Forex Trading Malaysia: The Definitive Guide 2024

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Forex Trading Malaysia

This is a complete guide to Forex Trading Malaysia in 2024. Explore all the essential points to raise your forex trading Malaysia. In this guide, you’ll learn:

  • Basic Concepts of Forex Trading Malaysia
  • How to start Forex Trading Malaysia
  • Forex trading time Malaysia
  • Best Forex Brokers Malaysia
  • Forex trading in Islamic law
  • and lots more

Let’s get started on your Forex trading Malaysia journey!

Chapter 1:

Understanding Forex Trading Malaysia

Welcome to the foundation of your Forex Trading Malaysia journey. Many Malaysians invest in Forex trading because they feel it is a great way to make money that is easy to master. In this chapter, you’ll learn the foundations and comprehend the rules.

What is Forex Trading?

Forex is a worldwide trading floor where people may buy, sell, and exchange different currencies. It is the granddaddy of extremely fast-paced financial markets, with frequent buying and selling.
Forex Trading is the largest market offering continuous operations and is vital to the worldwide economy. Forex operates through Bank networks, corporations, and individuals who trade one currency against another. Due to electronic platforms and complex networks, the Forex market ensures a fluid market in which exchange rates fluctuate on various economic factors.
The Forex market size in 2024 is estimated to be around $6.6 quadrillion per day.
Banks, significant businesses, Governments, and regular individuals like you and me all participate in Internet trading. When someone joins Forex Trading, they attempt to estimate how the currency pairing values will fluctuate to benefit from rate movements.

“ Forex Trading is the biggest financial market worldwide regarding volume, liquidity, and value.”

Forex Trading Market Overview

The Forex Trading market will reach US$1,466 billion by 2023 and $6.6 Quadrillion daily in 2024, with a CAGR of 6.92% from 2024 to 2032.

Report AttributeKey stats
Base Year2023
Forecast Year2024-2032
Historical Year2018-2023
Market size in 2023US$ 805 Billion
Market Forecast Size in 2032US $1,466 Billion
Market Growth Rate 2024-20326.92%
Forex Trading Market Overview

What is the importance of Forex Trading in 2024?

Forex Trading in 2024 is essential for many top-notch reasons. First, it allows conducting international trade. It is difficult for businesses to buy and sell goods without the Forex market. It also gives investors a way to hedge against risk.

The Forex market promotes economic stability and helps to create a stable global economy, so we can’t forget this market’s importance in stabilizing the economy worldwide.

Forex Trading Scams in Malaysia

Even though there are standards to keep consumers safe in the Forex market, there are also negative aspects, such as fraud and gimmicks. If you are starting Forex Trading Malaysia, you must be cautious about Forex Trading Scams. Watch out for brokers or plans promising you will make lots of money quickly. They might not be honest. Some scams include tricky investment plans, services that say you will always make money, and brokers who need to be regulated.


Some Types Of Forex Trading Scams In Malaysia Include:

  • Forex Education Scam
  • Forex Trading Signal Scam
  • Forex Investment Scam
  • Forex Trading Robots
  • Forex Brokers Scammers

Forex scammers try to deceive you in various ways. Forex Trading scam messages usually promise to give money easily, make you feel that they are acting, claim that they have some secret tips & tactics, want to know more and more of your personal information, or send fake website links. So, be aware of all possible ways to get scammed through more research, best consumer knowledge, and deep knowledge about Forex Trading works systems and scams.

How To Spot Forex Trading Scammer?

Some of the situation to spot scammers are as follows:

  • Perfect Promises
  • Say you can’t, lose your money
  • Give no precise information or data
  • Tell you that there are no losses, only wins situation
  • Offering complicated terms
  • Don’t talk about risks
  • Money-back guarantee

How Much Money Do I Need To Begin?

Trading demands patience, skills, and quick learning. Even professionals in this field make mistakes. Individuals should not trade with money that they can’t afford to lose. Like other ways to invest money in Malaysia, Forex trading may need little funds.

If you want Forex trading here, start with as little as $10 to $100. Higher amounts lead to higher profits and risks in the Forex industry. Most brokers wish to do this as the minimum amount you may begin with.

Chapter 2:

Forex Trading Legalities

In this chapter, you’ll read about the laws and regulations about forex trading Malaysia. So, if you want to know about the rules and legal ways of Forex trading Malaysia, this chapter is for you.

