Binary Trading in Malaysia | Legality, Brokers, Apps & Tutorial

Binary options are currently unregulated in Malaysia. These financial instruments are “all-or-nothing” derivatives offered mostly by offshore brokers with a “binary nature”—meaning you either make a fixed profit, which is up to 95% of your invested amount depending on the broker and asset you choose, or lose the full amount if your price prediction turns out to be wrong.

Is Binary Options Trading Legal in Malaysia?

Yes, binary options trading is legal in Malaysia. There are now laws or restrictions that forbid Malaysian citizens from trading Binary Options. In fact, the country is one of the most active participants in the binary options space in the Southeast Asia (SEA) region. You can trade binary options-based instruments, including stocks, indices, forex pairs, cryptocurrencies, and commodities.

How is Binary Options Trading Regulated in Malaysia?

Binary Trading remains unregulated in Malaysia. The primary financial authority overseeing the financial trading space is the Securities Commission Malaysia (SC). That said, SC has notably issued warnings against binary options trading conducted through unlicensed or unregulated offshore platforms, as such activities pose a high risk of fraud. There are no Binary Options companies that are regulated by the SC in Malaysia, but there are also no laws that forbid Malaysian traders to use offshore binary brokers.

What are the best Binary Options Brokers and Platforms in Malaysia? 

These are the Top 3 Binary Options Brokers that are available in Malaysia:

1. Pocket Option

Best for: Both Beginner and Experienced Traders

Overview: Pocket Option ranks 1st place in our comparison of Binar Options Brokers for Malaysian traders. Founded in 2017 in Saint Vincent and the Grenadines, the platform is recognized for its low $5 minimum deposit and user-friendly platform, available on both PC and mobile (iOS and Android). Pocket Option also offers a robust selection of technical tools and educational resources, making it suitable for traders of all experience levels, from beginners to experts.

Is Pocket Option legal in Malaysia?

Yes, Pocket Option can be easily accessed and used by Malaysian traders for binary options trading. It is also not explicitly banned by the SC. However, the platform remains unregulated in the country.

Pocket Option Key Facts Table For Malaysian traders:

Feature	Pocket Option
Accepts Malaysian traders	Yes
Deposit Requirement	At least $5 (or its equivalent in MYR)
Minimum Trade	As low as $1 (or its equivalent in MYR) per trade
Minimum Withdrawal	At least $20  (or its equivalent in MYR) per request
Payout Rate	23% to 93%, depending on the asset
Support Channels	Email, Platform Chat, Phone, Contact Form, Telegram, and Social Media

2. Quotex

Best for: Both Experienced and Advanced Traders

Overview: Established in 2019 in Saint Kitts and Nevis, Quotex became prominent by offering some of the highest payout ratios and providing premium free trading signals in the binary options market. Moreover, it offers a comprehensive suite of technical analysis tools, making it ideal for experienced traders who want to perform in-depth analysis and apply advanced trading strategies.

Is Quotex legal in Malaysia?

Yes, Malaysian traders can use Quotex to trade binary options. That said, while it is not explicitly banned by the Securities Commission Malaysia (SC), Quotex is also not regulated.

Key Facts Table about Quotex for Malaysian traders:

Feature	Quotex
Accepts Malaysian traders	Yes
Deposit Requirement	At least $10 (or its equivalent in MYR)
Minimum Trade	As low as $1 (or its equivalent in MYR) per trade
Minimum Withdrawal	At least $10 (or its equivalent in MYR) per request
Payout Rate	20% to 92% depending on the asset
Support Channels	Email, Phone, Contact Form, Ticket, Telegram, and Social Media

3. Binarium

Best for: Beginner/Inexperienced Traders

Overview: Established in 2012 in Belize, Binarium is highly regarded for its minimal $5 deposit and withdrawal requirements, combined with a straightforward and user-friendly interface. This makes it an ideal choice for newcomers or those with limited experience in financial markets. Additionally, the platform is available on both PC and Android, offering seamless UI navigation that even complete beginners can easily get accustomed to.

Is Binarium legal in Malaysia?

Yes, Binarium follows Quotex and Pocket Option as one of the brokers that can be reliably accessed in Malaysia. SC has also not specifically banned Binarium in the country. That said, note that the broker is also unregulated.

