Best SC-Regulated FX & CFD Brokers in Malaysia (2025)

Malaysia has established itself as a significant financial hub in Southeast Asia, with the Securities Commission Malaysia (SC) implementing comprehensive regulations to protect retail traders while encouraging market growth. Operating alongside Bank Negara Malaysia (BNM), the SC ensures that traders benefit from robust investor protection, transparent pricing, and access to top-tier international brokers under strict compliance standards.

This comprehensive guide examines the top 10 regulated brokers serving the Malaysian market in 2025, highlighting their strengths, regulatory compliance, and suitability for different trading profiles.

SC Regulatory Framework

The Securities Commission Malaysia (SC) is the statutory body responsible for regulating Malaysia's capital markets, established in 1993 under the Securities Commission Act. The SC oversees, authorizes, and develops capital market activities, including derivatives, securities, and fund management. While forex spot trading falls under Bank Negara Malaysia's (BNM) purview, brokers offering derivatives and leveraged forex contracts must be licensed by the SC under the Capital Markets and Services Act 2007.

Key protection measures for Malaysian traders include:

Capital Markets Services Licence (CMSL): Any firm offering leveraged forex trading or CFDs in Malaysia must obtain a CMSL from the SC. The licensing process includes minimum paid-up capital requirements of RM 10 million, liquidity maintenance equal to half of total shareholders' funds, and comprehensive data governance frameworks.

Leverage Restrictions: BNM caps leverage at 50:1 for retail traders to protect investors from excessive risk exposure.

Margin Requirements: For CFD trading specifically authorized by the SC, minimum margin requirements are 20% for non-index shares, 10% for index shares, and 5% for index CFDs.

Instrument Limitations: The SC permits CFD trading only on shares and indices that meet specific regulatory criteria. Forex CFDs, commodity CFDs, and cryptocurrency CFDs are currently not permitted under SC regulations.

Client Fund Protection: Licensed brokers must maintain segregated client accounts, keeping client funds separate from operational capital.

It is important to note that while many internationally regulated brokers accept Malaysian clients, they operate outside direct SC oversight. The SC regularly issues warnings against unlicensed entities, and Malaysian traders using offshore brokers do not benefit from local regulatory protection. However, traders can legally access international brokers regulated by top-tier authorities such as the FCA (UK), ASIC (Australia), and CySEC (Cyprus).

Malaysian Tax Considerations

Malaysia's tax treatment of forex trading depends on how profits are classified. Capital gains from forex trading are generally tax-free in Malaysia, as the country does not impose a capital gains tax. However, if forex trading is considered an income-generating activity – meaning it is the trader's primary source of income – profits are subject to progressive income tax rates.

For Malaysian tax residents (those physically present in the country for 182 days or more during the calendar year), income tax rates on forex trading profits are progressive, ranging from 0% to 30% based on total annual income. Non-residents trading in Malaysia are subject to a flat rate of 28% on Malaysian-sourced income.

Traders using Islamic accounts that comply with Shariah principles may benefit from tax advantages, as these swap-free accounts avoid interest-based transactions. It is highly recommended that traders consult with a qualified tax professional to understand their specific obligations and maintain detailed records of all trading activities for accurate tax reporting to the Inland Revenue Board Malaysia (IRBM).

Top 10 FX & CFD Brokers in Malaysia

Here is a detailed breakdown of the leading brokers, assessing their core offerings, strengths, and potential drawbacks for Malaysian traders.

1. INFINOX

INFINOX Broker Details

Founded in London in 2009, INFINOX is the best CFD broker in Malaysia, combining award-winning technology with highly competitive trading conditions. The broker's key advantage lies in its versatile account structure: a zero-commission STP account for straightforward trading and a raw-spread ECN account for professionals seeking institutional-grade execution.

INFINOX distinguishes itself with the proprietary IX Social platform, a leading-edge copy trading solution that enables traders to learn from and replicate the strategies of market experts. With robust FCA regulatory oversight and a commitment to innovation, INFINOX provides a secure and powerful environment for traders at all levels. Malaysian traders benefit from flexible leverage options and access to over 900 instruments across forex, commodities, indices, and shares.

