Trading with high spreads can become one of the detrimental factors for achieving profitability in financial markets. Malaysia is a great place for trading Forex and other markets as it has lower living expenses and offers a well-regulated financial sector. To become profitable in the turbulent financial markets traders have to combine a reliable broker with low spreads. If you are wondering how to find reliable brokers that also offer low spreads in Malaysia this guide got you covered.
Low Spread Currency Pairs in Malaysia
Whenever watching live markets you will notice that there are two prices for every trading asset. These two prices are called bid and ask prices and traders have to pay them to buy and sell contracts on the market. The difference between ask and bid prices is called spreads and traders pay it instantly whenever they open or close a trading position. Because of this nature, traders have to pay the spread twice for each trading position. As you can tell, paying the fee twice can hurt trading profitability and it has the potential to jeopardize many trading strategies, especially the scalping strategies. The scalping method is a very popular type of trading as it relies on many small profits throughout the trading day. Opening many trades per day means many trading fees are paid in spreads and it becomes critical to find brokers who offer the lowest spreads possible. But finding the brokers is just one part of low-spread trading and knowing which currency pairs have the lowest spreads on average is equally as important.
List of currency pairs with low spreads
The more liquid the asset is, the lower spreads it will have. But this is not always true and traders have to check spreads before every trading position is taken. For catching low spread Malaysia currency trading is the best way as FX pairs are known to have the lowest spreads among trading assets in the industry. In Forex markets the major pairs generally come with lower spreads. Major pairs are EUR/USD, USD/JPY, GBP/USD, and USD/CHF. The EUR/USD is generally known for its lowest spreads. But depending on the broker and account type the spreads may be higher or lower. It is important to mention that the industry average spread for major pairs is around 1 pip. Higher than 1 pip spread on EUR/USD is considered expensive while lower spreads are best for achieving better performance.
Discussing the low spread examples in Malaysia
If you live in Malaysia and want to trade Forex make sure the broker offers spreads on major pairs within the range of 1 pip. 1 pip is usually a fourth decimal point in price, for example in EUR/USD’s case when the price changes from 1.1010 to 1.1011 it means the price has moved by 0.0001 or 1 pip. For finding the pairs with low spread Malaysia can be a great place as it is possible to access many well-established brokers who offer the best trading conditions.
Finding the best spreads when trading in Malaysia
The main factors to find a good spread in Forex Malaysia is to develop a trading strategy first and then evaluate which type of spreads are best for it to work profitably. For scalping strategies super low spreads are essential and paying little commissions would not harm the profitability of your scalping strategy. For day trading and swing trading low commissions are more priority and paying an industry-average spread would be preferable with low or no commissions. To make it short, if your strategy relies upon many small profits then you should find a broker that offers close to zero spreads, and if you want to trade swing or day trading strategies that rely on catching large movements then lower commissions are a top priority.
How to Trade Forex with Low Spreads in Malaysia
The first step for achieving low spread trading is to find a reliable Forex broker. From the brokers operating in Malaysia, Tickmill offers one of the best trading conditions. With spreads starting from zero and trading commissions being well below the industry average it is possible to scalp FX markets with profits. One of the main factors when selecting the broker is regulations and Tickmill is a well-regulated broker under several jurisdictions, making it one of the safest brokers in the world right now. Honorable mentions would be Swissquote and IFC Markets which also operate in Malaysia and offer well-regulated trading services. When trading scalping strategies in Malaysia low spread FX trading is key for achieving profitability. This is why Tickmill is first on our list of reliable brokers.
FAQs on what is low spread and who offers best spreads in Malaysia
Is it good to have low spread when trading Forex in Malaysia?
It is best to have lower spreads in general, but depending on the trading strategy spreads may matter the most for scalpers while for swing traders low commissions would be more beneficial. So, it all depends on the trading strategies and financial assets used by the trader, but lower spreads are going to be better for the most part. For FX trading with low spreads Malaysia can be a very attractive place as it offers several reputable brokers with low spreads and has lower living costs when compared to other countries.
Can you trade Forex with zero spread in Malaysia?
It is achievable to trade Forex with zero spreads while residing in Malaysia, it will require finding a reliable broker that offers a trading account targeted at scalpers that generally has spreads from zero pips and low commissions based on the trading volume. Tickmill offers spreads starting from 0 pip.
Which Forex broker in Malaysia has lowest spreads?
Several reputable brokers are operating in Malaysia that offer very attractive trading conditions. Our top selection would be the Tickmill Forex broker which offers one of the lowest spreads and ultra-low trading commissions based on the trading volume. Now, traders can select between several account types that offer low spreads and zero commissions. Some accounts have spread from zero but require little commissions, usually being USD 4 round turn which is well below the industry average of $7. With Tickmill’s low FX spread trading Malaysia can be a palace you want to trade from; As it becomes possible to trade any scalping strategy on Tickmill broker in Malaysia.