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Is forex trading legal in Malaysia?

Malaysia's Securities Commission treats leveraged forex and CFD dealing as a licensed activity, and it has publicly warned against well-known international brokers operating without a Malaysian licence.

Checked 12 Nov 2026Not legal advice

Short answer: trading forex is not itself banned, but brokers offering leveraged forex or CFDs to Malaysians need a licence from the Securities Commission Malaysia (SC). The SC has added international brokers, including eToro and OANDA, to its warnings for operating without one.

Who regulates what

  • Securities Commission Malaysia licenses capital market dealing under the Capital Markets and Services Act 2007, which covers leveraged derivatives such as CFDs.
  • Bank Negara Malaysia is the central bank. It manages exchange control and licenses money changers, but does not license online forex brokers.

The SC's warnings

The SC publishes an Investor Alert List of unauthorised websites, investment products and companies. Since around 2020 it has named many international forex and CFD brokers on it, including eToro, OANDA, HotForex, FXTM, Tickmill, OctaFX and FBS, for dealing without a Malaysian licence. Some of these brokers then stopped accepting Malaysian clients.

What it means for you: if you trade with a broker on the Investor Alert List, you have no Malaysian regulator to turn to in a dispute, and access to the broker or local payment routes may be cut off.

How to check a broker

  1. Search the broker's name on the SC's Investor Alert List.
  2. Check whether the company holds a Capital Markets Services Licence from the SC.
  3. Be wary of "spot commodity" and forex schemes promising fixed returns; the SC has warned about these specifically.

FAQ

Will I be prosecuted for using an offshore broker?

The SC's actions so far have targeted brokers and promoters. How the law applies to an individual is a legal question; ask a Malaysian lawyer.

Is there a legal way to trade currencies in Malaysia?

Bursa Malaysia lists some regulated derivatives, and SC-licensed firms can offer products to Malaysians. Check what is available through a licensed firm.

Sources

  1. Securities Commission Malaysia: Investor Alert List
  2. Finance Magnates: Malaysian regulator warns against HotForex and others
  3. FXScouts: Is forex trading legal in Malaysia?

General information, not financial or legal advice.