6 minute read
Is JustMarkets Legal in Malaysia? What You Need to Know
from JustMarkets
by Exness_India
Direct Answer: Yes, Malaysians can legally use JustMarkets, but the broker is not licensed by Malaysia’s Securities Commission (SC). Instead, it operates under foreign regulators, meaning traders do not have the same legal protection they would enjoy with a locally authorized broker.
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That distinction—legal to use, but not locally regulated—is the key to understanding JustMarkets’ status in Malaysia. Let’s dive deeper.
1. How Forex and CFD Trading Is Regulated in Malaysia
To assess whether JustMarkets is legal, we first need to understand how Malaysia regulates online trading.
· The Securities Commission Malaysia (SC) is the authority that oversees financial markets. Any broker that wants to operate physically in Malaysia or solicit Malaysian clients legally must obtain an SC license.
· Licensed brokers are monitored closely for transparency, segregation of client funds, fair dealing, and reporting.
· If a broker is unlicensed, the SC may issue a warning and place the firm on its Investor Alert List. Companies on that list are considered illegal operators within Malaysia.
However, there is no law that explicitly bans Malaysians from opening accounts with foreign brokers. In practice, many Malaysians trade with international platforms outside of SC’s jurisdiction.
👉 This creates a gray area: trading offshore is not illegal, but it lacks the legal safeguards of domestic brokers.
2. JustMarkets’ Regulatory Status
Now let’s examine JustMarkets specifically.
JustMarkets (formerly JustForex) is an international forex and CFD broker that operates under several licenses:
· Cyprus Securities and Exchange Commission (CySEC) – a European regulator known for stricter standards. Under CySEC, traders in the EU are eligible for compensation up to €20,000 if the broker defaults.
· Financial Services Authority (FSA) of Seychelles – provides a legal framework but is considered a light-touch regulator. Most international clients, including Malaysians, are registered under this jurisdiction.
· Financial Services Commission (FSC) of Mauritius – another offshore regulator with moderate oversight.
· Financial Sector Conduct Authority (FSCA) of South Africa – adds additional legitimacy but is not directly tied to Malaysian traders.
For Malaysians, the important point is:👉 Your account will most likely be opened under Seychelles regulation, not CySEC. That means no investor compensation scheme, weaker oversight, and fewer legal remedies.
3. Is It Legal to Use JustMarkets in Malaysia?
So, can Malaysians open and use JustMarkets accounts without breaking the law? The answer is yes.
· JustMarkets is not banned in Malaysia.
· It does not currently appear on the SC’s Investor Alert List.
· Malaysians are free to trade with international brokers, provided they accept the risks.
In other words, JustMarkets is not illegal in Malaysia, but it is not officially licensed locally either.
This distinction is important:
· Legal to access and trade – you won’t face penalties for using the platform.
· Not protected by Malaysian law – if disputes arise, you cannot rely on SC to intervene.
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4. Why Malaysians Choose JustMarkets
Despite the regulatory caveat, JustMarkets has built a strong presence in Malaysia. Here’s why:
1. Islamic (Swap-Free) Accounts
Many Malaysian traders are Muslim and require Shariah-compliant accounts. JustMarkets offers swap-free accounts that eliminate overnight interest, making them attractive for long-term positions.
2. Ringgit (MYR) Support
The broker allows deposits and withdrawals in Malaysian Ringgit, which saves conversion costs and makes transactions smoother.
3. Local Customer Support
JustMarkets has websites and customer service available in Malay, reducing language barriers for beginners.
4. Bonuses and Promotions
The platform is well-known for generous deposit bonuses and contests, which draw in many retail traders.
5. High Leverage
Malaysians can access leverage up to 1:3000. While extremely risky, this appeals to traders who want to maximize potential returns with smaller capital.
👉 These features explain why JustMarkets is popular in Malaysia despite the lack of local regulation.
5. Risks of Using JustMarkets in Malaysia
Even though it is legal to use, trading with an offshore-regulated broker like JustMarkets carries significant risks.
a) No Investor Compensation
If JustMarkets were to collapse or freeze accounts, Malaysian clients would have no claim to an investor protection fund. Unlike CySEC clients, who can receive up to €20,000, Malaysians would face total loss of deposits.
b) Weak Legal Recourse
If disputes arise—such as withdrawal delays or unfair practices—pursuing legal action through Seychelles or Mauritius authorities is expensive, complex, and often ineffective.
c) High Leverage Danger
Leverage up to 1:3000 is a double-edged sword. While it allows for large positions with small capital, it can also magnify losses instantly. Many inexperienced traders blow accounts quickly under such conditions.
d) Aggressive Marketing
Bonuses and promotions may encourage risky behavior. Inexperienced traders often overtrade to meet bonus requirements, increasing their chances of losses.
e) Community Concerns
On forums like Reddit and trading groups, offshore brokers are often criticized for lack of transparency. Traders frequently warn others:
“Unregulated or lightly regulated brokers carry serious risks of fraud and financial loss.”
6. Comparing JustMarkets with SC-Licensed Brokers
If you want the highest level of legal safety in Malaysia, the best option is to trade with brokers licensed by the Securities Commission Malaysia.
Benefits include:
· Segregated client funds in Malaysian banks
· Dispute resolution via SC
· Compliance with local investor protection laws
· Transparency in reporting and auditing
However, SC-regulated brokers often provide lower leverage and fewer promotional perks. For example, maximum leverage may be capped at 1:50 or 1:100, compared to 1:3000 at JustMarkets.
👉 This is the trade-off: safety vs. flexibility.
7. Practical Tips for Malaysian Traders Considering JustMarkets
If you still want to use JustMarkets, here are a few risk management steps:
1. Check the SC Alert List regularly to ensure the broker is not flagged.
2. Start small – never deposit more than you can afford to lose.
3. Avoid relying on bonuses – trade with your own capital and strategy.
4. Use lower leverage manually – even though 1:3000 is available, stick to conservative risk levels.
5. Withdraw profits regularly – don’t leave large sums in your trading account for too long.
6. Keep records – maintain screenshots of deposits, withdrawals, and trades in case of disputes.
8. Final Verdict
So, is JustMarkets legal in Malaysia?
· Yes, it is legal for Malaysians to trade with JustMarkets.
· No, it is not regulated locally by the Securities Commission Malaysia.
· Yes, it is regulated abroad, but mostly under offshore jurisdictions with limited investor protection.
· Risk level: Higher than SC-licensed brokers, but common in Malaysia’s retail forex scene.
👉 In short: You can use JustMarkets legally, but you must accept the risks of offshore regulation.
Conclusion
JustMarkets is a popular choice among Malaysian traders because it offers Islamic accounts, Ringgit deposits, local support, and high leverage. It is not illegal to use, but it is also not supervised by Malaysian authorities.
This means traders must rely on foreign regulators if problems arise—a reality that carries significant risk.
If you prioritize convenience and flexibility, JustMarkets can be an option. But if your top concern is safety and legal protection, you should choose a broker licensed by the Securities Commission Malaysia or other top-tier regulators like the UK’s FCA or Australia’s ASIC.
Ultimately, the decision comes down to your risk tolerance. Offshore brokers like JustMarkets offer more freedom, but less security.
✅ Trade with JustMarkets now: Open An Demo Account or Visit Brokers 👈
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