The Indonesian government makes an effort to keep the Forex market under control given that the specific market has been a little bit loose in the past. The Indonesian market is regarded as having great Forex potential and the authorities have been trying to create the perfect conditions for future investors in the Indonesian market. Up until now, it has been a successful process, and the government has managed to improve all aspects of Forex trading through proper regulation.
Importance of Forex Brokers for Indonesia
The Forex market and investments play a crucial role in the Indonesian economy. Namely, the country’s economy relies on the Forex business to some extent. Therefore, it is of particular interest to the government to create conditions for establishing Indonesian Forex brokerage companies which will attract foreign investors and traders. The Indonesian Forex market has been expanding rapidly because the administration procedures were not too demanding in the past several years, and many non-native Forex companies rushed to secure an outlet for Asian customers. The Indonesian government has grown more aware and attentive to the issue, and consequently, it has imposed strict regulations and standards. The Indonesian Forex market has been much safer and more stable lately. Many traders are now more comfortable, and many foreign traders join the Indonesian Forex companies to try their luck in the Asian market. The Forex market in Indonesia has grown and matured, employing standards as high as in Europe. That was a big step which secured the trust of foreign traders. The economy of Indonesia is not the strongest one, which can be seen by the value of their national currency against the euro. Their national currency is the Indonesian Rupiah (IDR) and 1EUR equals 14.988 IDR.
BAPPEBTI Keeps Indonesian Forex Brokers in Check
The government established the independent Indonesian Commodity Futures Trading Regulatory Agency (BAPPEBTI or Eng. COFTRA) for monitoring of the non-banking financial sector including the Forex market. The Agency is controlled by the Indonesian Ministry of Commerce. BAPPEBTI’s obligations include issuance of licenses to individuals and companies, defining rules and regulations, inspections, and monitoring of all activities in the futures market. BAPPEBTI has been established under law in 1997 and has undergone certain changes by now to adapt to the needs of the market. The changes are regulated by regulations adopted in 2011. BAPPEBTI makes sure that Forex brokers in Indonesia comply with the rules and regulations defined for the market. The policy of BAPPEBTI registered brokers is to keep the market safe, transparent, fair, and easily accessible. The BAPPEBTI Agency encourages healthy competition and expects all broker companies to contribute to it.
They make sure that the company funds are kept separate from the clients’ funds, which indicates that your investments will be safe with BAPPEBTI Forex brokers.
Announcing War on Shady Brokers
Although things have been improving recently, Indonesia is not what one would call a highly regulated country. In addition to this, many people there are looking to improve their financial situation in any way possible. Being what it is, Forex market offers exactly this: a hope of better tomorrow available to everyone. However, this also creates a situation where many shady Forex brokers, flying under the radar, try to take advantage of the situation and rid people of their money. After this trend has become particularly emphasized, the government decided to put a stop to it and Forex trading has came under the scope of BAPPEBTI. While the license itself may not be as strong as some of the European licenses, BAPPEBTI regulated Forex brokers do have to observe certain rules, most importantly the one about keeping traders’ funds segregated from their own operational funds. This is one of the burning problems that Forex traders in Indonesia (and around the globe) must deal with. Many brokerage companies are in the business for a quick hit, so to say. They look to accumulate as much of the clients’ funds as they can before disappearing without a trace. BAPPEBTI has declared war on such brokers and makes sure their licensed brokers keep their clients in the highest regard.
Who Are Top Forex Brokers in Indonesia?
Finding truly the best Forex Brokers in Indonesia does take some time. A BAPPEBTI license is your first step, but there are also other things to be attentive of. Indonesian traders have been complaining a lot that many local brokerage companies offer a trading environment that is far from ideal. What this means is that there are many Indonesian Forex brokers who offer bad spreads and make you trade using platforms which are less than optimal. While the situation has changed for better somewhat, it still takes some effort and time to find a top Forex broker in Indonesia. If you have your eyes set on the Asian market and want to work with a BAPPEBTI regulated Forex broker, make sure to do your own due diligence and check everything before handing in your money. While the government has put in a considerable effort into improving the whole situation on the market, there is still work that needs to be done.
Trustworthy Forex Brokers
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Information is Power
A long-time Forex traders already know this, and those new to the market will quickly learn: information is essential to your success in trading. This doesn’t only apply to the information about market as such, but also the information about particular brokers, their offers, reliability, and more. BAPPEBTI regulated Forex brokers in Indonesia are a far better choice than those operating without a license, but you will still need to find out more info about your brokerage firm of choice. Of course, you can always turn to BAPPEBTI directly and ask for the data you are interested in. They should be able to tell you if a particular broker has had any big issues when it comes to withdrawals or general trading practices. Do not act before you have all the info available. A few extra days off the market will usually not make a big difference, but a choice of bad Indonesian Forex broker could cause you some unnecessary issues.