Is trading forex in Malaysia legal?

Answer 1

It is legal as trading forex is how banks hedge risk for importers and exporters. To learn about the legalities about foreign exchange trading have a look at Compass Markets.

If the OP is referring to retail forex trading (with a retail forex broker), the answer is tricky. It depends on how the law is interpreted. From what I understand, it is illegal to operate an actual retail brokerage within Malaysia, but you can trade within the country with a broker located outside Malaysia.

This makes sense because if the legal environment was suitable, all of the major brokers would already have full licenses in malaysia, as they are one of the more stable SE Asian countries to setup serious business in.