Binary options forex brokers in Malaysia can be regulated by either the Labuan Financial Services Authority (LFSA) or the Securities Commission Malaysia (SCM). As long as the broker is properly licensed by one of these regulators, binary options trading is legal in Malaysia. Specifically, the broker should be licensed as an OTC derivatives dealer in order to offer trading in binary options.
Regulations in Malaysia pertaining to all types of retail trading were updated and clarified in 2018, when new guidelines were issued by the regulator. Still, trading leverage in traditional instruments like forex & CFDs is quite high at up to 1:500. What’s better is that binary options trading remains legal in Malaysia, unlike what the case is in Europe and some other regions.