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 2024 below.
USD/MYR Trading Brokers
- OANDA US - OANDA offers a diverse selection of 68 currency pairs, more than many alternatives. The broker’s in-house platform offers superb day trading capabilities via powerful TradingView charts, including 65+ technical indicators and 11 customizable chart types.
- Vantage - Vantage offers 55+ currency pairs - above the industry average, so experienced traders can explore plenty of opportunities. Vantage's deep liquidity pool provides forex spreads from 0.0 pips in the ECN account, lower than many alternatives. There are also no commissions, deposit fees or hidden charges.
- IC Markets - IC Markets maintains its commitment to providing exceptionally tight 0.0-pip forex spreads on major currency pairs such as EUR/USD. This makes it an excellent option if you are seeking superior execution, with an average of 35 milliseconds. Additionally, if you are a high-volume trader, you can benefit from rebates of up to $2.50 per forex lot.
- AvaTrade - AvaTrade offers 50+ currency pairs with competitive spreads from 0.9 pips and zero commissions. You can trade majors, minors and exotics around the clock on industry-leading platforms, including MT4 and MT5. Traders can also access beginner-friendly trading tools and comprehensive forex education.
- FOREX.com - FOREX.com continues to uphold its stature as a premier FX broker, offering over 80 currency pairs and boasting some of the most competitive fees in the industry. With EUR/USD spreads dipping as low as 0.0 and $5 commission per $100k, it stands out. Moreover, its SMART Signals help to identify price behaviors across numerous major currency markets.
Trading USD/MYR Comparison
| Broker | Forex Assets | EUR/USD Spread | Forex App Rating | Minimum Deposit | Regulator | Visit |
|---|---|---|---|---|---|---|
|
65+ | 1.6 | 4 / 5 |
$0 | NFA, CFTC | Visit |
|
55+ | 0.0 | 4 / 5 |
$50 | FCA, ASIC, FSCA, VFSC | Visit |
|
75 | 0.02 | 4.8 / 5 |
$200 | ASIC, CySEC, FSA | Visit |
|
50+ | 0.9 | 4.3 / 5 |
- | ASIC, CySEC, FSCA, ISA, CBol, FSA, FSRA, BVI, ADGM | Visit |
|
80+ | 1.2 | 4.9 / 5 |
$100 | NFA, CFTC, CIRO, FCA, CYSEC, ASIC, SFC, FSA, MAS, CIMA | Visit |
|
100+ | 0.1 | 4.7 / 5 |
$0 | FCA, ASIC, CySEC, DFSA, CMA, BaFin, SCB | Visit |
|
55+ | 1.6 | 4.7 / 5 |
$5 | ASIC, CySEC, DFSA, FSC, FSCA | Visit |
|
50+ | 0.0 | 3.6 / 5 |
$100 | ASIC, FCA, xCySEC, SCB | Visit |
|
45+ | Variable | 3 / 5 |
$0 | - | Visit |
|
60+ | 14 pips | 4.5 / 5 |
$10 | - | Visit |
|
50+ | 1.2 | 4 / 5 |
$10 | FSC, FSA | Visit |
|
70+ | 1.58 pips (Ave) | 2.5 / 5 |
$100 | FCA, CySEC, FSCA, SCB, FSC | Visit |
|
70+ | 0.2 | 3.4 / 5 |
$0 | CySEC | Visit |
|
70+ | 1.0 | 4.8 / 5 |
$0 | FCA, CySEC, KNF, CNMV, DFSA, FSC | Visit |
|
60+ | 0.6 | 5 / 5 |
$100 | FCA, ASIC, CySEC, DFSA, MAS, FSA, FSCA, FMA, EFSA | Visit |
#1 - OANDA US
Why We Chose OANDA US
OANDA offers a diverse selection of 68 currency pairs, more than many alternatives. The broker’s in-house platform offers superb day trading capabilities via powerful TradingView charts, including 65+ technical indicators and 11 customizable chart types.
"OANDA remains an excellent broker for US day traders seeking a user-friendly platform with premium analysis tools and a straightforward joining process. OANDA is also heavily regulated with a very high trust score."
