Day Trading Brokers and Platforms in Malaysia 2020

How to Compare Brokers

Before you can find the best interactive brokerage for day trading, you need to determine your own investment style and individual needs – how often do you trade, for what hours, for how much money and which financial instruments to use. Then when choosing between all the top day trading brokers, there are several factors that you can consider. If you just go for the cheapest, you might have to compromise on platform features. There is no one size fits all brokers and their trading platforms. The best brokerage will indicate all your individual requirements and details. Here are some important points and areas to compare it to in this competitive market: Cost

• Do they offer low commission rates? – As a day trader who places many trades in a trade, low commissions over a long period of time will increase your overall profits.
• Do they offer attractive margin rates? – If you can expect a higher return than the interest you pay on the loan, then the cheap margin rate will allow you to trade big with capital that you don’t need to hand.
• Do they have complicated fee structures? – Brokerage fees can add up quickly. You need to look at the fine print to make sure you don’t get stung with hidden costs later, like when you want to withdraw your money. Having said that, the cheapest brokers for day trading usually make their money in other areas, such as customer service.
• Do you require a minimum deposit? – Some brokers will require you to put up significant capital to open an account and start trading. For example, if you day trade at Interactive Brokers, you need to put down some serious cash before you can work.
• Does the broker have a daily trading limit? – Some limits are imposed to protect against extreme volatility and market manipulation. But the trading limits of Interactive Brokers can be set by you to prevent you from losing too much capital in one day.
• Do they offer different account types? – Different accounts will come with various attractive costs and benefits. For example, choose between the Interactive Broker day trading account and you can get lower commission fees, greater leverage and improved tools for technical analysis. Read more about Account types here.

Trading Platform Features

• Do they have high-tech, informative tools for research and analysis? – You will need live price quotes, plus detailed charts and access to historical data will also help you trade smarter. 10 online brokers offer many tools and resources.
• How fast and efficient is their order execution? This is massively important if you day trade, just a few seconds can incur serious costs. Although many virtual brokers offer real-time execution, there are still concerns of slippage. This emphasizes the need to test drive your broker first.
• How user friendly is their platform? – The trading platform provided by the broker should work for you. Most brokers offer several to choose from, some will tick the box for the average day trader, others will offer more advanced platforms for veteran traders. Likewise, it fits your hardware – is it platform compatible on Mac, PC, Linux, or whatever you’re using?
• Is there a Mobile platform? – It is difficult for brokers not to ship mobile trading applications, but the quality varies. If trading on your mobile phone is important, then checking app compatibility (Android, iOS or Windows etc) will be important.

Customer service

• How good is their customer service? – Are you able to quickly contact someone when you need support or advice? This is especially important if there is a problem such as a computer crash. Some brokerages offer 24/7 customer support, with call wait times of less than a minute.
• Do they have a ‘dealing desk’? – The best brokers offer direct access. You don’t want to send an order to a train desk that then initiates it in the market. This is time consuming and can cause requotes. By the time you’ve confirmed that you want to continue, your chances may be gone.

Additional

• Do they offer any interesting extras? – Any ‘Open Account’ promotions? £100 in free trade may not be all, but it means you can put any cream in your strategy before your money is on the line. Trading without a broker means zero free credit for trial and error.
• Are there Account levels? Do VIP accounts get free Tier II data or the spread?
• What return are you getting on your cash? – You will find that you usually have something lying in your brokerage account. Some brokerages won’t offer a penny on that balance, but some will give you 3-5%.
• Trading Strategy – Can you implement your trading strategy, or use automated trading, signals or copy trading at this broker?

The Final Word on Comparing Brokers Do your homework and make sure your day trading broker can meet your specific needs. It is always worth giving you a potential day trading broker a test. Set up a demo account, make sure you like the platform, and send a few questions to gauge how good their customer service is. Get this option right and your bottom line will thank you for it. Need a short cut? Check out this year’s DayTrading.com Award winners.

 

 

Broker Reviews

Use this table with trading broker reviews to compare all the brokers we’ve reviewed. Please note that some of these brokers may not accept trading accounts opened from your country. If we can determine that the broker will not accept accounts from your location, it is marked in gray in the table.

What is a Trading Platform?

