Starting your search for the top forex brokers in any place can always seem like a daunting task. This is also true if you are an Indonesian forex trader. In your mind you may think there are some other obstacles to overcome in order to get involved in the Indonesian forex market.
The fact is, this does not need to be a difficult task. We want you to find the best forex broker Indonesia has offer, and so, with that in mind, we have taken the opportunity to collect as much information as possible about forex trading in Indonesia so you can be best placed to choose a top forex broker.
Table of contents
Is Forex Trading Legal in Indonesia?
This is a common question for those who are new to forex trading in Indonesia, though the simple answer is yes, forex trading is legal.
The process of forex trading is similar to any other kind of trusted trading with forex traders speculating on two currency pairs. Although in 2013 forex trading was banned by BAPPEBTI (the Indonesian regulatory body) in the wake of some forex scam broker cases, this ban has already been listed. This means that while there are still no forex brokers directly regulated by the body, traders are free to deal with international forex brokers who respect local Indonesian laws.
How to trade forex in Indonesia
The process of opening an Indonesian forex trading account is not hampered at all by BAPPEBTI since they only regulates the commodities and futures market. Considering that then, if you are an Indonesian and looking to open a forex trading account, you should follow the rules set by your selected broker below. These will typically mean the following:
- Having your ID (preferably passport) ready to confirm your identity
- Having a proof of residence document or at least a utility bill or bank statement at your registered address ready.
- Preparing some capital to fund you new forex trading account.
Top 10 Best Forex Brokers in Indonesia
Once you have completed these steps, you are ready to choose from one of the top Indonesian forex brokers that we have listed for you right here:
Indonesian trader? Here’s what to look for in a forex broker
As an Indonesian trader the same as many others, there are a few key things to look out for particularly if you are getting involved in forex trading for the first time:
1. Look for trusted brokers in order to avoid fraudulent firms:
A trusted broker such as those listed above should always be high on the list. You should always seek out brokers regulated by one of the top bodies including CySEC, FCA, ASIC, and some others including MAS (Singapore). These bodies are stringent in ensuring compliance and it is not easy to be regulated by them. Therefore, it always reflects a positive sign when your forex broker is.
2. If you’re Muslim, choose the best Islamic Account
In Indonesia, more than 80% of people are muslim. This means there should be a big demand on Islamic (or swap-free) accounts. These accounts do not charge overnight fees since that is considered a form of interest and thus is Haram according to Sharia law.
Be careful to do your research and choose the best broker Islamic accounts, many of these do not charge any additional fees for Islamic trading accounts. If you would like to know more about islamic accounts, check out our Islamic broker guide
3. Be careful when choosing a bonus:
Since bonuses are generally legal in Indonesia for brokers to offer, you may see many tempting offers pop up. Just be sure that you do not allow this temptation to cloud your vision when it comes to choosing a top forex broker.
You should select a broker based on how it fits your trading needs first and consider the bonus only as a secondary thing. That said, brokers with a no deposit bonus do offer a good chance for traders to get started risk-free.
How to verify if a forex broker is regulated in Indonesia
Within Indonesia, there is not a specific regulator to cover forex trading since BAPPEBTI only covers forex and futures. This is fine though since all of the recommended brokers are regulated by some of the foremost global authorities in regulation. You can check some of these regulations by clicking on the following links and searching for your broker of choice.
If you want to check ESMA regulations, you first need to know the European country the broker is registered within. This is usually CySEC but anyway, if it is regulated within Europe, it should automatically be ESMA compliant.
Is forex trading taxable in Indonesia?
Forex trading may not be directly regulated by the Indonesian regulator, but it is still taxable. This tax usually takes the form of capital gains tax which is applied at 25% if you are a resident of Indonesia or 5% if you are a non-resident.
Tax rebates on losses for a period of 5, or sometimes 10 years can be applied and taken into account when forex trading in Indonesia.
- [Disclaimer: we are not accountants, we have done internet research. We strongly suggest you contacting Indonesian local authorities if you’re not sure how to manage this aspect]