Simply put, foreign exchange trading is swapping one currency with another in order to speculate on fluctuations in their respective prices.
One of the main draws of foreign exchange trading is leverage, which makes it possible to invest with a smaller sum of money than is necessary when trading commodities or securities.
As foreign exchange (FX) trading in Malaysia has grown in popularity over the past several years, so has the country’s regulatory scrutiny of the industry.
A Financial Markets Services License (CMSL) from the Securities Commission of Malaysia (SCM), the country’s financial regulatory authority, is a bonus, but many internationally licensed forex brokers to welcome clients from Malaysia.
Best Brokers for Forex
When it comes to traders from developing countries and frontier economies, FXTM has become the industry standard. Traders can take advantage of a more conducive environment to make transactions on the modern MT4 and MT5 platforms than is available from most other brokers.
There is a minimum gap of 0.4 pips and a beginning commission of $4.00, which can be as low as $0.80 for active traders, making this a commission-based cost structure that ranks among the best in the business.
- FP Markets
Launched in 2005, FP Markets is an Australian brokerage supervised by the Australian Securities and Investments Commission (ASIC). One of the main draws of this broker is the access it gives you to more than 10,000 different stocks and shares.
Among the many Forex and CFD brokers, AvaTrade stands out for giving customers the option of either fixed or variable spreads. They are regulated to an extreme degree. AvaTrade is subject to direct regulation in Japan, Australia, the British Virgin Islands, South Africa and Ireland.
- BlackBull Markets
New Zealand is the birthplace of BlackBull Markets, which opened in 2014. They are authorized to do business in New Zealand by the Financial Services Providers Registry (FSPR) and provide leverage of up to 500:1 on select Forex currency pairs. BlackBull Markets provides a limited number of assets for trading.
Even though Eightcap has a top-notch technological backbone, it hasn’t bothered to improve its standard MT4 and MT5 trading platforms.
Since it only offers a few assets, Eightcap is ideal for novice traders or those with a narrow focus. Eightcap stands out from the competition thanks in large part to its ECN pricing environment, which gives traders access to basic spreads for a cost of $7.00 per round lot.
Malaysia Forex Broker
A list of all forex brokers that welcome new customers in Malaysia were compiled, and they were ordered based on their Overall ranking, which was determined during our comprehensive annual assessment of forex brokers.
Please find below a comparison of the best Malaysian forex brokers available to you right now.
- IG – Most Reliable and Best Overall Broker
- Saxo Bank – Best Online Trading Platform
- Interactive Brokers – Excellent All Around and Ideal For Professionals
- FOREX.com – A Fantastic Offering All Around
- XTB – Outstanding Research and Instruction
- AvaTrade – Great For Novices and Copy Trading Is
- OANDA – Reliable Broker With Excellent Research
We considered important characteristics for our shortlist when looking for the best FX broker.
To make sure that a broker adheres to strict financial standards, it is crucial that a financial body controls the broker. That guarantees brokers are protecting clients’ interests and are not mismanaging their clients’ money.
- Range of Pairs
The availability of numerous currency combinations is appealing to traders. Because they might turn to the exotics if a deal isn’t available on the majors and minors. The more options available to traders, the more probable they will make a deal.
- Tool and Analysis
Beginners want a straightforward platform that makes it simple to place trades. However, professional traders want to incorporate indicators into their techniques to make sure they have performed the finest technical analysis possible. They must list every tool on the charts because of this.
- Payment Methods
Brokers must provide a variety of payment options in order to make financing accounts easy for traders. Therefore, a broker’s chances of attracting traders increase with the number of payment options it provides.
How does Foreign Exchange Trading work?
Foreign exchange trading is like buying investments in that you are betting on the future value of a currency. You make an investment by buying a currency and hope that its value will go up in the future. Foreign exchange traders do the same thing, they buy and sell currencies to make money.
The difference between foreign exchange trading and buying investments is that you can’t touch your investments until they have already paid off.
With foreign exchange trading, if the value of your currency goes down, you lose money because you have invested in a currency that has decreased in value.
If the value of your currency goes up, you make money because you have invested in a currency that has increased in value.
Another difference between foreign exchange trading and buying investments is that with foreign exchange trading, there is always risk involved. This risk is called the FX spot rate or the interbank rate.
The FX spot rate is what banks charge each other for exchanging currencies. It changes all the time and can be very unpredictable.
This means that even if you predict how the FX spot rate will move, there is still a chance that it will change before your prediction becomes reality.