Are you considering Forex Trading in Malaysia and want to know its legality? The answer is “Yes”. Forex Trading is legal in Malaysia, and you may trade it. To make Forex activities legal in Malaysia, you must pay your taxes. The Inland Revenue Board of Malaysia is an agency responsible for tax collection in Malaysia.

It can be complicated for some individuals, so it is better to consult with a specialized tax professional in Malaysia. Forex Trading is not necessarily regulated like other financial markets, stocks, or commodities.

But beware of illegal foreign currency trading schemes. Traders have no trouble doing that because it is lawful. The Securities Commission Malaysia (SCM) regulates forex trading Malaysia. Forex Trading Malaysia Commission was established under the Security Commission Act of 1993, the Money Changing Act of 1998, and the 2007 Capital Markets & Services Act Associated Operations.

To ensure fair and safe trading, traders must use brokers with licenses. SCM has strict rules for brokers. They must keep separate accounts for their clients, have at least RM 10 million, and give clients transparent and honest information. These rules are there to protect us and keep the market honest.

Regulations by Bank Negara Malaysia

Bank Negara Malaysia Forex trading notice says forex brokers Malaysia can operate but must follow the guidelines. Bank Nagara says that under the Exchange Control Act of 1953 ECA), it is an offense for a person in Malaysia to buy and sell foreign currency or to do an act that is in Association with or preparatory to buying and selling foreign currency with an authorized dealer.”

It is an offense for a person to aid another person in buying and selling foreign currency with any person unless the person is an authorized dealer.  So, according to Bank Negara Malaysia, you need an authorized dealer to trade Forex in Malaysia. Then, ensure that everything is legitimate so no one is taken advantage of. That means brokers need the right license money to run their business, follow laws to stop money laundering, and know who their customers are.

Legalities and Compliance with Approved Forex Brokers

An approved and regulated Forex broker ensures the security and integrity of trading activities. It is a protective measure for both professionals and beginner traders. Ensuring approved Forex Broker oversight gives traders confidence that the broker operates appropriately and complies with industry standards.

To trade safely in Malaysia, ensure that only deals with approved Forex brokers in Malaysia are made by Bank Negara Malaysia. These authorized brokers follow strict rules to keep things fair, offer transparent prices, provide reliable trading tools, and keep your money safe.

Key benefits of trading with approved forex brokers in Malaysia:

  •  Condescurity
  •  transparent practices
  •  dispute resolution

How Do You Check Forex Broker Regulations?

  1. To check for an approved Forex broker, verify the broker’s regulatory claim and visit the broker’s official website. Regulatory information is often displayed on the “ Homepage”  or “About Us” section. 
  2. Identify the regulatory authorities your broker mentions, then cross-reference them with the official website. 
  3. If a broker tells you the FCA regulates him, try including the official register. Add your broker’s name or registration number to verify its regulatory status.   
  4. If the broker claims to be regulated by CYSEC, check CYSEC’s official public register and search for the broker’s name and license number.
  5. Those brokers who claim to be regulated by ASIC should check their ASIC professional registers by entering their local name or ABN to verify their regulatory status.

Chapter 3:

Getting Started with Forex Trading Malaysia

Now it’s time to start forex trading Malaysia, starting forex trading means getting in on the activity in the global currency markets while earning some money. This chapter covers all of the essentials, such as:

  • Opening a trading account,
  • Trying out demo accounts
  • Developing Trading Plan

a useful guide for beginners.

Get A Proper Education About The Forex Market.

Solidifying the basics is super important if you’re starting Forex trading. First, ensure you know all about currency pairs, how to analyze the market, different trading methods, and how to handle risks like a pro. Remember to dive into the stuff that affects how the Forex market moves.

Understanding Forex Platforms: MT4 Vs. MT5

Meta Trader 4 is fantastic since it is simple to use, provides various charting tools, and allows you to trade automatically. But Meta Trader 5 is even fancier, with more options for charting, enables you to sell more than just Forex, and even comes with an economic calendar. Find the difference between MT4 & MT5 and then pick the one that matches how you like to trade and what you want to achieve.

