Yes, binary options trading is legal in Malaysia.
The Labuan Financial Services Authority (LFSA) or the Securities Commission Malaysia (SCM) regulates binary options forex brokers in Malaysia. Traders can use any local brokers licensed adequately by one of these regulators or trade binary options with offshore brokers. Currently, there are no regulations that forbid the trading of binary options.
Check out our guide below to learn how to trade binary options in Malaysia!
Key facts about binary options trading in Malaysia
- Binary options trading is legal in Malaysia, and no special regulations exist.
- Malaysian traders can start trading Binary options with a low minimum deposit of $10
- Reputable brokers such as Quotex, IQ Option and Olymp Trade are available.
- Brokers accept local payment methods as a way to fund trading accounts.
A Step-by-Step Guide to Trading Binary Options in Malaysia
If you’re interested in binary options trading and want to start trading in the Malaysian market immediately, check out our step-by-step guide below. It’s designed to help new traders kick-start their trading journey and get the hang of trading binary options and withdrawing/depositing their funds as quickly as possible.
1. Pick an available binary options broker in Malaysia
There are several binary options brokers worldwide. Due to the popularity of binary options trading, the number of brokers has risen. However, not every broker is legal in all countries. So, if you wish to trade binary options in Malaysia, you can check out the available brokers.
Though there are several brokers, the services of four leading brokers are worthwhile in Malaysia. These brokers also have an OTC derivative license to offer services.
List of the four best Binary Options brokers in Malaysia
There are many Binary Options brokers all over the world. However, not all brokers are available in Malaysia. Here are the top 4 Binary Options brokers in Malaysia.
These are the top 4 Binary Options brokers in Malaysia – give it a look:
100+ Markets
- Min. deposit $10
- $10,000 demo
- Professional platform
- High profit up to 95%
- Fast withdrawals
- Signals
300+ Markets
- $10 minimum deposit
- Free demo account
- High return up to 100% (in case of a correct prediction)
- The platform is easy to use
- 24/7 support
100+ Markets
- Professional platform
- Free demo account
- $10 minimum deposit
- Webinars and education
- High payouts
100+ Markets
- Welcomes international clients
- Offers high payouts: 90% – 97%+
- Professional-grade trading platform
- Swift deposit process
- Enables Social Trading
- Provides free bonus incentives
100+ Markets
- Min. deposit $10
- $10,000 demo
- Professional platform
- High profit up to 95%
- Fast withdrawals
- Signals
from $10
(Risk warning: Trading is risky)
300+ Markets
- $10 minimum deposit
- Free demo account
- High return up to 100% (in case of a correct prediction)
- The platform is easy to use
- 24/7 support
from $10
(Risk warning: Trading is risky)
100+ Markets
- Professional platform
- Free demo account
- $10 minimum deposit
- Webinars and education
- High payouts
from $10
(Risk warning: Trading is risky)
100+ Markets
- Welcomes international clients
- Offers high payouts: 90% – 97%+
- Professional-grade trading platform
- Swift deposit process
- Enables Social Trading
- Provides free bonus incentives
from $ 5
(Risk warning: Trading is risky)
Quotex
Quotex.io is legal in Malaysia and is the platform of the future. It was created in 2019 and has gained immense popularity since then. The best part of this platform is that it offers market signals to traders to help them make accurate predictions. Quotex.io is a by-product of Awesome Ltd. and operates in multiple countries over the globe.
The payment options are limited to cryptocurrencies for traders in Canada, the USA, Germany, and Hong Kong but not for traders from Malaysia. Quotex offers traders a maximum payout of up to 100%, but its percentage varies depending on the asset type, liquidity, and market performance. The broker platform doesn’t offer MT4 and MT5 platforms.
Get a free % deposit bonus of 50% at Quotex with our promotion code “bobroker50. “
Traders can choose an expiry duration between 60 seconds and 4 hours. They can also fine-tune the price graphs to see fluctuations in seconds. Analyst recommendations regarding price direction, duration, and asset choice help streamline the profit potential. Clients also get favours by adapting to trading customization.
(Risk warning: You capital can be at risk)
IQ Option
IQ Option is a legal platform in Malaysia. One of the earliest platforms to offer its services, it was launched in 2013 to allow traders to trade CFDs and binary options. It also offers many financial products for traders to choose from. Moreover, IQ Option has received several awards, which makes it reputed and famous worldwide.
It is one of Malaysia’s best binary options brokers, offering a maximum payout of up to 95%. Like any other platform, the payout rate varies depending on the asset’s market performance. You have many trading tools to help you determine the accuracy of the prediction. You can leverage the potential of technical indicators to identify and predict the price movement pattern of a selected asset.