Key Facts Table about Binarium for Malaysian traders:

Feature	Binarium
Accepts Malaysian traders	Yes
Deposit Requirement	At least $5 (or its equivalent in MYR)
Minimum Trade	As low as $1 (or its equivalent in MYR) per trade
Minimum Withdrawal	At least $5 (or its equivalent in MYR) per request
Payout Rate	10% to 85% depending on the asset
Support Channels	Platform Chat, Email, Phone, Contact Form, Social Media, Help Center

How to Trade Binary Options in Malaysia:

The following are the 5 simple steps to start trading binary options in Malaysia:

• Pick a legal Binary Options platform in Malaysia
• Sign up for a trading account
• Start with a demo account
• Deposit money and start live trading
• Fund withdrawal

Step 1: Pick a legal binary options broker or platform

The first step is selecting a reliable broker that provides binary options trading in Malaysia. To help simplify your decision, we’ve highlighted above the three top brokers for you to consider.

Step 2: Sign up for an account

The next step is to set up or register an account. For example, here’s how you can create an account with Pocket Option in Malaysia:

Start by visiting Quotex’s official website at https://www.quotex.com. On the homepage, simply click the “Sign Up” button in the top-right corner to begin the registration process.

Next, you’ll be prompted to sign up by either entering your email address or linking your Facebook or Google account. After completing registration, you’ll be taken to your newly created Quotex trading account. The sign-up process is similar for Pocket Option and Binarium.

Step 3: Start with demo trading

The next step is to practice trading with the demo account offered by your broker. This is essential for beginners to get familiar with binary options trading. Even seasoned traders can benefit from testing the broker’s tools and features. For instance, here’s how to do it with Quotex:

After signing up, you’ll be taken to the Quotex trading dashboard. To switch to demo mode, click the “Live Account” button in the top-right corner. A pop-up will appear, where you can select the “Demo Account” option to transition from live trading to demo trading.

As displayed, your demo account balance will now appear in the top-right corner of the screen, confirming that all trades going forward will be in demo mode unless you switch back.

Step 4: Deposit money and start live trading

After practicing with your demo account, you can switch to live trading whenever you feel ready. To start, you’ll need to deposit funds into your broker account. Below is an example of the deposit process and available options for Quotex in Malaysia:

On the Quotex platform, click the ‘Deposit’ button in the top-right corner. This will direct you to the deposit screen, where you’ll find a range of deposit options available in Malaysia.

As shown, Quotex has numerous payment methods available in the country, including the standard bank cards (Visa and Mastercard) and local e-payments channels such as GrabPay, Boost, DuitNow, Touch&Go, and Shopee.

Then, when we scroll down, we can see much more payment methods available, including a vast array of cryptocurrencies and Malaysian Banks. 

Step 5: Fund Withdrawal

The final step is to withdraw your funds, whether it’s your initial capital or earnings, from the broker’s platform. Here’s an example of how to make a withdrawal on Quotex:

On the platform, click the “Withdrawal” option in the top-right corner to begin your withdrawal request. Please note that Quotex requires you to use the same payment method as your deposit.

Can I trade binary options via a mobile app in Malaysia? 

Yes, in Malaysia, you can trade binary options using mobile app platforms of Quotex (only available on Android), Pocket Option (available on both iOS and Android), and Binarium (only available on Android). 

How do traders in Malaysia make money in binary options trading?

Malaysian traders make money in binary options by correctly anticipating where price will move (either up or down). That said, compared with other more traditional asset classes (e.g., stocks, forex), the key difference lies in how profits and losses are structured. Instead of variable returns and losses like in stocks or forex, binary options offer a fixed payout when the trade goes in your favor, which is up to around 90% to 95% depending on your broker and the asset you choose.

Note, however, that if you’re wrong, you lose 100% of your invested amount in that single trade. Hence, this unfavorable risk to reward setup is skewed against your favor unless you have a trading edge to capitalize on.

What are the optimal trading hours for binary options in the Malaysian market?

