Forex trading has rapidly become one of the most popular forms of investing for retail traders around the world over the last few years. The influx of new traders has lead to changes in regulations, leverages and legalities of forex trading all around the world. With investing, it’s more important than ever to stay on the right side of regulations. With that being said, is forex trading legal in Indonesia?
It is completely legal to trade forex in Indonesia. Most forex brokers will accept traders from Indonesia, so you have a range of different regulated brokers to trade with. Indonesia is expected to come one of the worlds leading forex markets over the next few years, with the regulators opening up strict conditions.
Forex Trading In Indonesia – The Law
Forex trading is completely legal in Indonesia, which is great news for budding traders. Not only is the industry legal, it’s regulated by the Securities and Exchange Board of Indonesia and the Financial Services Authority of Indonesia. The regulation in place makes forex a great market to trade if you’re based in Indonesia.
The industry is said to be rapidly growing in this country. It’s even forecast that over the next few years, Indonesia will become a powerhouse in the forex industry and one of the big players when it comes to trading volume and regulations.
Luckily for traders in Indonesia, although there aren’t a lot of brokers and education companies based within the countries, you’ll have access to brokers from around the world as all of the top forex brokers accept traders from this country. As there is a large religious population in Indonesia, brokers operating in the country must provide Swap Free accounts to traders. Many years ago, the choice of brokers in the country was very limited and meant that most traders couldn’t really tap into the forex markets. This was until the OKJ opened up International forex brokers to the country.
Mobile trading seems to be a huge industry in the country right now, with a lot of retail traders preferring to execute traders on their mobile devices, rather than a computer. Indonesian traders have access to a range of trading platforms, the most popular of which being MetaTrader4.
Finding A Forex Trading Broker In Indonesia
As a forex trader based in Indonesia, you are going to need to be trading with a forex broker that accepts traders from Indonesia. Luckily, all brokers accept traders from this country. This means you have the pick of the worlds best forex brokers at your fingertips. Although it’s recommended that brokers become registered with the Financial Services Authority of Indonesia, they currently don’t have any legal obligation to do so.
There aren’t many brokers based in Indonesia right now, which is a shame. As the forex industry in the country is said to be expanding rapidly, I wouldn’t be surprised if we see a lot of the big players like IC Markets setting up shop in the country over the next 5 years.
Most forex brokers in Indonesia are going to offer leverages ranging from 1:30 to 1:500. With 1:500 leverage you’re able to risk huge percentages of your account balance per trade. This can lead to more growth but also to quickly blowing through your trading accounts. I would recommend beginners start with a maximum of 1:100 leverage. For more about leverage, have a read of this Investopedia article. Forexbrokers.com has a very handy list of the top forex brokers in the country, which may be worth a read.
The top forex brokers for Indonesia traders are:
|Broker||Leverage Offered In Indonesia|
The Best Prop Firm For Indonesian Forex Traders
The best way to take your trading career to the next level is to start trading with a prop firm. Online prop firms offer huge opportunities to traders and give funding of up to $400,000. You will essentially trade the companies capital, risk free, in exchange for a split of the profits!
There aren’t currently any of the top prop firms based in Indonesia, which is a shame. Indonesia is expected to be a growing force in the forex industry over the next few years, so hopefully more firms will be setting up shop there. Regardless, the majority of industry leading prop firms accept traders from Indonesia!
FTMO says that they will accept traders from anywhere in the world as long as you’re profitable! This is coming from the largest prop firm in the industry. FTMO currently offer up to $400,000 in funding to traders, with a 70% profit split. In fact, check out my experience with FTMO here.
I have a full page here breaking down the top forex prop firms. All of these firms accept Indonesian traders. The top funding opportunities for Indonesian traders are:
- FTMO – $400,000 in funding
- DT4X Trader – $50,000 in instant funding
- The5ers – $50,000 in instant funding
- MyForexFunds – $200,000 in instant funding
I would personally recommend that Indonesian forex traders use MyForexFunds for their funded accounts. The instant funding and worldwide reach of the company makes it a great choice for traders looking to trade on a much larger account, without having to wait months for a challenge.
In Summary – Can You Trade Forex In Indonesia?
In conclusion, forex trading is legal in Indonesia and it’s a great time for traders to get involved. The markets are regulated by the OJK and since opening up the doors to international brokers overseas, the industry has expanded massively. Indonesia is expected to become a powerhouse in the industry over the next few years. All brokers that operate in the country must offer swap free accounts.
If you have any more questions regarding trading forex in Indonesia please do drop me a message down below, and I’ll get back to your questions!