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.
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 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:
The first broker to be listed in our selection of top Indonesian forex brokers is FBS. They are well regulated by the very trusted CySEC in Europe and the IFSC for global markets. They are also a great broker of choice for Indonesian traders with their fixed exchange rate of 10,000 IDR for 1 USD.
You can choose between 5 account types here. Of the five, a cent account and ECN account are also available. Minimum deposits with FBS start from as little as $1 and move up to $1,000 depending on account type. Funding through wire transfer, credit cards, and eWallet methods are all accepted. This includes IDR deposits if you are using local exchangers.
Every account type can also be turned swap-free if needed and spreads start at just 0 pips across MT4 and MT5 trading platforms as well as the brokers own proprietary copy trading platform. While they do apply an admin fee on Islamic account positions open more than two days, there are also a range of bonuses including a 100% deposit bonus and other contests dedicated to Islamic traders.
The next top broker we have chosen is Instaforex. They have been heavily decorated over the years, particularly in Asia, having won more than 19 awards related to being the “Best Broker in Asia” in that time. They are expertly regulated around the world by the FCA, CySEC, and the BVI.
Trading with them you can look forward to a choice of 6 accounts of which 2 are cent accounts, 2 are ECN accounts, a standard account, and a scalping account. Minimum deposits on these accounts range from $1 to $1,000 depending on your choice, and funding is available through wire transfer with IDR deposits accepted through local banks.
The cent account options present the perfect choices for new traders while an Islamic account is also available with an additional fee in place of the swap. Finally, 4 bonuses are on offer, one of which is a 100% first deposit bonus to get you started.
XM is one of the most recognized forex brokers anywhere in the world. Regulated by multiple bodies including the FCA, CySEC, ASIC, and the IFSC, they have also been awarded the best forex broker in Australasia award among others.
Here you will find 6 account types to choose from. Within these you will note that minimum deposits range from $5 to $100 and you can open a shares trading account with a minimum deposit of $10,000. Funding is accepted through wire transfers, credit cards, and eWallets although no IDR deposits are directly accepted.
You can get started with a fully unlimited demo account and a great value spread from 0 pips through MT4 and MT5 is available. Micro accounts are also catered for as well as the XM Islamic account which comes with the same functions as a regular account and no additional fees for forex trading as an Islamic trader.
You can look forward to deposit bonuses of up to 50%, a dedicated loyalty program and a range of very rewarding trading contests.
Next on the list of top Indonesian forex brokers is OctaFX. They are another well renowned for their top class service to swap-free traders. They were in fact awarded as the best forex broker Islamic account in 2015 by Forextraders.com.
When you open your OctaFX account you will find there to be a Micro, ECN, and Pro account available. You can trade forex with these accounts through MT4, cTrader, and MT5 respectively and the trading is well-regulated by both the FCA and CySEC. Each of the accounts can also be turned into an Islamic account where needed.
The minimum deposit with this forex broker starts at $100, rising to $500 for a Pro account. IDR can be deposited through local banks with a 50,000 IDR minimum. Other funding methods include Perfect Money, Neteller, and Bitcoin.
A full demo account is easily available and spreads start at 0pips across all platforms. You will be glad to find a 50% deposit bonus on each deposit and an Islamic account with no extra mark-ups, commissions, or fees.
This top global broker, based in Ireland are well regulated worldwide by ASIC, the FSA, and CBI and have cultivated a great reputation among Indonesian forex traders too.
When you open an account with AvaTrade you will find many options including a Retail, Standard, Options, and Spread Betting account available to some traders. The standard minimum deposit here is $100.
Your account can be funded through wire transfer, credit card, or eWallets although there are no IDR deposit methods at this time. If you are an Islamic forex trader you will be pleased to note that every account can be made swap-free although spreads which usually start from 0.9 pips across all platforms including Avatrade Go and AvaOptions, will be higher. The spread betting account is also available swap-free but since it could be considered gambling, you may be best to steer clear of it if you are an Islamic trader.
