Is Binary options trading legal in Malawi?

In the modern market, financial traders have several markets to choose from, including forex, stocks, CFDs, cryptocurrencies, indices and options. Of these, Binary options are a relatively new instrument compared to the other ones listed here. Many traders often mislabel binary options as some sort of high risk instrument or even a gambling instrument. However, the fact is, almost all financial trading involves risk. As more and more traders are realising the potential of binary options, it has become one of the most popular forms of trading in the world.

In Malawi, binary options trading is completely legal and there are several international brokers operating throughout nations in the African continent. However, it is absolutely crucial for a trader to conduct his or her own due diligence before they choose the services of any broker.

In this respect, one of the most popular Binary Options Broker is IQ Option. It is available to citizens of Malawi to freely trade binary options.

How to trade Binary Options

To place a binary option trade, the first thing you have to do is select an appropriate broker. After selecting a broker, make sure they have a lot of assets covered by binary options. Normally binary options a huge number of assets such as commodities, forex pairs and even indices. Traders have to select the size of the trade and expiry time. Lastly. they must simply check and confirm the trade.

Choosing A Binary Options Broker

The Options market has seen frauds over the years as unlicensed and scam operators have exploited binary option as a new exotic derivative. Such frauds are starting to disappear thanks to the regulations applied worldwide.

Points they have to look out for

• Reliable broker
• Regulated by an international financial regulatory body
• Proper binary options instruments available
• User-friendly deposit and withdrawal methods.

Trading Binary Options at IQ Option

Since its launch in 2013, IQ Option has gained the trust of investors and forex traders by offering a large range of instruments including binary options. It has become of the most reliable destinations for binary options traders from Europe, Africa and the rest of the world. IQ Option is regulated by Cyprus Securities and Exchange Commission (CySEC), which means it is legal in Malawi.

The registration process is pretty straightforward and simple. Users can simply use their Google+ or Facebook account to sign up. They offer two types of live trading accounts for Binary Options traders when using IQ Option.  The VIP account which has a minimum deposit of $1900 and the Real account which has a minimum requirement of $10.

Why Binary Options are Popular

Easy to learn Options traders use the same charts, strategies and tools used by traders in other markets. In order to succeed in this form of trading, traders must learn how to decipher charts, have a strategy in place and understand trader psychology.

The maximum a trader can lose is the amount placed on a trade: Traders are aware of how much they stand to lose even before they enter a position. This is because the maximum one can lose on this type of trade is their own trade investment.

Quick profits: Most markets require traders to wait for a long time until the asset’s price reaches the predetermined stock price. This may range from mere minutes to even weeks. One can achieve profits in as little as one minute. This is due to binary options being set to expire after a specified period. All one needs to predict is whether they think the price will go higher than the strike price upon expiry or not.

Fixed return: Traders know the potential profit even before they enter their trading position. This can be calculated as percentage of the amount invested. Most platforms offer returns ranging from 60% to 95%.

Conclusion

Binary options is gaining popularity all over the world, and especially in the African continent. With online trading platforms contributing to adaption, platforms like IQ Option are readily offering a secure and reliable way to enjoy a pleasurable trading experience. The platform is vast with many other forms of trading as well, complimented by a responsive customer service staff available at all times.

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