Binary options in Malaysia and a list of best brokers in Malay in 2020

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Binary Options Broker 2020!
    Perfect For Beginners!
    Free Demo Account!
    Free Trading Education!
    Get Your Sign-Up Bonus Now!

  • Binomo
    Binomo

    Good Choice For Experienced Traders! 2nd place in the ranking!

Binary Options Malaysia

In recent days Binary options in Malaysia has gained much popularity among the new generation traders. The traders prefer Binary options because of their simplicity, profitability, and risk manageability. This website “Binary options Malaysia,” provides you with all information regarding Binary options trading in Malaysia. You will get to know about the Binary Options brokers, investment strategies, and trading strategies. You can start practicing binary options trading in a demo account for free. All you have to do is to sign up for a demo trading account with our recommended Binary options brokers in Malaysia.

Binary Options is one of the very few legal financial trading options available to make as high as up to 91%* return on investment. Of course, it comes with associated risks. It is legal to trade Binary Options in Malaysia.

Best Binary Options Brokers Malaysia 2020

Several new brokers have come up in the market because of the popularity of Binary Options trading in Malaysia. But the traders must choose the right broker for the safety and security of their investment carefully. We have mentioned a few brokers below after reviewing their credibility; it can help you select the best Binary Options Broker in Malaysia in 2020. These brokers have more than five years of excellent track record with very low customer complaints. You get to trade in a safe and transparent trading environment.

  • Trusted broker since 2020
  • Forex, CFD and Binary Options
  • Minimum deposit $10
  • Minimum trade amount $1
  • Up to 91* payout
  • Quick activation of the account
  • Free Demo Account with $10,000 virtual money
  • Complies with International Financial Commission
  • Forex, CFD and Binary Options
  • MT4 trading platform for Forex and CFD
  • Up to 90%* payout
  • Free Demo trading account
  • Complies with FMRRC
  • Advanced custom-built platform
  • Trade on any device -iOS, Android, PC
  • Up to 90% payout
  • Free demo account and training
  • Start trading with $10 deposit

* Amount to be credited to account for a successful trade. RISK WARNING: YOUR CAPITAL MIGHT BE AT RISK

Why Binary Options?

Malaysia is a developing nation and its economy is continuously expanding. The risk-taking capability of Binary options traders in Malaysia has made it a preferred choice for traders to make money. Hence there is a growth in trading in binary options in Kuala Lumpur and all over Malaysia. The traders and ordinary consumers with a computer and internet connection can start trading binary options any time.

Binary options trading is simple to understand, profitable and risky, as there is the risk of losing your investment. If you win a trade, you get up to 95% return on your investment instantly. If you lose a trade, you lose 100% of your investment. Hence risk management is very important in binary options trading.

Hence, the risks are different in Binary Options trading and Forex trading in Malaysia.

Who make money while trading Binary Options in Malaysia? The traders who made huge profits didn’t win 100% of the trades, but they used strict money management and discipline while trading. While trading binary options, you have to understand the market trend properly to place a trade. Although it is impossible to predict the market with 100% accuracy, you can still remain profitable by following proper money management strategy.

Preferred brokers for Binary options trading in Malaysia

IQ Option Malaysia is one of the leading broker which has dominated the financial industry since 2020. It boasts of its innovative technological advancement and service standards in the field of Binary Options, Forex, and CFD trading. It has the unique trading platform with integrated analytical tools and charts. Yet, it retains the simplicity of trading. It has classic binary options and turbo options with the high profitability of up to 92%* (amount to be credited to account for a successful trade ). IQ Option in Malaysia offers free demo trading accounts to traders for unlimited practice and learning. It has a wide range of safe and secure fund deposit methods and credits the fund to trading account instantly. Traders can withdraw fund easily, which is usually processed in one business day.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Binary Options Broker 2020!
    Perfect For Beginners!
    Free Demo Account!
    Free Trading Education!
    Get Your Sign-Up Bonus Now!

  • Binomo
    Binomo

    Good Choice For Experienced Traders! 2nd place in the ranking!

IQ Option complies with European regulators and offers an excellent opportunity to traders in Malaysia to trade legally and confidently. IQ Option in Malaysia is quite popular among traders for its trading platform, profitability, and excellent customer service.

