Explore the World of Binary Options Trading in Malaysia

Malaysia is well-known for its beautiful beaches and its charming islands. This Southeast Asian country also offers online trading in binary options enabling both novice and professional traders to enjoy the high rewards and low risk of this fast-paced trading action.

Is Options Trading Legal in Malaysia?

Binary options trading is very popular in Malaysia and one of the reasons for this is that it is legal to trade options in this country. While there are no regulated Malaysian binary options brokers, there are many brokers in other countries who offer their services in this country. These brokers are regulated by other regulatory bodies in other countries such as, CySEC (Cyprus Securities and Exchange Commission) in Cyprus and the Financial Conduct Authority (FCA) and the Financial Policy Committee (FPC) in the United Kingdom. There are also two Malaysian Government organizations that are responsible for regulating and licensing brokers and trading within the country and they are Bank Negra Malaysia as well as the Securities Commission (SC) Malaysia.  The SC is responsible for regulating and developing the capital markets in the country while one of the key duties of Bank Negara Malaysia is to ensure that all the financial institutions which fall under its jurisdiction, comply with the financial laws of the country.

While you can trade options with an unregulated broker, you need to remember that in this way, you are opening yourself up to scams and should anything go wrong, you will have no recourse. Based on this, the first step in option trading in Malaysia, is selecting a regulated broker that is reliable and reputable.

Tailor Made for Malaysia

Since there are no brokers based in Malaysia, it is very difficult to find a broker’s website in Malay. For those who speak Chinese/ Mandarin, there are a few brokers who offer their services in this language so if this will increase your trading effectiveness, then selecting a broker in your native language is important.

The currency used in Malaysia is the Malaysian ringgit (MYR) and most brokers require a trader to make an initial minimum deposit ranging from $50 right up to $400. When you convert this amount into the local currency, you are paying over three times the amount. Based on this, you need to ensure that you are trading with money you can afford to lose because at the end of the day, trading involves risk.

Trading Platform and Trade Options

The center of options trading is the trading platform and most brokers offer a 100% web-based platform which means that you will not need to download any software in order to trade. If you are new to the binary options arena, selecting a broker that offers an easy-to-use platform is important since online trading often requires quick thinking and action. Most brokers also offer a wide selection of trade options such as One Touch, Option Builder, 60 Seconds and the standard binary options trade option. Having access to different trade options is important for trading success as it provides you with flexibility. For example, if you want to trade a particular asset with a short-term expiry time, you can use the 60 Seconds and binary options trade options but if you want to trade over the weekend, you can use the One Touch trade option. Remember that when you select a broker, you need to be asking yourself, what can this broker do for me and for my trading style and requirements?

Return on Investment

Most brokers today offer a return of up to 85% on successful trades or trades that end in-the-money and you can even make up to 600% return on the One Touch trade option. Some brokers also offer up to a 15% rebate on losing trades so selecting a broker based on their returns is important. One of the greatest advantages of trading binary options is that you know what you stand to win or lose even before you make your investment. Based on this, the rate of return will be clearly marked on the trading platform for each trade so there will be no surprises. Also, most brokers do not charge a commission but they might charge a withdrawal fee when you want to withdraw funds from your trading account so be sure to check these terms on the broker’s site before you sign up.

Demo Account

If you are Malaysian and new to the online trading world, then the best place to start is with a demo account. Not all brokers offer this service and some will give you access to a demo account only once you have opened a trading account with them. The benefit of using a training account is that it allows you to experience trading within a live trading environment without the risk of losing any of your hard earned cash. In this way, you are able to familiarize yourself with the platform and the different features and once you feel confident enough, you can then trade for real money. Demo accounts are also often used by professional traders who take advantage of this facility in order to practice advanced trading strategies. If having access to a demo account is important to you, then check with the broker if they offer this service.

Educational Trading Tools

You cannot trade binary options in isolation and without knowing what is happening in the markets, it is difficult to make predictions about the price movements of an asset. Most binary options brokers will offer a wide selection of educational trading tools which will enhance your trading effectiveness. These may include video tutorials, daily and weekly market reviews, live financial news, FAQ’s, glossary, asset index, eBooks, trading charts and many more. Another great trading tool is binary options signals which are notifications of potentially profitable trading opportunities. Some brokers offer this service to their traders and while these signals can never be 100% accurate, they can definitely point you in the right direction.

Customer Service

When you sign up with a broker, you should expect to get good customer service and support. This means that you should be able to contact the broker with ease and most brokers today offer a live chat feature that is available 24 hours a day, 7 days a week. Many brokers also offer one-on-one coaching with a senior broker as well as a dedicated account manager. The truth is that even if you are a novice trader or a top VIP trader, receiving good service from a broker is a core criterion in trading effectively.

Conclusion

Options trading in Malaysia is growing at a rapid pace and traders are not spoilt for choice when it comes to selecting a broker to partner with. Take your time to do your research and find the broker that will give you the features and services you need in order to step into the binary options trading arena with confidence.

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