Introduction
A trading account is by far one of the most critical things you’ll need before you start trading. A broker will create such trading accounts. There are various brokers available, but not all of them are worthwhile to trade with. You should only deal with Malaysia’s top and best forex brokers. This is because they provide exceptional services that cater to practically all traders’ demands, regardless of trading style.
Forex Trading in Malaysia
Whether you trade manually or algorithmically, which necessitates the usage of a Forex VPS, those firms guarantee a flawless trading experience. More significantly, all of the top forex brokers are available at all times, particularly during the finest forex trading hours in Malaysia. We’ll go over some of the finest forex brokers in Malaysia, as well as some of the characteristics that distinguish them.
How to Select the Best Forex Brokers in Malaysia
The best forex brokers in Malaysia aren’t chosen at random. There are several characteristics that distinguish them from the competition and place them among the finest brokers in Malaysia.
i) Leverage
The cost of trading forex is pretty high. To be able to take market positions, you must have a large sum of money. This is why, for many years, currency trading was restricted to large financial institutions and corporate investors. Only a few retail investors, mostly ultra-high-net-worth people, were allowed to participate in the market.
All of that changed with the advent of internet retail commerce. Traders may now hold greater market positions by merely putting down a fraction of the required capital. For example, if a trader wishes to control a $100,000 trading position, he or she may only need to put down a quarter of that amount. It might be as little as $5,000, which is only 5% of the total sum necessary. All of this is attributable to the principle of leverage.
Leverage permits you to borrow far more than you are putting down to trade while only needing a portion of the total cash necessary for the deal. Almost anybody can trade with this system.
One of the most important characteristics of a good broker is good leverage. Your broker should be able to provide you enough room in the market to handle considerably larger sums. In most cases, the leverage should be significantly higher than 1:100.
ii) Commission and Spread
The services that forex brokers provide are not free. For providing you with the ability to trade on their platforms, you are charged certain fees. These come either in Commissions or Spreads. Commissions are charged for your trades, while spreads are the difference between the bid and ask price of the asset you are trading. For these fees, some brokers charge huge amounts.
However, the best brokers, especially the ones featured here, prioritise seamless trading over outrageous fees. These brokers boast the lowest spreads across trading instruments. With their low spreads, you get to make more money as spreads stop being a barrier.
iii) Accessibility and Technology
Today, you conduct all of your trading online. As a result, top-tier Malaysian brokers go to great lengths to guarantee that their traders have easy access to this type of trading. One way they accomplish this is by guaranteeing that their traders can trade across numerous platforms. Many brokers only enable traders to trade on one or a few devices. This is far from ideal in an age when traders use many devices and want to be able to easily switch between them.
As a result, their trading activities on one device are mirrored on the other. Another feature of top brokers is that they employ cutting-edge technology to create trading software for their clients. The improved software guarantees that trades are implemented quickly and efficiently as well as lower the likelihood of any technical troubles when trading Slippage is one such technical problem that can result in large losses for traders.
The finest forex brokers in Malaysia, furthermore, enable for robotic trading. Trading has progressed beyond manual trading, where you must analyse charts yourself. With the best brokers, you can now use the best robot hosting to implement automated trading.
iv) Convenience and Ease of Use
Malaysian traders, like traders all across the world, want a broker that can help them trade quickly and simply. As a result, they want all of the procedures to be as smooth as possible. The process of registering and creating accounts, the verification procedure, and the process of actually completing trades are all examples of these processes.
All of these are made smooth and simple for their traders by the top brokers. The majority of these brokers have simple account opening procedures that practically anybody can complete. They also make it easier for traders to execute deals on their platforms.
v) Regulation
Every broker must be registered with and controlled by trustworthy and trusted regulatory authorities, which is one of the most significant characteristics. Traders in Malaysia may get forex brokerage services from a number of businesses. Not all of them, though, are worth trading with. Many of them are scam brokers who will jeopardise your trade in a variety of ways.
However, the easiest method to protect oneself against this is to only trade with regulated entities. The Financial Conduct Authority (FCA) of the United Kingdom, the Cyprus Securities and Exchange Commission (CySEC), the International Financial Commission (FinaCom), the European Securities and Markets Authority (ESMA), and the Financial Services Commission (FSC), among others, regulate all of the top brokers listed here.
You should be aware that they are not required to register with Malaysian regulatory agencies such as the Securities Commission (SC). It is sufficient if they are properly registered with reputable brokers all around the world, particularly those listed above.
vi) Ways of Depositing and Withdrawing
As you may know, a top broker’s purpose is to make all of the processes involved in trading as simple as possible for you. Depositing funds into your trading account is one of these procedures. For its traders, a great broker will make the transaction straightforward and painless. It will also allow users to use different payment ways, ensuring that no matter where they are, a payment channel will be available to them.