VIP ACCOUNT – IQ Option offers enhanced trading conditions to serious traders who invest more than $3000 with VIP account status. A VIP trader can get dedicated account manager, higher payouts, and same day fund withdrawal processing. The traders from Malaysia can simply contact their account manager to get VIP account status.

What is Binary Options trading? – Binary Options Malaysia

Binary Options are one of the easy and simple financial trading products made available to Malaysia traders. These are a form of an options trading that provides a fixed deadline for expiration with a fixed payout. The binary options trading has only two outcomes for a trade WIN or LOSS. If you win you get up to 95%* return on your investment, but if lose, 100 % of the invested amount is lost.

Binary trading Malaysia – How to trade:

1. Choose the asset you want to trade.
2. Make a prediction of price direction.
3. Select the amount you want to invest.
4. Trade (by clicking CALL or PUT)

  • If EUR/USD is trading at 1.12050 and you predict the currency pair will be lower in the next 5 minutes and you want to invest $100?
  • Find EUR/USD in the broker’s asset list, select the time period of 5 minutes, enter $100 as your investment amount, click on the PUT (SELL) button and the trade is executed. The return on this trade is 80%.
  • You’ve now predicted that the currency pair EUR/USD will be lower than the current level of 1.12050 in 5 minutes time.
  • After 5 minutes EUR/USD is trading at 1.12020, lower than the price 5 minutes earlier, when you entered the trade. Your trade gets closed automatically by the broker after the expiry of 5 minutes.
  • Since EUR/USD was trading lower as you predicted your trade is closed for a profit (known as in the money). The profit for a $100 investment with a return of 80% is $80 ($100 x 80% = $80) which is credited to your brokerage account in few seconds, almost instantly.
  • If your investment amount had have been $1000 you would have made a profit of $800 on just this single trade.
    There are different expiry times starting from 30 seconds to up to 5 minutes in Turbo Trading option.
  • And options expiry of every 05, 10, 15 minutes, 1 hour and 1 day, end of the day also available with all leading binary options brokers.

Is Binary Options Trading complicated? – Binary Options Malaysia

Binary trading is quick, simple and very profitable, but at the same time risky. You may lose the invested amount completely. You would have lost $100 in the above-shown example trade if you were wrong in your prediction. If EUR/USD would have closed above 1.12050, you would have lost the trade and your invested amount of $100 in just 5 minutes.

Hence, managing the risk in binary options trading is extremely important in order to become a successful trader. Risks cannot be avoided, but it can be managed in binary options. Many traders have practiced and managed the risks to become successful traders. Try binary trading by opening a demo trading account with IQ Option for practicing Binary Options Malaysia.

Binary Options trading in Malaysia

Malaysia is a next door neighbour to Singapore, Asia’s largest financial hub. However, the conduct of financial market affairs in Malaysia does not mirror what is available across the border. Regulation of the binary options market is not clear-cut, and traders in Malaysia need to understand what the situation really is in terms of where they can trade binary options.

The regulation of all aspects of Malaysia’s financial markets is not vested with one agency or body. Overall control of the markets rests with the Malaysian Central Bank known as the Bank Negara Malaysia. However, regulation of the various financial markets rests with various bodies, which include the Securities Commission and the Financial Markets Financial Association of Malaysia (FMAM).

Malaysia bore the brunt of speculative attacks on the Malaysian Ringgit during the 1997 Asian currency crisis.

As such, the Bank Negara Malaysia has assumed a hands-on approach on how the financial markets and transactional flows within these markets are performed. This has implications on how money is remitted across borders by Malaysian binary options traders.

With regards to licensing, a form of confusion existed in terms of classification of binary options. The existent laws prior to 2007 provided for regulation of the following products:

  1. Exchange-traded derivative products
  2. Specially structured products, which were basically derivative products structured as securities and offered by banks.
  3. OTC derivative products, which were not captured under any of the provisions of the existing financial regulatory laws.

This was an inadvertently created situation. At the time these laws were initially passed in Malaysia in 1993, there was nothing like retail binary options. The internet was still under development, and majority of the world’s trading activity were closed off within borders. Retail cross-border trading activity was non-existent.

With the development of new technology and creation of new investment products, it became clear that the existing laws could not accommodate the rapid evolution that had taken place in the world of financial trading. Malaysia was forced to revisit its investment laws to attempt to keep pace with modern trends.