- DayTrading Review Team
- GBPUSD Spread: 3.4
- EURUSD Spread: 1.6
- EURGBP Spread: 1.7
- Total Assets: 65+
- Leverage: 1:50
- Platforms: OANDA Trade, 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 for short-term traders, alongside flexible contract sizes and automated trade executions.
Pros
- Seasoned day traders can access industry-leading tools, including an MT4 premium upgrade and advanced charting provided by MotiveWave
- Day traders can enjoy fast and reliable order execution
- The broker offers a transparent pricing structure with no hidden charges
Cons
- There's only a small range of payment methods available, with no e-wallets supported
- It's a shame that customer support is not available on weekends
- The range of day trading markets is limited to forex and cryptos only
#2 - Vantage
Why We Chose Vantage
Vantage offers 55+ currency pairs - above the industry average, so experienced traders can explore plenty of opportunities. Vantage's deep liquidity pool provides forex spreads from 0.0 pips in the ECN account, lower than many alternatives. There are also no commissions, deposit fees or hidden charges.
"Vantage remains an excellent option for CFD traders seeking a tightly-regulated broker with access to the reliable MetaTrader platforms. The fast sign-up process and $50 minimum deposit make it very straightforward to start day trading quickly."
- DayTrading Review Team
- GBPUSD Spread: 0.5
- EURUSD Spread: 0.0
- EURGBP Spread: 0.5
- Total Assets: 55+
- Leverage: 1:500
- Platforms: ProTrader, MT4, MT5, TradingView, DupliTrade
About Vantage
Founded in 2009, Vantage offers trading on 1000+ short-term CFD products to over 900,000 clients. You can trade Forex CFDs from 0.0 pips on the RAW account through TradingView, MT4 or MT5. Vantage is ASIC-regulated and client funds are segregated. Copy traders will also appreciate the range of social trading tools.
Pros
- The low minimum deposit of $50 and zero funding fees make this broker a great choice for new traders
- There are no short-term strategy restrictions with hedging and scalping permitted
- The broker has recently made efforts to expand its suite of CFDs providing further trading opportunities
Cons
- A steep $10,000 deposit is needed for the best trading conditions, which include the $1.50 commission per side
- It's a shame that some clients will need to register with the offshore entity, which offers less regulatory protection
- The average execution speeds of 100ms to 250ms are slower than alternatives based on tests
#3 - IC Markets
Why We Chose IC Markets
IC Markets maintains its commitment to providing exceptionally tight 0.0-pip forex spreads on major currency pairs such as EUR/USD. This makes it an excellent option if you are seeking superior execution, with an average of 35 milliseconds. Additionally, if you are a high-volume trader, you can benefit from rebates of up to $2.50 per forex lot.
"IC Markets offers superior pricing, exceptionally fast execution and seamless deposits. The introduction of advanced charting platforms, notably TradingView, and the Raw Trader Plus account, ensures it remains a top choice for intermediate to advanced day traders."
- DayTrading Review Team
- GBPUSD Spread: 0.23
- EURUSD Spread: 0.02
- EURGBP Spread: 0.27
- Total Assets: 75
- Leverage: 1:30 (ASIC & CySEC), 1:500 (FSA), 1:1000 (Global)
- Platforms: MT4, MT5, cTrader, TradingView, TradingCentral, DupliTrade
About IC Markets
IC Markets is a globally recognized forex and CFD broker known for its excellent pricing, comprehensive range of trading instruments, and premium trading technology. Founded in 2007 and headquartered in Australia, the brokerage is regulated by the ASIC, CySEC and FSA, and has attracted more than 180,000 clients from over 200 countries.
Pros
- IC Markets offers among the tightest spreads in the industry, with 0.0-pip spreads on major currency pairs, making it especially cost-effective for day traders.
- With ultra-fast execution speeds averaging 35 milliseconds and deep liquidity, IC Markets provides an optimal trading environment for scalpers, hedgers, and algorithmic traders.
- You have access to over 2,250 CFDs across various markets, including forex, commodities, indices, stocks, bonds, and cryptocurrencies, allowing for diversified trading strategies.
Cons
- Interest isn't paid on unused cash, an increasingly popular feature found at alternatives like Interactive Brokers.
