How to Trade Forex in Malaysia: A guide on what Forex is, how to trade Forex, and the best platforms in Malaysia

If you’ve ever wondered how to trade forex in Malaysia, you’re not alone. Foreign exchange trading is a popular route for investors globally to diversify their portfolio, and to seek out returns as currency markets shift. There’s risk involved - as with any investment - but forex trading can be a useful strategy for new and experienced investors alike.

This guide touches on how to trade forex for beginners, and also introduces Wise as a great way to manage money across currencies if you’re not looking to trade and invest. Wise can help if you need to receive, hold, send, spend and exchange foreign currencies for day to day use, with low fees and mid-market exchange rates. More on that later.

What is Forex?

So - what is forex and what is forex trading?

Forex is shorthand for foreign exchange - the buying and selling of currencies on global markets.

Foreign exchange markets change all the time, with the value of one currency versus another being dictated by multiple factors including the supply and demand of any particular currency at a given time. This moving market creates opportunities for investors to buy one currency at a price they consider low, and sell later for a higher price if the market shifts in their favour, for example - although there are lots of different options for foreign exchange trading including strategies for speculating and hedging, which all come with their own opportunities and risks.

What is Forex trading?

Forex trading involves trading foreign currencies with an eye to either making a profit or minimising the risks of changes in the market.

You may complete a spot exchange - that is buying another currency on the spot, which you could then sell later if the price improves. Or you could choose a forward contract in which you agree a price for a currency pair, for a trade which will take place in the future on a specific date or within a range of dates. This works somewhat like betting as you’re taking a gamble that the value of the currency pair will change in your favour before the transaction date.

Foreign exchange markets are completely global, so if you’re forex trading in Malaysia you’ll still be able to buy and sell more or less any currency you like. There are several popular currency pairs which make up the bulk of trades globally, including:

• EUR/USD
• GBP/USD
• AUD/USD
• USD/JPY
• USD/CAD

Being able to buy and sell foreign currencies can be helpful if you’re an investor looking to diversify your assets outside of Malaysia for example.

How much do I need to start trading Forex?

Foreign exchange trades are completed on global markets in fairly large volume transactions, which usually start from 1,000 units of a currency - so 1,000 USD for example. Brokerage apps often let you trade lower amounts, making this an option for smaller investors, too.

Really the most important thing here is that forex trading comes with risk - you may lose money. That means that no matter how much money you have, you must feel comfortable with the risk you’re taking if you choose to trade forex with your funds. In short: don’t trade with money you couldn’t afford to lose.

Trading Forex in Malaysia

Let’s take a closer look at how to trade forex in Malaysia. The steps you will take might vary a little depending on your intent and the amount of capital you have to invest - but the basics are likely to be the same, whether you’re a seasoned investor or just starting out.

How to trade Forex for beginners

If you're planning to trade forex in Malaysia, the exact path you take may depend on your experience, capital, and desired outcomes. You’ll certainly need to do your own research into the market and your trading options before you put any money on the line, as the value of your investments may go down as well as up.

To get you thinking about how to plan your own forex journey, here’s a quick outline of how to trade forex for beginners:

Step 1. Learn about the foreign exchange trading market in Malaysia

Forex trading comes with risk - you may lose money, so to maximse your chances of success you’ll need to make sure you’re educated on the way forex trading works, your options, and the risks and opportunities involved in different trading strategies. View this research as time invested to make the most out of your money once you start to trade more actively.

Step 2. Choose a broker and open a trading account

Once you’re ready to start to trade, you can open a trading account with your preferred broker. Make sure you pick a reputable and properly licensed broker which has an easy to use interface and low trading costs. We’ve got a couple of ideas of the apps which may appeal coming up in just a moment.

Step 3. Develop your trading strategy taking into account risk and timescales

Don’t leap into forex trading without a plan. Every investor will have a different trading strategy based on the amount of capital available, the time horizons and the individual’s risk appetite. Consider different scenarios to plan out your strategy, minimising the risks involved and maximisiig the opportunity to turn a profit.

Step 4. Start to trade

Once you feel ready, it's time to start to trade forex. You can usually complete trades in your broker’s app, which means you can act quickly where needed for time sensitive trades.

Step 5. Continue learning about forex and keeping up with the markets

Foreign exchange markets change all the time, so to trade successfully you will need to commit to continuous learning and personal development. This may be watching the markets and reading analysis from experts, keeping up to date with economic and political news globally and so on - anything which helps you to refine and adjust your investing strategy over time is worth considering, to keep on top of the game.

Which app should I use to trade Forex?

There’s no single best app to trade forex in Malaysia - there’s a lot of choice and in the end it might just come down to which app has your preferred user interface. It’s also worth looking at different broker fees based on the types of trade you’re likely to carry out - fees can reduce your profits significantly, particularly if they’re ongoing or unavoidable costs which you’ll pay no matter how you use your account.

A few trading apps to look at include Pepperstone¹, Moomoo² and eToro³. Pepperstone is frequently voted a winner for its customer service, and offers trading across all sorts of assets including FX. Moomoo is a trading app used globally, including countries like US, Australia, Singapore, and Malaysia. And finally, eToro has over 35 million global users and is known for having an easy to use app which suits beginner investors.

Check out these broker apps to see if they appeal - if not, there are many more options in Malaysia for forex trading, so you’ll be sure to find one which you like the look of with a bit of research.

Pros and cons of trading Forex

Trading forex is a big decision and not one to be taken lightly - draw up your own pros and cons list if you’re struggling to decide if it’s right for you. Here are a few thoughts on the advantages and disadvantages commonly cited:

Not looking to trade? Convert, hold, and send 40+ currencies with Wise

If you’re looking for ways to manage your money across currencies - rather than for active forex trading, check out Wise.

Wise isn’t intended for foreign exchange trading - but it does offer a smart multi-currency account you can use to hold and exchange 40+ currencies, and the Wise card for easy spending and withdrawals. You can use your Wise account to send payments to people and businesses overseas, or to receive payments from others in foreign currencies, using local and SWIFT account details for 8+ major currencies. Whenever you need to convert from one currency to another, either in your account or when you send or spend a foreign currency, you’ll get the mid-market exchange rate with low fees from just 0.33%⁴.

You can open your Wise account online or in app in just a few simple steps, to get all you need to manage your daily finances in MYR and many other currencies, right from your phone. Send money to 140+ countries quickly with low fees, receive incoming payments, and use your Wise card to spend in 150+ countries. Plus, if you find you need cash from time to time, Wise cards offer up to 2 free ATM withdrawals every month, to the value of 1,000 MYR, with low and transparent ATM fees after that.

🚀 Get started with Wise

Summary

Forex trading is a popular and fairly accessible means of investing and trying to make a profit, through spot exchanges, future contracts and a mixture of speculating and hedging strategies. It’s not without risk though - as with any investment, you could lose money. Use this guide to start researching forex trading in Malaysia to decide if it’s right for you - and for your day to day international finances, check out Wise with low cost multi-currency accounts you can manage right from your phone.

1. Pepperstone
2. Moomoo
3. eToro
4. Pricing/fees: Please see Terms of Use for your region or visit Wise Fees & Pricing for the most up-to-date pricing and fee information.