Best Securities Commission Malaysia (SC) Regulated Brokers 2025
We’ve tested and ranked the best brokers regulated by the Securities Commission Malaysia (SC). Since SC oversight is limited, we also feature trusted international brokers licensed abroad that accept Malaysian traders.
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How BrokerListings.com Chose The Top SC Brokers
To identify the best SC-regulated brokers in Malaysia, we:
- Ran broker claims through the official SC register to verify licenses.
- Sorted shortlisted brokers by our overall ratings, using 200+ data-driven points and our testing insights.
What Is The SC?
The Securities Commission Malaysia (SC) is responsible for regulating and supervising capital markets in the Southeast Asian country.
Founded in the early 1990s under the Securities Commission Act 1993 (SCA), the body describes its mission as “to promote and maintain fair, efficient, secure and transparent securities and derivatives markets; and facilitate the orderly development of an innovative and competitive capital market.”
Under the Capital Markets and Services Act 2007, all persons and companies, such as brokers, operating in Malaysia’s capital markets must be officially licensed by the SC. It has the power to exercise a range of enforcement actions when rules have been breached.
Pro tip: The SC regulates Malaysia’s financial system with Bank Negara Malaysia, the country’s central bank.
While there is some overlap regarding their objectives and responsibilities, the SC is focused on capital markets (like securities and derivatives trading, asset management and financial planning). The Bank Negara Malaysia, meanwhile, is responsible for regulating the banking, insurance and payments sectors.
The SC is classified as a Category B organization under BrokerListings’ broker regulator ranking system. This means investors can expect a good (rather than excellent) level of protection from poor business practices and fraudulent parties.
What Powers Does The SC Have?
Alongside developing and promoting Malaysia’s financial markets, the SC says its role includes “ensuring proper conduct of all market participants through our supervisory, surveillance and enforcement work.”
To achieve this, financial services providers like brokerages must apply for a license from the regulator. They must then strictly abide by laws and rules laid down by the SC, and face the prospect of punitive action if found to have broken the rules.
Some of the measures the regulator can implement include:
- Imposing financial penalties on non-compliant firms and individuals.
- Suspending and revoking licenses for registered entities.
- Ordering non-licensed entities to cease operations.
- Issuing public warnings to protect investors.
- Referring serious cases to the public prosecutor (the Attorney General’s Chambers Malaysia).
Pro tip: The SC can demand that entities provide documentation (like book entries, contract notes and compliance reports) to ensure that regulations are being followed. They are also empowered to inspect a broker’s premises.
In December 2024, the SC reprimanded Bybit Technology Limited (formerly Bybit Fintech Limited) and its chief executive ben Zhou “for operating a digital asset exchange (DAX) in Malaysia without registration.”
The SC ordered Bybit to close down any websites and mobile apps in Malaysia within 14 days; to cease publishing and distributing marketing information to Malaysian investors; and to terminate its Telegram support group for Malaysians.
What Rules Must A SC Broker Follow?
The Capital Markets and Services Act 2007 sets out a robust and comprehensive framework of rules that licensed entities and individuals must follow. These include:
- Prioritizing the customer’s interests, and managing conflicts of interest between the company and its clients, and between different customers.
- Acting in a fair and consistent manner, and treating all clients impartially and equally.
- Conducting customer due diligence to ascertain client identity and risk profile. This is intended to prevent money laundering and the financing of terrorism.
- Communicating with customers in a way that is clear, fair and not misleading, and ensuring that information provided is suitable and reasonable according to the client’s financial circumstances and risk tolerance.
- Carrying out their activities with skill, care and diligence. This includes ensuring that employees are suitably qualified and adequate resources are available for the company to conduct its activities and safeguard customers’ assets.
- Installing systems that allow the company to organize and control its affairs, and to implement robust risk management and supervisory structures.
- Establishing robust safeguards for customer data, and protections to prevent unauthorized access and use of customers’ accounts.
- Implementing policies and procedures that ensure a “fair and orderly” market, mitigating issues like fraud and market rigging.
- Engaging with regulators in an open and co-operative manner, which includes providing all requested information from the SC in a timely manner.
How Can I Check If A Brokerage Is SC Regulated?
Investors can quickly and simply ascertain a broker’s regulatory status by using the SC’s Public Register of License Holders and Registered Persons.
The advanced search facility on the SC’s Public Register of License Holders and Registered Persons. Source: SC
However, there is currently a limited range of brokerages that are licensed by Malaysia’s regulatory authority. Traders and investors in the country can try to overcome this problem by choosing a company that’s approved by a respected regulator in another part of the world.
BrokerListings’ regulator rankings tool provides a wide range of Category A organizations that individuals should consider consulting when choosing a broker.
These top-tier regulators will only issue licenses to reputable companies with strong track records of customer service. But bear in mind that investor protections may not reach beyond the regulator’s home jurisdiction if an investor encounters problems.
Pro tip: The SC also publishes an Investor Alert List on its website that advises of “unauthorized websites, investment products, companies and individuals” operating in Malaysia’s capital markets.
I can search alphabetically to see if the broker I’m considering is listed as one of these companies to avoid. Alternatively, I can conduct a manual search by typing in the brokerage’s name.
This is another valuable resource investors should consult before handing over any personal data or capital.
The Investor Alert List on the SC website. Source: SC
Bottom Line
Regulation of Malaysia’s capital markets has improved significantly in recent decades, providing a safer place for traders and investors to do business.
That said, the pool of brokerages approved by the SC is thin, meaning individuals may wish to consider using a company that’s licensed by a respected overseas regulator.
Article Sources
Securities Commission Malaysia (SC)
About the bank – Bank Negara Malaysia
The Payment Systems Act 2003 – Bank Negara Malaysia
Financial Services Act 2013 – Bank Negara Malaysia
Capital Markets and Services Act 2007 – SC
SC Takes Enforcement Action against Bybit for Illegally Operating DAX in Malaysia – SC
Public Register of License Holders and Registered Persons – SC