Research And Choose A Reputable Broker

Choosing a qualified Forex broker is essential to trading success. You can find the list of the best Forex brokers in Malaysia below. Ensure that the brokers you employ are licensed and regulated by respectable financial institutions. When deciding which one to choose, consider how simple their trading platform is, if they provide affordable spreads, and how helpful their customer support is.

Open A Trading Account.

Once you have decided on a reliable broker, establishing a trading account with them is the next step. They will want some ID paperwork, so make sure you have it available.

Practice With A Demo Account

Use the demo account provided by your broker to try out trading without risking any real money. It lets you learn how a trading system operates and try various approaches without wasting money.

Deposit Funds

Once you feel good about using the trading platforms, add money to your account how you like to pay. Put in cash that you are okay with possibly losing because trading always comes with risks.

Develop A Trading Plan

Develop a clear trading strategy. Write down your goals, your risk tolerance, when you plan to purchase and sell, and how you want to manage your money.

Chapter 4:

Mastering Forex Trading Malaysia Time

Let’s move on to an important part which is the best time to trade forex in Malaysia. In this chapter, you’ll learn Forex market hours and the best Forex trading Malaysia time.

Forex Market Hours and Time Zones

The Forex market is like a non-stop party that runs all day and night, five days a week, in different parts of the world.

Trading SessionOpening TimeClosing TimeOverlapping Sessions
SydneySunday 5:00 PMMonday 2:00 AMTokyo
TokyoSunday 7:00 PMMonday 4:00 AMSydney, London
LondonMonday 8:00 AMMonday 5:00 PMTokyo, New York
New YorkMonday 1:00 PMMonday 10:00 PMLondon
Forex Trading Malaysia Time Zone

This table outlines the opening and closing times of the major trading sessions in the forex market and indicates which sessions overlap.

Best Times to Trade Forex in Malaysia

Forex trading is always happening, but there are times when it’s better to trade. The best times are when different financial centers overlap.

SessionTime (GMT+8)
Asian/European overlap8:00 AM to 12:00 PM
European/North American overlap3:00 PM to 7:00 PM
Forex Trading Time

These are the optimal times for traders in Malaysia to find more action and opportunities in the forex market.

Impact of Global Market Sessions on Malaysian Traders

If you’re trading from Malaysia, keeping an eye on when big financial hubs worldwide open and close is essential. These times can affect how currency prices move and how people feel about the market overall. When crucial economic news or big political stuff happens while these sessions overlap, it can shake up currency prices, especially for currencies like the Malaysian Ringgit (MYR) and other popular pairs. 

Leveraging Market Open and Close Times

Trading when significant markets open and close allows Malaysian traders to profit from market changes. When markets open, a lot happens because traders respond to news overnight. People might use strategies like breakout or momentum trading at these times. Conversely, traders might change their positions when markets close to avoid risks over the weekend or take advantage of significant price changes.

Trading on Malaysian Public Holidays

Malaysian traders must know when public holidays happen in Malaysia and other significant financial places. Trading might slow down these days so prices might stay the same. Traders must be careful and consider changing their plans to deal with these quieter times in the market.

Chapter 5:

10 Best Approved Forex Brokers Malaysia

The country’s supportive rules on Forex trading mean people here can pick from many brokers who follow international regulations. But even with so many choices, Malaysians need to understand why it’s better to go with Bank Negara Malaysia approved forex brokers in Malaysia who have a special license from Malaysia’s Securities Commission. In this chapter, you’ll find the best-approved forex brokers in Malaysia list.


While IG is a globally recognized forex broker, its pros and cons for Malaysian traders depend on your experience. Pros include its user-friendly platform, vast educational resources, and competitive spreads for active traders. However, cons include potentially higher fees for stock CFDs and a limited base currency selection. So, while IG offers a strong all-around experience, research its specific pricing and features to see if it aligns with your trading needs and budget.


XM shines for Malaysian traders with low spreads and commissions, catering to beginners and experienced individuals. Pros include user-friendly platforms, a demo account, and educational tools. However, the cons involve limited product offerings mainly focused on CFDs and forex, with average fees for stock CFDs and no investor protection outside the EU. While appealing for its accessibility and low costs, ensure XM’s offerings and regulations match your specific trading goals and risk tolerance before diving in.


