Best Forex Brokers in Malaysia 2022

AvaTrade is a market-making broker that offers forex and CFD instruments.

1) Safety: AvaTrade holds a license to operate from the tier – 1 financial authority ASIC of Australia.

Additionally, AvaTrade is licensed by the Central Bank of Ireland, Polish Financial Supervision Authority, British Virgin Islands Financial Services Commission, Financial Services Agency of Japan, Financial Sector Conduct Authority of South Africa, Abu Dhabi Global Markets (ADGM) Financial Regulatory Services Authority (FRSA) of United Arab Emirates.

2) Fees: AvaTrade charges an average spread of 0.9 pips for trading the EURUSD currency pair using the retail account. They do not charge a commission. Further, they do not charge a deposit or withdrawal fee however their inactivity fee is high.

3) Trading Conditions: Overall, AvaTrade offers more than 250 trading instruments. Traders can access 60 currency pairs, ETFs, bonds, shares, major indices, and cryptocurrencies. They offer a wide variety of trading platforms including MT4, MT5, WebTrader, AvaOptions, AvaTradeGO, automated trading platforms, and Mac Trading. They also offer negative balance protection.

4) Customer Support: Customers can reach AvaTrade through live chat, phone call, or email. Each of their customer support modes are available in Malay. They offer a local Malaysian phone number that can be called.

How to Choose the Best Forex Broker in Malaysia?

While choosing a forex broker, it is important to carry out your own independent research. Each forex trader has its own requirements. No particular forex broker is suitable for everyone. Here are the main factors that you should consider while choosing a forex broker.

1) Dealing Desk or No Dealing Desk: There are two kinds of brokers which are Dealing Desk brokers and No Dealing Desk brokers. They may also be known as STP brokers or market maker brokers respectively.

STP brokers do not have a conflict of interest with their traders but they may charge higher fees. Market-making brokers may have a conflict of interest but they may charge lower fees.

Generally, the forex brokers that are ECN or STP mention it on their website under the execution policy. Also, no dealing desk forex brokers will offer variable spreads & commission-based trading accounts

Let’s take HotForex for example. They claim to be an STP broker & they charge variable spreads with their account types. But XM is a market maker forex & CFD broker, and they also charge variable spreads, but they don’t have any ECN type account.

A good way to check this is to ask your forex broker via Live chat if they are STP or a market maker.

2) Regulation: While checking a broker’s regulation, you should ensure that they (or a group entity) are regulated by reputed financial authorities. The top financial authorities in the world (which are also called tier-1 financial authorities) are the FCA of the UK and the ASIC of Australia.

To check regulations, you should visit the website of the forex broker and read their regulations page. Once you know the license number, you can also cross-check the license on the website of the financial authority. For example, you can see OctaFX’s regulations on this page, and they can be cross-checked on CySEC’s website.

3) Fees: Every broker will usually have a page on which they display the typical spread that they charge for various instruments. You should always check the average spread for the EURUSD currency pair since it is considered the benchmark. You can then compare their average spread with other brokers.

Here is an example of the spread charged by OctaFX as found on their website.

4) Trading Conditions: Each forex broker offers different trading conditions. A few factors that a trader should check are trading instruments offered by the broker, the trading platforms available, the different types of trading accounts, the leverage offered, the deposit and withdrawal methods available, and the minimum deposit.

For example, if you want to trade cryptocurrencies, then you should check whether a broker offers CFDs on cryptocurrencies before you sign up with them.

You should also check the exact fees charged with the instrument which you want to trade. If you are only looking to trade majors, then compare the CFD brokers based on their fees for each major pair.

5) Language: Even though not every forex broker offers their services in Malay, there are some who do. If you want to avail of brokerage services in Malay, then you need to check which brokers offer such services. You should also check whether their customer support is offered in Malay.

6) Customer Support: It is crucial that a forex broker provide good customer support. Issues with trading can be serious and it can be difficult to navigate the services offered by a broker. To check customer support, read reviews posted online.

You can also get first-hand information by asking a broker’s customer support team a few test questions. Pay attention to how quickly they respond to your queries and how helpful their response is.

Frequently asked questions: Best Forex Brokers