Forex Trading Malaysia | Forex Trading Made Easy

Forex trading Malaysia

Forex Trading Malaysia | Forex Trading Made Easy

Forex trading Malaysia has recently been gaining more and more interest among ordinary Malaysians. The advent of smart phones and the Internet has made it very easy and accessible for more Malaysians to start trading forex easily, and on the go. In fact more and more younger people in their 20s and 30s are embracing forex trading in Malaysia in recent years, having a fair bit of success generating a second source of income doing so.

Let’s look at it what would it take for you to get started trading forex in Malaysia below starting today.

Overview | Forex Trading Malaysia

forex trading malaysia

Forex trading refers to the practice of trading various currencies for a profit. You can draw comparison to how various currency pair exchange rate fluctuate over time. You can think of an exchange rate as the ‘price’ of a currency. Forex trading is essentially how individuals, banks, and businesses convert one currency into another.  Forex trading is often considered as the largest liquid market in the world. Billions of dollars worth of currency is traded on a daily basis in the global forex or foreign exchange market.

Forex trading in Malaysia cane be done rather easily with various online brokers that you can sign up for in Malaysia. However it’s important to stick to a regulated and authorised broker to ensure the safety and security of your despots and your trading account in general. A good forex broker also offers attractive commission rates as well as the access to a wide variety of currency pairs that you can be easily trade with from Malaysia.

Forex Trading in Malaysia

Recommended Forex Brokers in Malaysia

forex trading malaysia-1The table below contains a list of recommend forex brokers in Malaysia that you could use. All of the brokers below are regulated by various financial authorities in their home countries (mostly European based brokers) and offer Malaysian based forex traders a way to trade forex easily and cheaply by paying the lowest commissions per trade.

 Broker NameRegulatedBest Suited ForMin. DepositPayoutsBonus 

IQ Option

Asia, Africa, Middle East, Europe, South America$1091%Binary Option Broker

24 Option

Asia, Africa, Middle East, South America$25089%Binary Option Broker


Asia, Africa, Middle East, South America$5095%Binary Option Broker


Australia OnlyAUD10200%AUD50 CashbackBinary Option Broker

Forex Trading in Malaysia

How Does the Forex Trading in Malaysia Work?

Unlike stocks and commodities in Malaysia which are accessible via Bursa Malaysia, local stock brokers, and regulated locally in Malaysia, there is no central market for trading forex globally. Instead, the global forex market trades are executed via a network of global banks, dealers, and brokers. This means forex trading in Malaysia can take place 24 hours a day, 5 days a week, and can be easily done online using a smart phone or your computer.

Forex trading in Malaysia also means that there are no restrictions on the number or type of currency pairs you can trade with. You can choose to trade a major forex currency such as USD/CAD, USD/JPY, USD/AUD, or a more exotic type of currency pair such as the USD/TRY or USD/MXN pair. Essentially as a trader in Malaysia – your choices are limitless as to which currency pair you’d like to trade.

What is the Difference Between Trading Forex and Trading Stocks in Malaysia?

forex trading Malaysia

Most people make the mistake of equating forex trading being the same as trading stocks on the stock market. Forex trading in Malaysia differs from investing in stocks in a number of ways. Some of them are listed below:

  • Forex currency pairs are traded in pairs, whereas stocks or equities are shares of a company that is purchased for cash.
  • The global Forex market is a decentralised using over-the-counter (OTC) exchange, where all transactions and participants are confidential. On the other hand, stock markets (like Bursa Malaysia, is a centralised market, where public records are kept of buyers and sellers of stocks
  • Forex trading has a very low cost of entry. On the other hand equity or stock traders use large amounts of capital, which is not an option for traders with a limited income in Malaysia

Forex trading is not the same as investing, and is not to be confused as such. Forex traders never take ownership of the currency asset being transacted. With CFD (Contract for Differences) Forex trading in Malaysia, a trader is basically speculating on the future value of the assets involved in the trade.

Forex Trading Malaysia

Is Forex Trading in Malaysia Legal? | Forex Trading Malaysia

forex trading legal Malaysia

A lot of traders who are beginners ask the same question – is forex trading in Malaysia legal? Are there any implications of trading forex in Malaysia?

The Securities Commission, on behalf of the Malaysian Government has taken a number of steps to safeguard the strength of the Ringgit (MYR), while at the same time ensuring that the freedom of Malaysian citizens who wish to participate in Forex trading is unencumbered.

Trading Forex in Malaysia is also completely legal as long as you abide by the set laws and regulations that are put in place by the Malaysian government and the other regulating bodies.  In short, if a major regulator regulates your broker, you will be fine using this broker. Our top recommended forex broker – IQ Option is regulated by various international financial regulators such as the United Kingdom and the European Union – ensuring that your deposits are fully secured at all times.

Forex Trading Malaysia

How do Beginners Learn to trade Forex? | Forex Trading Malaysia

Beginners to forex trading in Malaysia are strongly advised to learn to trade forex using a demo account before depositing money into an account. As a beginner you’d also be interested to check on information such as Forex charts, trading platforms and how to read the spread – these are all important things to understand before you start trading with a live forex trading account.

