Forex brokers registered in Malaysia are all regulated by either the Securities Commission Malaysia (SCM) or the Labuan Financial Services Authority (LFSA), depending on where they are registered. In order to be regulated by the LFSA, the forex broker must be registered in the Federal Territory of Labuan, Malaysia.
In 2018, Malaysian regulators issued new guidelines for trading with CFD & forex brokers to “promote and develop” the local derivatives market. According to the new regulations, entities that offer CFDs in Malaysia must hold a derivatives dealer license, issued by the regulator. It is expected that this new and improved regulatory framework will bring more regulated forex & CFD brokers to Malaysia in the coming years.