Trading USD/MYR
Although the USD/MYR is not traded in significant volumes, the nature of the pair does provide investing opportunities. The US Dollar is considered the global reserve currency and, coupled with the Malaysian Ringgit, creates an exotic forex pair with interesting market dynamics.
This guide will discuss the history of the USD/MYR, price influences, exchange rate historical data, investing outlooks, live charts, and more. We also list the best FX brokers in 2023 below.
USD/MYR Trading Brokers
- Forex.com - Forex.com is a leading FX broker. The brand offers a wide range of currency pairs and some of the lowest fees in the industry. Spreads on the EUR/USD come in as low as 0.0 with a $7 commission per $100k.
- Interactive Brokers - Trade 85 major, minor and exotic forex pairs via CFDs on IB's FXTrader platform with tight spreads and low commissions, or trade forex on the spot market. They offer more FX assets than almost any competitor.
- NinjaTrader - NinjaTrader supports the trading of popular currencies including the EUR/USD. The trading software also offers unique features tailored to forex trading, including specific order and market windows.
- OANDA US - OANDA offers 68 forex pairs, more than many alternatives. The broker's in-house platform also offers impressive execution speeds and a suite of advanced charting and analysis tools.
- Webull - Webull offers a modest collection of 17 currencies, including majors like EUR/USD. Forex can be traded on the feature-rich investing app with real-time quotes and low spreads.
Top 3 Broker Comparison
| Forex.com | Interactive Brokers | NinjaTrader | |
|---|---|---|---|
| Forex Assets | 80+ | 70+ | 50+ |
| EUR/USD Spread | 1.0 | Commission (.20 pts x trade value) | 1.3 |
| Forex App Rating | |||
| Minimum Deposit | $100 | $0 | $50 |
| Regulator | NFA, CFTC | SEC, FCA, IIROC, SFC | NFA, CFTC |
| Visit | Visit | Visit | Visit |
#1 - Forex.com
Forex.com is a leading FX broker. The brand offers a wide range of currency pairs and some of the lowest fees in the industry. Spreads on the EUR/USD come in as low as 0.0 with a $7 commission per $100k.
"Forex.com is an excellent broker for forex traders with over 80 currency pairs, tight spreads, low commissions and powerful platforms. The brand is also heavily regulated while its parent company is listed on the NASDAQ, giving it a high trust score."
- DayTrading Review Team
- GBPUSD Spread: 1.0
- EURUSD Spread: 1.0
- EURGBP Spread: 1.0
- Total Assets: 80+
- Leverage: 1:50
- Platforms: MT4, MT5, TradingView, eSignal, AutoChartist, TradingCentral
About Forex.com
Forex.com boasts a global reputation with multiple awards and 20+ years experience. Regulated in the US, EU, UK and Canada they provide a huge range of markets, not just forex, and offer competitive fees on a cutting-edge platform. The brand also provides a suite of additional tools, from performance analytics and SMART Signals to advanced charts and strategy builders.
Pros
- Low minimum deposit of $100
- Free demo account for prospective traders
- VPS hosting for automated strategies
Cons
- No copy trading platform
- $15 monthly inactivity fee
- Investment offering varies between countries
#2 - Interactive Brokers
Trade 85 major, minor and exotic forex pairs via CFDs on IB's FXTrader platform with tight spreads and low commissions, or trade forex on the spot market. They offer more FX assets than almost any competitor.
"Serious traders seeking a regulated broker with unparalleled access to stock markets should look at IB. Their range of stocks can't be beaten."
- DayTrading Review Team
- GBPUSD Spread: Commission (.20 pts x trade value)
- EURUSD Spread: Commission (.20 pts x trade value)
- EURGBP Spread: Commission (.20 pts x trade value)
- Total Assets: 70+
- Leverage: 1:50
- Platforms: AlgoTrader, OmniTrader, eSignal, TradingCentral
About Interactive Brokers
Interactive Brokers is a leading global brokerage that provides access to a comprehensive offering of stocks as well as forex, futures, metals, bonds and cryptos. The firm has over 40 years experience in the online trading industry and is heavily regulated by SEC, FCA, IIROC, and SFC. Traders use the proprietary Trader Workstation and can access powerful tools and data feeds as well as comprehensive educational resources.
