Prop (proprietary) trading offers Malaysian traders the chance to access a company’s capital rather than risk their own, and this appeal is rising in a market where Bursa Malaysia often sees daily volumes of RM2–4 billion. Prop trading is also thriving globally, with over 50% of daily forex volume estimated to come from non-institutional traders.
In this article, we explore the most prominent prop trading firms operating within or catering to the Malaysian market—comparing their account structures, profit-sharing models, and fee arrangements in a way that resonates with local regulatory requirements and trading preferences. We also highlight why choosing a firm that aligns with your risk tolerance, adheres to Malaysia’s financial guidelines (including Shariah-compliant options where relevant), and supports Bursa Malaysia’s diverse instruments is crucial for achieving long-term trading success in this rapidly growing marketplace.
Best Forex prop firms in Malaysia
As we have already explored Prop trading—the trading of financial instruments using the firm’s capital rather than the trader’s funds—has gained traction among Malaysian traders seeking to leverage larger account sizes and minimize personal risk exposure. If you are a Malaysian trader looking for a prop firm that caters to local regulatory norms, offers flexible trading instruments, and provides substantial growth opportunities, here is a list of the top proprietary trading firms to consider. These firms were chosen based on their account features, compliance track record, and benefits for Malaysian residents.
The Best Prop Trading Firms in 2025
Rating breakdown
Things we liked:
Exclusive Discount Code (20% Off Exclusive Offer)Unlimited time for completion
Real Funding and Daily Payouts
Things we didn't like:
High challenge difficulty
Rating breakdown
Things we liked:
Exclusive Discount Code (10% Off Exclusive Offer)Unlimited time for completion
Real Funding and Daily Payouts
Things we didn't like:
Futures onlyNo free retry
Rating breakdown
Things we liked:
Up to 100% Profit SplitUnlimited Number of Trading Days
Fast Payouts
Things we didn't like:
10% Max Loss Limit on Accounts$10 Withdrawal Processing Fee
No swap free accounts
| Prop Firm | Prop firms that allow clients from malaysia |
|---|---|
| FunderPro | |
| Funding Pips | |
| FXIFY | |
| FundedNext | |
| FTMO | |
| Apex Trader Funding | |
| the5ers | |
| Toptier Trader | |
| SabioTrade | |
| NeomAAA Funds | |
| UltraCap Trading | |
| MyFundedFX | |
| BlueBerry Funded | |
| Topstep | |
| Blue Guardian | |
| FTUK | |
| Funded Trading Plus | |
| Earn2Trade | |
| City Traders Imperium | |
| E8 Markets | |
| Lux Trading Firm | |
| Goat Funded Trader | |
| The Trading Pit | |
| PipFarm |
Choosing the right prop firm is about aligning trading styles, risk tolerance, and local requirements. Whether you aim to trade equities listed on Bursa Malaysia or prefer forex pairs with high liquidity, our list of proprietary trading firms offers varied account structures, transparent fee models, and competitive profit splits—many of which are accessible to residents of Malaysia.
Before committing, thoroughly research each firm’s evaluation process, read the fine print on account terms, and ensure it meets your financial and regulatory needs. With the right prop firm, Malaysian traders can enjoy the benefits of larger capital bases, robust risk management systems, and supportive trading communities—all essential elements for long-term success in proprietary trading.
Rules and regulations
There is no specific licensing requirement for prop firms in Malaysia to offer services to local traders. Being registered in the country is sufficient, and foreign entities can also operate with Malaysian clients without a local license. The main rule for everyone involved is to follow Shariah principles, ensuring all trading methods remain compliant with Islamic finance.
Investor Protection
Local traders working with investment companies can file complaints with these regulators:
- MIDA (Malaysian Investment Development Authority).
- FAA (Financial Accreditation Authority).
- SAC (Shariah Advisory Council).
- Law enforcement.
When dealing with foreign prop firms, traders must approach the authorities in the firm’s registration country or consult applicable self-regulatory and regional bodies for complaints.
Is prop trading legal in Malaysia?
Yes, prop trading is legal in Malaysia, operating with minimal direct oversight. Prop firms do not require local licenses, although they must abide by wider financial regulations and Shariah standards. Both local and foreign companies can deliver prop trading services, chiefly supervised by fundamental Know Your Customer (KYC) measures outlined by the Securities Commission Malaysia. Observing Shariah guidelines is key, guaranteeing that trades follow Islamic finance values. Malaysian regulators, like the Malaysian Investment Development Authority (MIDA), Finance Accreditation Authority (FAA), and the Shariah Advisory Council (SAC), facilitate dispute resolution and protect traders. Overall, Malaysia’s legal context nurtures prop trading, backed by robust financial laws and free from any mandate to handle client funds. These rules enforce basic KYC checks, aimed at preventing illicit activities and ensuring accountability among prop trading participants in Malaysia.
Taxation
Forex gains in Malaysia typically count as business income. If trading Forex is your primary profession, your earnings may be taxed at rates from 0% to 30%, depending on how much you make yearly. Profits up to 5,000 MYR are tax-free, and this bracket mainly applies to those who trade frequently and rely on Forex as a main income source.
- Offsetting Forex losses for business owners: If you run a business that includes Forex trading, any losses from Forex can reduce your total taxable income. This can be beneficial during unprofitable trading periods.
- Tax relief from international earnings: Malaysia has treaties to prevent double taxation on Forex income earned abroad. If you’re trading in countries that have these agreements with Malaysia, you can apply for tax relief or credits to lower your final tax bill.
- Extra tax on using foreign brokers: If you trade through a non-Malaysian broker, commissions may come with a 10% withholding tax. Keep this in mind when figuring out net profits, since it directly affects what you take home.