A trading platform is software used by traders to view price data from the market and to place trade orders with brokers. Market data can either be obtained from the relevant broker, or from an independent data provider such as Thomson Reuters. In this section, we detail how to choose the best trading platform for day traders. Usually brokers will offer their clients a branded trading platform that is more or less unique to that individual broker, but there are also independent platforms that can connect to several brokers. An independent platform can be a good choice for experienced traders, while using a broker’s own platform is the easiest way to get started for beginners.

Trading Platform Features

The best day trading platform will have a combination of features to help traders analyze financial markets and book trade orders quickly. In particular, the best top trading platforms will offer excellent implementation of these features:

1. Access to current and historical market data – Day traders need to be notified of market price changes as soon as possible to be able to act before opportunities are lost or losses occur. Historical data is necessary for technical analysis and strategic trading strategies. Not all platforms have backtesting features though, so check before you commit to a particular piece of software.
2. Charts and other visual aids – Market trends and sentiments are best viewed through different charts and plots related technical indicators.
3. Order execution – Once you decide to place a trade, it needs to be executed immediately in the market. A great platform and broker will be implemented in less than a second. Traders using automated trading want to execute faster, usually in milliseconds, depending on the strategy used and how price sensitive it is.
4. Automated trading – Platforms that offer automation capabilities allow traders to make market moves even if he is not at the computer at the time. The classic “stop loss” feature is a simple form of automation, but there are many more advanced platforms that allow you to program your own trading robot to execute complex strategies or react faster than you could do yourself.
5. Broker Independence (optional) – You may want to be an expert in all the features of your trading platform but still have the option to change the broker you use. The solution is an independent trading platform (listed below), which can be connected to several different brokers.

Comparison of Free Trade Platforms

An independent trading platform is used to visualize market data and manage your trades, but it needs to connect to one or more brokers to actually place trades on the market. Today’s trading platforms usually offer a more advanced interface than the average brokerage, and help you find and place trades with one or more brokers of your choice. Using an independent trading platform you don’t have to relearn new software just because you switch to a different broker. Free platforms often come with advanced features such as chart analysis and enhanced analytics, automated trading and trading signals/signals. Different platforms have different strengths. NOTE – Not all brokers support this kind of integration with independent platforms,

Trading Account

When choosing between brokers, you also need to consider the type of account offered. For example:

• Do they offer cash and/or margin accounts?
• Can you get a managed account?
• Do they offer a single standard account or do they offer different account levels?

The right account for you will depend on several factors, such as your appetite for risk, starting capital and how much time you have to trade. With that said, below is a breakdown of the different options, including their benefits and drawbacks.

Cash Account

Most day trading brokers will offer a standard cash account. This is only when you buy and sell securities with your own capital, rather than using borrowed funds or margin. Most brokers will offer a cash account as their standard, default option. Benefits There are several benefits to a cash account. First, because there is no margin available, cash accounts are relatively easy to open and maintain. Also, you have lower risk than a margin account because the most you can lose is your initial capital. Finally, you don’t have to pay the interest costs that come with a margin account. WeaknessTrading with a cash account also means you have lower leverage because there is no leverage. For example, the same profit on a cash and margin account might represent a 50% difference in returns because a margin account requires much less capital. In addition, you have to wait for the funds to settle in the cash account before you can trade again. At some brokers, this process can take several days. Overall, the lack of margin means these accounts may not be suitable for the majority of active intraday traders.

 

 

