In this article, we will share with you international forex trading companies in Malaysia. We will explore the list of forex companies that operate and has offices in Malaysia.
Are you familiar with the forex trading company that operates in Malaysia? Contrary to popular belief, forex trading is thriving in this country due to its recent popularity among retail traders. For those who are new to forex trading, it is simply the act of buying or selling foreign currencies. Investors provide liquidity and in return, potentially reap a profit.
Before you can start trading in Malaysia, you should know a thing or two about brokers that operate via an office in Malaysia. As a customer, you would want top-notch customer support and possibly, someone who understands any problems that you may have locally.
Is forex trading in Malaysia legal?
Can anyone simply open a forex trading company in Malaysia? Well, of course not. Foreign exchange transactions are under strict regulation from Bank Negara Malaysia and Securities Commission.
Under Exchange Control Act 1953 (ECA), it is illegal for anyone to directly or indirectly buy and sell foreign currencies without an authorised dealer. In this case, the authorised dealer is the financial institution approved by Bank Negara Malaysia.
Bank Negara Malaysia also provides a detailed guideline on whether the foreign currencies transaction is legal or not according to the guidelines here.
However, you can sign up with internationally recognised brokerage to start your forex trading journey. There are a few well-known companies that operate their offices right here in Malaysia.
What are the forex trading companies with offices in Malaysia?
Based on our research, most forex brokers mainly operate outside Malaysia but there are a few exceptions who have an office in Malaysia. Most forex brokers tend to operate in Singapore as the regulations are not as strict in Malaysia.
However, having an office in Malaysia can also encourage trust between Malaysian customer and international broker.
Some of them are:
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XM (Website)
XM is one of the most Malaysian-friendly forex brokers available. Their website offers Malay-language content and instructions suitable for those who want to understand the fine print better in Malay. To fit Malaysian traders, they also offer Islamic accounts as the majority of Malaysian are Muslim. XM is excellent for beginners as it offers a low initial to begin trading.
All in all, XM provides an excellent service and is known for trustworthiness.
Based on this website, the office is located at Jalan PJU 1A/7, Oasis Ara Damansara, 47301 Petaling Jaya, Selangor, Malaysia
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OctaFX (Website)
OctaFx has been a staple brand when it comes to forex brokerage. They have expanded to become one of the powerhouse in Asia with offices in the United Kingdom, Hong Kong, Indonesia, Cyprus, Malaysia and Thailand. They have an office in Kuala Lumpur but have not revealed the location on their website.
It also has a large following in Malaysia as its website is fully translated to Malay. If you’re keen on this broker, beware that they entice their customers with a wide range of monthly giveaways.
They have an option for live chat in case you’re having technical problems that need to be solved right away! That will come handy if you’re trading remotely anywhere in the world.
If they have an office in Malaysia, they must be legal. Right?
Well, technically, there are no licensed forex brokers that are approved by the Securities Commission of Malaysia. So, the office is only meant to be for marketing purposes or to conduct operations in other countries of South East Asia. However, there is always a choice of going global to find your trusted forex broker.
Can forex brokers accept Malaysian traders if they don’t have an office in Malaysia?
Yes. Most well-known international brokers accept Malaysian customers and you can even deposit your account with Malaysian bank. It is important to choose one that can cater to Malaysian. For example, if you are more comfortable in Malay, there are brokerage platforms that provide their content in Malay.
Global brokerage platforms can operate beyond boundaries from anywhere in the world, but they are bound by their respective country’s law. So, as a customer, you can be rest assured that they will not leave your account dry and run away.
Some of you football fans might notice the well-known global forex brokerage platform, Plus500, on Atletico Madrid’s shirt and FBS as the main sponsor of Barcelona FC.
How do I choose the best forex broker for me?
Apart from marketing, there are a few criterias not to be missed when choosing your broker. With the internet at the tips of our finger, we need to be vigilant and selective when it comes to our hard-earned money. Among the few aspect that we need to focus on are:
Trustworthiness:
Choose a platform that has operated for a long number of years and have a good review on their website. Most platforms now offer mobile apps on Google Play Store and Apple Store, so you can use that as a benchmark to set apart brokerage in checking whether they are legitimate operations.
Eventhough forex brokerage platform is not regulated in Malaysia, they are governed by their respective country’s law. So, in a way, the customers are still protected by the law.
Cost:
You would want the process of buying or selling to be as cheap as possible. If not, your gains would be diminished and your losses would be magnified when taken into account the extra fees and cost.
So, choosing a forex broker with the lowest spread is ideal. You can also try to find brokers that offer a low minimum deposit as you can experiment with the platform to know whether it suits you.
Material Provided:
An excellent brokerage is the one that can help you make better decisions. Most brokerage offer their own version of analytical tools. For beginners, you should be able to have access to reading materials, interactive content and webinars. Some platforms offer these services but at an additional cost.
Choose one that suits your trading profile and amount. If you’re a serious trader, you can spend more on these add-ons as it is also a form of investment in yourself.
Technical:
Brokerage will offer account types that you can choose from such as cTrader, MT4 or MT5. These represent different types of functionalities available to your account. Be aware that each of these accounts will have different cost, leverage and minimum deposit.
For example, if you want to use algo-trading features, we suggest that you choose either an MT4 and MT5 account. As you learn more on forex trading, you will find this type of account useful in expanding your trading endeavor.
What you can learn from the article?
- Brokerage with offices in Malaysia is not necessarily useful in selecting your forex brokers but can be served as a benchmark in trustworthiness.
- Global brokerage accounts offers a better flexibility, choice, and versatility in terms of choosing forex account that works for you.
- You have to be vigilant in choosing forex trading brokers with trustworthiness, cost, material provided and technically advanced as your main guide.
Throughout this article, we hope that you can identify a forex trading company that operates in Malaysia and how you can choose a globally recognised platform to suit your trading profile. Forex trading in Malaysia is legal if you are doing it with the right platforms. Make sure you do your own research before jumping into the water.
Have a fruitful trading journey ahead!
If you were to open a forex trading account today, what is the most important criteria that you would be looking for? Share with us your thoughts and sign up with us to get more insights on forex trading!