The Best and Trusted Forex Brokers in Indonesia

The Best and Trusted Forex Brokers in IndonesiaTrading Forex in Indonesia is legal. However, since it is still in its infancy, the rules and regulations regarding this trade keep changing. Still, the Forex Exchange Market in Indonesia is growing at a rapid rate. At the moment, Indonesia is enjoying a perfect FX trading environment, thanks to the floating foreign exchange system and the free market economy.

Even so, Forex trading is a high-risk form of investment that requires you to devote some of your time to gain the necessary knowledge, experience, and emotional control. The first and most important aspect of trading currencies in Indonesia is finding a trusted forex broker to work with. A good Forex broker should be able to meet all your trading needs and requirements. Here are a few crucial things you need to consider when choosing a trusted Forex broker in Indonesia:

A Forex broker that is appropriately regulated assures investors that they maintain fair trading practices by keeping their funds secure. What’s more, it shows that the broker is adequately funded and their clients can trade in all events, even losses. The main regulator of the local market in Indonesia is Badan Pengawas Perdagangan Berjangka Komoditi (BAPPEBTI), which means Commodities and Futures Trading Regulatory Agency.

BAPPEBTI was established in 2005 with the primary aim of regulating financial markets and supervising financial intermediaries in Indonesia. In 2013, this agency introduced stringent requirements for those providing financial services in the country. This was after a lot of private investors had reported losing money to scammers, illegal traders, and mismanagement by non-regulated brokers. Thanks to these regulations, a lot of those brokers were put out of business. BAPPEBTI regulated brokers are now safer than ever before to trade with.

Trading Platform
Since the Forex Market is open for 24 hours, 5 days a week, traders do not really have to limit themselves to a 9 to 5 job. They have the option to work day and night or skip a few days and only trade for a few hours or minutes a day. Regardless of how long you choose to work, the most important feature you need is a fast and reliable trading platform. Most Indonesian brokers have adopted the MetaTrader 4 platform. This platform is quite user-friendly, has all the necessary features, and it can be adjusted for people with limited computer skills.

Other Forex trading brokers opt to provide their own personalized browsing software. Make sure to give these platforms a test drive first to make sure they have all the necessary functions you need to trade effectively. Once you have chosen an FX broker, start by practicing on their demo account to get a feel for how stuff works and if it meets your needs or not.

Commissions & Spreads
Forex brokers make money by getting commissions that are in the form of spreads. A spread is simply the difference between the buy price and sell price being offered by your broker. A good example of spread is the EUR/USD currency pair whose typical difference in buy and sell price is usually between 1 to 3 pips, depending on the broker you are using. Spreads can be fixed or floating. For most brokers, the fixed spreads for major pairs have pips from 1-5 with crosses having from 6 to 20 pips.

On the other hand, variable spreads are lower under normal market conditions. For major pairs, the pip is between 0.1 to 1 pip, and 1 to 6 for crosses. However, you should know that these pips are subject to change in case something extraordinary happens in the market. For instance, in the event the FED announces new interest policies or changes overnight, the lending rates and markets will start moving up and down like crazy. In such a case, variable spread change can be 10x or even 50x bigger for a few minutes than they usually are, before normalizing. Choose a broker that offers the type of spreads that best fits your financial and trading style.

Types of Accounts
Brokers offer different types of accounts to attract clients of varied incomes based on the size of capital they are willing to trade. These accounts include;

Micro Accounts
This one offers the least lot size of 1K at just 10 cents per pip. Hence, even with only $100, you can get a broker to trade with.

Mini Account
This is for those looking to trade more than 1k but less than 5k. The minimum lot size for this account is 10,000 pips selling at $1 per pip. However, it is recommended that you have at least $1000 to reduce your risk of trading.

Standard Account
This account type is for traders looking to trade the standard lot sizes of 100k. Traders using the standard account are advised to start with over $20,000. However, you can try it out with $10,000 to see how it goes. However, remember that the bigger the position of your transaction, the bigger your risk.

Islamic Accounts
Since the majority of Indonesians are Muslim, they have the option to open a swap free Islamic account. With these accounts, you will not have to pay interest nor will you be paid on overnight lending rates.

Customer Service
The level of customer service that the brokerage firm offers can tell you a lot about their trustworthiness as a company and their willingness to provide the best possible service to its clients. First, make sure that the broker can deal with you in your local dialect or language. Consider getting a different broker if the current one takes too long to deal with your issues and if they ignore your online request.

Additional Services
New and experienced traders are advised to choose brokers who offer additional services such as educational materials and trading tools free of charge. These resources can help you learn the basic concepts of FX trading and insight to help you craft effective trading strategies.

Forex trading provides the perfect opportunity to invest your money and be your own boss. However, with it comes risks in equal measure. Before choosing a Forex trading broker in Indonesia, conduct thorough research to help you make the decision. Above all, select a broker you can trust to have the best possible trading experience.

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