As positive change was the amendment of the Capital Markets and Securities Act of 2007 to change the definition of OTC derivatives and bring them under regulatory control.

Currency Pairs & Spread

The Malaysian Ringgit is not featured on most binary options platforms. However, currency pairs like the Singaporean Dollar and other Asian currencies are featured. It is easier for Malaysian binary options traders to trade commodities, currencies and stocks from companies located in South East Asia, as there is likely to be more familiarity with these assets than assets from Europe or the Americas.

Trading Platforms

Most platforms used by Malaysian binary options traders are those of offshore brokers, which are mostly of the turnkey variety. Therefore, platforms designed by SpotOption, Tech Financials, O-Systems, Tradologic and Hello Binary, are the commonest platforms that will be used by Malaysian traders.

Bonuses

Malaysian traders who trade with binary options brokers located in Seychelles, Belize, Mauritius, Vanuatu and St.Vincent & Grenadines, will be offered trading bonuses. Bonuses will not be offered by CySEC-regulated brokers as these have been banned by CySEC.

Deposit and Withdrawal Options

Malaysian law requires that foreign remittances above $10,000 be submitted for approval by the Bank Negara Malaysia. This puts some control on what transaction methods can be used by Malaysian binary options traders.

  1. Cards: Cards issued by MasterCard and VISA are the accepted card brands for top Malaysian binary options brokers in offshore locations.
  2. Bank wire: Transfer of funds, subject to the imposed $10,000 approval and limitation from the Bank Negara Malaysia, can be performed.
  3. Malaysia has a preponderance of digital wallets that can be used to transact on binary platforms. These include international wallets such as Skrill, Neteller, OKPay and Perfect Money. Local digital wallets include MyanPay, YuuPay, Automate Pay and Digital Currency Exchange.

Legality & Regulations

Up until 2020, the only recognized OTC derivatives exchange in Malaysia was the local Kuala Lumpur Commodities Exchange, where trade of futures of crude palm oil was carried out. The development of new financial products in the global financial markets and the explosion of technology which enabled online trading of various kinds of derivative products all over the world led the Malaysian government to re-design the laws permitting OTC derivative trading in Malaysia. The new law, which was an amendment of the existing Capital Markets and Services Act of 2007, proposed to bring OTC derivatives fully under the regulatory oversight of the Securities Commission.

This requirement now mandates all Malaysian companies offering OTC derivatives (including binary options) to acquire a license to be able to keep offering these products to Malaysian citizens

Presently, no company has registered with the Securities Commission to obtain a binary options license. A few primarily offshore companies have however, opened shop in Malaysia to offer forex trading services. Some of these companies (e.g. Hirose UK) have binary options applications servicing other markets. It is therefore expected that they may decide to offer binary options to the local populace, once they have tested the waters of the local market for profitability.

What are the most frequently asked questions about Malaysia binary options brokers and the market in general?

  • Are binary options legal in the Malaysia?

Answer: The trading of binary options is legal in Malaysia, provided trading is conducted with binary options brokers who have obtained an OTC derivatives license.

  • Who regulates the financial markets (including binary options) in Malaysia?

Answer: The Securities Commission regulates the OTC derivatives market in Malaysia, but the Bank Negara Malaysia provides overall regulation of the financial markets and payment systems in Malaysia.

  • As a citizen/resident of Malaysia, am I allowed to trade binary options with offshore brokers?

Answer: There are no laws enforcing the prohibition of trading of binary options with offshore brokers, probably because no companies have taken up licensing with the Securities Commission. How long this would remain the case remains to be seen.

  • What is the official designation of binary options brokers in Malaysia?

Answer: Binary options brokers in Malaysia are deemed to be OTC derivative issuers, and are required to be licensed if operating within Malaysia.

  • Are there any Malay or Mandarin language binary options brokers available?

Answer: Some of the brokers listed below offer binary options in Malay, Tamil and Mandarin to accommodate the local populace.

Best Binary Options Brokers in Malaysia

There are no binary options brokers with a physical presence in Malaysia. All trading is therefore done with offshore brokers. Here is a list of binary options brokers which will not only provide Malay and Mandarin language options, but also give Malaysian traders several options for depositing and withdrawing funds fast. The top binary options brokers are as follows:

Conclusion

The binary options market in Malaysia is still dominated by the marketing presence of offshore brokers. The designation of binary options as OTC derivatives is a step in the right direction and will promote development of the local content in the brokerage business. However, this may take some time as Malaysian traders adjust to the new reality and await the entrance of more companies with binary options products suited to the local environment.