Margin Account

Most brokers will offer a margin account. Essentially, this allows you to borrow capital to increase your position size. For example, you can only pay half of the purchase price and your broker will loan you the rest. Note that brokers often apply margin restrictions on certain securities during periods of high volatility and short interest. Benefits Margin accounts come with several benefits. First, you can choose when you repay your loan, as long as you stay within the maintenance margin requirement. Second, you can leverage assets to enlarge your position size and potentially increase your returns. Also, interest rates are usually lower than credit cards or bank loans. Finally, if you have a concentrated portfolio, you may be able to use existing securities as collateral for a margin loan. Disadvantages Despite the benefits, there are serious risks. With a cash account you can only lose your initial capital, however, a margin call can see you lose more than your initial deposit. You also have interest charges to factor in. In addition, you need to check the maintenance margin requirements. If not, you could be shorted causing a forced liquidation from the margin call. Overall, a margin account is a smart choice for active traders with a reasonable tolerance for risk. however, a margin call could see you lose more than your initial deposit. You also have interest charges to factor in. In addition, you need to check the maintenance margin requirements. If not, you could be shorted causing a forced liquidation from the margin call. Overall, a margin account is a smart choice for active traders with a reasonable tolerance for risk. however, a margin call could see you lose more than your initial deposit. You also have interest charges to factor in. In addition, you need to check the maintenance margin requirements. If not, you could be shorted causing a forced liquidation from the margin call. Overall, a margin account is a smart choice for active traders with a reasonable tolerance for risk.

Managed Trading Account

Some brokers will also offer managed accounts. The account is managed only when the capital belongs to you, the trader, but investment decisions are made by professionals. This may be referred to as an advisor on the account – this advisor has complete control over the trade. There are two common types of accounts handled:

1. Mutual Funds – With this type of capital account you enter a mutual fund together with the capital of other traders. The returns will be distributed among the investors. Usually brokers divide these accounts according to risk appetite. For example, those looking for big returns can put their funds into a joint account with a high risk/reward ratio. Those looking for more consistent profits may choose a safer fund. The minimum investment for a cumulative account is around $2000.
2. Individual Account – With this account, your broker will manage your capital individually and make investment decisions tailored to your needs. The main benefit is an experienced professional on your side. However, you will pay for that privilege with account maintenance fees and commissions. In addition, some brokers will charge a minimum investment of at least $10,000.

Overall, managed accounts are suitable for those with significant capital but little time to be active. However, those with less capital and those with the time or inclination to enter and exit their positions may be better off with an unregulated account.

Account Level

Some discount brokers for day trading will offer only standard live accounts. However, others will offer different levels of accounts with different requirements and different additional benefits. For example, a Bronze account can be an entry-level account. Here you can get access to chat rooms, a weekly newsletter and some financial announcements and reviews. These entry-level accounts usually have low deposit requirements. If you deposit more, say more than $1000 and make a certain number of trades every month, then you are eligible for a Silver account. This can give you access to courses, personal account executives and more in-depth market reviews. Deposit a little more, $5000 for example, and you might qualify for a Gold account.

• 10% deposit bonus
• Daily market research
• Referral incentives
• A dedicated trading mentor
• Phone access to an active trading community

Finally, some brokers will offer top-level accounts, such as VIP accounts. To qualify for this account, you may need to deposit over $20,000. You may also need to trade 500 lots quarterly, for example. However, for larger deposits, you may get more help, as well as higher deposit bonuses, free trading and other financial incentives. You can also get full access to various educational and technical resources. Therefore, the best day trading discount brokers will offer several account types to suit individual capital and trading needs. Keep in mind that in general, the more you can invest the more benefits and trading experience. The Final Word on Accounts When choosing between brokers, you need to consider whether they have the right account for your needs. The main factors to consider are your risk tolerance, initial capital and how much you will be trading. Note you can also open different accounts if you want to use several different strategies.

Regulation And Licensing

One key consideration when comparing brokers is regulation. There are several different regulatory bodies around the world. The reputation of these authorities varies, but almost all can give users a high degree of confidence in the broker they license. Here are some of the main regulators; FCA (Financial Conduct Authority) – The UK regulator, with responsibility for all forms of market trading and speculation. CFTC (Commodity Futures Trading Commission) – The US regulator oversees brokers. SEC (Securities and Exchange Commission) – US regulator for exchanges and markets. FSB (Financial Services Board) – South African Regulator CySEC (Cyprus Securities and Exchange Commission) – Cypriot Regulator, Finanstilsynet) The European Securities and Markets Authority ( ESMA ) also offers more extensive guidance to all European regulators, imposing certain rules across Europe as a whole – including leverage caps, negative balance protection, and blanket bans on binary options. These rules only apply to retail traders, not professional accounts.

