Unlike equity markets, the Forex market operates 24/5 without official opening and closing times. There is just a start and end to the trading week. The best time to trade Forex in Malaysia always depends on the Forex trader, despite popular theories on the best time to trade. From a technical and cost perspective, trading during the most liquid trading sessions offers core benefits. I will explain the unofficial trading sessions in the four core Forex markets and how they relate to local times in Malaysia. I will also discuss overlapping sessions, and why liquidity matters.
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Understanding the Forex Market
The Forex market is the most liquid financial market globally, with daily turnover approaching $8 trillion, expected to exceed $10 trillion by the decade’s end.
Market Participants
The Forex market participants are asset management firms, hedge funds, banks, financial firms, central banks, commercial companies, brokers, retail traders, and investors.
Currency Pairs
Currency pairs are the assets traded in the Forex market, as each transaction consists of a quote and base currency, and each trade is essentially two transactions.
Liquidity
Forex liquidity refers to the ease of buying and selling currency pairs. Liquidity directly impacts trading fees, as high liquidity results in lower spreads, the difference between the bid and ask price.
Forex Market Opening Times in Malaysia
Since Forex trading is available 24/5, there are no opening and closing times but a start and end to the trading week. The trading week starts Sunday at 22:00 GMT and runs continuously until Friday at 20:00 GMT. Therefore, the Forex market hours in Malaysia are from Monday 06:00 KUL to Saturday 06:00 KUL.
Despite the 24/5 nature, four core Forex centers account for most daily trading volumes, market-moving events, and other factors that impact price action. Malaysian Forex traders must know the unofficial opening and closing times, measured by their respective equity market hours, of the Sydney, Tokyo, London, and New York trading sessions to understand price action and fine-tune their Forex trading strategies.
Sydney Forex Trading Session
Local Time | GMT Time | KUL | |
Open | Monday 08:00 | Sunday 22:00 | Monday 06:00 |
Close | Monday 16:00 | Monday 06:00 | Monday 14:00 |
Tokyo Forex Trading Session
Local Time | GMT Time | KUL | |
Open | Monday 09:00 | Sunday 24:00 | Monday 08:00 |
Close | Monday 18:00 | Monday 09:00 | Monday 17:00 |
London Forex Trading Session
Local Time | GMT Time | KUL | |
Open | Monday 08:00 | Monday 07:00 | Monday 16:00 |
Close | Monday 16:00 | Monday 15:00 | Monday 24:00 |
New York Forex Trading Session
Local Time | GMT Time | KUL | |
Open | Monday 08:00 | Monday 12:00 | Monday 20:00 |
Close | Monday 16:00 | Monday 20:00 | Tuesday 06:00 |
Malaysian Forex traders can trade 24/5, but they must understand the notable differences in the liquidity of currency pairs, which impact spreads, forex trading fees, order execution, and profitability. The Forex market hours Malaysia relevance can impact trading the Malaysian Ringgit, a thinly traded currency pair among online Forex brokers with scarce availability.
The reasons why liquid trading sessions are the best include:
- More liquidity, which results in tighter spreads
- Tighter spreads lead to higher profits
- Faster order execution, which can lead to positive slippage
- Positive slippage adds to trading profits
Which Forex trading sessions are the most liquid?
- The last two hours of the New York trading session (1)
- The first hour of the Tokyo trading session (2)
- The last hour of the Sydney trading session (3)
- The first two hours of the London trading session and the last hour of the Tokyo trading session (4)
- The first two hours of the New York trading session and the last two hours of the London trading session (5)
Here is a table with the best time to trade Forex in Malaysian local time based on maximum liquidity and minimum trading fees:
Forex Session | Malaysian Start Time | Malaysian End Time |
(1) | 04:00 | 06:00 |
(2) | 08:00 | 09:00 |
(3) | 13:00 | 14:00 |
(4) | 16:00 | 19:00 |
(5) | 20:00 | 24:00 |
Overlapping Sessions
When two Forex markets operate simultaneously, overlapping sessions occur. They increase liquidity and create more trading opportunities with lower trading fees. Malaysian Forex traders should consider the three overlapping Forex trading sessions outlined below, converted into a Forex market hours Malaysia table with relevant currency pairs.
The London - New York overlap session is the most essential Forex trading period for Forex traders, which accounts for 60%+ of all Forex trading activity.
Sydney - Tokyo Overlapping Forex Trading Session
Malaysia Start Time | Malaysia End Time | Currency Pairs to Consider |
Monday 08:00 | Monday 14:00 | AUD/USD, AUD/NZD, NZD/USD, AUD/NZD, AUD/JPY, NZD/JPY, USD/JPY |
Tokyo - London Overlapping Forex Trading Session
Malaysia Start Time | Malaysia End Time | Currency Pairs to Consider |
Monday 16:00 | Monday 19:00 | GBP/JPY, EUR/GBP, EUR/USD, EUR/JPY, GBP/CHF, EUR/CHF, CHF/JPY |
London - New York Overlapping Forex Trading Session
Malaysia Start Time | Malaysia End Time | Currency Pairs to Consider |
Monday 20:00 | Monday 24:00 | EUR/USD, USD/CHF, USD/JPY |
Significance of Forex Market Opening Times
Since the Forex market usually reacts first to economic and geopolitical news, Forex traders catch up to developments by making portfolio adjustments during the unofficial Forex market opening times.
Trading Opportunities in Malaysia
The best Forex brokers in Malaysia maintain a diverse asset selection to ensure Forex traders have cross-asset trading opportunities. The Malaysian Ringgit is an exotic currency pair, meaning low liquidity, limited availability, and high trading fees among online Forex brokers. Some Forex traders prefer an inflow of trading volumes, while others avoid it, all dependent on their trading strategies.
Volatility
The unofficial Forex market opening times usually deliver a temporary volatility surge, which some experienced Forex traders prefer, as it creates trading opportunities. Forex traders may experience a volatility spike at any moment primarily related to market-moving events.
News Releases
Profitable traders use an economic calendar, preferably an AI-assisted one, to know when to look for market-moving events, as news releases can impact price action tremendously.
Market Analysis
Market analysis is an ongoing, time-consuming, and sometimes stressful task that traders must conduct before taking a position and throughout the trade. Many profitable Forex traders have AI-assisted trading solutions, as algorithmic trading accounts for 80%+ trading activity.
Making the Most of Forex Trading Sessions
The best Forex brokers in Malaysia maintain cutting-edge trading infrastructure to ensure Forex traders have an edge.
Besides Forex market hours in Malaysia, Forex traders should consider the following:
- Forex overlap session awareness to ensure execution of the right trading strategy
- Using an economic calendar to plan for avoidable volatility spikes
- Executing risk management appropriate for the portfolio size
- Avoiding trading for the sake of trading
- Using AI-assisted trading tools, which some of the best Forex brokers in Malaysia offer
Trading during the most liquid times is ideal for many and is generally preferred from a technical perspective. However, the most liquid Forex market hours in Malaysia may not suit all Forex traders. The best time to trade also depends on the trading strategy, and the asset being traded.
Bottom Line
Understating the relevance of Forex market hours in Malaysia can help traders plan their trading schedule. The Forex market operates 24/5 with a start and end to the trading week, starting Sunday at 22:00 GMT and ending Friday at 20:00 GMT or from Monday 06:00 KUL to Saturday 06:00 KUL. Malaysian Forex traders can trade whenever they decide, determined by their strategy, currency pairs, and individual circumstances. The opening, closing, and crossover sessions of the four core Forex markets in Sydney, Tokyo, London, and New York provide the highest liquidity and the lowest fees.