Most forex brokers will offer at least some trading education – IQ Option offers free video tutorials to new traders which you can access after signing up for a free demo account. Learn as much as you can, as fast as you can, as the more you understand, the more comfortable you will feel in different forex trading scenarios. As you continue to learn, practise your new trading skills with your demo forex account to test your progress, as you go along.

It would take some time to learn to trade forex successfully, as traders need to study the many aspects and strategies to make forex trades more successful.

Is Forex Trading Income Taxable in Malaysia? | Forex Trading Malaysia

forex trading tax free

Income derived from forex trading is not taxable in Malaysia as income tax. This is because they are considered as a capital gain and are generally exempt from tax. This means that if you trade with an Islamic account (such as the one offered by IQ Option) and you are not deriving an income (vs. a capital gain) from forex trading – you are not liable to pay any income tax on forex trading in Malaysia.

This is yet another reason why forex traders love the idea of trading forex in Malaysia. The ability to generate income on a tax free basis from trading forex is an amazing opportunity for Malaysians to supplement their incomes with.

Forex Trading in Malaysia

Using Leverage in Forex Trading Malaysia

forex trading malaysia
Forex trading is generally leveraged; this means that as a forex trader in Malaysia, you can only contribute a small amount of the trade value and borrow the remainder from a liquidity provider (often large financial institutions or banks that work with your broker). This is one of the most popular way for traders to derive significant profits from trading forex. IQ O

Using leverage has two main effects. Firstly, the cost of entry to trade Forex in Malaysia remains low. Secondly, all profits and losses are amplified. As a forex trader, you are responsible for the losses of the full trading amount.

It’s important to practice sound risk management when it comes to trading forex using leverage to avoid losing more than the amount you can afford to.

Forex Trading Malaysia | Live Forex Trading Video

Most beginners in forex trading tend to overcomplicate forex trading. You can check out for yourself how easy it is to trade forex in Malaysia using the super user friendly platform of IQ Option below.

For more LIVE Trading Tutorials – do consider subscribing to our YouTube Channel for more videos.

Forex Trading Malaysia

Forex Trading Malaysia | Pros and Cons

Forex Trading Malaysia Pros

forex trading

Low Barrier of Entry

When compared to trading stocks, forex trading does not require a big investment to get started. With online forex brokers accessible from Malaysia such as IQ Option – you can open a ‘mini’ or ‘micro’ forex account with as little as $5.

Low Transaction Costs

Forex trading can have very low costs compared to the brokerage and commisions charges that you would have to deal with in other financial trading. In fact, there are no commisions, really and the transaction cost is typically less than 0.1% under normal market conditions.

forex trading Malaysia-4

No Central Exchange

In the equity market, a company can suddenly declare a dividend or report huge losses which in turn can drastically affect the price of its stocks or equity out of the blue. Forex trading on the other hand has no such central entity. The international forex market also has no central regulator. This decentralised and deregulated feature of the forex market also means there is no possibility of insider trading; everything is dependent on global factors and developments.

High Market Liquidity

Compared with other financial markets, the global forex market has the largest number of participants and traders. This means that your assets can always be sold to or bought by somebody somewhere – anytime.

Forex Trading Malaysia

Forex Trading Malaysia Cons

forex trading beginner

It’s Deregulated

Due to its decentralised nature, forex trading is dominated by brokers and not by market regulators or central entities.

This means that the forex market provides no incentive for brokers to be fully transparent with the trader. A trader may not be given full information on trading quotes, may not get the best price, or even not have control over how their trade order gets fulfilled. Hence why it’s important to choose the right forex broker to trade with, and a broker who is regulated and approved accordingly by various authorities.

Difficult to Predict

From political stability, to foreign investment, to global news, there are way more things to keep in track of to trade effectively and profitably in forex. The liquidity and market size of the global forex market also makes it difficult to predict.

This also makes the global forex market impossible to be controlled by a single entity at any time – which can be good for traders as the huge volatilities it can sometime be subjected to means that you’d have plenty of opportunities to trade.

High Volatility

Another disadvantage to forex trading comes from how decentralised it is. In stock trading, when things go wrong with a particular stock, shareholders can put pressure on management to initiate the required changes or approach regulators. Forex traders have no such recourse if a currency nosedives. For example, when Iceland went bankrupt, forex traders holding onto Icelandic krona had no other option but to take their losses due to the currency.

Forex Trading Malaysia | Conclusion

In conclusion forex trading in Malaysia is something every one of us can master with a little practice. The benefits of forex trading are numerous – the potential to earn tax-free income consistently on the side to better your lifestyle and to attain the financial freedom we all desire.

Forex trading in Malaysia can open up numerous doors for someone who is willing to put in the time and effort to trade profitably consistently. So if you’d looking to start off on your forex trading journey today – simply click on the button below to get started.

Forex Trading Malaysia

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