An AvaTrade demo account is available and allows for full access while deposits can be made through wire transfer, major credit cards, and eWallets like Perfect Money and Netteller. Bitcoin deposits are also accepted.
As far as top Indonesian forex brokers go, HotForex is certainly up there. They are astutely regulated by multiple bodies including CySEC, FCA, DFSA, and the FSA around the world and offer a variety of account type choices to forex traders.
These choices include a Zero Spread and copy trading account choice among others. The HotForex minimum deposit starts at just $5 on a standard account type and reaches $100 for the zero spread account. When it comes to copy trading, you can do it with a $100 deposit to copy others or a $500 deposit if you wish to be copied.
Accounts with spreads starting from 0 pips can be funded through wire transfers, credit cards and eWallets with IDR deposits accepted through local banks and a minimum of 20,000 IDR in place. Trading is offered through MT4 or MT5, and both demo and Islamic accounts are available.
On the Islamic accounts, an admin fee is charged o positions open more than 7 days although a strong bonus infrastructure helps negate this. Cash rebates and a 100% deposit bonus are available as well as multiple rewarding trade contests.
XTB is another that has made our list of top Indonesian forex brokers. They are also well regulated by the FCA in the UK and the IFSC of Belize in global markets. One of the best things for Indonesian forex traders and others to benefit from is their extensive trading academy with lessons at all levels.
You can choose between a standard or pro account type when trading. Neither of these have a minimum deposit and both can be quickly funded through wire transfer, credit cards, or eWallets although there are no IDR deposit methods available.
Trading is available through the MT4 trading platform and their own proprietary trading platform with spreads starting from a low 0.2pips and Islamic accounts available on request. With the Islamic accounts, the commission per lot charged ($10) is generally higher than with non-Islamic accounts ($3.50).
Next on the list of top Indonesian forex brokers is a household name in the form of eToro. They are regulated by the worlds best in the shape of CySEC, FCA, and ASIC and are well known as one of the best when it comes to social trading.
They offer just one account type though this can also be turned into an Islamic account if needed. The eToro minimum deposit is typically $200 but does rise to $1000 on Islamic trading accounts although all other trading conditions on the Islamic account are the same.
Spreads start from 1 pip and trading is done through the brokers own intuitive trading platform. Accounts meanwhile can be funded through wire transfers, credit cards, and eWallets although there are no IDR deposit methods.
At the moment there are also no bonuses offered by the broker but they are a trustworthy, global name in forex trading.
FxPro is yet another top name to make the list. They are regulated worldwide by multiple bodies including DFSA, CySEC, FCA, SCB, and FSB. They are acclaimed around the world by forex traders and have collected more than 60 awards over the years.
MT4, MT5, and cTrader accounts can be opened with FxPro featuring a minimum deposit of $100 in each case that can be funded through wire transfer, credit card, or eWallet, though with no IDR deposit method available right now.
Spreads start from a good value 0.1pips and a full demo account can be opened. Trading takes place through the three top platforms already mentioned and Islamic accounts area available though an admin fee is charged to replace the swap.
At this moment, FxPro do not offer any bonuses, though that could be subject to change.
Finally in our collection of top Indonesian brokers we have FXTM. They are winners of the best broker in Asia award for 2017 and 2018 and offer 6 account types that are well-regulated by CySEC, the FCA, and FSB.
With these accounts, 3 are ECN type accounts and the others are standard types. A cent and shares account are both also available with deposits starting at $10.
The broker in fact does also support IDR funding through local and online bank transfer and once registered you can look forward to 0 pips spreads and trading through MT4. Both demo and Islamic accounts are available though a fee may be applied to Islamic trades depending on the assets involved.
While there is no fixed bonus offering in place, a rewarding loyalty program to help reduce trading costs is offered.
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]