Malaysia Binary Option Brokers

Malaysia Binary Option BrokersDefinition of Binary Options

 Binary options trading is a popular trading option where the returns are in the form of either a designated portion of a fixed asset or cash, or there may be zero returns. The fixed asset option gives traders the value of the security, while the cash option provides returns in the form of a fixed return. This is why they’re known as “binary options” since the result consists of just these two options. Binary options are also known by many other names such as Fixed Return Options (FROs) in the US stock markets, all-or-nothings, two-outcome options, digital options, European options etc. They are extremely popular in European markets.

 Why They’re So Popular

 The relatively simple process, uncomplicated structures and fixed nature of the components make binary option trading a popular choice for newbies and inexperienced traders, people who want quick returns and those who don’t really have the time to undertake in-depth speculation. Statistics reveal that they can easily provide up to 91% returns on investment, they have flexible time/expiry frames, a variety of assets to choose from, relatively low investment requirement, lower initial costs and a capped down-side. They’re also available in an almost over-the-counter format, directly sold by issuers to the traders if so required, though most people prefer to trader through reliable and trustworthy brokers. All these features make them currently one of the scorching-hot, quickest-growing products in financial trading markets world-wide.

 Binary Options Brokers in Malaysia

 In recent years, binary options have gained enormous favor in Malaysia. Known locally as “Pilihan Binari”, these options are gaining huge ground across all sections of Malaysian demographics. From senior citizens to students and home-makers, Malaysians have taken to this form of trading in huge numbers.

 Brokers enable traders to communicate with the market, since they are experienced and have expert knowledge in the formats, functions, terminology, procedures and processes. By sifting out the reliable and trustworthy companies from fly-by-night operators or flash-in-the-pan types of organizations, a top-notch broker can maximize trading returns. They also help traders with timely advice, information, data and statistics so that they can make more informed and safer decisions.

 Features

 Brokers usually have a suite of assets that they trade in. These assets and investments would have been thoroughly vetted by the brokerage house experts. When a trader signs on with them, they assign a dedicated account manager who hand-holds them through the entire trading procedure. Another attractive option that many brokerage houses offer is that of free in-house training in binary options trading. E-learning platforms, seminars, newsletters, tutorials etc are offered by the good brokerage houses, to further enhance the trader’s expertise and interest in the subject.

 24×7 support via e-mail, SMS alerts etc are also provided as well as resource support staff who can advise the trader properly in case of any emergencies.

 Since one of the pitfalls of binary options trading is the unregulated nature of the process, the Malaysia government has stepped in to create its own regulatory authorities for the protection of its citizens and ensure best practices. They are the Securities Commission of Malaysia and the Bank Negara Malaysia are two of the leading regulatory authorities in the country. These organizations are authorized to regulate and license binary options brokers and trading-houses. However, the concept of binary options trading is still relatively new in the country. Hence, the presence of these authorities has not had much of an impact on the trading and a bulk of activities are still carried out by unregulated and unlicensed brokers. Currently, most binary options traders in Malaysia have licenses issued in European countries, Cyprus and Australia.

 Challenges for Brokers in Malaysia

 Finding binary option trading brokers whose websites are in Malay language would be of great help  to the local traders. Many technical terms and idiomatic usages can be lost in translation, hence websites in English or other European languages could be a deterrent for local traders. Websites in Malay or Mandarin are certainly required in this field. This would help people to make more informed decisions in keeping with their own choices and preferences.

 Another obstacle for traders in Malaysia is the high initial amount that is required by brokers in dollar terms, to open a trading account. However, this is mandatory for the brokers to retain their licenses. In spite of this, many traders prefer to avoid paying this initial deposit and take the risk of dealing with unregulated brokers. These brokers may charge a very low minimum deposit and since the returns are quick and usually on the high side, Malaysian traders are willing to give regulations the go-by.

 Summing Up

 Since the binary options cannot be exercised till expiry date, this comes with its own set of risks. There are also a huge range of varieties of binary options that come under this umbrella including such high-risk platforms like “one-hour bets” etc. Malaysia binary options brokers are in the thick of this exciting period of transition and transformation in stock markets world-wide.

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