Choosing the right Broker

Updated: Aug 7, 2020

In the bizarre situation of pandemic, the economy is getting critical and unpredictable. People are losing their jobs and even their home. Businesses are retrenching, economic giants are being cost efficient by making their employees to work from home and government is trying their best to find a solution for this situation.

One of the initiatives taken by the government is that they have now approved local citizens to make an investment as big as RM50000 for international business which lead lots of new international deal are now being opened in Malaysia.

On of the common investment is Derivatives Trading and Stock Market and each has its own advantage and disadvantages. Stock Market is being traded with local Investment banks such as Maybank Investment, Affin Investment and etc which you can approach and open a CDS account with them to trade company stocks. However, regarding derivatives trading there are over 50 brokers available and it is very important for you to choose the right broker.

Below are few key points that you must consider when you are choosing your broker.


The most important factor will be the security – A broker should have a high-level security. This is because your money should be in the safe hands and when your having a big profit, they should be able to pay-out.

You can always check the credit ability of the broker with regulatory agencies and below are some of the regulators for your information:

United States: National Futures Association (NFA) and Commodity Futures Trading Commission (CFTC)

United Kingdom: Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA)

Australia: Australian Securities and Investment Commission (ASIC)

Switzerland: Swiss Federal Banking Commission (SFBC)

Germany: Bundesanstalt für Finanzdienstleistungsaufsicht (BaFIN)

France: Autorité des Marchés Financiers (AMF)

Canada: Investment Information Regulatory Organization of Canada (IIROC)

Transaction Cost

Every Transaction on the platform has a cost and it is unavoidable so in order to maximize the profit you must find a broker who has the most affordable and cheapest rates.

The charges are usually either for spread or commission and sometimes you will need to sacrifice a little money in order to trade with a reliable broker.

The art is to find the correct balance between security and low transaction cost.

Deposit and Withdrawal

A good broker always makes sure your transaction of withdrawal and deposit is smooth. Usually it will take 1-3 business days because of the international transaction but that’s is the only issue except for that – a good broker will always make sure the transaction between client and them is smooth and safe

Trading Platform

This is crucial point because we always use the trading platform to make our trades and it should be as smooth and user friendly as it can be.

The points you need to really pay attention is to how good is their charting tools and how fast is the interference because a small delay in the platform could cost you money.

Customer Service

Brokers are not always perfect, thus its very important to check if the broker has a good customer service. The competence of the broker when dealing with issues is as important as their performance.

Make sure you check thoroughly about the broker before you deposit your money because there are a lot of brokers out there without the right solution is hunting for your business and a little bit of carelessness from your end could cost you your money.


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Monest Sdn Bhd - 1355833-W

Level 11, Boutique Office 1 (B-01-C)

Menara 2 (Pillar 11), KL Eco City,

Pantai Baru, Jalan Bangsar,

59200 Kuala Lumpur,


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