In Malaysia’s user-friendly platform, FBS tempts beginners with low minimum deposit and educational resources, and commission-free trading options appear attractive.  However, be cautious of its lack of regulation by Malaysian authorities and potentially high withdrawal fees. Additionally, its limited account types and average spreads cater to experienced traders. While FBS might be a good starting point, understand its limitations and regulations before venturing further.


While Pepperstone isn’t directly regulated in Malaysia, it boasts several advantages for some traders. Its competitive spreads and diverse account types, including the low-commission Razor and commission-free Standard, cater to various trading styles. Additionally, its user-friendly platforms and educational resources appeal to both beginners and experienced traders.

However, the lack of direct LFSA regulation might raise concerns for some, and its CFD financing rates can be high for certain assets. Thoroughly evaluate its regulatory status and fees before considering Pepperstone for your forex trading needs in Malaysia.


Attacks Malaysian traders with its user-friendly platforms and fixed spreads, offering killer pricing for beginners. Plus, its copy trading feature lets you mirror experience traders’ moves. However, consider potentially higher spreads than ECN accounts and inactivity fees that can eat away unused funds. Starting convenient for starting, more experienced traders might seek lower cost and broader asset selection elsewhere.


HotForex boasts several advantages for Malaysian traders. Its wide account variety caters to beginners and experienced traders alike, offering Islamic accounts and diverse platforms. Additionally, they possess competitive spreads and low minimum deposits.

However, potential drawbacks include inactivity fees and the lack of a local Malaysian office. While HotForex presents numerous options, weigh their regulatory status (not LFSA-regulated) and fees against your specific trading goals and risk tolerance before deciding.


While FOREX.com offers advantages like low forex fees and comprehensive research tools, its appeal to Malaysian traders depends on your preferences. Pros include multiple platforms, swap-free Islamic accounts, and excellent market research. However, the cons involve potentially higher stock CFD fees and a user-friendly desktop platform still under development.

If extensive research and diverse platform options are priorities, FOREX.com deserves consideration. However, ensure the pricing structure, particularly for preferred assets, aligns with your budget and trading style.

Pocket Option

Pocket Option started in 2017 and is known as a flexible broker. They let you trade money, goods, company shares, digital money, and market indicators. Their trading system is unique, and they allow people to trade using MT5 worldwide. They care about their customers and are constantly improving their technology. Plus, they offer bonuses and a way for people to earn money by referring others to the platform, which helps traders make more profit.


Tickmill started in 2014, and they’re all about being creative offering manual and automated services. They care about giving you good deals with low spreads and extraordinary trading situations, making them popular with newbies and pros. Plus, they have simple training to help new folks start Forex trading.


Exness has low fees, quick order processing, and other types of accounts, making trading accessible for everyone. Plus, they have a demo account, so beginners and pros can practice trading without risking real money.

Forex Trading Malaysia In Islamic Laws

Is Forex Trading Malaysia halal?

In Forex Trading Malaysia, it’s essential to understand that it is considered “okay” by Islamic law, which means it is allowed. People follow Islamic rules when trading with a good plan and an Islamic account. But if they use a regular account that charges interest and does not have a transparent system, it might be seen as betting and not allowed.

Is Forex trading permitted in Islam online? Trading fatwa depends on understanding the idea of betting. Batting is when people guess about something without control over what will happen. By ensuring their traders consistently have good chances of success, traders, and void are seen as bettors.

Another important thing in forex trading Malaysia is using an Islamic account. These special accounts follow Islamic rules by allowing traders to join the Forex market without paying interest. What is an Islamic credit account? Under Syariah, you are not allowed to gamble or earn interest.

“ With a regular account, you might earn interest when a position is open overnight. But With an Islamic account, you do not, which makes your activities Halal.” 

“ Forex is more about investing than gambling, helping Muslims stay Halal.”

So, following Islamic Laws lets Muslim traders do Forex Trading Malaysia while sticking to their religious beliefs. Open accounts, called swap-free accounts, offer a suitable environment for trading that aligns with Islamic principles.


We’ve wrapped up our complete guide to Forex Trading Malaysia. We’ve talked about everything from the basics to some more advanced strategies. Plus, we’ve shared tips from experienced traders and ways to avoid getting caught up in scams. To do well in Forex trading Malaysia, you must keep learning, stick to your plan, and focus on making intelligent trades. If you’ve any questions or anything else you want to add, please drop them in the comments below.

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