CFD Trading In Malaysia

CFD trading in Malaysia is an emerging market and one of the biggest in South East Asia. CFD trading is legal whether you are using a local approved, regulated brokerage or a foreign provider. This page will examine everything you need to know about CFD trading in Malaysia, including leading platforms and strategies.

Top CFD Brokers in Malaysia

FXTM is a leading forex and CFD broker. Offering a huge range of markets and 6 account types, they cater to all levels of trader.
Trade CFDs on popular indices, shares, forex, crypto & commodities. Award winning platform, zero commission, free education and low spreads.
Leading forex and CFD broker regulated in Ireland, Australia, Canada and South Africa. Avatrade are particularly strong in integration, including MT4
Diversify your portfolio with contracts for difference in multiple financial markets.
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
BDSwiss offer 250+ Shares, Indices, Forex, Commodities and Cryptocurrencies markets via CFDs. With spreads from 1 pip and an award winning app, they offer a great package.
Open an account with just $10. Trade over 14 Cryptocurrencies directly, traditional forex with low spreads or trade digital options with payouts up to 900%.
XM.com Offer a range of Account types and a low minimum deposit to appeal to all levels of trader. With 1000+ markets and low spreads they offer a great service.
Markets.com offer CFDs across a huge range of assets from shares and indices to commodities and cryptocurrencies.
Axi is a global online FX and CFD trading company, trusted by 60,000+ ambitious customers in 100+ countries around the world.
72.6% of retail investor accounts lose money when trading CFDs with this provider
Forex.com boast a global reputation. Regulated in the UK, EU, US and Canada they offer a huge range of markets, not just forex, and offer very tight spreads and a cutting edge platform.
Finq.com offer a great all round service with trading on 2100+ assets and immediate bonus offers. Up to $4000 in Deposit Bonuses.
easyMarkets.com - Simply Honest. Trade CFDs on Forex, Commodities, Indices, Shares & Cryptos With a Top Rated Forex Broker
Trade CFDs in a range of financial markets.
Reliable and affordable trading since 2009. Join over 400,000 others trading on 300+ CFD products over assets like forex, gold, indices and shares from 0.0 spreads through TradingView, MT4 or MT5. Vantage is ASIC regulated and client funds are segregated. Open an account in under 5 minutes.
CFDs are supported for US stocks, equity indices, currency indices, energies and metals.
Global brand offering exceptional execution, low deposit requirements and advanced charting and trading platform features.
Trade Forex on 0.0 pip spreads with the world's leading True ECN forex broker - IC Markets.
Capital.com offer CFDs and Forex on a huge range of assets, with competitive spreads and unique platforms, including the fully functional mobile app.
75.26% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Trade CFDs with up to 1:2000 leverage.
FXChoice offers leveraged CFD products on a breadth of financial markets.
Trade on a range of CFDs with competitive spreads and leverage.
XTB is one of the largest stock exchange-listed FX & CFD brokers in the world, offering access to over 2000 instruments on their trading platforms.
73% of retail accounts lose money.
Fusion Markets are delivering low cost forex and CFD trading via low spreads and trading costs. Their message is - Stop paying too much to trade
Invest in the markets with online CFDs.
Trade CFDs with high leverage & low spreads.
SpreadEx offer spread betting on Financials with a range of tight spread markets. Popular award winning, UK regulated broker.
Invest in the markets with CFDs at FBS.
A regulated bank, Saxobank offer Equities and Forex trading on 40,000+ markets via the SaxoTrader Pro and SaxoTrader Go platforms
Trade CFDs on forex, indices, shares, precious metals, and energies.
CFDs are available on multiple markets, including FX, indices, shares, commodities & cryptocurrency
71.89% of retail investor accounts lose money when trading CFDs with this provider.
Explore Investous, A brand new Forex and CFD broker offering MT4 and Webtrader platforms. Official sponsors of PSV Eindhoven
IG offer spread betting, CFD and Forex trading across a range of markets. They are FCA regulated, boast a great trading app and have a 40 year track record of excellence.
IronFX offers online trading in forex, stocks, futures, commodities and cryptocurrencies
Multi-Award winning broker. Specialising in Forex but also offering stocks and tight spreads on CFDs and Spread betting across a huge range of markets.
Dukascopy is a Swiss-based forex, CFD, and binary options broker
Rockfort Markets clients can trade a range of CFDs with high leverage rates, covering crypto, forex, commodity and international equity markets.
CFDs are available on hundreds of markets including FX, indices, shares, & commodities.
AdroFX offers margin trading on CFDs across popular financial markets.
Start trading on the financial markets with up to 1:500 leverage using competitive CFDs.
CFDs are available on multiple financial markets including FX, indices & shares.
Buy and sell across the financial markets with leveraged CFD products.
Trade on a range of leveraged CFD products at HYCM.
Trade leveraged CFDs on the financial markets.
Trade on the financial markets with CFDs.
Buy and sell CFDs on the financial markets.
Trade CFDs on stocks, indices and commodities.
Trade CFDs with tight spreads and leverage.
CFD trading is available across multiple financial markets.
Trade CFDs with up to 1:30 leverage in multiple markets.
Trade thousands of CFDs across a range of markets with up to 1:500 leverage.
Trade online CFDs with up to 1:30 leverage.
Trade CFDs with leverage across multiple markets.
Trade CFDs on currency pairs, indices, & commodities with tight spreads.
CFDs available on major indexes, stocks, FX, commodities, and cryptocurrency
Contracts for difference are offered on popular financial markets with tight spreads.
Zulutrade provide multiple automation and copy trading options across forex, indices, stocks, cryptocurrency and commodities markets
A suite of contracts for difference are available across popular markets with up to 1:500 leverage.
Fondex is an award-winning forex and CFD broker with industry low trading costs
83.57% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Pepperstone offers CFD trading to both retail and professional traders. Clients can trade FX, indices, commodities and shares on MT4, MT5 and cTrader platforms.
CFDs and FX are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs.
Trading 212 Offer a truly mobile trading experience. With tight spreads and a huge range of markets, they offer a dynamic and detailed trading environment. Recent customer care issues have severely damaged the reputation of the brand.
Ayondo offer trading across a huge range of markets and assets. They also offer negative balance protection and social trading.
Alpari offer forex and CFD trading across a big range of markets with low spreads and a range of account types that deliver for every level of trader from beginner to professional.
Trade CFDs on forex, indices, & commodities
Show All Brokers ⇩

