Online trading in Malaysia

What is online trading

Online trading is the concept of trading securities over an online platform. Modern online trading portals allow the trading of different financial instruments, including mutual funds, commodities, and equities.

As compared to the traditional trading landscape, online trading delivers the following advantages:

• Users can open, close, and manage their accounts from anywhere
• Making transactions is simple and easy
  
• Capability to buy and sell multiple financial products
  
• No role of intermediaries
  

How to trade online

To start online trading in Malaysia, you can choose an online trading platform with all the right tools to match your requirements.

Make sure you select the one that prioritizes customer service, account, and trade minimums. For new traders, the trading software must have a user-friendly interface.

Online trading platform

There are a plethora of online trading platforms dealing in differing stocks and assets. With a good variety of investment options available to users, the right platform will give you a comprehensive trading experience along with all the right tools and services.

What is an online trading platform

An online trading platform is a software program that proliferates opening, closing, and managing market positions through an online broker that acts as a financial intermediary.

While choosing the right online trading platform, make sure you verify the broker's reliability, processing times of both deposits and withdrawals, and if the service requires a minimum deposit amount.

IQ Option gives you all the benefits of an ideal online trading platform – plus over 200 shares from different companies, 28 distinct cryptocurrencies, and 24x7 customer service.

There is no commission for depositing or to trade binary options. Besides, the minimum deposit is $10, while the minimum withdrawal is capped at just $2.

How to start trading online

To start online trading in Malaysia, you need to register for an online trading account. After that, you can look at public information, earning reports, and financial filings to select the stocks you want.

It's essential to plan how much you want to invest, at what price, and to what extent you will let a stock fall. Using an appropriate trade order, you can stay on your plan and avoid any hasty decisions.

How to register

First, you need to open the official website of the online trading platform you want to use. After that, you have to click the 'Sign Up' button.

A new page will open, where you will have to fill in your details, including your email address, phone number, or password.

After entering the details, you will receive a confirmation mail on your registered email address in the next step. Open the mail, and click on the activation link to validate your newly created account.

How to open a demo account

A demo account gives you a fair share of experience before you start actual trading. There's no risk of losing money, and you can try as long as you want.

To begin, you need to select the demo account option from the given account types.

IQ Option provides $10,000 virtual money in the demo account to help you try trading and learn different strategies that can help you win in real-time. Moreover, once you have exhausted your virtual money – you can quickly replenish it without much effort.

To open a demo account:

• Click the sign-up button
• Enter your credentials
  
• Validate your email
  
• Start trading
  

How to open a real account

The procedure is almost the same as that of a demo account. The only difference is that you have to deposit funds in your account to begin trading.

While making an investment, the deposited money in your trading account will be used to buy and trade securities.

How to fund a deposit

To deposit money into your account, you can use any MasterCard or VISA credit card, net banking, UPI, e-wallets, and different online payment portals.

IQ Option provides you with a completely secure payment deposit and withdrawal options to protect your financial information from any intrusion.

Minimum deposit amount

IQ Option lets you start online trading, with a minimum deposit amount of $10. Moreover, there are no trading restrictions, and you get access to all the live features.

How to withdraw money

To withdraw from your registered account, you have to select the withdraw option and enter the amount you want to withdraw.

IQ Option gives you a minimum withdrawal limit of $3. Most withdrawals take up to one business day to reflect into your bank account or e-wallet.

You can make a withdrawal request anytime after making a return on investment; an estimated fee will be deducted from your account by the online platform, while your bank may also levy additional charges, depending upon your country's legislation.

IQ Option charges $2 on every withdrawal, while you also get one free withdrawal every month.

Trading markets

Depending upon your experience and expertise, you can trade in different markets with a single click of a button. Some of the most prominent trading categories include stock market, commodities trading, forex trading, and cryptocurrency trading.

How to trade on Stock Market

Stock trading has been on the most popular financial pursuits ever since their inception. It offers an effective way of investment for individual investors and companies.

