Is binary options legal in Malaysia?Is binary options legal in Malaysia

Stock options, Index options are quite popular among traders. These are classified as speculative trading. It is completely legal in most of the countries. It is legally carried out through exchange houses in many countries. In Stock options, Index options carried out through these exchanges the trader has the right but no obligation to buy or sell the actual underlying asset. So the answer to “Is binary options legal in Malaysia?” is, yes – it is legal to trade binary options in Malaysia.

On the other hand, when it comes to Binary Options, trader raise the question of its legality. Like any other speculative trading instruments , in binary options also trader does not physically buy or sell the underlying asset. But some additional restrictions applies when it comes to binary options trading. It can not be carried over. The trader has no right or obligation to buy or sell the actual underlying asset. Binary options is usually not carried out through any exchange house.

Because of the above aspects of Binary options , it is restricted and termed as not legal in few countries. But most of the countries consider it as a speculative trading instrument and it is legal to carry out binary options trading.

Is binary options legal in Malaysia ?

There is no such rules refraining Malaysia residents from Binary options trading. Binary options trading is legal in Malaysia like Forex and stock options trading. But traders must be careful to protect themselves from scam brokers. It is best to trade with reputed and regulated brokers. And its not wise to select some broker just because of their attractive offers , as most of the new and unregulated brokers make such too good to believe offers to trap clients.

Al though binary options is legal in Malaysia , the traders must verify its legality and their personal tax obligations. They must be aware of the risk factors involved and must know that its a kind of high risk investment. It is important to note that Binary options trading may not be suitable of everybody, because of the high risk involved with it.


* Amount to be credited to account for a successful trade.