Over the past decade, the spread of Forex around the world has been spurred by technological advances. In 2021, as local economies are grappling with the effects of the pandemic, it is more popular than ever. Indonesia has seen a surge in the number of local currency traders. This trend is hardly surprising. However, the Forex industry in Indonesia has its intricacies.
The island nation is now a big currency exchange centre. Any resident can get started with Forex through a broker. Popular sites like Trade in Forex explain details of trading in Indonesia. Here are the basics.
Brokerage Services in Indonesia
Residents may choose between home-grown and international brokers. As a rule, global brands offer a wider range of instruments and more favourable conditions. With a registered account, you may trade across several markets — for example, currencies, derivatives, and stocks.
There are two kinds of available accounts — demo and live. The first type is used for training purposes. Before newbies enter the real currency exchange, they practice in the simulator as long as necessary. There are no time restrictions, and this service is usually free. All popular trading terminals can work in this mode.
Live accounts connect clients to the biggest financial market in the world. Every day, the currency exchange sees gigantic volumes worth over 5 trillion US dollars. Entry is affordable — a global broker may allow you to start with just $19. Payments are accepted through electronic transfers and digital wallets. To trade currencies, a resident of Indonesia needs four things:
- a registered account;
- a sufficient deposit;
- the right software (usually provided by the broker);
- a steady internet connection.
Local Regulation of Currency Trading
In recent years, the key regulator of the industry — The Financial Services Authority of Indonesia — has been cracking down on dishonest local brokers. Some measures target deceptive advertising and unfair commissions. Today, the local Forex market is well-regulated, which gives traders peace of mind.
If you choose an international broker, make sure the company is properly licensed. Global brands may be registered in different jurisdictions at the same time. Reliable licensing entities are organizations like the Financial Commission, the CySEC in Cyprus, or the FCA in the UK.
Islamic Accounts
Indonesia has a big Islamic population. Over 87% of local residents profess the Muslim faith. To comply with the Sharia Law, traders may open special “swap-free” accounts. The system eliminates interest in trading positions left open overnight. It is offered by popular global brokers.
Trading Forex in 2021
This year, the adoption of online trading is being accelerated by the pandemic. The local economy has been affected by the global crisis, and quarantine measures have shattered the tourism industry. In Indonesia, Forex offers a feasible alternative to conventional employment, which means it will only continue to grow.
