Are prop firms legal in Malaysia?
Malaysia is strict about forex brokers. Prop firms work differently, but here's why you should still be careful.
Forex brokers vs prop firms
Trading forex with an unlicensed broker isn't permitted in Malaysia. A prop firm doesn't hold your deposit or execute real trades for you; it sells an evaluation on a demo account. No regulator has ruled specifically on that model.
Investor Alert List
The Securities Commission publishes an Investor Alert List of unlicensed entities. Search the firm's name there before paying.
Red flags
Guaranteed returns, payment to a personal account and pressure from 'mentors' on social media are all reasons to walk away.
Frequently asked questions
Can I trade a prop account from Malaysia?
The firms on this site accept Malaysian traders, but the regulatory position isn't settled.
Are there Shariah-compliant prop firms?
Some firms offer swap-free accounts; whether that is enough is a question for a scholar.