IQ Option is available in 13 languages, and Malaysian traders can toggle between their preferred languages. It provides multi-chart layouts, economic calendars, historical quotes, stock screeners, market updates, and volatility alerts to help traders make more accurate predictions. The interface is outstanding and easy to navigate, even for beginners.
(Risk warning: You capital can be at risk)
Olymp Trade
Olymp Trade is a legal platform in Malaysia. It is one of several modern-day platforms that introduced the concept of binary options trading to the public and new traders. This platform is ideal for both new traders and seasoned professionals. Offering a wide range of financial instruments from different markets, traders have multiple assets to choose from.
Olymp Trade, Malaysia’s best binary options broker, has set up diverse payment options for traders. The platform considers the convenience of all binary options traders. It allows local payment methods and even cryptocurrency to fund accounts. Olymp Trade was the best financial broker at the CPA Life Awards 2017.
The interface Olymp Trade offers is quite prominent and easy to use. This platform has excellent usability for both beginners and experienced traders. It has records for holding many daily users, which is a sign of the brand’s efficacy. The platform is clean and has organized links to features offered by the broker. It operates under the regulation of CySEC and provides a maximum payout of up to 90%.
(Risk warning: You capital can be at risk)
Pocket Option
Pocket Option is a legal platform in Malaysia. It operates under the regulation of MISA and has a great name in the industry for its bonus features. You can get up to 92% of your initial investment as profit over this platform. You get to go with high/low or turbo trade, depending upon your priorities over this platform.
Furthermore, Pocket Option allows you to commence with social trading features for better profits. Unlike most other trading platforms, Pocket Option offers all Malaysian traders only one trading account type. This keeps the trading journey uniform for both beginners and professionals. The amount of deposit that one can make is the sole decision of the traders, but there is no categorization of traders as standard or VIP.
You can set the trading expiry between 60 seconds to 4 hours. The security aspects of the traders’ capital are high within the platform. Pocket Option might not have the highest grip over the market, but it is still a popular binary options broker in Malaysia with impeccable features.
(Risk warning: You capital can be at risk)
2. Sign up for a live trading account
After choosing a broker, a trader can visit the online trading platform’s website and click the ‘create my account’ or the ‘sign up’ option.
The signup process requires entering your name, email, and other relevant details that a broker needs to validate your account.
(Risk Warning: Your capital can be at risk.)
3. Use a demo account or a live account
Now, traders can initiate trading with a demo trading account if they don’t have any prior trading experience. In addition, the binary options demo account does not require traders to invest their real funds in trading binary options in Malaysia or elsewhere. Thus, traders can easily save themselves from unexpected losses.
However, if a trader knows and holds prior trading experience, he can begin with a live trading account. Traders can add real funds to their live trading accounts. Funding your account allows you to trade binary options.
(Risk Warning: Your capital can be at risk.)
4. Pick an asset to trade
Now, a trader can choose an underlying asset that he thinks will perform exceptionally well in the market. They can search for it by clicking on the online trading platform’s ‘find’ or ‘search’ option.
After traders find their assets, they can place a trade. However, before doing so, it is recommended that they analyze before deciding on a trade to make.
5. Make a proper analysis
Proper analysis is important before placing a trade; without it, placing trades rashly would be similar to gambling. Binary options trading involves risk like any other trading form, and trading recklessly can lead to losing your capital quickly.
Key Notes:
- Traders can use several trading tools and indicators to know the direction in which the underlying asset’s price will move.
- They can use trend analysis to find whether the asset’s price will rise.
- Following news and other information about the asset will also come in handy.
- In addition, traders can combine all these activities to develop a perfect trading strategy.
6. Place the trade
Once your technical analysis satisfies you and you believe you have researched enough, you can place your binary options trade. Placing your trade is simple; you only need to choose an underlying asset and select the strike price and expiry time.
| Good to know! |
| Binary options trading has different expiry times. For instance, you can place trades that expire within seconds or minutes. |
(Risk Warning: Your capital can be at risk.)
7. Wait for the result
If your analysis is accurate, you will win your binary options trade. If not, you will lose your money. This is known as binary options trading, and there are only two outcomes.
Traders will only be profitable if their predictions are accurate. On the other hand, an improper analysis will cause them losses. So, planning your move after a thorough market analysis is always better.
Now that you have a handy binary options trading guide, here are some basics you should know.
(Risk Warning: Your capital can be at risk.)
