Malaysian controlled and regulated binary options brokers provide traders with the opportunity to speculate on various underlying assets, through web-based trading platforms or mobile applications. Brokers operate in many different ways, some develop better platforms, others will use white label sites. Likewise, some are referred to as ‘over the counter’ (OTC) brokers, while others operate exchanges. Our comparison table below allows you to quickly scan the main points for any reliable and reputable broker. Our detailed expert reviews cover in-depth analysis of platforms, deposit and withdrawal options, bonuses, demo accounts and even complaints for specific firms – and give each a rating / rating. Finally, below the list of broker comparison tables, we explain how to compare brokers online – and why some elements may be more important to you than others. Therefore, you should have all the information you need here, to make the best choice for you when looking for a safe binary broker.
Malaysian Brokers – Comparison and Reviews
Identifying a regulated binary options broker depends entirely on the needs of the particular investor. A ‘Top 5’ or even a ‘Top 10’, may not contain a single brand that suits your style. A trader needs to consider various things when choosing a genuine prime broker to join. This includes the asset class, or market, they want to invest in and their average investment size, to name but two. Here at malaysia.options we list all the useful facts that will help individuals to choose which trading broker they want to open an account and register with. We also analyzed our most frequently asked questions, and found out that the following characteristics are important when traders decide on a broker;
5 Best Binary Options in 2019
- Binary.com
- IQ options
- OptionField
- RaceOption
- Ayrex
Regulated brokers
Our broker reviews will be specific about which regulator is responsible for each broker. In Malaysia, the Financial Conduct Authority (FCA) regulates several brands – not because they trade binary options – but because they also allow clients to trade Contracts for Difference or forex. Some binary options brokers have chosen to register with the FCA – but this is not the same as being regulated by them. This is an important point if Malaysian traders in particular want the piece of mind that FCA regulations provide. The rules give traders a better idea if the broker is genuine, and legitimate. In the US, the CFTC regulates the financial sector. Only Nadex and CBOE are officially licensed to offer binary trading. Brands regulated in Europe will not offer services to US merchants. CySec is the main European regulator. They recently cornered several brands under their purview – cleaning up a large part of the industry in the process. CySec regulated brokers are allowed to accept Malaysian traders. The MiFID II directive means that Cypriot licenses can be ‘passported’ for Malaysian clients. In Australia, ASIC (Australian Securities and Investments Commission) regulates financial institutions – including brokers. Their oversight is comparable to the FCA. Malta and the Isle of Man also license a number of binary operators based on gaming permits. This also offers strong protection.
Binary Trading Demo Account
Sign up bonuses and demo accounts are two factors designed to attract new account holders. Both are very effective at attracting newbies and customers and it’s easy to see why. The bonus is usually paid as a deposit match, or sometimes once several sets of trades have been completed, for a set amount. There are generally restrictions, or terms and conditions that must be met before funds can be withdrawn. It’s worth spending some time understanding the terms before signing up. If the conditions are unlikely to be met (for example trading volume in the first few weeks) then the bonus will lose any appeal and the broker will no longer be the best choice.
There are also some terms that restrict even initial deposit withdrawals – not just bonus funds. This is really rare – but highlights the need to check. A binary options demo account is a great way to be introduced to binary options trading without having to risk any funds. Investors looking for the long term can be sure that the broker is right for them when they trade for real money. A virtual practice or account offers many benefits. They also provide a good way for traders to compare brokers directly or backtest trading strategies.
Minimum Deposit
For investors looking to get involved with binary options for the first time, the cheap minimum deposit requirements may be attractive. Traders who only want to risk small amounts, will find brokers with smaller minimum deposits more suitable. Low deposit requirements start at £5 or £10. Higher minimum deposits reach £100 or £250. High deposits often mean certain benefits, such as better rates, bigger bonuses or access to high-level accounts such as VIP or Platinum etc. All brokers will have minimum trading (or minimum investment) requirements.
This can vary significantly. There will be some investors who have no consideration and if so, these factors should not be part of their selection criteria. Minimum trade figures range from £1 to £25 – which is a huge difference if traders plan to trade regularly. Some new firms offer cryptocurrency financing options – and the mean trade is only $0.1 (or equivalent). Both minimum trades, and minimum deposit figures are shown in the comparison list. We also list whether the firm accepts either Paypal or Skrill for deposits or withdrawals.
How Binary Brokers Make Money?