A stock market is a place where stocks are traded between sellers and buyers. While traditional stock markets existed in physical locations, modern-day stock markets have become virtual with technological advancements.

The virtual stock markets work through large computer networks with enormous volumes of data flowing between them.

To invest in the stock market, you need to purchase stocks from an existing shareholder, not the company. Similarly, while selling, you have to sell it to an investor, not the actual company.

How to trade indices

Indices are a type of financial derivates that are evaluated in the form of average share prices of top-performing companies listed on the stock exchange.

Index trading is a safe bet because it doesn't require analysis of the individual company stocks. For long-term traders, index trading provides an easy and convenient investment option – as instead of putting money in a limited number of stocks, index-based ETFs involve exposure to the entire stock market.

To trade indices, you need to:

• Find a suitable stock index to trade
• Choose the right type of trade – short term or long term
  
• Choose the direction to trade in – to buy or to sell
  
• Place your trade
  
• Monitor and close your trade when you get maximum profitability
  

IQ Option delivers comprehensive risk management tools that help you limit your risk exposure and manage your positions effectively. It also lets you safeguard yourself from volatility in case the prices shift rapidly.

How to trade stocks

Stock trading is also called share trading or equity trading. Stocks are issued by a public authority to raise additional capital to expand or accelerate business growth.

Putting stocks up for sale on the share market by a company is called Initial Public Offering or IPO. Traders invest in stocks because the perceived value of a concerned company varies over time – increases or decreases.

If the stock value increases, the trader can sell the shares and earn a profit. If the stock value decreases, the trader will incur a loss upon selling the shares.

That is why stocks are purchased and sold at different times – depending upon the market situation. If a trader believes the share will continue to rise in the future, they may not sell the stock at the available market price, even if the profit margin is high.

Similarly, if the stock value decreases, a trader may wait until the price is high again.

IQ Option gives you accurate information about stock prices, including best-performing stocks, industry insights, and easy-to-follow videos to help you quickly understand the fundamentals of stock trading.

With real-time investment tools, you can select the best-performing stocks and track any price fluctuations to ensure maximum profitability.

Forex trading

Forex trading or foreign exchange trading involves the exchange of currencies. As one of the most liquid financial markets globally, forex trading has an average daily turnover of 6.6 trillion dollars.

Forex trading is based on the fluctuating exchange rates of different currencies. Traders speculate on these fluctuations and make a profit on the difference between purchasing and selling prices of different currencies. 

How to trade currencies

Currency trading is carried out in pairs, which makes it different from stock trading. Unlike stocks, in currency trading, you purchase a currency and sell another in the forex market.

In the forex market, all the currencies are valued to the fourth decimal point. A percentage in point, also called a pip, is considered the smallest unit of trade.

To trade currencies, you have to consider the rate between two currencies to depreciate or rise. Depending upon your assumption, you can buy or sell currencies and earn a profit.

For selling:

• You have to assume the rate between two currencies to depreciate.
• Once you open a trade, wait for the price to get lower to a specific value.
  
• As the rate falls to a certain level, close the trade.
  

For buying:

• Consider the rate between the two currencies to rise.
• Open a trade, and wait for the price to elevate to a specific value.
  
• Close the trade as soon as the rate rises to the desired value.
  

The profit you earn from the forex trading is directly credited to your trading account. In case your forecast is wrong, you will incur a loss.

Major pairs

Major pairs are the most popular currency pairs in forex trading. These include EUR/USD, USD/JPY, GBP/USD, and USD/CHF.

These four major pairs are responsible for a large volume of global economic transactions, also being the most popular pairs for forex trading.

Out of the four major pairs, the EUR/USD is the most heavily traded pair.

Cross courses

Cross currencies are pairs that don't include the US Dollar. Some common examples include GBP/EUR, GBP/JPY, AUD/JPY, and EUR/JPY.

Cross courses offer an excellent opportunity to traders when the major pairs are inactive. For instance, during the Asian Session.