How CFD Trading In Malaysia Works

CFD trading is growing in popularity in Malaysia and across the world. A Contract For Difference (CFD) is an agreement between two parties to pay the difference of an asset’s price between the open and close positions. CFD trading in Malaysia allows users to speculate on the price of an asset without needing to pay the full price.

CFDs are derivatives, so investors do not own the underlying asset, which makes it possible for commodities to be easily invested in, without needing to take possession of 100 barrels of oil, for example. CFDs are available on a range of assets, including Malaysian stocks, indices, cryptos and commodities.CFD Trading In Malaysia With Ringgit

The Malaysian Ringgit (MYR) is not commonly used as a base currency in Malaysia. Instead, you may have to exchange your Ringgits for USD in order to open an account and begin trading.

The government of Malaysia allows CFD trading with the services of licensed institutions, regulated by the Securities Commission Malaysia (SC). Foreign providers may also be used for international investments. If your company is not regulated by the SC, check it is regulated by another reputable body, such as the CySEC (Cyprus Securities and Exchange Commission) or the UK’s FCA (Financial Conduct Authority).

CFD Trading Example

Consider a scenario in which you believe the price of crude oil will rise. For a bullish price movement, you would want to buy the asset. When CFD trading in Malaysia, this would be called going long.

If the price of oil is 50 USD per barrel and you have 5,000 USD that you would like to invest, you can go long with your provider, staking 5,000 USD. If the price then rises to 60 USD per barrel, you would close the position and walk away with 6,000 USD, a 1,000 USD profit.

For spot trading, to make the same investment you would purchase 100 barrels of crude oil. You would then need to transport and store the oil until the price had risen to a sufficient value, before needing to transport it to your buyer. While the price of the asset could have gone up the same amount, you would have additional costs and would need to spend more time on the trade.

Other asset classes have similar ownership transferral costs, if less extreme. Clearly, CFD trading in Malaysia is much less cumbersome than spot trading, especially for commodities.

Pros Of CFD Trading In Malaysia

With a careful and considered strategy, CFD trading in Malaysia can bring advantages:

  • Leverage: CFD trading in Malaysia can be carried out using leverage, which can increase your market exposure and profit potential.
  • Delivery: The lack of delivery can make the investment in certain assets much less of a burden, particularly commodities like wheat or natural gas.
  • Shorting: One of the key selling points of CFDs is the ability to go short. This means that you can speculate on the value of an asset falling, making money from the amount by which the price drops.

CFD Trading In Malaysia With Strategy

Risks Of CFD Trading In Malaysia

  • High-Risk: CFDs can be a risky way to trade, especially when taking advantage of leverage. All investors should ensure they understand the risks involved before they start trading CFDs in Malaysia.
  • Overtrading: Many online CFD firms in Malaysia have low minimum deposits. This can make it very easy to fall into overtrading. Using a strategy and effective risk management skills will prevent you from overtrading.