Forex trading in Malaysia – Best Forex brokers Malaysia 2020

Forex trading in Malaysia is officially permitted and legal. Hence, the Malaysian Forex traders find it relatively easy and safe to trade Forex and CFDs as a result of Malaysia’s liberal trade policies and laws. The concept of online retail forex trading gaining momentum and more Forex traders are trying their hands in this high-risk high-return business.

However, the traders must carefully consider their trading requirements and the safety of their funds while selecting the best forex broker in Malaysia. All the Forex Brokers have different charges, fees, and policies; you should carefully select the one that meets your requirement. Here we have reviewed a few Forex brokers providing services in Malaysia to help you choose the best Forex broker in Malaysia in 2020.

Forex trading in Malaysia – What You must know to start trading

Malaysia has become an attractive market with significant business potential for Forex brokers. Several international Forex brokers have established their offices in Malaysia. Most of the broker’s website and customer support are in English, and few of the brokers offer their website and support in Malay. So you have to select between the broker offering services in English or Malay.

Malaysian Ringgit (MYR) is Malaysia’s national currency. As per the Bank for International Settlements (BIS), the Malaysian Ringgit accounts for 0.4% of daily turnover in the Forex market. Malaysia also offers a decent financial regulatory oversight by Securities Commission Malaysia (SCM) established under the Securities Commission Act 1993. The Securities Commission Malaysia SCM regulates Stocks, Futures, and Exchange-traded products. However, Forex trading products are not formally regulated by SCM yet.

Forex traders of the Islamic faith in Malaysia can open Islamic Forex Account or Swap-free trading accounts which comply with Sharia law. Islamic Forex trading account is a popular choice in Malaysia, as Islam is Malaysia’s official religion. Malaysia has a strong financial services sector that specializes in providing Islamic investment products and Islamic accounts. Also, Malaysia’s Islamic Financial Services Act (2020) requires financial services to comply with Islamic principles.

Best Forex Brokers Malaysia 2020

Here is the list of Forex brokers reviewed for trustworthiness, transparent trading environment, safety and security of funds, Funding methods and fund withdrawal processing time, etc. This list will help you choose the best Forex broker in Malaysia reviewed for 2020. You can also check Binary Options Brokers Review in Malaysia.

  • Popular among Malaysian traders
  • Maximum leverage 1:1000
  • Five different accounts types
  • ECN account with low spreads
  • MT4 & MT5 Trading Platform
  • Copy and PAMM available
  • Complies with regulators
  • Low and fixed spread
  • Free training materials
  • Easy deposit and withdrawal
  • Bonus deposit – profit can be withdrawn
  • Recommended for Malaysian traders
  • Regulated broker serving since 2020
  • Accepts Malaysian traders
  • Zero Spread account and Islamic Account
  • Autochartist tool, Free VPS, MT4 MT5 platform
  • Bonus deposit available

easyMarkets allows Malaysian traders to invest in forex and offer traders unique trading features like – Freeze Rate, Insider Viewer, DealCancellation, and easyTrade. easyMarkets provides MetaTrader 4 in addition to web trading platform.

  • Freeze Rate allows traders to freeze live rates for a moment to open and close the trades.
  • Insider Viewer is an indicator that allows you to see what other traders are doing.
  • You can also undo certain losing trades within a 60-minute window with DealCancellation.
  • easyTrade feature allows you to set up your minimum trading risk that will not be surpassed.
  • While trading with easyMarkets, there is no commission on trades but there are fixed spreads on each trade.

Consider Before You Open a Forex Trading Account –

All the online Forex brokers have unique features. Hence, you must ensure that the Forex broker you select is safe and trustworthy and offer the services you require. Here are a few points you must consider and review before investing with any broker.

Regulation

The safety and security of your funds with any broker is the primary consideration while selecting a broker. Hence, you should always select a broker complying with at least one reputable international regulatory body like CySec, ASIC, FCA, IFSC, etc. The broker should keep clients’ funds segregated in a reliable bank.

