Online Trading Platform in Malaysia- Start Trading: Sign Up, Sign In

Online Trading Platform in Malaysia- Start Trading: Sign Up, Sign In

June 29, 2021

In our article you will find a detailed description of online trading platforms applicable in Malaysia.

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What is an online trading platform?

Who is an online broker and why is he needed? This question is often asked by novice investors.

An online broker plays an important role in the financial market: 

  1. Is a financial intermediary between investor and trader in the financial market.
  2. Provides the necessary tools for the stable and confident work of all market participants.
  3. Carries out all financial operations between market participants.
  4. Provides analytical materials about the economy in the world which helps many traders in their work.

The broker provides you as a client with all the necessary tools to work comfortably with the financial markets. The broker will give you the opportunity to invest in professional traders through trust management, in stocks, in raw materials, in currencies, in ready ETF funds, in everything you can earn money on.

Exchange trading is automated now. Hundreds and thousands of transactions per second are made on the world's exchanges. This is impossible without the use of automated systems. The exchange as a trading floor defines trading rules, gives first level access to its servers to connect brokers - authorized professional market participants.

Brokers' clients are connected to the exchange through the broker's servers, which check the end trader's application for a transaction. If it meets the established rules - the application is sent to the exchange.

It is possible to give a trading order by phone or e-mail. Such mode is provided at the majority of brokers. But mostly it happens through trading platforms - special programs through which the trader trades.

Simply put, an Electronic trading platform is a Place to trades for investors and traders.

Trading terminals can be either stationary programs (simply installed on the user's computer) or web-applications (open in a browser without installation).Some terminals can be used on a tablet or smartphone.  In recent years, mobile-friendly trading platforms are preferred, as more and more people work via smartphone or tablet.

The trading room of the broker you choose should have a graphical user interface that will help you navigate the rates and make the right bets.

What tasks are taken care of by any trading terminal? There are five of them:

  1. Monitor trading accounts
  2. Manage and execute market positions
  3. Real-time quotes
  4. Charting tools
  5. Technical analysis

Trading terminals can be universal, as well as designed for a particular type of trading. For example, there are trading platforms suitable for any market. There are also terminals that are designed exclusively for trading on the stock exchange, and only through a particular broker. 

There are special Platforms tailored to specific markets. For example, for passive investing or for copying trades of other traders. The functionality of such terminals is customized for a specific operation, so in its own league, this platform will be better and more convenient than a universal one.

Online stock trading 

Do you want to buy, sell and trade stocks online? If so, there are plenty of brokers in the online space that make it easy to buy stocks. You just need to find the online stock trading platform that best suits your needs, deposit your funds with a debit/credit card or e-wallet, and you're all set.

In most cases, online stock trading platforms give you access to hundreds of stocks at the click of a button. These are usually key markets such as the New York Stock Exchange (NYSE), NASDAQ and the London Stock Exchange (LSE).

Stock trading is the process of buying and selling stocks on a short-term basis. While some traders rarely hold positions open for more than a few hours, others may hold investments for days or weeks. Either way, the general concept is as follows:

  1. Sell the stock at a higher price than you paid - if you're going long
  2. Buy the stock at a lower price than you paid - if you are going short.

So the first thing you need to decide when trading stocks is whether you want to go long or short.

The best Platform for online stock trading investment space usually give you access to hundreds, if not thousands, of stocks. This allows you to create a very diversified portfolio of stocks at the click of a button.

Online trading in the Forex market 

More and more people are interested in the Forex currency market nowadays, because with its help one can earn extra income without leaving home. Many people want to turn the fluctuations of currencies in the period of economic instability to their advantage. But it is important to understand that the main instruments for working on Forex are a trading platform and its terminal, a special software installed on a desktop or mobile device. 

Trading on the currency market is an active financial activity, associated not only with the exchange of data via the Internet, but also with the analysis of this information, and often huge volumes of it. 

Platform for online options trading should be functional, secure, and responsive to any changes. The last two qualities of modern platforms are supported at about the same level, it's a matter of competitiveness. Functionality can be different depending on the level of trader the program is designed for. There are also universal platforms, which provide comfortable work both for beginners and professionals. They, as a rule, are the most popular. 

One of the most popular forex brokers.
One of the most popular forex brokers.

Functional features of the best platform for online forex trading 

The main requirements for a modern trading platform:

  1. the ability to monitor quotes around the clock;
  2. function to monitor the world economic news;
  3. fast and convenient management of accounts and deals;
  4. The possibility of constructing charts for technical analysis of the market in the current moment;
  5. availability of demo accounts for modeling and testing trading strategies.

Traders note the following qualities of the best platforms:

  1. intuitive interface that does not require long learning;
  2. Possibility of working in different operating systems, including iOS and Android;
  3. the ability to trade not only in Forex, but also in stock markets;
  4. reliable automatic trading options;
  5. Low cost or free installation.

There are platforms designed exclusively for automatic trading. You have to be especially careful when choosing them. 

