Guide to Forex Trading in Indonesia for 2022 – The popularity of forex trading is increasing worldwide due to the liquid nature of the market. Though forex trading is volatile, it is the world’s largest financial market that remains open from Monday to Friday. According to reports, the forex market has around $5 trillion daily trading volume, making it a business opportunity for more prominent players and small investors.
If you like to start forex trading in Indonesia, it is essential to identify the best forex brokers in Indonesia as a first step. As a trader, you have to ensure the broker’s reputation and experience in the field because you are investing your hard-earned money in a new arena. Though only governments, brokers, and financial institutions were involved in the forex trade earlier, even small operators are entering the field regularly now. This article discusses how you can start forex trading in Indonesia.
Opportunity in Indonesia
If you are looking to start forex trading in Indonesia, it is legal and a thriving business. Considering the growth rate and according to the opinion of several experts, Indonesia has the potential to emerge as one of the top forex markets in the world. One of the main advantages of forex trade is that the country with a floating foreign exchange system has a free market economy.
With the policies of the government supporting the business considerably, a lot of small investors in the country are entering the trade with confidence and courage. The official currency of the country is the Indonesian Rupiah (IDR). The country’s central bank is the Bank of Indonesia, and it is responsible for the nation’s monetary policy and currency management.
A trader needs to learn the market thoroughly before investing in trading. Before starting a live account for trading, you can open a demo account with a broker. The advantage of a demo account is that you can learn the trade without putting a lot of money directly in the market. Once you have confidence in the market’s operations, you can open a live account and start investing. Some brokers allow you to convert your demo account into a live one.
The brokers and reliable forex-related websites are providing video tutorials for learning purposes. You can go through such tutorials to get an idea of the various functions and operations. You can also consult a forex expert to discuss trade matters for a better and more professional view. Besides, there are credible forex-related websites and financial publications that provide authentic information and insights on trading and related subjects.
You don’t require a lot of money when you start trading. You can open a forex account with around $100 and start the business. Once you arrange your initial trading capital, you can open a forex account with a reliable forex broker.
One of the significant steps in trading is to finalize a reputed and reliable forex broker for you. The broker will conduct your business through an online platform. With your money involved, you have to ensure that the broker has a valid license, reputation, and experience in the field.
You can look at forex-related websites to get an idea about the ranking of the forex broker before finalizing one. Make sure that the broker is a regulated one. In Indonesia, BAPPEBTI (Badan Pengawas Perdagangan Berjangka Komoditi) is the regulatory body for brokers. It makes sure that the brokers are following all regulations and not conducting any malpractices in transactions. BAPPEBTI imposes hefty fines on erring brokers if found guilty. However, Indonesia has only a few local forex brokers because of high taxes and strict rules. You will find a list of forex brokers from forex-related websites in the country.
The financial regulatory body in Indonesia is the Securities and Exchange Board of Indonesia (https://www.ojk.go.id), established in 2011. The Indonesian Commodities and Futures Trading Regulatory Authority or BAPPEBTI was formed in 2005 and is responsible for looking after the derivative sector in Indonesia.
Some of the top forex brokers in Indonesia are FOREX.com, XTB, IG, Saxo Bank, Interactive Brokers, FXCM, AvaTrade, etc. The Bank of Indonesia closely monitors all the forex brokers.
A trader needs to have thorough knowledge in forex-related subjects irrespective of which country they are conducting their business. In Indonesia, the prime objective of a trader is to understand the techniques in the market and study the intricacies. It is essential to enter the market with a specific trading plan.
You also have to conduct fundamental, technical, and weekly analyses to understand your position as a trader, the mistakes you committed last week, and the following week’s strategies. It would also be helpful to follow an economic calendar to understand the significant upcoming economic events in the world. Such events have the potential to change market sentiments.
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