Discover the best Indonesian Forex brokers on this list

There is a lot of things that people traditionally associate with Indonesia – it could be the country’s rich history and vibrant traditions tropical beaches and famous holiday destinations, a diversity of ethnic groups and religions, or even the diversity of its fascinating flora and fauna.

However, Indonesia is so much more than that. This country in Southeast Asia occupies a territory of 1 904 569 square kilometers, and its total population exceeds 267 million people. Indonesia is the world’s 14th largest country by overall territory and the world’s 4th most populated country.

The country’s economy is a shining example of how with a lot of effort, a previously poor state can be transformed into the one with the world’s 16th largest by nominal GDP, and the 7th; largest GDP per capita.

Forex trading has only been introduced to the country very recently, however, it is growing in popularity pretty fast. Unfortunately, the market is not yet regulated properly, which is why one should be extra careful when getting into it.

Our guide will attempt to arm you with all the relevant information that will help you stay safe at all times. In doing that, we will have a closer look at what to look out for in looking for the best Forex brokers in Indonesia, how can one benefit from trading the national currency and the country-specific commodities, as well as examining the state of the regulatory mechanisms in place( or rather, the lack of such).

Find your regulated Forex brokers in Indonesia

The purpose of this guide is to make the process of getting into the field of Forex trading in Indonesia easy and hassle-free for both beginners and experienced traders alike. While creating it, we have realized that the most time-consuming process that one has to go through is looking for the brokerage to join.

It can take hours upon hours of research and analysis, only to eventually come to a stressful point when the final decision has to be made. In order to make sure that you are not subjected to that, as well as to help you make the right choice, our experts came up with our top picks of the Forex trading brokers in Indonesia.

In the list below, you will find a detailed breakdown of the most reliable and qualified brokerages that the Indonesian market has to offer, as well as some of their main features that you should keep in mind.

XM Group

XM Group Forex Review

Minimum deposit

5 USD

Licences

CySEC, IFSC, ASIC

Maximum leverage

1:30*

US Clients

No

Exness

An in-depth review of Exness Forex broker

Minimum deposit

1 USD

Licences

CySEC, FCA, FSA

Maximum leverage

1:Unlimited

US Clients

No

IQ Option

IQ Option Review – can the broker be trusted?

Minimum deposit

10 USD

Licences

CySEC

Maximum leverage

1:1000

US Clients

No

BlackBull Markets

BlackBull Markets Review – What Does This FX Broker Offer?

Minimum deposit

$200

Licences

FMA

Maximum leverage

1:500

US Clients

No

Forex.com

Forex.com Review

Minimum deposit

100 currency units

Licences

CIMA, FCA, NFA

Maximum leverage

1:200

US Clients

Yes

EagleFX

EagleFX Review – Is it worth your time and money?

Minimum deposit

10 USD

Licences

N/A

Maximum leverage

1:500

US Clients

No

RoboForex

RoboForex Broker

Minimum deposit

100 USD

Licences

CySEC

Maximum leverage

1:200

US Clients

No

How is the Forex market regulated in Indonesia?

As mentioned above, Forex trading in Indonesia is still relatively young. This notion is the most probable reason as to why the country is yet to introduce a functioning regulatory mechanism upon it. Without it, it is unlikely that the Indonesian Forex trading market will be able to develop in line with its regional and international competitors.

There are currently two main regulatory bodies in Indonesia – the Indonesian Commodities and Futures Trading Regulatory Authority (BAPPEBTI) and the Bank of Indonesia. The former is mostly responsible for overseeing various components of the country’s financial sector, and those do not include the Forex market.

In turn, the latter monitors both the country’s monetary policy and the secure and efficient functioning of the local Forex brokers. Despite having a body that is directly responsible for monitoring the FX market, Indonesia still has a lot to do in order to get rid of the influx of scams among the brokers that operate there.

Despite the lack of an efficient regulatory mechanism in place, one should not abandon the idea of trading Forex in Indonesia altogether. The local FX market is still pretty interesting to explore, however, it should be approached with some extra care.

For example, one should only choose brokers that possess an official license from either the local, or foreign ( but reputable) regulatory body. By doing that, you will be able to ensure that in case of any unfortunate events, you will always have the relevant entity step in on your behalf and reinforce security measures where necessary.

