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Robert Sammut

Malaysian Options Trading 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.

Top Rated Options Sites

BEST SITE
1
Pocket Option Logo
9.8
Perfect
Bonus Up-to $2000 Assets 130+
Min. Trade $1 *Payout % 92.76%
Over 130+ assets to trade now
Instant access to social trading
Single account option, for everyone
Tournament with prize of $50,000
IFMRRC is not an official regulator
Limited account funding methods
Deposit Methods
AMEX PayPal PaySafeCard Skrill
136 traded at this site today
Read Review
BEST SITE
2
Olymp Trade Logo
9.3
Excellent
Bonus Up-to $1600 Assets 70+
Min. Trade $1 *Payout % 91.48%
Over 70+ assets to trade now
Min deposit $10, min trade $1
Exceptional level of education
Big emphasis on ‘client experience’
Not available to US/EU citizens
Some reports of platform ‘lagging’
Deposit Methods
Visa AMEX Bitcoin PayPal
72 traded at this site today
Read Review
BEST SITE
3
ExpertOption Logo
9.1
Very Good
Bonus Up-to $1000 Assets 50+
Min. Trade $1 *Payout % 89.72%
Over 50+ assets to trade now
Multiple accounts for all budgets
Support available in 15 languages
Free support manager for traders
Maximum trade expiry is 15 minutes
50x trading requirement for bonuses
Deposit Methods
AMEX Bitcoin PaySafeCard MasterCard
34 traded at this site today
Read Review
BEST SITE
4
Binarycent Logo
8.8
Very Good
Bonus Up-to $1000 Assets 150+
Min. Trade $1 *Payout % 89.56%
Over 150+ assets to trade now
Bespoke platform for PC and mobile
Low min deposit of $0.10 per trade
Great support in multiple languages
Platform not suited to pro traders
No free demo account option
Deposit Methods
AMEX Klarna PayPal Skrill
10 traded at this site today
Read Review
BEST SITE
5
Raceoption Logo
8.5
Very Good
Bonus Up-to $1000 Assets 140+
Min. Trade $1 *Payout % 87.32%
Over 140+ assets to trade now
Account options for every trader
Trading available 7 days a week
Super-fast 1 day withdrawals
Demo account requires $250 deposit
UK-based, but licensed offshore
Deposit Methods
Visa Bitcoin Klarna Neteller
18 traded at this site today
Read Review
Risk Warning / Ad Disclosure

Risk Warning: The products offered by the companies listed on this website carry a high level of risk and can result in the loss of all your funds. You should never risk money that you cannot afford to lose.

Ad Disclosure: Some of the links that you will find on this website are advertisements for which we do receive financial gain for referring new customers.

Options Sites in Malaysia

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.

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.

Broker Fees And Tax

Todays Top Traders
Trader Broker Asset Profit
Risk Warning / Ad Disclosure

Risk Warning: The products offered by the companies listed on this website carry a high level of risk and can result in the loss of all your funds. You should never risk money that you cannot afford to lose.

Ad Disclosure: Some of the links that you will find on this website are advertisements for which we do receive financial gain for referring new customers.

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.

Our Review Rating System (More Info)

10% 10% 10% 15% 15% 20% 20% Pie Core
  • Account Types
  • Banking & Payouts
  • Bonuses & Promotions
  • Mobile Trading
  • Trade Types
  • Special Features
  • Customer Support
Expert Reviews

Frequently Asked Questions

FAQ

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.

Meet The Author
Robert Sammut
Robert Sammut
Trading Coach

Robert has consulted for our website for five years and is a well-established member of the team. While he is passionate about the site, most of Robert’s time is focused on his current position as CEO of a professional coaching company.

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