Malaysia Binary Options Trading

Malaysia Binary Options TradingFor Malaysian residents or citizens, the facility of having a local binary options trading house is more convenient and safer than relying on a Europe or Australia based brokerage firm. Malaysia’s newly booming economy is flush with funds from the local Islamic trading instruments and is making its presence felt in global markets as a major player.

 Binary Options Trading

 Binary options trading is also known as “all or nothing trading” “digital trading” “European trading” etc. Essentially it involves speculation on whether a particular security will move above or below a certain pre-determined price upon expiry of the option. The final outcome may give you a complete pay-off or nothing at all. Logically, a trader can lose only as much money as he/she puts into the market and this fixed amount would be spent on purchasing the option. But the risk for newbies and inexperienced traders is that if none of the bets go in their favor, they could end up losing everything they’ve invested.

 This exercise is considered risky and as sailing close to the wind by traditional and well-established stock-brokers and trading houses. Yet it promises very quick returns which can almost be guaranteed provided the right stocks are purchased. It is also a relatively simple process and can be understood by freshers too.

 Emerging Scenario in Malaysia

 Malaysian citizens have taken to binary options trading in a big way, with many sections of the population, from seniors to home-makers to students trying the binary options trading route. Malaysian traders have a reasonably relaxed environment to work in.

 However, since the market is largely unregulated, there is always the risk of falling prey to unscrupulous scams. The best practice for traders is to stay with binary brokers who are licensed, reputable and have a good track-record and name in the market. Another challenge faced by traders is that the good brokers require quite a high initial deposit in dollar terms before you can set up your trading account with them. Hence, many Malaysian binary options traders prefer to take their chances with lesser-known, smaller operators. These below-the-radar traders may charge smaller deposits and promise high returns as a lure to trap unwary customers.

 Good binary options brokers offer a suite of services for their customers to browse through. These include training courses, e-learning, up-to-date information, 24×7 support and education, regular newsletters, reviews and seminars. All these features enable customers to feel empowered, involved and secure. Some brokerage firms also designate a dedicated account manager to assist you with your trading activities and provide you with the right kind of advice at the right time. Live and real-time tutorials, training videos, interactive training sessions, one-on-one video conferencing with experts in field etc are some of the add-ons provided by top-notch trading houses. Demo accounts where you can do a few practice runs before signing on are another interesting and useful feature.

 Regulations and Safeguards

 Currently Malaysia’s central bank, the Bank Negara Malaysia is the sole regulator of the financial industry in the country. Hence, the binary options trading being undertaken by Malaysian citizens or within the country itself come under the Bank Negara’s purview. The bank’s rules prohibit any individuals operating in Malaysia to conduct any kind of financial transactions without being duly licensed. The bank should also be informed about high remittances above certain notified amounts in dollars. All these make Malaysia an attractive location for emerging financial instruments.

 The binary options market-place in Malaysia being a newly created space is currently very fluid and flexible. It is not heavily regulated or monitored. In most cases, the exact difference between a broker and a binary options platform itself is not very distinct. Additionally, there are several binary options issues available almost on an over-the-counter (OTC) basis, leaving the brokerage system out of the loop completely. Most platforms are also web-based, hence they pose a new challenge for traditional forex traders.

 Choices for Malaysian binary options traders

 Currently, there are not too many local Malaysian binary options traders who can provide world-class services as compared to the scenario in several European, South American and Australian markets. The websites for binary options trading houses also need to be in the Malay or Mandarin languages to enable the local traders to make better and more informed choices. Since the process involves trading global currencies, commodities and indexes, Malaysian traders should not suffer from a lack of adequate data and information.

 On the flip side, fresh entrants into the trading field may find that they have to live with features like a restricted number of free withdrawals per month or a higher minimum trading size. The options themselves cannot be exercised before expiry date.

 All these factors must be kept in mind while undertaking binary options trading in Malaysia.

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