Low spread forex brokers and other financial services firms in Malaysia are regulated by the Securities Commission Malaysia (SCM), or by the Labuan Financial Services Authority (Labuan FSA) if located in the Malaysian Federal Territory of Labuan. Due to special tax treatment and business-friendly policies in Labuan, some forex brokers have chosen to register their brokerage in this particular state, rather than in Malaysia’s capital Kuala Lumpur.
Malaysian forex traders are generally free to choose if they want to trade with a local broker, or if they prefer to look for low spread forex brokers with even better trading conditions outside of the country. In either case, Malaysia is home to a growing community of forex traders, and brokers are increasingly taking steps to accommodate them with low spreads and high trading leverage.