After you’ve traded and made some money, the following step is to cash out your winnings. This approach will also be made simple for you by a top broker. A good broker will also set up various withdrawal channels for you so that you have a variety of alternatives.
vii) Product Range
Forex trading has changed throughout time, and new methods are being developed. Social trading and copy-trading are two new ways of doing business. All of these cutting-edge services will be provided by the greatest brokers.
The Top and Best Forex Brokers in Malaysia 2021
In this article, we look at the seven firms that offer the best forex trading experience in 2021. The finest forex brokers in Malaysia, on the other hand, do not have to be situated in Malaysia. In truth, the majority of them are reputable international foreign brokers.
Almost all of these traders also provide CFDs and other sorts of derivatives trading. Their CFD trading services are on par with their FX trading services.
i) IG Market
IG Markets is a worldwide derivatives brand based in the United Kingdom that provides trading in a variety of products, including forex, CFDs, options, and futures. IG Markets, based in London, is noted for its cutting-edge technology and one of the lowest rates of slippage among forex brokers worldwide. However, in order to use these services, you must make a minimum deposit of £250. Islamic accounts, cTrader, MT4, MT5, and WebTrader connectors, and much more are available.
The FCA is in charge of overseeing it.
ii) FOREX.com
Forex.com is a high-quality forex broker with offices all around the world. It offers trading in a variety of derivatives, including CFDs, equities, and commodities. Forex.com also offers extremely cheap spreads. A $100 minimum deposit is required to trade with Forex.com. The FCA UK is Forex.com’s primary regulator.
iii) OctaFX
OctaFX is without a doubt the undisputed leader when it comes to several new features. OctaFX gives you access to top-tier social trading. That isn’t all, though. OctaFX has also created the automated CopyTrade feature, which allows you to have your account copy transactions made by an expert trader. It follows the account and risk management instructions you’ve established.
OctaFX is also a multi-platform broker, having access to all of the above services via the MT4, MT5, and cTrader platforms. The greatest leverage offered by OctaFX is 500:1. CySEC is in charge of controlling it.
iv) XM
XM has the lowest deposit requirements of all brokers. With just $5 required minimum deposit, virtually everyone can trade with XM. With XM, you have access to leverage as high as 888:1, one of the highest on this list. You can trade on both its MT4 and MT5 platforms. Furthermore, there is an Islamic account available. CySEC (Cyprus), ASIC and IFSC are just some of its regulators.
V) Pepperstone
Pepperstone is regarded as the top ECN broker. It has one of the smallest spreads, with an average of 0.09 pips on EUR/USD. You may obtain up to 500:1 leverage and access to Islamic forex trading, among other things. Pepperstone is known for being a multi-platform broker, allowing traders to access trading services through several channels. You may trade using the MetaTrader 4, MetaTrader 5, cTrader, and WebTrader platforms.
It is governed by the ASIC (Australia), the FCA (United Kingdom), and the DFSA (United Kingdom).
vi) EToro
Social trading is one of the fastest-growing phenomena in the trading sector. This is an example of a beginner or inexperienced trader using a platform to duplicate the trades of a more experienced trader. This has aided many traders in breaking into the market and profiting. EToro is credited for inventing this functionality. As a consequence, it is the most popular forex trading platform for social trading. EToro offers powerful services in crypto and binary options in addition to forex.
EToro has a maximum leverage of 400:1 and allows you to trade 52 different currency pairings. The broker is licenced by the FCA, CySEC, and ASIC, and offers Islamic accounts. However, you should be aware that you may only trade with EToro through its own trading platform. MT4 and MT5 are not supported. In addition, a $200 deposit is required.
vii) FXTM
FXTM is a global broker that trades 59 different currency pairings, including equities, commodities, indices, and, of course, forex. Traders will benefit from the broker’s modest spreads (1.90 pips on average on EUR/USD). FXTM has a unique feature in that it offers an Islamic account. It also has one of the smallest necessary minimum deposit levels among all brokers worldwide. The $10 minimum investment allows many traders to participate, regardless of their financial situation. The CySEC, the FSC, and the FCA UK regulate it.
FXTM’s leverage will be determined by your trading expertise and the country in which you reside. As a result, FXTM has no set leverage.
Conclusion
The quality of your broker might decide whether or not you will be successful in forex trading. This is because your broker has so much power over so many aspects of trading. As a result, the top forex brokers in Malaysia should be your first choice. Trading with the finest forex brokers in Malaysia is straightforward, simple, and even smooth. We’ve compiled a list of the top and best 7 forex brokers in Malaysia, so you’ll have plenty of options.