Regulatory Transparency: In January 2025, the FCA issued INFINOX a fine related to historic transaction reporting failures. The matter was resolved promptly, and the broker has since strengthened its reporting systems. INFINOX remains in full compliance with all regulatory obligations and continues to operate with the highest standards of client protection and market integrity.

Key Pros

• Strong FCA regulation with excellent client protection standards.
• Offers a true zero-commission trading account, providing exceptional value.
• Advanced proprietary social and copy trading platform (IX Social).
• High leverage options available for Malaysian traders.

Key Cons

• Not directly registered with SC (operates via international licensing).

2. IC Markets

IC Markets Broker Details

IC Markets is globally renowned for its institutional-grade "True ECN" trading environment. It is a top choice for traders who prioritize ultra-low costs, offering some of the tightest spreads and lowest commissions in the world. Its infrastructure is built for speed and reliability, with servers located in the Equinix NY4 and LD4 data centers, making it ideal for algorithmic traders and scalpers who demand precision execution.

Key Pros

• Globally recognized for extremely low spreads and commissions.
• True ECN model with deep liquidity and fast execution.
• Excellent selection of advanced trading platforms (MT4, MT5, cTrader).

Key Cons

• Not directly registered with SC Malaysia.

3. Pepperstone

Pepperstone Broker Details

Pepperstone is a top-tier broker renowned for its high-speed execution and exceptionally low-cost trading. Its Razor account offers raw spreads from 0.0 pips with very low commissions, making it a favorite among scalpers and algorithmic traders. With support for a wide range of advanced platforms including the integrated TradingView platform, it is ideal for technically-focused Malaysian traders.

Key Pros

• Extremely fast execution speeds and access to deep liquidity.
• Very competitive raw spreads starting from 0.0 pips.
• Multi-regulated by FCA, ASIC, CySEC, and DFSA.

Key Cons

• Not directly registered with SC Malaysia.

4. AvaTrade

AvaTrade Broker Details

AvaTrade is a globally recognized broker regulated across multiple jurisdictions, including the Central Bank of Ireland for EU clients. It offers Malaysian traders a comprehensive suite of platforms, including the innovative AvaOptions for options trading. With extensive educational resources, dedicated customer support, and Shariah-compliant Islamic accounts, AvaTrade is ideal for traders at all levels.

Key Pros

• Multi-jurisdictional regulation including the Central Bank of Ireland and ASIC.
• Innovative AvaOptions platform for options trading.
• Extensive educational resources and Islamic account availability.

Key Cons

• Spreads are wider than some ECN competitors.

5. XTB

XTB Broker Details

XTB is a top-tier broker publicly traded on the Warsaw Stock Exchange, offering Malaysian traders access to over 6,100 instruments. Its key advantage is the offering of 0% commission on real stocks and ETFs (up to $100k/month), alongside a comprehensive CFD suite. The award-winning proprietary platform, xStation 5, is celebrated for its intuitive design and integrated analytical tools, making it a superb all-in-one choice for Malaysian investors and traders.

Key Pros

• 0% commission on real stocks and ETFs.
• Award-winning, user-friendly xStation 5 platform.
• Publicly traded company with strong financial backing.

Key Cons

• Does not offer the popular MetaTrader platforms.

6. Oanda Corporation

Oanda Corporation Broker Details

Oanda Corporation is a highly established broker with over 25 years of experience in the forex industry. Regulated by multiple top-tier authorities including the FCA, NFA, and MAS (Singapore), Oanda provides Malaysian traders with a secure and transparent trading environment. Its proprietary Oanda Trade platform is particularly user-friendly and well-suited for beginners, while also offering MetaTrader 4 for more advanced traders.

Key Pros

• Highly reputable with over 25 years in operation.
• Multi-jurisdictional regulation by top-tier authorities.
• User-friendly proprietary platform ideal for beginners.

Key Cons

• Spreads are wider than ECN competitors.

7. Saxo Bank

Saxo Bank Broker Details

Saxo Bank, founded in 1992 and headquartered in Copenhagen, is a fully licensed investment bank regulated by the Danish FSA and compliant with EU MiFID II standards. The broker is renowned for offering one of the most comprehensive multi-asset trading environments globally, providing Malaysian traders access to forex, stocks, indices, ETFs, commodities, and bonds through its advanced proprietary platforms – SaxoTrader GO and SaxoTrader PRO.