- There are fees for certain withdrawal methods, including a $20 wire charge, which can eat into profits, especially for frequent withdrawals.
- Despite four industry-leading third-party platforms, there is no proprietary software or trading app built with new traders in mind.
#4 - AvaTrade
Why We Chose AvaTrade
AvaTrade offers 50+ currency pairs with competitive spreads from 0.9 pips and zero commissions. You can trade majors, minors and exotics around the clock on industry-leading platforms, including MT4 and MT5. Traders can also access beginner-friendly trading tools and comprehensive forex education.
"AvaTrade offers the full package for short-term traders. There is powerful charting software, reliable execution, transparent fees, and fast account opening with a low minimum deposit."
- DayTrading Review Team
- GBPUSD Spread: 1.5
- EURUSD Spread: 0.9
- EURGBP Spread: 1.5
- Total Assets: 50+
- Leverage: 1:30 (Retail) 1:400 (Pro)
- Platforms: WebTrader, AvaTradeGO, AvaOptions, MT4, MT5, AlgoTrader, TradingCentral, DupliTrade
About AvaTrade
AvaTrade is a leading forex and CFD broker, established in 2006 and regulated across 9 jurisdictions. Over 400,000 users have signed up with the broker which processes over 2 million trades each month. The firm offers multiple trading platforms, including MT4, MT5, and a proprietary WebTrader. 1250+ financial instruments are available for day trading, alongside a comprehensive education center and multilingual customer support.
Pros
- AvaTrade is a heavily regulated and trustworthy broker with licenses from the ASIC, CySEC and more
- The broker’s unique risk management tool, AvaProtect, protects against losses up to $1 million and is easy to activate in the platform
- Automated trading is supported through MetaTrader Expert Advisors (EAs), as well as the AvaSocial and DupliTrade tools
Cons
- A high $2000 minimum investment is required to use DupliTrade, which will be out of reach for many beginners
- It’s a shame that there are no rebate schemes for serious traders looking for additional perks - CMC Markets would be a better choice here
- There is no ECN account with raw spreads
#5 - FOREX.com
Why We Chose FOREX.com
FOREX.com continues to uphold its stature as a premier FX broker, offering over 80 currency pairs and boasting some of the most competitive fees in the industry. With EUR/USD spreads dipping as low as 0.0 and $5 commission per $100k, it stands out. Moreover, its SMART Signals help to identify price behaviors across numerous major currency markets.
"FOREX.com remains a best-in-class brokerage for active forex traders of all experience levels, with over 80 currency pairs, tight spreads from 0.0 pips and low commissions. The powerful charting platforms collectively offer over 100 technical indicators, as well as extensive research tools."
- DayTrading Review Team
- GBPUSD Spread: 1.3
- EURUSD Spread: 1.2
- EURGBP Spread: 1.4
- Total Assets: 80+
- Leverage: 1:200 (Retail), 1:500 (Pro)
- Platforms: MT4, MT5, TradingView, eSignal, AutoChartist, TradingCentral
About FOREX.com
Founded in 1999, FOREX.com is now part of StoneX, a financial services organization serving over one million customers worldwide. Regulated in the US, UK, EU, Australia and beyond, the broker offers thousands of markets, not just forex, and provides excellent pricing on cutting-edge platforms.
Pros
- With over 20 years of experience, excellent regulatory oversight, and multiple accolades including runner-up in our 'Best Forex Broker' awards, FOREX.com boasts a global reputation as a trusted brokerage.
- FOREX.com offers industry-leading forex pricing starting from 0.0 pips, alongside competitive cashback rebates of up to 15% for serious day traders.
- There’s a wealth of educational resources including tutorials, webinars, and a stacked YouTube channel to help you get educated in the financial markets.
Cons
- FOREX.com's MT4 platform offers approximately 600 instruments, significantly fewer than the over 5,500 available on its non-MetaTrader platforms.
- Demo accounts are frustratingly time-limited to 90 days, which doesn’t give you enough time to test day trading strategies effectively.
- Funding options are limited compared to leading alternatives like IC Markets and don’t include many popular e-wallets, notably UnionPay and POLi.
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.