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!
    Ideal for beginners!
    Free Demo Account + Free Trading Education!
    Get a Sign-up Bonus:

  • BINOMO
    BINOMO

    2nd place in the ranking!

Malaysian Traders Guide

Malaysia has rightfully gained its place as one of the Top-10 holiday destinations in the world. No doubt this is partly on account of the sheer diversity of the country, which offers an eclectic mix of vibrant modern cities and faultlessly clean beaches; all contained within what is considered one of the most tourist-friendly places in the world.

Citizens of modern Malaysia, enjoy a very comfortable standard of living, with a decent level of disposable income; undoubtedly one of the reasons that day trading has become a much more common pastime there. Binary options have become a particular favourite amongst younger Malaysians, because they represent a fast-paced way to trade and because it is readily accessible from mobile devices.

Our guides are aimed to assist both newcomers and those who wish to add binaries to an existing portfolio. We aim to give an overview of the situation for your country, as well as guidance on choosing a suitable, legitimate broker and providing reviews of the brokers we consider you may want to shortlist.

In this article, you will learn:

    About Malaysian licensing and regulation The brokers which are most suitable for Malaysians How you can trade using your mobile device

Traders in Malaysia

While quietly becoming one of the wealthiest countries in the Asia-Pacific region and the world, Malaysia has allowed its citizens’ freedom to trade in any financial product, with little or no restriction. This relaxed attitude to trading makes it easy to see why binary options have seen a big Malaysian growth spurt over the last few years. Although you have this freedom, you should use it wisely. So-called ‘golden’ opportunities are rarely that and to avoid disappointment, choose a broker armed with knowledge.

Mobile Trading

One of the reasons binary options are so prevalent in Malaysia is their speed and simplicity. They are an ideal trading tool for fast-paced modern life and with no need for extensive research to get started. What is more, the majority of brokers offer outstanding mobile device services as well. These usually come in the form of a mobile-optimised website, or a downloadable App, occasionally both are available. A modern device and reliable Wi-Fi connection are essential to reap the benefits.

Free Demo Platforms

Demo platforms are essential to new traders and can have their uses even if you are already an experienced one. A ‘free’ opportunity should be precisely that, no payment required, no time constraint and no pressure on you to start investing real money. Any broker that does not meet those standards should not be deemed worthy of your patronage.

Best Binary Options Brokers 2020:
  • BINARIUM
    BINARIUM

    Best Binary Options Broker 2020!
    Ideal for beginners!
    Free Demo Account + Free Trading Education!
    Get a Sign-up Bonus:

  • BINOMO
    BINOMO

    2nd place in the ranking!

Good Payouts

Brokers will usually advertise a payout percentage and you may see figures that vary between 75% and occasionally as high as 95%. The higher numbers are often ‘best case scenario’ data, otherwise known as ‘headlines’. What you need to know is that you are not always going to receive the same payout percentage and you will need to do some homework based on different figures to see the accurate picture.

Customer Support

It is particularly crucial if you are new to this type of trading to select a broker who can offer adequate support to its clients. Support does not necessarily mean someone available to answer a phone 24/7 (although that is important too), it is more about detailed FAQs, extensive help guides and a full-function demo platform, which you can access without committing financially.

Trader Broker Asset Profit

Broker Fees And Tax

Broker fees are variable, but all CySEC regulated operators are required to make any fees you may encounter clear before you sign up with them and commence trading. There will be either a per-trade fixed fee or a commission-based cost to take into account. You may also need to consider if the broker levies charges for other services including withdrawals and conversion to the Malaysian currency (MYR).

Assuming that you are not a professional trader, your Income Tax liability is assessed on a sliding scale. The amount you pay will vary from 0% to 28% depending on the total income over a 12-month period. Any profit you make from trading in binary options will count as a part of that and must be declared.