Moreover, it is always a good idea to contact the regulatory body in order to check the broker’s license status, as the information provided on the broker’s website is not always true.

Who is eligible to trade Forex in Indonesia?

There are two main requirements that a potential trader needs to meet in order to get into the field of FX trading – the legal one, and the one put forward by the best online trading platforms in Indonesia.

When it comes to the legal one, the only standard that you will need to meet is being aged 21 or older. This notion is completely justified as minors should be kept away from the potentially risky financial endeavor such as trading Forex.

In terms of the requirements issued by the brokers themselves, you will usually be looking at something like the employment status or the minimum monthly income. Once both of those two types of requirements are satisfied, you can get straight into Forex trading.

Brokers in Indonesia do not charge a separate fee for the signing up process, however, they usually have requirements for the minimum initial deposit. You are most likely to find anything between 5 USD and all the way up to 500 USD.

You should remember that the amount that the broker wishes you to deposit is in no way a reflection of its qualifications or trustworthiness. Nevertheless, you should always seek the minimum deposit that is most suitable for you and that you will be comfortable losing if the trading session does not go as planned.

Trading software and payment methods in Indonesia

As the popularity of Forex trading in Indonesia is growing, so does the variety of trading software available with the local Forex brokers. Among the most common ones are the cTrader, MetaTrader4, and MetaTrader5, while some of the brokerages use the software that was created especially for them.

On top of that, mobile phone apps for trading are also available in Indonesia, which means that a trader can always stay connected to the market and react to any relevant developments wherever they are, instantaneously.

In terms of the payment methods, there too, one can find a lot of variety. The banking coverage in the country has increased significantly over the past 5 years, which means that the majority of the Indonesian traders use credit or debit cards in Forex trading. Moreover, e-commerce has also been growing in popularity, especially digital wallets such as KasPay, iPayMu, and others.

Both the payment method options and the trading software available are extremely important to how successful your trading will be.  While choosing an Indonesian Forex broker in 2020, you should definitely pay special attention to how much exposure to various assets their platforms have to offer, and how acceptable are their payment alternatives for you.

How can a trader profit from the Indonesian national economy?

As we have already mentioned above, Indonesia has managed to accelerate its national economy at a rapid speed, and maintain sustainable growth over the years to come. after reducing the poverty levels from 60% to 15% and developing the country’s services industry, agriculture, and tourism sector, Indonesia became one of the strongest economic players in the region.

The main exports of the country are based on its rich reserves of national resources – oil, gas, palm oil, copper, tin, rice, spices, rubber, gold, and nickel. Indonesia is also exporting vehicle parts, mobile phones, and refined petroleum, and, while its main trading partners are located in Southeast Asia, it does also trade with the United States.

For the Indonesian traders, the country definitely has a lot of unique opportunities to offer. With such a diverse variety of exported goods and a relatively stable development of the economy overall, it is easy to see how one can resort to trading country-specific commodities there.

Indonesian national currency is the Indonesian rupiah, coded as the IDR. It is often incorporated by the local traders and is usually trained in a pair with the USD. Having said that, we should remind you that the Indonesian rupiah is an exotic currency, and you should definitely trade more popular currency pairs instead if you are still new to Forex trading in Indonesia.

What are the perks of trading in Indonesia?

If you are only considering getting into the local FX market, and yet unsure of whether or not it is the right decision, you might find it useful to have a look at the main advantages and disadvantages of trading Forex in Indonesia.

Pros:

  • Indonesian national economy is one of the largest in the region
  • The country’s exported goods are plentiful, which means that you can keep your commodities portfolio diverse and profitable at all times
  • The government is actively considering a strategy to make the local FX market more developed and secure, and it is likely that it will be enhanced and better regulated in the near future

Cons:

  • The market is not yet properly regulated, which means that you can come across a lot of scams
  • Although there is a variety of Forex brokers available, it is not as diverse as in the other countries

Trading Forex in Indonesia – the final verdict

Overall, trading Forex in Indonesia could potentially become both interesting and profitable. However, since there are almost no regulations on the market at all, it should definitely be approached with a lot of care.

If you are an Indonesian citizen thinking about joining it, we recommend that you choose the international regulated Forex brokers in Indonesia, that is definitely capable of providing you with that much needed additional layer of security.