Factors To Consider When Choosing a Forex Broker in Indonesia

Forex trading is legal in Indonesia. However, since it’s still in a nascent stage, the rules about trading in forex changes from time to time. Despite this minor glitch, the Forex Exchange markets in Indonesia are booming at a rapid rate. Right now, the country is enjoying just the right kind of trading environment owing to its floating exchange system and free economy. That being said, trading in forex is not really easy, particularly if you are a first timer. There are quite a few things that you’ll have to consider before moving with every individual step. In case you’re absolutely clueless about the factors you should consider, here is a detailed insight on everything that you should know about forex trading and forex broker Indonesia.

• Check the Regulatory Compliance Of Your Broker

While trading Forex in Indonesia it is really important to ensure that your broker maintains the proper regulator standards. Even if you’re new to the trade, find out if your potential brokers maintain the practices of fair trading by ensuring the full security of their funds. When a broker has the necessary funds, their clients will be able to trade in almost every situation, even at the time of losses.

Badan Pengawas a.k.a BAPPEBTI, serves as the primary regulator of the local markets in the country. It was created almost 13 years ago in 2005 in attempt to regulate financial markets and supervise the financial transactions in Indonesia. Within the next 8 years, this trading agency came up with many stringent requirements for financial services within the country. This happened when several private investors lost money to scammers and unscrupulous traders. With the new law, a significant number of these illegal brokers were out of business. Under the new norms, forex trading in Indonesia is safer than ever. So while choosing a broker, make sure they come with proper regulation from this regulatory agency.

Choose the Right Trading Platform

Since Forex markets are open 24X5, traders don’t generally limit their work to a 9-5 job. They will always have the option to obsessively work for a couple of days, after which they can skip some days and only trade for a couple of hours/minutes subsequently. But irrespective of the working hours, you’ll have to focus on choosing the right kind of trading platform. While several Forex traders use MetaTrader 4, you can always use your very own personalized trading software. As of now, the Forex trading platforms in Indonesia come backed with the necessary features, turn out to be extremely user-friendly and can be easily tweaked for people having limited computer skills.

Understand the Different Commissions and Spreads

Usually, Forex Brokers get their money from the commissions that are available as spreads. This spread is the difference between the purchasing price and the selling price proposed by your broker. Even before you start trading in Forex, it is really important to understand this difference since it’ll help you make proper, informed decisions. Also, since spreads are likely to change due to the volatility of the market, try choosing a broker who offers spreads that perfectly fits your preferred style of trading.

Find out About the Different Types of Forex accounts

If you are Forex trading Indonesia, you will get the chance to choose from a wide range of accounts. It is really important to have a clear understanding of these accounts as they help you take better purchasing decisions. In case you’re looking to find out more about these accounts, here’s what you have to know-

Micro accounts- If you’re short of cash, this is the best account to try Forex Trading. The micro account lets you can trade in Forex with an amount as less as $100.

Mini Account- This account is ideal for people who are looking to trade more than $1k but the amount in question is less than $5k. If you use a mini account, it is highly recommended that you have at least $1000 at the time of trading.

Standard Account- As evident from the name, this account is designed for people who are looking to trade with the standard amount of $100k.

Islamic Accounts- Since a large number of Indonesians are Muslims, they also get a chance to trade in Islamic accounts. These accounts are available free of cost.

Final Thoughts

So now that you know everything about Forex trading in Indonesia, place your bets right away and make proper, informed decisions while trading.