How to Try Free Brokers

A demo account is a great way for beginners to practice trading and test a broker or trading platform without using real money. The demo account is funded with simulated money, so you can try out the features of the broker’s platform and get familiar with acting on the market. Warning though – even best practice platforms can’t replicate the pressure that comes with having real money on the line, but it’s a great way to learn the basics and get started with zero risk. Read more about Demo Accounts

How Brokers Make Money

Even among the best brokers for day trading, you will find different business models. Having said that, there are two main types:

1. Market Maker
2. Over-the-counter (OTC) brokers

Market Maker

Some of the best brokers for online trading are market makers. Market makers are always ready to either buy or sell, as long as you pay a certain price. This means they may miss the price movement before they find a buyer/seller. But, of course, for taking that risk, they seek compensation. So, they set the bid price slightly lower than the list price while setting the ask price slightly higher. That small margin is where they will make their money. Now that may seem like an insignificant amount. However, tens of thousands of trades are placed every day through good brokers for day trading that use this system. Unsurprisingly, those minute margins can quickly add up.

• Fixed spread – Do not change, regardless of what happens in the market. Because of the added risk, fixed spreads tend to be wider than variable spreads.
• Spreads change – fluctuate in response to market conditions. For example, during the overlap of London and New York, increased liquidity leads to tight spreads.

Let’s look at an example – if you want to sell 50 shares of Tesla, a good market maker will buy your shares, regardless of whether they have sellers lined up yet. However, they can buy those Tesla shares for $300 each (ask price), while offering to sell them to other traders for $300.05 (bid price). That $0.05 is where your online broker makes their money.

OTC brokers

Most of the best discount brokers for day traders follow the OTC business model. In fact, they are the most popular type of day trading broker. The immediate downside is the lack of trading costs and commissions. However, on the best day trading platforms, it is not that simple. Basically, OTC day trading brokers will act as your counters. They will take the opposite side of your position. As a result, you don’t have to pay commissions or fees in the same way. You only trade with a broker. For example, the best OTC futures or CFD brokers, may have both sides of the trade covered, promising handsome margins. However, some of the best brokers for day trading can also hedge to offset the risk.

Comparison

There are several key differences between today’s online trading platforms that use this system:

• Increased liquidity – Effectively the best brokers who follow the market maker model act as wholesalers, buying and selling to meet market needs.
• Cost – Without a market maker, finding buyers and sellers may take longer. As a result, liquidity may fall and you may pay higher trading fees as entering and exiting positions becomes more difficult.
• Motivation – The market maker will make money regardless of your trade results. Whereas OTC brokers have an interest in you losing.

Top brokers for day trading will often use a variation of one of these models. Check out the reviews to see which models prospective brokers are using to get a feel for where and how they expect to make their profits.

Broker Payment Method

Different trading brokers support different deposit and withdrawal options. The availability of one or more specific payment methods can be important to merchants, as fees and transit times vary between methods. For some traders it may be important that deposits or withdrawals are immediate, while others are fine with a processing time of a few days. Any trader who makes frequent deposits or withdrawals will want to see low transaction costs. Below we list the different payment methods, which brokers support them along with tutorials that cover everything a trader needs to know.

 

Trade In Different Areas

With the world migrating online, in theory, you could choose a day trading broker in India or anywhere on the planet. However, there are tax considerations and rules to keep in mind before you choose a day trading platform in Australia, Singapore or anywhere outside your country of residence.

• Tax considerations – Where you trade and where your broker is located may affect the type of tax and how much tax you have to pay. Will you pay capital gains tax? Will you pay net income tax? If you start day trading with a broker from Canada, will you pay foreign and domestic taxes? If you’re thinking of signing up with a remote broker, find out the tax forecast first.
• Rules – Rules are important for a number of reasons, but your financial security is one of them. Choose a broker that is regulated in a well-established financial system, such as the EU, USA or UK. A regulated broker in Bermuda is better than no regulation at all, but you may still run into problems.

Canada and the US also have day pattern trading rules – but the two are quite separate. Read more about this on the rules page. Just note that Canadian day trading platforms may differ significantly from the US or European versions, and platforms in South Africa vary as well.

Anyway

The broker you choose will likely be your most important investment decision. Everyone’s needs are different so there is no clear universal winner to turn to. Instead, in your comparison, consider the factors listed above that are most important to you and then you will be able to find the best broker for your needs.