Jumpstarting Your Forex Trading Journey in Malaysia for 2023: A Beginner's Guide

Do you live in Malaysia and want to make money by exchanging currencies online? Then this article is for you. Learn more about the advantages of the forex market and find out how to start trading in Malaysia on JustMarkets.

Key points

  • Forex trading (FX) is a currency exchange process aimed at profiting from differences in currency rates.
  • It is legal to trade forex in Malaysia as far as it is done through Islamic accounts and with a licensed organization.
  • The initial steps to take when starting trading forex are signing up with a broker, opening a trading account, and making a deposit.
  • For profitable trading, one should analyze trends properly, develop a reliable strategy, and trade with discipline.

Why Trade Forex in Malaysia?

FX has a few advantages over other financial markets. Here are just a few reasons why you might want to trade currencies:

  • Because of its decentralized nature, forex is open round the clock Monday through Friday. For a trader, it means there is always an opportunity to earn. Trading hours start early in the Pacific session and end in North America with the most active time during the overlaps of the trading sessions.
  • Currency stands out from other trading instruments because of its liquidity. It means that buying or selling a currency at any time is relatively easy when compared to stocks or other assets. So if the currency pair you are trading moves against your plan, it will be no trouble to leave the trade quickly.
  • Another reason why FX is worth your attention is its low transaction costs. Although they differ from broker to broker, in general, transactions are cheap, and the broker’s commission is in the spreads of a currency pair.
  • Forex offers great leverage opportunities. Note that we don’t recommend using leverage to inexperienced traders as it does not only boost profit but also increases risks. However, professional traders benefit from leveraged trades a lot.
How to start trading forex in Malaysia

How Much Money is Required to Start Forex in Malaysia?

The minimum deposit requirements differ from broker to broker. For example, you can trade with JustMarkets with only $1 on your balance. It is worth saying that this humble investment does not promise any impressive results. However, it may help you learn the way the market works. While developing the skills required for currency trading, you can gradually increase your deposit and gain more significant returns.

Pro traders who trade forex for a living operate with tens of thousands of dollars, making 5-20% of their investment yearly. This is not an easy way to get there, but it is worth the time and effort of those who discover they have a true passion for the market.

Related topics: Can You Make a Living Trading Forex

How are Currencies Traded?

Currencies are traded in pairs. The currency you want to buy or sell is always accompanied by the currency that reflects its price. Let’s have a look at the EUR/USD pair. If EUR/USD is 1.19724, it means that 1 euro costs 1.19724 (dollars). The first currency in the pair is called the base currency; the second one is called the quoted currency.

The quote (price) of the EUR/USD currency pair is 1.19724. As big forex players operate with huge sums of money, even the tiniest switch of the price makes a difference. The slightest move that can take place in a quotation is one point. Point is the last digit in quotation – 1.19724. Ten points are equal to 1 pip.

Same as in the bank, the price of a currency pair is different depending on whether you want to buy or sell it. The selling price is called a bid price. The buying price is known as an ask price. The difference between bid and ask prices is known as a spread. It is worth saying that as a trader, you are interested in the smallest spreads.

Another good thing about the market is that one can successfully trade any currency pair whether it’s about to rise or fall. If there is a signal for further appreciation of the pair, traders buy the instrument ("go long"). The prospect of the instrument’s depreciation may be good for selling ("going short") and profiting from the rise of a quoted currency.

To find the best time for opening/closing a position, traders refer to technical and fundamental analyses. Both of the methodologies help them determine future price movements and make sound trading decisions. Technical analysis deals with charts showing the history of price movements and forecasting the future behavior of the price based on the evidence. Fundamental analysis evaluates the market situation based on macroeconomic data updates. You can subscribe to our daily newsletters to stay updated on the latest financial markets news.

Trading Strategies for Malaysia

Most beginner traders start their acquaintance with forex by practicing day trading. This trading style implies opening and closing a position within the same day. They open orders for as long as a few minutes or hours and make a profit from short-term trends in the market. This trading style can be applied in many different ways within multiple strategies. Try a few of them and find which one works best for you.

Related topics: A Guide to Forex Day Trading

Find a Forex Broker in Malaysia

The best thing you can do for yourself when starting your FX journey is to sign up with a reputable broker. There are millions of fraudulent schemes out in that market. But even with real brokerage firms, you can endure losses due to bad trading conditions. To choose what’s best for you, pay attention to the following criteria when looking for a broker:

  • Check the license
    Many countries have regulatory institutions that supervise the work of brokerage firms. These organs grant licenses to the brokers that meet their requirements. Being under the regulation of official organs, these brokers are believed to be more secure.
  • Compare trading conditions
    Trading conditions vary from broker to broker. As a trader, you want to find the best for yourself. Check if there are any commissions and the size of the spreads (bid and ask price difference).
  • Read reviews
    Reading real users’ reviews might help you grasp the general impression of the broker. There are a few platforms where you can find trustworthy information on brokers (e.g., Trustpilot.).
  • Islamic account
    Sharia law prohibits trading with swaps (overnight fees). This is why swap-free (Islamic) accounts have been introduced in Muslim countries. So, when choosing a broker, make sure it provides clients with an opportunity to open a swap-free trading account.

How To Open A Trading Account In Malaysia?

Opening a trading account is easy. If you open it on JustMarkets, all you need to do is fill in the registration form and receive a confirmation email. To start trading, you will need to make an initial deposit as well (min $1).

If you are completely new to trading, consider opening a demo account first. Although trading on a demo account isn’t profitable, it is a perfect place to get acquainted with the trading terminal (MT4 or MT5), learn the market behavior, and develop a strategy.

Read more: Forex Trading for Beginners in 2022


Trading forex is easy and profitable once you know what you’re doing. Following trends, developing your own strategy, and trading with discipline will shortly bring you to positive results. This is what successful full-time traders say. But before you do it, make sure to find the best conditions for trading. With JustMarkets you get:

  • a team of support working round the clock to ensure you have the best trading experience;
  • lowest spreads and 0% withdrawal commissions that guarantee your profit will not vanish after fee reductions.
  • An option to open an Islamic swap-free account that complies with Malaysian regulations.

So don’t hesitate to open a trading account on JustMarkets and take care of your future today!

by JustMarkets, 2023.04.24

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