique features of Freeze Rate, Insider Viewer, DealCancellation, and easyTrade. You can also access MetaTrader 4.
Freeze Rate lets traders freeze live rates for a moment to open and close trades.
Insider Viewer is an indicator that shows you to see what other traders are doing.
You can undo certain losing trades within a 60-minute window with DealCancellation. Finally, easyTrade lets you set up your minimum trading risk that will never be surpassed.
With easyMarkets, there is no commission on trades but there is fixed dealing on spreads.
Trade Forex 24 hours a day and 5 days a week with commission-free micro CFDs. Start your account now, with $50.
FXCMhas branches in the U.K., South Africa and Australia, as well as an office in Malaysia.
They are regulated by the U.K.s FCA, South Africas FSCA and Australias ASIC, so the broker segregates client accounts from its own funds.
You can start trading with a minimum deposit of only $50 with FXCM Australia or $250 with FXCM U.K., and micro lot trading is supported.
FXCM permits trading via MetaTrader 4, NinjaTrader and Trading Station, and you can even use ZuluTrades web-based copy trading platform.
The broker offers desktop, mobileandweb-based platforms.
Note that FXCM Australia offers up to 400:1 leverage on forex trades, while FXCM U.K. has a much lower maximum leverage ratio of 30:1.
FXTM gives traders access to MetaTrader 4 and 5 on desktop, mobile and web.
FXTMhas an office in Malaysia and allows Malaysia-based clients to open accounts. The broker also submit to regulation under Cyprus CySEC, as well as the FCA in the U.K. This award-winning broker has excellent customer service and it offers a decent range of educational resources for less-experienced traders.
FXTM provides execution via MetaQuotes popular MetaTrader 4 and 5 platforms that support desktop, mobile and web-based trading. The broker also allows clients to trade over 240 different assets, including forex pairs, cryptocurrencies and CFDs.
Traders can open an account with only $5, and you can get leverage when forex trading of up to 1,000:1. This popular broker could suit traders of any level. Check for more information.
Get access to over 15,000 global markets and support from teams in Geneva and Zurich.
IG offers an online trading service that accepts clients from Malaysia. Outside the U.K., it acts primarily as a market maker in contracts for difference (CFDs) on forex pairs, indices, individual stocks and commodities. It also offers binary options.
Headquartered in the U.K., IG is well-regulated by the U.K.s FCA, as well as a long list of other regulators including BaFin in Germany, FINMA in Switzerland, ASIC in Australia, the FMA in New Zealand, the DFSA in the UAE, the JFSA in Japan and the MAS in Singapore.
While micro-lot trading is not permitted at IG, you can choose limited risk account type to avoid having more at risk than your account balance when trading. IG does not have a minimum deposit per se, but you will need to fund your account with enough money to serve as margin for your initial transaction.
IG supports the MetaTrader4 trading platform, and it also offers its own IG platform and the web-based ProRealTime platform. The broker also has a direct market access (DMA) platform known as L2 Dealer. Desktop, web and mobile platforms are available.
The maximum leverage ratio for currency pairs of 200:1 that IG offers falls into the moderate category.
Finding a reputable broker that takes forex trading clients from Malaysia isnt difficult, so just choose one of the above brokers and set up an account. You can generally try out services and platform using a demo account first. To open a live account, you will then need to provide personal identifying information and make a margin deposit of a suitable size to satisfy the brokers requirements to do so.
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