Pros
- Proprietary workstation comes with powerful tools and charting capabilities
- You have a reliable real-time market data feed, that rarely goes offline
- Gives retail traders unmatched access to global stocks with tens of thousands available from 100+ market centres in 24 countries
Cons
- Platform and web interface are complex and difficult for beginners to pick up
- Mediocre customer support
- Accessing products like CFDs is not straightforward compared to competitors
#3 - NinjaTrader
NinjaTrader supports the trading of popular currencies including the EUR/USD. The trading software also offers unique features tailored to forex trading, including specific order and market windows.
"We recommend NinjaTrader for high-volume futures traders looking for low fees and premium analysis tools."
- DayTrading Review Team
- GBPUSD Spread: 1.6
- EURUSD Spread: 1.3
- EURGBP Spread: 1.6
- Total Assets: 50+
- Leverage: 1:50
- Platforms: eSignal
About NinjaTrader
NinjaTrader is a US-headquartered and regulated brokerage that specializes in futures trading. There are three pricing plans to suit different needs and budgets, as well as ultra-low margins on popular contracts. The brand's award-winning charting software and trading platform also offers a high-degree of customization and superb technical analysis features.
Pros
- Low fees with $50 day trading margins & commissions from $.09 per micro contract
- Excellent trading software for active users with bespoke widgets and indicators
- Easy account opening that takes a few minutes
Cons
- Non forex and futures trading requires signing up with partner brokers
- Premium platform tools come with an extra charge
- Withdrawal fee on some funding methods
#4 - OANDA US
OANDA offers 68 forex pairs, more than many alternatives. The broker's in-house platform also offers impressive execution speeds and a suite of advanced charting and analysis tools.
"OANDA is a top-rate broker for US traders seeking a user-friendly platform with premium market research and a straightforward joining process. OANDA is a particularly good pick if you want a heavily regulated broker with a secure trading environment."
- DayTrading Review Team
- GBPUSD Spread: 3.4
- EURUSD Spread: 1.6
- EURGBP Spread: 1.7
- Total Assets: 65+
- Leverage: 1:50
- Platforms: MT4, TradingView, AutoChartist
About OANDA US
OANDA is a popular brand offering exceptional execution, low deposit requirements and advanced charting and trading platform features. The top-rated brand has over 25 years of experience and is regulated by trusted agencies, including the NFA/CFTC. Around the clock support is available, alongside flexible contract sizes and automated trade executions.
Pros
- Wide selection of instruments including 68 forex pairs
- US clients accepted
- API facilitates access to 25 years of historical data and rates from 200+ currencies
Cons
- Customer support not available on the weekend
#5 - Webull
Webull offers a modest collection of 17 currencies, including majors like EUR/USD. Forex can be traded on the feature-rich investing app with real-time quotes and low spreads.
"Webull is best for traders looking to buy and sell stocks on a user-friendly platform with zero commissions. The intuitive app also makes this broker great for mobile investors."
- DayTrading Review Team
- GBPUSD Spread: 0.4
- EURUSD Spread: 0.2
- EURGBP Spread: 0.4
- Total Assets: 15+
- Leverage: 1:4
- Platforms: Desktop App, Web Terminal
About Webull
Webull is a US-regulated trading app that offers stocks, options, forex, cryptos, ETFs, fractional shares and more. The firm is authorized by the SEC and FINRA with a strong trust rating. Low fees, no minimum investment and generous welcome bonuses have made the discount broker popular with online investors.