As a banking institution, Saxo Bank ensures institutional-grade fund security, segregated client accounts, and transparent pricing. The platform offers high-quality analytical tools, deep liquidity, and a robust range of educational and research materials suitable for experienced traders and investors seeking a professional-grade trading ecosystem.

Key Pros

• Regulated EU bank with strong investor protection under Danish FSA.
  
  
• Access to a broad multi-asset selection across global markets.
  
  
• Proprietary SaxoTrader GO/PRO platforms with advanced analytics.
  
  
• Transparent pricing with tiered commission structures.

Key Cons

• Minimum deposit higher than some entry-level brokers.
  
  
• Platform may feel complex for beginners.

8. Octa

Octa Broker Details

Octa (formerly OctaFX) is a rapidly growing broker with a strong presence in Southeast Asia. It offers Malaysian traders competitive spreads, fast execution, and comprehensive educational resources in Bahasa Malaysia. With a very low minimum deposit requirement and excellent customer support in local languages, Octa is particularly well-suited for beginners and retail traders.

Key Pros

• Very low minimum deposit of just $25.
• Strong local presence with support in Bahasa Malaysia.
• Competitive spreads and fast execution.

Key Cons

• Not regulated by a top-tier authority like FCA or ASIC.

9. First Prudential Markets

First Prudential Markets Broker Details

First Prudential Markets (FPM) is a Mauritius-based broker offering Malaysian traders access to forex, commodities, and indices via the popular MetaTrader platforms. While regulated by the FSC rather than a top-tier authority, FPM provides a straightforward, commission-free trading experience with competitive spreads and responsive customer support.

Key Pros

• Zero-commission trading model.
• Competitive spreads and low minimum deposit.
• Access to MetaTrader 4 and 5 platforms.

Key Cons

• Not regulated by a top-tier authority like FCA or ASIC.

10. Tickmill

Tickmill Broker Details

Tickmill is an ECN broker that focuses squarely on providing ultra-low costs and institutional-grade execution. It is a leader in low commissions, with its Pro account rate of just $4 per round-turn lot being one of the most competitive globally. For Malaysian traders focused purely on minimizing transaction costs for forex and indices, Tickmill is an excellent choice.

Key Pros

• Industry-leading low commission rates.
• Fast ECN execution and professional trading conditions.
• Strong regulatory oversight from CySEC, FCA, and FSCA.

Key Cons

• The range of tradable instruments is more limited than competitors.

How to Choose the Best Forex Broker for Your Needs

Selecting the right broker is a personal decision that depends on a trader's strategy, experience level, and financial goals. Industry experts suggest evaluating brokers based on several core principles.

Prioritize strong regulation. The safety of funds is non-negotiable. Always choose a broker that is fully compliant with international standards via top-tier regulators like the FCA, ASIC, or CySEC. While direct SC registration provides additional local protection, Malaysian traders can legally access internationally regulated brokers that maintain high standards of client protection. A broker like INFINOX, with FCA oversight, demonstrates a commitment to client protection, including segregated funds and negative balance protection.

Analyze the full cost of trading. It is important to look beyond advertised spreads. Traders should consider commissions, overnight swap fees, and any potential inactivity charges. A zero-commission account, such as the INFINOX STP account, can offer significant value and simplicity, while an ECN account may be more cost-effective for high-volume trading. Malaysian traders should also consider the availability of Islamic accounts if Shariah compliance is important.

Assess your trading style. A trader's approach is paramount. For example, a scalper needs the fast execution and low costs of IC Markets or Tickmill, while an investor might prefer the 0% stock offering from XTB. For those new to the markets, a broker with a strong social trading platform like IX Social or extensive educational resources like AvaTrade might be a perfect fit.

Evaluate platforms and tools. The trading platform is the trader's gateway to the markets. It is crucial to test a broker's platform through a demo account to ensure it is stable, intuitive, and equipped with the necessary tools. INFINOX provides both the industry-standard MT4/MT5 and its innovative IX Social and IX SYNC platforms to cater to diverse needs.

Ultimately, the best broker is one that aligns with a trader's journey. By offering a blend of competitive costs, advanced technology, and unwavering support, INFINOX positions itself as a trusted partner in the financial markets.

Broker Comparison Table (2025)