In Malaysia, the optimal time to trade binary options is when market activity and price movement are at their peak. This typically happens during overlapping major trading sessions and in the initial hours following the US market’s opening. Therefore, based on the specific asset class underlying the binary options, here are the Malaysia Standard Time (MYT) equivalents:

Binary Options Asset Class	Best Time to Trade (in MYT)
Forex Pairs	9:00 PM – 1:00 AM MYT
Stocks and Indices	10:30 PM – 1:00 AM SGT
Commodities (Gold and Oil)	9:00 PM – 1:00 AM MYT

How much money do I need to start trading binary options in Malaysia?

While the minimum deposit varies between brokers, most platforms in Malaysia require only $5 to $10 (or the equivalent in MYR). Among our recommended brokers, you can start trading with $10 on Quotex, while Pocket Option and Binarium allow you to begin live trading with just $5.

Can I open multiple binary options accounts with different brokers in Malaysia?

Yes, you can open accounts with several binary options brokers in Malaysia. Nonetheless, most brokers restrict users to one account per platform. If you want multiple trading accounts, you’ll need to register with different brokers. To illustrate, you can have an account with Quotex and another with Binarium, but not two accounts with the same broker. Violating this rule could lead to account suspension and frozen funds.

Do binary options brokers offer local language support for Malaysia?

Yes, because Malaysia is a relatively large market, many brokers have Malay language support. Some platforms that support this local language include Quotex and Pocket Option. To check the languages supported by a broker, visit their official website.

You’ll usually see a flag icon, often displaying the US or UK flag to indicate English as the default language. Clicking this icon will reveal a list of all available language options for that broker.

What are the deposit and withdrawal methods for binary traders in Malaysia?

Deposit and withdrawal methods can differ significantly depending on the binary options broker you select. However, the most commonly used payment options in Malaysia fall under the following categories:

Bank Cards

• MasterCard
• Visa

E-payments

• GrabPay
• Boost
• DuitNow
• Touch&Go
• Shopee

Cryptocurrencies

• Bitcoin (BTC)
• Ethereum (ETH)
• Binance Pay
• USD Tether (USDT)
• USD Coin (USDC)

Local Banks

• Malaysia Bank Transfer
• Banks of Malaysia
• Maybank Berhad
• CIMB Bank Berhad

Can I use cryptocurrency to trade binary options in Malaysia?

Yes, cryptocurrencies are widely accepted as a payment option. Brokers like Quotex, Pocket Option, and Binarium support a variety of digital currencies, particularly Bitcoin, Ethereum, USD Coin (USDC), Tether (USDT), and Binance Pay.

How is income from binary options trading taxed in Malaysia?

In Malaysia, the treatment of your income from binary options depends largely on your residency status. If you’re a “resident” in the country, your rate ranges from 0% to 30% depending on your total income. On the other hand, if your status is a “non-resident,” your trading profits are then subjected to a flat tax rate of 28% of all your income earned within the country.

What are the secure alternatives for binary options trading in Malaysia?

Similar to most countries, binary options trading in Malaysia is unregulated, and there is no legal protection for Malaysian traders who choose to trade binary options. Hence, if you much rather trade safer alternatives, we highly recommend trading SC-regulated asset classes, particularly stocks and commodities. Unfortunately, forex is restricted for retail traders in Malaysia.

Note: In stocks, you trade shares of publicly-listed companies. Meanwhile, in commodities, you trade basic commodities such as gold and oil.

Here are SC-regulated brokers where you can trade these assets:

• Maybank
• Kenanga
• RHB
• UOB Kay Hian
• Phillip Capital

How safe is binary trading in Malaysia?

All things considered, trading binary options in Malaysia can be relatively safe—provided you use the right broker. We strongly recommend Pocket Option, Quotex, or Binarium, all of which have proven to be reliable and consistent over the years. Unfortunately, that cannot be said with most brokers, especially relatively new platforms and those that promise “too good to be true” trading benefits.

Conclusion: Binary Trading is Legal in Malaysia

To sum up, binary options trading is legal in Malaysia. In fact, binary options trading is prevalent and highly accessible in the country. This is evident from the variety of available payment methods, especially when compared to its neighbors in Southeast Asia, such as Singapore and the Philippines, both of which have significantly fewer available payment methods.