Pros
- Zero commissions or inactivity fees
- Brokerage account plus IRA
- Easy-to-use investment platform and mobile app
Cons
- No MetaTrader 4 access
- Narrow range of payment methods
- High deposit and withdrawal wire fees for non-US residents
Chart
Breaking Down ‘USD/MYR’
The US Dollar (USD) is the currency of the United States of America. Its stability is impacted by the policies of the US Federal Reserve (Fed). Today, the USD is considered the global reserve currency, settling the majority of international transactions. Many countries also choose to peg their currencies to the Dollar.
The Malaysian Ringgit (MYR) is the authorized currency of Malaysia, licensed by the Central Bank of Malaysia (Bank Negara Malaysia, BNM).
The exchange rate is the buy or sell price of the USD into MYR. For example, 1 USD to MYR (1.2) means to buy 1 US Dollar, you will pay 2 Malaysian Ringgit.
The all-time high for the pair was in January 1998 at 4.77, while the all-time low was established in September 1978 at 2.10.
History Of The USD
The US Dollar was officially adopted as the United States currency in 1785. The exchange rate was set against the value of gold until 1973. As gold stocks started to deplete due to banks using Dollar to gold conversions, the value of the currency fell. This signaled the end of the US peg for many countries at that time.
After the US Dollar’s value was detached from gold, the Federal Reserve was appointed to maintain the value of the currency and the exchange rate, doing so with a low, stable rate of inflation.
US Economy
The United States is the world’s second-largest economy after China, accounting for over 16.8% of global output. The country is the single largest importer and exporter of goods and services. US monetary policy plays a major role in financial conditions across the world due to the USD being the most widely used currency. As a result, developments can impact its strength against other currencies, such as the Ringgit. With this in mind, USD/MYR traders should keep an eye on GDP data, employment, interest rates, and US political announcements, which can all trigger shifts in the forex markets.
History Of The MYR
The Malaysian Dollar substituted the British Borneo Dollar and the Malaya in 1967. It was called the Malaysian Ringgit in 1975 and is the country’s official currency. With that said, it is still sometimes known as the Malaysian Dollar.
After the Asian financial crisis in the 1990s, the public Bank of Malaysia chose to peg the MYR to the USD at a conversion rate of 3.8 to 1 until 2005. The MYR is now free-floating, but offshore trading is limited.
Malaysian Economy
After Covid-19, the country has been on an upward course, recovering from the effects of the virus. Malaysia has diversified its economy from reliance on agriculture to one that supports manufacturing. Accounting for close to 36% of the nation’s exports are electronic integrated circuits and microassemblies. And while income equality is still prevalent in Malaysia, the country is making progress.
Investors should keep a close eye on economic reports, especially manufacturing data on the production of electricals, plus petroleum and palm oil, for an indication as to where the price of the MYR is heading.
Value Of The MYR
The value of the MYR is prone to changes in global emerging markets and the political stability in Malaysia. Other factors include:
- Interest rates – News shows the Bank of Negara Malaysia is set to hold interest rates at 2.2% and 3.2% for 2022.
- Economy growth – The country has experienced a few months of growth and recovery after Covid-19, with GDP forecasts expecting the MYR to remain above 5%
- Commodities – The country is an exporter of gas and oil, and MYR has a positive correlation with commodities
- Inflation – The Central Bank of Malaysia stabilizes rates. Even though inflation has grown to 2.2% in 2022, it is still lower when compared to other countries.
Value Of The USD
Factors influencing the value of the US Dollar include:
- Dow Jones stock market – Positive correlation between the index and the USD value since the 1990s
- US Treasury – Responsible for budget decisions. Any announcements or statements can impact the value of the USD
- Reserve status – The USD is used by nations across the globe to purchase commodities creating an artificial demand
- Monetary policy – As the USD is a fiat currency and not backed by a commodity, the creation of money can depreciate the value, therefore impacting the USD/MYR exchange rate
Managing Price Movements
Supply and demand for currencies, such as the USD/MYR, can be heavily influenced by monetary policies set by respective central banks, plus other factors such as market sentiment or inflation. Other aspects include GDP growth rates, interest rates, inflation, and employment rates. Brokers and financial data sources integrate USD/MYR real-time spot rates, daily forex live charts, and the latest news bulletins to help you understand these.