Financial Regulations in Malaysia
All OTC derivatives, including binary options trading offered by Malaysian companies, need regulatory authorities’ licenses to operate seamlessly. But, as of now, no companies have registered with the Securities Commission and FMAM for a binary options broker license. Therefore, traders are relying on offshore brokers to trade binary options.
Binary options have only recently been recognized as OTC Derivatives. Until 2011, the only recognized OTC derivatives exchange was the local Kuala Lumpur Commodities Exchange. Recognizing the popularity associated with binary options trading, the authorities upgraded their laws to regulate the money-remitting aspects from offshore brokers to the country.
(Risk warning: You capital can be at risk)
Payment Methods for Traders in Malaysia
Here are some binary payment options available to Malaysian traders.
- Cryptocurrencies – Traders in Malaysia can access several cryptocurrencies, such as Bitcoin, Bitcoin Cash, and Litecoin and use them to fund their trading accounts.
- Digital Wallets—Online platforms such as Pocket Option, IQ Option, and Quotex allow traders to use their electronic wallets. Digital wallets are in vogue these days and are a convenient payment method. Traders worldwide use electronic wallets to fund their trading accounts or withdraw funds.
- Bank Transfers – You can fund your trading account using a bank transfer with an available broker. Bank transfers allow you to fund your account quickly. However, withdrawing funds through this payment method might take some time.
- Credit and debit cards—Card payments are common and widely used payment methods by Malaysian traders. Traders can use both debit and credit cards to fund their accounts as long as these cards belong to them. Card payments for funding your trading account are quick. However, the withdrawals you make through your card might take 2-24 hours to reflect.
Pros and Cons of Binary Options Trading in Malaysia
Binary options trading in Malaysia has its pros and cons, like elsewhere. Here are some of them.
- Traders can be consistently profitable if they are disciplined, conduct thorough research and stick with their trading strategy without trading rashly.s
- Binary options trade expires within seconds, so traders don’t have to wait long to know the results of their decisions.
- Traders can access several underlying assets and place multiple binary options trades simultaneously.
- Trading binary options can be fun.
- Trading binary options requires expertise, and many traders give up on binary options trading early on due to the amount of commitment required.
- Binary options trading is not ideal for emotional traders. This is because trading binary options can be addictive as it has a similar nature to gambling.
- Although the trades expire within a few seconds, a trader has to track the charts and analyze the market for several days.
Risks of Binary Options Trading in Malaysia
Before traders in Malaysia indulge in binary options trading, they should know about binary options trading risks.
- Binary options trading involves extensive analysis. Therefore, traders who fail to conduct thorough research and trade rashly can quickly lose money.
- Traders do not own any actual assets. As traders are trading on predictions of increases and decreases in an asset’s price, traders do not have ownership of any assets.
- Apart from this, several scam brokers operate in the market. If a trader falls into their trap, he may not be able to get his money back.
Conclusion: Binary Options trading is available in Malaysia
Binary options trading in Malaysia is picking pace because it is recognized. Traders can sign up with the brokers available in Malaysia and initiate their trading journey.
Although trading binary is generally considered safe and legal, several risks remain. So, a trader should always conduct their research, revisit trading decisions, and develop worthwhile trading strategies.
(Risk Warning: Your capital can be at risk.)
Frequently Asked Questions (FAQs)
As a Malaysian trader, can I trade binary options?
Yes, binary options trading is fully legal in Malaysia. To begin trading, you only need to choose one of the brokers we have recommended.
Is binary options trading safe in Malaysia?
Yes. Binary options trading is safe in Malaysia if you move on the right path to building trading strategies. However, traders should also choose a reputed broker to avoid getting scammed.
How much money do you need in Malaysia to trade binary options?
The funds required to trade binary options in Malaysia can vary based on your broker, strategy, and risk preferences. Research and select a suitable broker within your budget, and practice responsible risk management.
What are common payment methods for binary options brokers in Malaysia?
Typically, binary options brokers in Malaysia offer a range of payment methods. These include bank cards, transfers, digital wallets such as Skrill and Neteller, local payment options, and cryptocurrencies like BTC and XRP.
What are the risks of binary trading options in Malaysia?
Binary options trading in Malaysia carries significant risks, including the potential loss of your entire investment. It lacks regulation, increasing the risk of encountering fraudulent brokers.
Can you trade binary options for free in Malaysia?
Binary options trading usually requires real-money investments to generate profits. Some brokers offer demo accounts for practice, in which traders can start trading binary options for free with virtual funds.