Choosing A Malaysian CFD Brokerage

Finding the best platform for your trading style and requirements is subjective. Some of the major things to consider include before you start CFD trading in Malaysia include:

Regulation

Not all providers will be regulated by the SC (Securities Commission Malaysia). If they aren’t, check they are regulated with one of the major European or Australian bodies such as the CySEC or the FCA. Regulation will help protect your investments and offer compensation in case of insolvency.

Leverage

Leverage rates will vary amongst platforms and asset classes. If margin trading CFDs in Malaysia is your plan, find a company that offers high leverage rates on the instruments you wish to trade.

Fees

Most will make their money from either a commission charge or from spread mark-ups. There may also be fees for transactions, holding positions open overnight and currency exchange. Fully compare the pricing of each provider as you will want to limit how much your profits get eaten into.

Platforms

A good platform can give you an edge when CFD trading in Malaysia. Many providers will offer MetaTrader 4 (MT4) or MetaTrader 5 (MT5), two popular trading platforms in the global investing community. That is not to say other options won’t suit you better. Things to look out for include charting options, analysis tools, asset support and additional features, like automated or social trading options.

Some providers may also provide a mobile application of their trading platform, letting you trade on the go and keeping you abreast of profitable opportunities.

Accounts

Firms often have a range of available account options suited to different types of trading, asset classes or experience levels. Companies regulated by the local SC may also offer Islamic accounts that allow CFD trading in Malaysia. These accounts are Halal and suited to Muslim traders as they do not charge overnight holding fees.

Markets

Not all companies will support CFD trading in every Malaysian market available. If you have any instruments or asset classes in mind, such as Bitcoin (BTC) or Maybank (MLYBY), you should check the platform facilitates access. You can check market access on a provider’s website, or by opening a demo account and having a look.

How To Start CFD Trading In Malaysia

If you’re thinking of CFD trading in Malaysia, we’ve prepared a straightforward guide to get started:

  1. Open An Account – Once you have found a platform, sign up and open a live account.
  2. Identify An Entry Point – To ensure you make a successful trade, you should find a market and use analysis tools or a strategy guide to find a trend and identify a place from which to enter a trade. You can go long if you believe the asset value will rise, or you can short it if you think it will fall.
  3. Manage Your Risk – When CFD trading in Malaysia, it is important to implement a proper risk management strategy. This might involve setting stop loss and take profit orders, limiting position sizes or hedging risk.
  4. Monitor And Close The Position – Monitor your position closely as some markets can be volatile, and the use of margin can amplify any losses you might incur. When you are satisfied with the result, close the position and cash out.

CFD Trading In Malaysia Bullish Markets

Taxes For CFD Trading In Malaysia

Profits made from CFD trading in Malaysia may fall under income tax classifications and be taxed at a progressive rate. This is up to 26% for retail clients. Ensure you keep a detailed record of your trades so you can accurately report your income for tax purposes. Bear in mind that you may need to take exchange rates into account if you are using an account with a base currency that is not the Malaysian Ringgit. You should always consult a professional tax advisor if you are unsure about your tax status.

Final Word On CFD Trading In Malaysia

Malaysia has a growing digital industry and is becoming a popular location for CFD trading. Income tax is relatively low and traders have access to a huge range of markets. Getting started with CFD trading in Malaysia is a simple process, though it is easy to get sucked into overtrading or taking large risks, especially with the prospects of using leverage. Be sure to implement a rigorous strategy and robust risk management approach to limit your losses.

FAQs

CFD trading is perfectly legal in Malaysia. Residents can trade with providers that are regulated by SC Malaysia but can also invest their money abroad and use foreign platforms.

What Is The Best Platform For CFD Trading In Malaysia?

MetaTrader 4 and MetaTrader 5 are two of the most popular platforms in the industry, though there are many great alternatives. CFD providers in Malaysia may offer their own proprietary software for desktop or as a mobile app. Demo accounts are a safe way to test different options.

Is CFD Trading In Malaysia Safe?

CFD trading in Malaysia can be safe or risky, depending on how you approach it. Using regulated platforms, limiting the use of margin and being careful with risk can help you keep a handle on your capital.

What Markets Can I Trade CFDs In Malaysia?

Traders in Malaysia have access to both local and international financial markets. CFDs are available on forex, stocks, cryptos, commodities and more.

Is CFD Trading In Malaysia Halal?

Brokerage firms registered by SC Malaysia may provide users with an Islamic account. These accounts are considered Halal as they do not gain interest from you holding positions overnight. Many foreign platforms also offer CFD trading with Islamic accounts.