It is therefore crucial that you maintain a comprehensive record of all trading transactions, regardless of whether you made a profit or loss. There are substantial financial penalties for tax avoidance including a fine of 20,000 MYR and 300% of the undeclared tax owing.

Malaysian Licencing

The highest financial authority in the country is Bank Negara, which keeps a close eye on commercial activities and the country’s economy. It does not explicitly regulate binary options, although it does have certain constraints of which traders need to be aware. Bank Negara also makes recommendations to those considering this form of trading. These are the main things you need to be mindful of:

    The maximum transaction amount you can make, without obtaining Bank Negara’s permission is 10,000 ringgit (MYR) All profits from binary options trading must be declared as income Only CySec licensed brokers are recommended for Malaysian citizens

CySEC (The Cyprus Securities and Exchange Commission) was the first authority to recognise binary options as a valid financial product and to regulate them from 2008. You should also be aware that some devious brokers mention this on their website, but are not legitimately CySEC licensed. Any that are correctly licensed will display a logo and a unique 5-digit code, which is verifiable on the CySEC website.

One of the reasons binary options are so prevalent in Malaysia is their speed and simplicity.

How we Recommend Brokers

Sometimes the task of selecting suitable brokers for a particular country can be tough, but for Malaysian residents, it is more straightforward. While you are legally allowed to trade with any offshore broker of your choice, the top financial authority in your country offers sound advice, so that is where we will begin. Our team of expert reviewers will seek out the best licensed binary options brokers and assess them on many different factors. Two great brokers to help you get started with binary trading are Olymp Trade and IQ Option, both offer a feature-rich experience.

Number one on the list is confirmation of licensing, which is easy for CySEC as the licence number must be displayed on the broker’s website and verified via CySEC’s licensing site. At the same time as this, we also ensure that the broker has not incurred penalties for unethical practices, or received warnings for misconduct. Security comes next and CySEC brokers are required to provide a safe website and have a minimum of 128-Bit encryption in place for sensitive or financial transactions.

Now we get to the parts that may interest you more, firstly assets and payouts. We like to see our recommended brokers offering a diversity of asset types for you to trade and to display a realistic payout percentage. We expect full transparency where fees are concerned, so you will not get any nasty surprises and a generally ‘friendly’ feel to the broker. By that we mean, how approachable they are and how much assistance they offer for you to achieve success, after all a successful trader will be back to trade again.

Frequently Asked Questions

Is binary trading in Malaysia legal and safe?

Yes, all forms of trading are legal in Malaysia, including binary options. We recommend that you use a broker which operates under CySEC regulations and displays valid licensing information to ensure your online safety.

Do I need to pay fees and taxes on my trading profits?

The fees you pay will vary from broker to broker; always check the T&Cs carefully. Any profit you may achieve from trading binary options will count as income and is taxable on a sliding-scale basis.

Can I test brokers before trading with real money?

The majority of CySEC brokers all offer a free demo trading platform. A few may impose time limits on the trial period, so choose wisely, especially if you are still learning.

Is it easy to make deposits and withdrawals?

You will find many widely-accepted methods of payment available to you including credit/debit card and bank transfer, as well as popular e-wallets like PayPal and Skrill. You should note that Malaysia forbids transactions in and out of the country using cryptocurrency.

Can I trade using my mobile or tablet device?

You will find it easy to connect with brokers that provide robust mobile-device services. The option may be in the form of an optimised website, or an App which you will need to download. Most require an up-to-date device/OS and a will need a reliable Internet connection.

Jacob has been an author for us since our launch in 2020. He has over forty years’ experience in the financial sector and has held a variety of positions within financial services corporations and venture capitalist organisations.

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.

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.

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.

Best Binary Options Brokers 2020:
  • BINARIUM
    BINARIUM

    Best Binary Options Broker 2020!
    Ideal for beginners!
    Free Demo Account + Free Trading Education!
    Get a Sign-up Bonus:

  • BINOMO
    BINOMO

    2nd place in the ranking!

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All About Binary Options Trading
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