 There are no platforms that would allow a trader to completely forget about trading and only periodically withdraw profit from the account, no matter how much we would like to believe it.

Online options trading 

Online options trading is mainly represented by binary and digital options trading.

A binary option is an exotic variant of online trading that provides a fixed amount of income (premium) depending on pre-formed conditions. Options are purchased in advance - at an agreed price. This allows you to predict the outcome - positive or negative, with losses predominantly greater than possible profits. 

Despite the substantial risk, binary options allow you to calculate the payout before the contract is even prepared. Because of this, experienced traders are able to conduct many trades times faster and easier. But the basic calculation is not the only way to simplify trading. It's more important to choose the right broker.

The key functions of binary options trading platforms are:

  1. Display of the real market situation and all occurring events - the user receives data on the quotes in real time, and everything is systematized and displayed as a graph. The trader can set the time interval within which the target data will be grouped;
  2. Making trading operations by placing orders, managing positions and controlling his trading account at any time. As a rule, the market does not work on weekends and official holidays, so these dates are excluded for operations;
  3. providing a client with a complete toolkit for technical analysis and an opportunity to conduct trades in real-time, using expert advisors and other useful options;
  4. facilitating the trading process for each user thanks to the built-in tools - news line, sound alerts, saving history of deals, generating reports on all completed orders, etc.
IQ Option broker
IQ Option broker

Online commodity trading 

Along with global foreign exchange markets, commodity markets offer a variety of opportunities for private traders around the world. "Soft" commodities - sugar, wheat or corn - have been traded for centuries, and they owe their popularity with investors to their quality as a diversification and risk management tool.

Investing in commodities that are traded in contracts is a reliable way to reduce risk, even in times of inflation or economic uncertainty. They protect both the buyer and seller of contracts from strong price movements that can lead to large losses.

It wasn't until the creation of the Commodity Futures Trading Commission (CFTC) and passage of the Commodity Futures Modernization Act in 2000 that commodities began to be traded online. Before that, you could only buy or trade commodities on the Chicago Mercantile Exchange (CME) or a few other over-the-counter exchanges. 

Since then, online commodity trading has changed tremendously. It is no longer the prerogative of elite investors, as various platform for online commodities trading have introduced trading to retail investors.

Today, numerous online trading platforms offer commodity futures trading. 

So, what do you look for when registering with an online commodity brokerage company? First, make sure it is registered and regulated by the CFTC. You'll also want to take into consideration trading commissions and brokerage commissions, the number of commodities supported, supported trading platforms, ease of use, and minimum deposits.

There are several popular options for investing in commodities.

One option is the direct purchase of raw materials. After buying, the investor will have to wait for the price to rise, then find a buyer and sell the raw material to him in order to make a profit on the deal. However, this method involves material and time costs for buying, transporting, storing the goods, and searching for a new buyer. Experienced investors note that this option is only suitable for commodities with high added value, such as gold and silver.

One of the most common ways to trade commodities is to buy and sell futures contracts on an exchange. The essence of futures is that the buyer agrees to buy the commodity at a certain price in the future. However, the contract is not really delivered; by the end of it, the contract must be closed.

If the trader expects the growth of the commodity price in the future it is enough to buy a futures contract: in case of real price growth the trader will make a profit. The disadvantage of this approach is commission for transactions. The big plus is the absence of all expenses, which accompany the purchase of physical assets.

Commodity CFD are widely available on many online commodity trading platforms. It is a financial instrument that allows you to trade any of the commodities offered without actually buying them, earning only on the price difference.

Some types of brokerage accounts allow the trader to trade CFDs without commissions for opening and closing a position and "pay" only the spread, i.e. the difference between the buying and selling price of the commodity.

Online ETF trading 

For most people, investing can be a daunting task. Keeping up-to-date with all the important information about one company, let alone the entire portfolio, can be a challenge.

Investors need to keep an eye on considerations such as whether their stocks are adequately allocated by industry to balance risk, whether the company's financial statements indicate stability, or whether the price is at a level that requires action.

No wonder legendary investor Warren Buffett said that "the best strategy for the vast majority of people is simply to buy low-cost ETFs.

Exchange-traded funds ("ETFs") are investment funds that trade on stock exchanges like common stocks. These funds invest in a variety of securities and often track well-known indices such as the S&P 500 or FTSE 250. Some also focus on specific industries, markets, asset classes or regions of the world, etc.

Because of their size, these investment funds offer a level of diversification that most investors could not get on their own, at least not without investing huge amounts of money and paying large transaction fees.

When you buy a stake in an S&P 500 ETF, you own a portion of the fund that itself owns shares of all 500 companies included in the index. This way, not only do you diversify your portfolio considerably, but you also get the returns of the S&P 500.

The last advantage of ETFs is their liquidity and very low fees. While active funds and mutual funds may have low liquidity and high performance fees, ETFs are extremely liquid and typically charge fractions of a percentage point in annual management fees called "expense ratios" (compared to 0.50-2% for many mutual funds or index funds). 

