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Are you trading in Indonesia and looking for a broker with great regulation that is among the best forex sites in the industry? Look no further than our top ten listing of the best BAPPEBTI brokers.
Here we will guide you through exactly who they are, as well as provide all the information you need to know about the regulator.
Table of contents
What is the BAPPEBTI?
BAPPEBTI stands for “Badan Pengawas Perdagangan Berjangka Komoditi” (Commodities and Futures Trading Regulatory Agency). They are the regulatory body of Indonesia and they oversee the financial market in the country. They were established in 2005 and have provided secure and trustworthy oversight for all traders in the country since that time.
Are there BAPPEBTI regulated forex brokers?
Within Indonesia, forex trading is relatively new to retail traders, as it was previously not allowed. By the same token, BAPPEBTI is a relatively new regulator on the scene even though they have been around since 2005. The combination of these factors means that at the moment there are no directly BAPPEBTI regulated forex brokers in the market, though you can trade safely through all of the international brokers we have listed.
The regulator also keeps a very stringent control on which top brokers they will allow to operate in the country, having banned dozens of brokers from Indonesia in the past. Therefore, you can be sure of a safe, compliant trading environment from the broker you choose here.
Top 10 best BAPPEBTI Forex Brokers
Here is a closer look at the 10 best forex brokers we have chosen if you are trading under BAPPEBTI.
How the BAPPEBTI works
BAPPEBTI has oversight within the Indonesian financial markets. Essentially what this means is that they provide the framework and guidelines which financial firms, including the forex brokers mentioned, must follow. They will also ensure that these guidelines are adhered to by following up with brokers and firms to make sure they are in compliance with the guidelines.
The bottom line is that the job of this, and any other regulator is to provide a safe, secure trading environment for you, the trader.
Characteristics and benefits of BAPPEBTI
Since BAPPEBTI do not directly regulate any forex broker, each is free to offer the type of service that they wish. This means that brokers are offered complete flexibility in terms of leverage, bonus offerings, and customer protection standards. This can sometimes work out to your benefit as a trader. The only thing they must ensure is that they respect local laws and any other guidelines set out by the regulator at all times.
Prohibitions with BAPPEBTI
Since BAPPEBTI do not directly regulate the forex market, they do not have any direct prohibitions to add other than what is already illegal according to the laws of the country. The only exception here is that if you are a muslim trader, you should be compliant with Shariah law. This means you should open a swap free account with your broker.
Spread betting is also seen as a form of gambling here, and so, it is illegal under Shariah law and not permitted within many regulatory bodies.
Differences between BAPPEBTI Regulated and BAPPEBTI Licensed Brokers
With every broker, there is a difference between being regulated and being licensed. Being regulated means the broker has passed through the full registration process which can be both long and expensive. Being licensed on the other hand means that a broker has not passed through this process but is still allowed to offer services in that country.
At the moment, since BAPPEBTI does not directly regulate any forex brokers, they are simply allowed to operate in Indonesia if they are following local laws, though this may change to require a full regulation in the future.
How to check if a broker is BAPPEBTI regulated
It is always a good idea to double check the regulatory status of your broker. Since Forex brokers are not directly regulated by BAPPEBTI, if you want to check if a broker is trustworthy or not, you can check out the following links to the various regulatory bodies around the world and click the one which corresponds to your broker.
In order to check the ESMA status, you will need to know which European country your broker is regulated under, though most register through CySEC in Cyprus, and regardless of country, every broker registered in Europe is ESMA compliant.
How BAPPEBTI intervene in case of financial abuse?
BAPPEBTI is an independent regulatory body. Therefore, they have widespread powers of discretion to intervene in cases where they feel a broker has acted inappropriately. This is a role they take very seriously and they do have a reputation as a regulator who takes action. They have the power to ban brokers from operating in the country and they have done so on many occasions.
How BAPPEBTI can help you
Since forex brokers are not regulated directly by BAPPEBTI, there is not a whole lot that the body can do to regulate their behavior. Having said that though, as mentioned above, they are not shy about banning brokers from offering services in Indonesia. This is something they can do. So, if you do encounter any actions that you think are wrong in any way, you can report them through the regulators official website, and after the investigation, they will decide if taking action against the broker or not.
With that in mind though, the brokers we have featured here are among the best regulated and most respected in the world, so you should really have no cause for concern.
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