How are brokers paid? It is a popular question. Brokers make money in one of the two main ways explained below – both based on an easy-to-understand profit model. Here’s a closer look at how binary options platforms differ from stock brokers, and where the money goes.
Here is an example – Let’s say a broker offers a contract on a certain asset. Of course, there is always a choice between a Put contract and a Call option. Regarding binary models, the basic theoretical assumption is always that the same number of traders will take contracts on each position. This follows that the trader’s amount in the money will be the same as the loser (in theory).
Potential Profits
With this in mind, here is an illustration of how the broker operates repeatedly: For a contract on a certain asset, a return of 80% is offered. From its clients, the broker receives:
- £100 for a contract on a Put option
- £100 for a contract on a Call option
- The broker accompanies the contract signed by the losing trader (at expiration), amounting to £ 100. To the winners, it must return their shares and the winning profit – that is £ 100, in addition to the £ 80 profit on the trade.
- From all transactions, the broker was left with a profit of £20.
Shopping around: how brokers offer flexibility…
Returns offered vary from platform to platform. Levels also tend to vary from asset to asset. A solid and stable platform with many users is good news from a trader’s point of view. This means that the broker is large enough to withstand heavy losses without experiencing liquidity problems. It is also more likely to operate at, or fairly close to, a 50:50 binary model – where there is broad parity in terms of the number of clients taking positions on each side of the contract. This gives brokers the opportunity to offer attractive arrangements to clients. A successful platform has more scope to offer higher returns – and thereby expand its customer base. Some also reimburse a percentage of trading losses (rebates). This often gives clients the ability to choose between reduced payouts on winning trades in return for higher payouts on losing positions. All of this helps to give careful traders control in managing risk.
Exchange Brokers
In the UK, exchange-traded brokers usually offer additional forms of trading as well. For example spread betting or trading CFDs (Contracts for differences). This form of trading is treated differently to OTC binary platforms from a regulatory point of view. For example ETX Capital and IG Index are fully regulated by the Legislative Authority. On price, comparing exchange platforms to pure OTC platforms is difficult (because you’re not comparing like for like). One way is to look at margin (the difference between the buy and sell price). CMC for example has a margin of around 4% on the binary market – helping to make it very competitive, price wise.
Through one of two ways:
- As a business partner, ensure ‘more roundness’ through percentage payments.
- Through a spread or commission on an exchange exchange model
Whatever platform you choose, transparency is key – and a reputable platform will always provide clear information on payout rates so you can make an informed decision. For a quick overview of payout rates and more detailed information on the pros and cons of all the top platforms, check out our comparison and review list.
Binary Payments
One key element to finding the best binary trading account, is the payout percentage offered. This is not always a direct comparison. Payouts will vary depending on the underlying asset being traded, and the length (expiration time) of the option. In addition, payouts can move as the market dictates. Therefore, where one broker was originally the best price, those things may change. Investors can best hope to check the payouts for the types of trades they may be inclined to make , and feel which firm offers the best terms most often. Again, a demo account can help with this. In general, exchange exchange options offer better value.
Trade Type
Traders need a binary options broker that delivers what they need. So, if you want to trade 60 second options, or end of day options – you need a broker that provides them. Not all brokers offer the same type of trading. Ladder and Touch options are not always available with all firms. As mentioned, expiration options also vary. A second 30 or 60 turbo option may be popular, but they aren’t listed anywhere. Likewise, pair or end of the week selections may be limited to a few brands. The previous trade close may indicate another stopper. Or the ability to use software with free signals. Traders around the world have very different needs. Where a broker operates in a certain part of the world, they can only offer popular trades in that region. A broker in London may offer different products and assets to one in Cyprus, India or Malaysia.
Managed Account
Some brokers will offer managed accounts. Traders need to tread carefully in this area. There is a conflict of interest for over the counter brokers to handle merchant accounts. It is unlikely that a managed account will be operated in the best interest of the trader. If the trader makes money, the broker loses money. Therefore, the broker’s employee or agent is more likely to help the broker, than the trader – it’s their job! For this reason, we would not recommend using a managed account – but some brokers offer it, and if this is the case, it will be mentioned in the review.
MetaTrader 4
Software integration may be key for some dealers. Where a trader prefers to use their own price analysis software or service, a broker that can combine with the essential. The industry standard is MetaTrader 4 (Mt4) – a platform that enables advanced technical analysis, as well as trade execution. Most brokers use MT4, and allow traders to trade with it. Many brokers bundle these services (and others) through licenses or plugins. Major brokers will also add their own features to the platform – in theory, improving it. So if a trader is looking for a firm that can execute trades through this platform, that is a huge benefit. Some brokers are also compatible with MT5 (MetaTrader 5) – however this latest version has yet to gain traction. Although firms have embraced it, there is little, if any, future proof. It is something to consider when checking the comparison list to find the best provider.