When choosing an platform for online ETF trading, you need to consider the following:

  1. How much ETFs does the broker transfer?
  2. How much does the broker charge per transaction?
  3. How convenient is the broker's platform? Does the broker offer mobile trading?
  4. Does the broker allow you to buy ETFs directly or through CFDs?

Online cryptocurrency trading 

Cryptocurrency attracts traders by the volatility of the exchange rate. It can fluctuate by tens or even hundreds of percent a day. For example, on March 12-13, the price of bitcoin collapsed by more than 50 percent. Ethereum also behaved in the same way.

Such instability in the price has made digital assets a favorite tool for speculators. Users trade cryptocurrency in order to make quick profits. The most convenient place for this is exchanges. Each of them has its own set of advantages and disadvantages. We have prepared a detailed guide to help you choose a convenient and reliable trading platform.

It is important to pay attention to the interface. It should be clear and user-friendly. If it is not, the user can, without understanding the tools of the trading site, make a technical mistake, which will lead to the loss of funds. This becomes most relevant during sharp jumps in the price of a cryptocurrency, when a trader must make quick decisions, for example, to sell a cheapening asset or to buy it.

When looking for a site, it is important to consider the number of trading pairs and which cryptocurrencies are represented on it. On the one hand, the more digital assets there are, the more opportunities for trading and investing. On the other hand, platforms can add tokens of little-known projects - this is one of the ways to make money. Accordingly, if a company lists dubious coins, it exposes the user to the risk of investing capital in a token issued by fraudsters.

In addition to the interface and the list of cryptocurrencies, you should study the tools the exchange offers. For example, is there an option to place a stop order on the exchange? This is a bid that allows you to buy or sell a cryptocurrency if its price reaches a certain level.

As a rule, people ignore the user agreement. When registering on exchanges, it is strictly forbidden to do so. If you do not know the conditions under which the site works, you can lose your funds.

When choosing a site, consider how to deposit and withdraw funds. The more of them, the more convenient it will be to use the exchange. Also, the number of withdrawal and deposit options can indicate the reputation of the company. As a rule, popular payment systems do not work with exchangers that have been found to have engaged in illegal activities, or have confirmed complaints from customers.

An important aspect among the conditions of withdrawal - what fees the site takes for withdrawal of cryptocurrency. Of course, it is beneficial for the user to keep them as low as possible.

Webull cryptocurrency broker.
Webull cryptocurrency broker.

Online indices trading  

Many traders, starting their way on Forex, think that they can trade only currency pairs. But in fact, there are much more trading instruments than it seems at first sight. Instruments that are probably still undervalued by new market participants are constantly appearing in trading terminals. At the moment trader can choose any instrument according to his preferences and tastes. These can be currency pairs, CFD, stocks, futures and stock indices. Online index trading can diversify your portfolio and bring you extra income.

A stock index (stock market index) is a kind of indicator of the average value of the price of a certain set of instruments. For example, shares of different companies combined into one group, calculated by various rating agencies and organizations. Indices are calculated by different formulas, for example, simple arithmetic average price, weighted arithmetic average and so on. There is no sense to memorize formulas, because it is not necessary to calculate indexes by yourself.

Trading of indices at the OTC market takes place in the form of contracts for difference (CFD). Many brokers offer an opportunity to trade such contracts. The major indices traded are: S&P 500, based on the share value of the USA's 500 largest companies; NASDAQ 100, an index representing the value of 100 high-tech companies traded at the exchange; FTSE 100, an index that includes the 100 largest companies of Great Britain; EURO STOXX 50, based on the share value of the 50 largest European companies. Each broker offers different world stock exchange indices, with some having a total of 20 traded indices.

How to start use online trading platform in Malaysia 

The first step to start trading is to register for online trading on an online trading platform. As a rule, you need to fill in your name and email in the application. After confirming your email address, you will be open demo account for online trading.

Most online brokers will provide you with a demo account, which you can use for learning how to trade or to analyze new strategies. If your trades on the demo account turn out to be profitable, you won't get any money. But if you make a loss - you won't spend any money. It's a learning experience.

When you're ready to start trading for real money, you'll need to open real account for online trading. At that point, you will be asked for an additional document to verify your identity. Once authenticated, you will be able to make deposits and withdrawals.

Most brokers have many options for replenish account for online trading. You can use a credit card, e-wallets or bank accounts. Be careful: as a rule, you will be able to withdraw money only to the account or card from which you deposited your account for online trading.

(GB) Be careful when making transactions. Trading financial instruments carries a lot of risk. You can lose a lot of money before you learn how to trade at a profit. Practice online trading with a demo account until you are sure that your knowledge is sufficient for real trading.

Information about brokers can be found here:

1. Overview of ZuluTrade

2. Overview of Exness

3. Overview of Plus500

4. Overview of Binary.com

5. Overview of IQ Option

6. Overview of Webull

7. Overview of EToro

8. Overview of City Index

9. Overview of XTB

10. Overview of RoboForex