Cryptocurrencies trading

A cryptocurrency is a form of digital currency that uses cryptographic techniques to carry out financial transactions.

Although cryptocurrencies don't have any physical form, they have specific characteristics that make them unique and extremely popular:

• Decentralized: Any financial authority does not control cryptocurrencies, making them a parallel financial system.
• No interconvertibility: All cryptocurrencies use mathematical algorithms to carry out transactions. Once payment is confirmed, it can't be reversed – which makes it extremely safe against fraud.
  
• Anonymity: All transactions through cryptocurrencies are encrypted, which makes the transactions completely anonymous.
  

The most common examples of cryptocurrency include bitcoin, ripple, and ethereum.

With IQ Option, you can compare price changes of different cryptocurrencies – from the last 5 minutes to over a year.

How to trade bitcoin

Bitcoin is undoubtedly the most famous cryptocurrency in the world. It is said to be created by a group of Japanese programmers in 2008. The price of a single bitcoin is anywhere between $8500 to $9200.

Trading in bitcoin is subject to a fair share of speculative risk. Here's what you need to begin:

• Get a bitcoin wallet: There are numerous online wallets available, or you can also get a hardware wallet, which is more secure.
• Connect the wallet to your bank account: You can use a debit or credit card to connect your wallet to your bank account.
  
• Join a bitcoin exchange: The bitcoin exchange works like a marketplace allowing you to exchange bitcoin for actual currency.
  
• Place your order: Since a single bitcoin costs thousands of dollars, it is available in smaller units called a satoshi – where each satoshi costs a small fraction of a cent.
  
• Once you have purchased bitcoins, you can track their prices and sell them whenever you find it profitable.
  

How to trade ether

Ether is another popular form of cryptocurrency, created in 2015. It works on the ethereum platform and uses a digital ledger to record all transactions. The transactions are publicly accessible and secure against any alterations.

To start ether trading online, you have to:

• Open an account.
• Develop a trading plan, considering when to open your positions and when to close them.
  
• Place a trade by selecting the size and limit.
  

How to trade ripple

Ripple is a decentralized P2P payment network, allowing instant transfer of any currency. It uses its digital currency XRP as a bridge to underpin the network.

Here's how you can trade ripple:

• Open an account with a leveraged provider.
• Research and develop your trading plan.
  
• Place a trade by entering your size and limit.
  

Using IQ Option, you can set up a new account in a matter of minutes. Plus, you don't need to deposit any amount until you are ready to place your first trade.

Commodity trading

Commodity trading involves trading on non-perishable natural resources that are obtained by mining. Common examples include crude oil, natural gas, gold, coal, silver, platinum, and uranium.

Investors can't speculate with physical commodities due to the lack of infrastructure and capital to store, transport, and market; hence, they use commodity CFDs to partake in the commodity market.

How to trade metals

Metal trading generally includes the exchange of gold, silver, platinum, and other precious metals. Out of which, gold and silver form the majority of the metal trading.

How to trade gold

Spread betting and gold CFDs are the two most prominent options for trading gold online.

Spread Betting:

• Spread betting is a tax-free approach, which involves taking advantage of the price fluctuations without physically owning any asset.
• Considering the position you open (rise or fall) in comparison to the movement of the market, profit or loss will occur.
  

Gold CFDs:

• It involves depositing a small amount of the total trade value as a margin requirement.
• Instead of owning the underlying asset, the trader only agrees to exchange the difference in value between the opening and closing positions – determining a profit or loss.
  

To start trading gold online, you need to follow these steps:

• Create a new account on an online trading platform
• Deposit funds into your account
  
• Evaluate the best time to invest in gold
  
• Analyze price fluctuations
  
• Create a risk management strategy
  
• Start trading
  

With IQ Option, you get a safe, secure, and convenient online gold trading platform. You can also access your account through Windows, Mac, Android, iOS, and other popular operating systems to earn profit on-the-go.

How to trade silver

Like gold, silver is also one of the most popular precious metals traded online. It is a highly tradeable asset due to its high liquidity and volatility.

