Many Malaysians now see adverts for trading apps and brokers based overseas. The short answer to whether they are allowed depends on the firm, not the app store. Malaysia's rules decide who may offer capital market services here.

What Malaysian law requires

Under the Capital Markets and Services Act 2007, activities such as dealing in securities, dealing in derivatives, fund management and investment advice are regulated activities.

The SC's Licensing Handbook says only a holder of a Capital Markets Services Licence can carry on these activities. The law allows a limited number of exemptions.

The handbook also says a company licensed for activities such as dealing or fund management must be incorporated in Malaysia.

Running an investment advice business without a licence is an offence. The SC has said the penalty can be a fine of up to RM10 million, up to ten years in prison, or both.

What the SC says about unauthorised platforms

The SC publishes an Investor Alert List of unauthorised entities and individuals. Many entries are websites or apps, and some give overseas addresses.

The SC advises the public not to deal with or invest through the parties on the list. It also warns that people who invest through unauthorised entities will not be protected under Malaysian securities laws.

The SC says the list is not exhaustive. A platform that is missing from the list is not proof that it is licensed.

A foreign licence is not an SC licence

Some platforms say they are licensed by a regulator in another country. That licence is issued under that country's rules, not Malaysia's.

The SC's Licensing Handbook allows only narrow exceptions for foreign intermediaries. One example is a temporary licence that may serve sophisticated investors only and lasts a few months.

To see whether a firm is authorised by the SC to offer capital market products in Malaysia, search its legal name on sc.com.my/investment-checker. If a firm claims a foreign licence, the SC has advised asking for the regulator's name and checking with that regulator directly.

If a platform says it holds a Labuan licence, check it on labuanfsa.gov.my. Labuan FSA and the SC are separate regulators.

Moving money overseas is a separate question

Bank Negara Malaysia's foreign exchange policy covers how residents invest in foreign currency assets. These rules are about the money you move, not about whether a platform is licensed.

Under BNM's rules, a resident individual without domestic ringgit borrowing is free to invest any amount in foreign currency assets onshore and abroad. A resident individual with domestic ringgit borrowing may invest up to RM1 million equivalent in total per calendar year from converted ringgit.

BNM's full foreign exchange rules and definitions are at bnm.gov.my/fep.

Common questions

Does the law target me as the user, or the platform? The official pages used for this guide focus on the firm that offers the service. What the SC does say is that investing through unauthorised entities leaves you without protection under Malaysian securities laws.

Is a platform licensed if it is not on the Investor Alert List? Not necessarily. The SC says the list is not exhaustive, so look for the firm's own record on the SC Investment Checker.

Where can I report an unlicensed trading platform? You can call the SC on 03-6204 8999, or Bank Negara Malaysia's BNMLINK on 1-300-88-5465.

Can SmartChecker tell me if a platform is licensed? SmartChecker shows register records and reviews for the companies it lists. It is not part of the SC or any regulator, so always confirm on the regulator's own website.