How to Choose a Prop Trading Account in Malaysia
- Regulation and security: Confirm the prop trading firm is overseen by the Securities Commission Malaysia (SCM) or credible international bodies. Also check for data encryption and separate client fund accounts to safeguard your money.
- Trading style: Select a firm that accommodates your personal approach, as each may offer different strategies, risk controls, and markets. Look for one that suits how you prefer to trade.
- Choice of instruments: Examine which assets are available. A broad range—including currency pairs, commodities, indices, and more—lets you diversify your methods.
- Reputation: Read user feedback and gauge the firm’s industry standing. Stick to companies with a solid track record and credible background.
- Customer support: Consider the level of help provided. Efficient support can address any concerns quickly and solve technical hitches.
How to Get a Prop Firm Account as a Malaysian Citizen
Securing a prop firm account in Malaysia involves steps tailored to the local environment. Begin by picking a reputable firm — such as
FunderPro, Funding Pips, FXIFY— that accepts Malaysians. Sign up on the firm’s site, then choose a qualification exam to test profitability and risk control.
You must pay a fee, typically $47 to $500 depending on the firm and account size. During the challenge, you’ll aim for predefined profit goals while sticking to specific risk limits within a given time frame.
If you pass, you’ll receive a funded trading account ranging from $10,000 to $400,000. Prior trading experience is vital—Prop number one suggests 6–12 months of day trading to boost your chances. Take note of regulatory requirements: while prop firms don’t need a special local license, they must follow Shariah law and KYC rules set by the Securities Commission Malaysia. Finally, review the profit-sharing plan—Prop number one offers 100% to traders, an arrangement that can significantly impact your earnings.
Is Prop Trading Free in Malaysia?
Prop trading in Malaysia lets you operate with substantial capital, but it isn’t entirely cost-free. Most firms require a subscription fee that can range between $75 and $500.
By paying this, you gain access to the firm’s capital. In return, the firm keeps a share of your profits, allowing you to trade with bigger sums. These fees cover administrative expenses and the use of platforms. Since amounts differ per company, research their fee structure before signing up. While you do pay a fee, the ability to control sizable capital often offsets the cost.
How to Pay for a Funding Challenge in Malaysia
Malaysian traders have multiple payment methods for a funding challenge:
- Visa/Mastercard or Bank Transfer: Many local banks issue these cards and also support wire transfers.
- Online Payment Apps: Services like PayPal or Wise are commonly accepted by prop firms offering their services in Malaysia.
- Cryptocurrencies: Bitcoin and Ethereum are also popular options for quick, secure transactions.
Most prop firms don’t add extra processing fees, though your bank or payment provider might. Paying for a funding challenge is not subject to additional processing fees unless otherwise charged by the bank/payment app of your choice.
Is Trading for a Prop Firm Halal?
There is ongoing debate in the Muslim community over various modern financial practices. Anything contradicting Islamic teachings—like gambling and riba (interest)—is considered haram, meaning forbidden.
Hence, if you seek a fully compliant approach, look for prop firms with Islamic or swap-free accounts, ensuring no interest is involved and staying 100% halal.
Best Prop Firms that Offer Swap-Free Accounts
| Prop Firm | Swap-Free Accounts |
|---|---|
| FundedNext | |
| FTMO | |
| the5ers | |
| FTUK | |
| Lux Trading Firm |
No-Swap Period: Please keep in mind that some prop firms will only allow you a limited amount of time in which you can trade swap-free. This is known as no-swap or swap-free periods.
Prop Firms that DON’T Offer Swap-Free Accounts (yet)
| Prop Firm | Swap-Free Accounts |
|---|---|
| FunderPro | |
| FunderPro Futures | |
| Funding Pips | |
| FXIFY | |
| Apex Trader Funding | |
| Bullwaves Prime | |
| Toptier Trader | |
| SabioTrade | |
| Hola Prime | |
| NeomAAA Funds | |
| Top One Futures | |
| Take Profit Trader | |
| ThinkCapital | |
| UltraCap Trading | |
| MyFundedFX | |
| BlueBerry Funded | |
| Topstep | |
| Blue Guardian | |
| Funded Trading Plus | |
| Top One Trader | |
| For Traders | |
| 1of1 Funding | |
| Alpha Trader | |
| DNA Funded | |
| PROP365 | |
| Funded Squad | |
| Propel Capital | |
| Plutus Trade Base | |
| Elites Funding | |
| EverBlue Trader | |
| PIP Traders Funding | |
| Bold Fund | |
| Clarity Traders | |
| Tycoon Funded | |
| Upcomers | |
| TradingFunds | |
| Funded Prime | |
| SuperFunded | |
| TakeCap | |
| Earn2Trade | |
| Crypto Fund Trader | |
| City Traders Imperium | |
| E8 Markets | |
| Goat Funded Trader | |
| The Trading Pit | |
| PipFarm | |
| Tradexprop |
Forex prop trading in Malaysia FAQs
Funded trading can be lucrative, but its success hinges on your expertise and the specific prop program. Ideally, you want a firm offering an 80/20 profit split favoring the trader, along with reasonable targets.
For many Malaysian Forex traders, Topstep is regarded as the top pick.
Yes. Prop firms are fully legal in Malaysia, though the company financing traders must report to the Securities Commission Malaysia (SCM).
A Trader in Malaysia earns an estimated total of MYR 5,625 monthly on average, with a base salary around MYR 3,000.
You can generate profits from prop trading, but ultimately it depends on having a solid plan and operating within the conditions set by the prop firm.
Oma Ally (Omar Ali) is widely seen as a leading Forex trader in Malaysia. He’s self-taught and is best known for the BBMA (Bollinger Bands and Moving Averages) strategy.
