We’ve got to admit that finding out about Forex brokers in Indonesia hasn’t been easy. As with a number of other emerging Forex trading countries the legality of Forex trading can be very confusing. The most recent article we managed to find says that it is legal, but the country’s bank has recently introduced new regulations regarding the conducting of hedging activities such as Foreign Exchange, by Islamic banks. We think it safe to say that Forex trading in Indonesia is still quite a new thing, and rules and regulations are changing, even as we write this. Keep us as one of your favorites and we’ll endeavor to keep you informed of the latest news.
So you know that it’s OK to trade on the Forex market in Indonesia, but you’re wondering whether we’ve got any advice. Keep reading and we’ll pass on some golden nuggets of information.
What is Forex trading?
Forex stands for the foreign exchange markets, one of the most interesting markets to invest in. The sheer size of the market makes it almost impossible for one entity to control, which is one of the reasons there is no centralized market. The Forex market is the largest financial market in the world at the moment, and is open 24 hours a day, Monday through to Friday. More than $3.5 trillion trades are recorded every day, which is three times bigger than the sum of all US financial markets combined.
Transactions in the Forex market are carried out immediately, and a variety of people and institutions participate on a daily basis. Governments, businesses, large institutions and individuals need foreign currency to buy and sell services and goods. So there is always going to be a market for currency exchange.
Originally Forex business was generally conducted by large financial corporations, governments and brokers. But things have moved on and today anyone can participate. The prices, however, are still largely influenced by the largest participants in the market, based in major financial centers such as New York and London.
How to Trade Using Forex Brokers in Indonesia
Is it legal to trade in the Forex market in Indonesia? This question pops up time and time again, and the answer is likely to be a complicated one. Yes, it is legal to use Forex brokers in Indonesia, but there are religious factors that can influence a trader’s decision as to whether they want to do it. Once a person is happy about their decision, it will be time to find the best Forex broker in Indonesia you can.
Forex trading is a high risk form of investment, and requires knowledge, experience, and emotional control in the bucket load. In order to be successful in the trading of foreign currency you are going to need to invest some of your time. It’s all too easy to jump in with both feet, and then regret such a decision further down the line. Yes, you may have made some money, but your success is going to be pretty short-lived.
The first important step is to find a Forex broker in Indonesia (e.g. XM and FBS) to work with, and the best one at that. The broker you choose is going to be your business partner, so you should feel comfortable working with them, and trust in their service. You want a forex broker that meets your needs and requirements. As well as providing educational material and ways to practice before you invest real money.
Finding the best Indonesian Forex trading brokers
The foreign exchange market in Indonesia is expanding at a rapid rate. It’s expanding at such a rate that many experts think it won’t be long before it becomes one of the leading Forex markets in the world. But not only that it’s vital for the country’s economy and the government relies on it for a large part of its funding. Indonesians enjoy a perfect Forex trading environment, because the foreign exchange market works with a floating foreign exchange system, combined with a free market economy.
The official currency of Indonesia is the Indonesian Rupiah, indicated by IDR in the Forex market. The Bank of Indonesia issues and distributes IDR banknotes and coins. Indonesia still has a poor economy, but the Forex market is flourishing and it looks set for a bright future.
Forex trading and the Bank of Indonesia
The Bank of Indonesia is responsible for the exchange rate of the country, but it is also the institution that regulates Forex brokers who operate in Indonesia. The exchange rate of the Rupiah is based on the exchange rate of other countries, along with a number of other features.
The Bank of Indonesia regulates and monitors all foreign exchange brokers. Brokers have to follow strict rules, conditions, terms, and limitations set by the central bank. If they stray from the path they are liable to incur heavy fines. Currently there are very few homegrown Indonesian Forex brokers due to high taxes and strict regulations. But in spite of this there are a number of Forex brokers in Indonesia to choose from. Our advice is that you only trust a licensed and regulated broker.