While selecting an overseas Forex broker in Malaysia, choose the broker which complies with European, UK, or Australian regulators. The brokers who comply with CySec, ASIC, FCA, or IFSC can be trusted for trading in a safe and transparent environment.

Broker Type

Online Forex brokers classified as either market makers or as electronic communications network (ECN) brokers. The Market maker brokers take the other side of your trades, whereas ECN brokers pass on the best price from liquidity providers who use its electronic communications network.

ECN brokers usually have a narrow spread, which is variable depending on the liquidity provider, ECN brokers may charge a per-trade commission. In contrast, market maker brokers typically have a higher fixed spread and no commission.

Spreads and Commissions – the trading cost

Spread is the difference between the bid price and the offer price in a broker’s price quotation. The spreads and commissions add a cost to your trading, hence choose the broker with a lower spread and commission possible. The small traders are usually less sensitive to such considerations.

Trading Platform

Ideally, you should go for a broker with trading software with a customizable interface, having excellent analysis features. The trading software should fast and glitch-free and should run on the desktop, mobile, or web platform you prefer.

Most of the Forex brokers support MT4 and MT5 trading platforms from MetaQuotes; it includes a complete technical analysis functionality, numerous valuable trading tools, a wide range of third-party expert advisors (EAs), and custom indicators that you can add or purchase.
The other trading platforms are cTrader, NinjaTrader, some proprietary trading platforms. There are social copy trading platforms like ZuluTrade and eToro.

Customer Service

Most of the Malaysian traders, especially those with less experience, need to access customer service frequently. Hence the broker with a strong customer support team is preferred. You can ask customer support for a training session on using the trading platform. Always go through the training materials available on the broker’s website; they are quite useful and make you feel confident about using the trading platform.

Research, Analysis, and Educational Materials

Some Forex brokers have a strong market research and analysis team; some brokers provide third party premium analysis for free to their clients. The access to a high-quality news feed and market analysis performed by professionals can increase your potential profit and can help you make a better trading decision.

Yes, it is legal to trade Forex in Malaysia. There are many Malaysian Forex traders who are successfully trading Forex and have become Copy trading providers and PAMM account managers with different brokers. This brings them an additional income from the traders who choose to follow their trades or who invest in the PAMM managed account. Although it is legal to trade Forex in Malaysia, you must carefully select a trustworthy broker to ensure the safety and security of your funds. Usually, a broker with more than five years of proven track record is good to go.

How does Forex trading work?

While trading Forex, currency pairs are traded, for example, GBP/USD or EUR/USD. The trader has to predict how the exchange rate of the two currencies will change. If the trader determines that USD (US Dollar) will strengthen against the Euro, then they buy dollars, which means the value of the Euro will go down. If the trader is correct in his prediction, the value of USD rises, and he can sell it for a profit. If the decision goes wrong, then he loses.

For example, the EUR/USD rate shows the number of dollars one Euro can buy. If a trader believes that Euro will increase in value against the dollar, then they use dollars to buy Euros. If the exchange rate rises, then they can sell the Euro back for a profit. One of the reasons Forex trading is popular among investors is that the market is open 24 hours a day; the traders can trade following any timezone.

How much amount is required to start Forex trading?

Forex brokers are allowing you to start trading with a minimum deposit starting at $ 1, $ 5, or $ 10. These are called Micro Account or Cent Account. The newbie traders or small traders usually go for such accounts. These small accounts with up to $10 deposit give the traders the same experience of real Forex trading with only small capital is at risk.
However, a minimum deposit of $1000 is required to start trading seriously while applying proper money and risk management. The smaller accounts usually use higher leverage and are prone to quick margin calls and loss of capital.

Will I make any money?

Well, it depends on your understanding of the Forex market and your accuracy in predicting currency prices. Not all Forex traders make money. In fact, the majority of retail traders lose money.

Forex trading is a risky business. It’s so risky that many experts believe that there is a significant risk of losing your capital. It is challenging for retail traders to understand and predict the currency market with their limited understanding and resources. The idea that an individual trader can become a successful trader is challenging. But the traders can increase their chances of success in the Forex market by getting proper education and training.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Binary Options Broker 2020!
    Perfect For Beginners!
    Free Demo Account!
    Free Trading Education!
    Get Your Sign-Up Bonus Now!

  • Binomo
    Binomo

    Good Choice For Experienced Traders! 2nd place in the ranking!

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