One of the most popular ways to trade silver is through CFDs, in which traders don't own silver in real but are entitled to the difference between purchasing a silver CFD and selling a silver CFD.

To trade silver through an online trading platform, you need:

• Register for a new account
• Deposit funds into your account
  
• Analyze the best time to invest and price fluctuations
  
• Evaluate risk factors
  
• Start trading
  

How to trade crude oil

Crude oil serves as the world's paramount fuel and energy resource. It is refined to produce petrol, diesel, wax, and various petrochemicals.

To trade crude oil using an online trading platform, you have to:

• Register for a new account
• Deposit sufficient funds
  
• Analyze the demand and supply perceptions
• Evaluate risk factors
  
• Start trading
  

IQ Option allows seamless trading of crude oil and other instruments quickly through the web, desktop, Android, and iOS platforms.

How to trade assets

Trading assets or assets are securities purchased by a firm for the sole motive of earning profit through reselling. Assets are categorized as a separate account from the investment portfolio.

Common examples include US Treasury securities, foreign exchange rate contracts, interest rate contracts, mortgage-backed securities, and more.

How to trade CFDs

CFDs or Contract For Differences offer a great approach to trade different types of assets, including cryptocurrencies, indices, stocks, forex, and more, without actually owning them.

To trade CFDs, you have to:

• Create a new account
• Choose a market
  
• Select the asset you want to trade
  
• Enter the amount of money you want to invest
  
• Decide to buy or sell
  
• Choose your trade size and number of CFDs you want to trade
  
• Add a limit
  
• Monitor the market
  
• Close the trade
  

How to trade ETFs

ETFs or exchange-traded funds are a collection of securities, which trade in the same way as stocks.  They often track an underlying index and can be comprised of commodities, bonds, and other assets.

Global ETFs give lots of investment opportunities to institutional and retail money managers. Their trading value depends on the net asset value of the underlying stocks.

To trade ETFs, you have to:

• Create an online trading account
• Deposit money into your account
  
• Choose the ETF you would like to trade
  
• Enter the amount you want to invest
  
• Select the amount of leverage
  
• Add a stop loss
  
• For long-term investment, select buy
  
• For short-term investment, select sell
  
• Close the trade when desired
  

IQ Option provides a multi-asset trading platform for traders who seek a broad portfolio diversification. Combine ETFs with other types of assets, and use state-of-the-art trading tools and platform features to stay ahead of your game.

How to trade binary options

Binary options are financial products with two payoff scenarios: a fixed amount or nothing. Since there is no other type of settlement possible in this case, that's why they are called binary options.

The simple logic behind a binary option is a yes or no proposition. In terms of trading, traders consider if an underlying asset will be over a specific price at a particular time or not.

To trade binary options, you need to:

• Open a binary options trading account
• Deposit funds into your account
  
• Select the asset you prefer to trade
  
• Select the expiration time
  
• Enter your amount of investment
  
• Select higher or lower
  
• Start trading
  

Safety of Internet trading

With the onset of online trading, security concerns have grown amongst traders and brokers alike. Most online trading platforms are secured with encryption algorithms and intrusion detection techniques to withstand any form of a cyber attack.

How safe is it to trade online

Online trading is totally secure and safe. Users can deposit or withdraw money without having a fear of fraud.

Online trading platforms like IQ Option use a multi-tier authentication approach to ensure there is no occurrence of fraudulent activity. The confidential user data stored in the servers is also encrypted to protect against any form of data intrusion.

My online trading is protected

Even though top-notch security measures secure online trading, individual users also need to take essential steps to prevent any type of phishing attack.

Here are some of the ways you can adopt to have a safe online trading experience:

• Avoid simple passwords like your name, surname, etc.
• Change your account password every 2-3 months
  
• Use online trading platforms that offer two-factor authentication involving an OTP
  
• Avoid accessing your account from public Wi-Fi
  
• Don't share your account credentials with anyone on phone, SMS, chat, or email
  

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