Traders can also use technical analysis for USD to MYR forecast support. This includes extensive price history charts, such as 5, 10, 20, or 30 years data views. It is also good to utilize price trend statistics before trading the forex pair. Reference signals and indicator rates for entry and exit points of a trade can be leveraged, with candlestick charts commonly used for this.
Pros Of Trading USD/MYR
What makes the currencies a trading interest in today’s financial markets?
- Prevalence – The USD is the most traded currency and the world’s leading reserve currency
- Plenty of financial information available – Including USD to MYR exchange rate history by date, predictions, and live currency converters
- Volatility – The value of the Malaysian Ringgit is prone to influences in emerging global markets and political events in Malaysia
- Commodities correlation – USD/MYR forecasts in 2022, for example, suggested a positive economic outlook for Malaysia, thanks to strong crude oil and energy prices
Risks Of Trading USD/MYR
There are a few points to consider before investing in the USD versus MYR:
- Volume – As an exotic pair, the USD v MYR sees lower trading volumes compared to major currencies today, and less liquidity could mean reduced profit potential
- Leverage – The pair’s volatility can lead to increased profits when using leverage. However, it can also create significant losses. Implementing risk management forecasting tools when reviewing USD to MYR conversions and trading views for yesterday, last week, this week, and next week can help
- Trading – MYR is a somewhat restricted currency; funds cannot be transferred out of Malaysia, though online forex trading is allowed
US Dollar Index
The US Dollar Index (USDX) is a measure of the value of the USD in relation to other key foreign currencies, including the Euro. The index fluctuates in response to macroeconomic factors impacting the supply and demand of the Dollar and price movements of the other foreign currencies.
The outlook of the USDX can help paint a picture of the relative strength of the USD, which can, in turn, inform investment decisions when trading pairs related to the Dollar, such as the USD/MYR.
USD/MYR & Exotic Pairs
Exotic pairs are those that include one major currency and one currency from an emerging or developing market, such as the USD/MYR. They make up a much smaller share of the total forex market. Major currencies such as the USD are associated with stable economies. Exotic currencies such as the MYR can be heavily influenced by political and economic instability. Exotic currencies are usually traded at low volumes and can be very volatile. Importantly, the lack of liquidity can often lead to wider spreads at brokers.
Final Word On Trading USD/MYR
There are many opportunities to start trading the USD/MYR forex pair. There is ample financial data and resources available such as USD vs. MYR exchange price charts and forecasts. XE, TradingView, or X-rates are good options for currency data and graphs. Understanding the influences on the individual economies and finding a broker that provides USD/MYR trading tools such as live streaming rates and historical data is also key.
But while the exotic pair does offer profit potential, it is best suited to experienced investors. Beginners may want to start off trading the EUR/USD, which is easier to track and find data on.
FAQs
How Much Is 1 USD To MYR?
The exchange rate value of 1 USD into MYR is constantly moving. Use live charts for the latest buying and selling rates, daily forecasts, or trading history to understand previous price trends.
Which Statutory Body Regulates The Malaysian Ringgit For USD To MYR Investing?
The Central Bank of Malaysia (Bank Negara Malaysia) is the country’s financial regulator. Commercial banks of Malaysia include Public Bank Berhad, CIMB, and Maybank.
What Is The USD Versus MYR In The Currency Pair?
The exchange rate is the price of the USD per MYR. You can use a selling rate of 1.2 Dollar to MYR to help you understand this concept. The bid-ask is 1 USD to 2 MYR so to buy 1 US Dollar you will pay 2 Malaysian Ringgit.
What Is A USD/MYR Basis Swap?
A USD/MYR basis swap is an agreement between two parties exchanging interest payments based on two floating rates, subject to swap points.
What Is USD/MYR Forward Rates?
Forex forward rates are exchange rates ‘locked in’ for the buying or selling of pairs such as USD to MYR at a later date. For example, investing now for six months ahead at the current forward rate.