Find the Best Deals For
You As shown above, finding the best trading platform and binary broker is not always easy – but remember that investors are free to move between brokers when they choose, so even if the account turns out to be less useful than the first Expected, there is no problem to stick and find the company new trade. Similarly, traders can have several accounts, and open trades at the broker with the best terms for a particular trade. A dealer cannot be bound. In our website, we provide a lot of information that can help in choosing the best broker, here is a selection of articles that will help;
Frequently asked questions
Best broker for beginners?
The best brokers for beginners are those that offer demo accounts. These accounts allow absolute beginners and those who are new to binary options, to try the risk of free platform trading. Most brokers will offer this facility, as it gives them an opportunity to demonstrate their platform. In most cases, a demo account will not require any deposit, and a trader can open several accounts at various brokers. Each one can be discussed, and the trader can then decide which one they like.
Another thing for beginners is that they may focus less on bonuses. This is because it is easily affected by excess, or simply does not take advantage of the best bonus funds. Experienced traders are better placed to ensure that any bonus suits their trading style, and will not affect how they trade. A better comparison factor for beginners might be:
- Minimum trade volume
- Ease of use of the platform
- Educational materials available.
Which is the best trading platform?
Answering questions like ” Which is the best trading platform? “It is difficult, simply because the trading platform often comes down to the choice of a particular trader. One user may prefer a simple layout, another may need a lot of information available all the time. That said, the platforms differ in quality, both in terms of ease of use, and features. In very general terms, brands that also offer Contracts for Difference (in addition to binary options) provide a richer trading platform. Likewise, brands that have created their own platforms, will offer superior services than ‘white labels’ that use platform providers like us SpotOption. So people like CMC and ETX Capital, they all deliver very professional trading platforms. MetaTrader integration is also more likely at this broker. This difference in quality simply reflects the maturity of binary options as a product, and binary brands are catching on quickly – while still offering something different. IQ Options, for example, provides a very entertaining experience, reflecting the change in style that some brokers will provide.
How to avoid fraudulent brokers?
Our scam page provides a list of ways to identify if a broker is genuine and safe. We also provide a blacklist of service brokers to really stay away from. With a new platform being able to setup quickly, it is not a complete list of brokers, but the tips for spotting scams should help most traders. With so many honest and genuine brokers, there is no point in taking the risk of using a cheap broker that has attracted many complaints.
Broker with a low minimum deposit?
The number of binary options brokers offering low minimum deposits is growing rapidly, reflecting the growing demand for lower entry levels from traders. Previously, the minimum deposit was quite high, but now Binary.com, Ayrex and IQ Options all offer low minimum deposits of £10 or less. This represents real confidence from the broker, that traders will like their trading platform and continue to make deposits once they get to know the brand. CMC Markets also offers a low minimum deposit, requiring only a deposit that matches the size of the trade the trader wishes to make.
Who offers a demo account?
On our demo account page, we explain the benefits of using a demonstration account, and also show who provides it. The majority of reputable brands will offer a demo account, or a practice account. In theory, it’s a good way for them to ‘showcase’ their platform. So, the brokers that offer this type of account, of course have faith in their platform and the technology that supports it. Our comparison table clearly shows whether a broker provides a demo account or not. An in-depth review will inform the reader about specific details of the account (if a deposit is required, or if the account is time limited for example).
Bitcoin and Cryptocurrency
Cryptocurrency is a rapidly growing area for brokers of all types. Bitcoin and Ethereum are currently the most popular, but there are more than 15 different currencies. Whether you consider them a novelty, or the future of finance, brokers now make their trading easy. With Bitcoin in particular, anyone looking to invest or trade may find the process difficult. Recently, brokers give traders access to this market in a very easy way. Currencies can be traded directly, in the same way as oil or gold. They can also be traded in currency pairs, with some brokers offering BTCUSD pairs. These can be traded just like any other forex pair. Some brokers will accept bitcoins or other cryptocurrencies as a deposit method. So traders can deposit, trade with, and get paid in Bitcoin, DASH, Litecoin or other crypto. So whatever your views on this new craze, it is now very easy to take positions and profit. Read our guide to bitcoin trading.