The forex trading market is the most volatile yet profitable exchange market. Its magnitude has reached over $6 trillion in trading volume per day. In recent years, Asian countries have started leaning toward growing their economies, with people getting more interested in how to cash in on the development.
A significant emphasis in this expansion is the turn toward the forex market. Countries such as Thailand, Singapore, and Indonesia have seen an increase in investors interested in forex trading.
Indonesia has always had a good “relationship” with the forex market, with Indonesian residents shifting their focus to internal and international forex exchanges now more than ever.
If you’re interested in trading with currencies in Indonesia, this guide can help you learn more.
Indonesian Legal Frame of Forex Trading
Contrary to many beliefs, forex trading in Indonesia is a growing market. It largely contributes to the country’s economy, with experts saying that the current expansion may form one of the top forex trading markets internationally.
Regarding the legality of forex trading in this country, the Bank of Indonesia is the body that oversees this matter. According to its regulations, forex trading is legal in Indonesia; however, seeing an emerging market, the legislation will undergo further change.
Nonetheless, today, Indonesian residents can find a broker of their choosing, based in the country or out, and start trading on the forex market. You can compare forex brokers via Brokersview and pick the one that best suits your needs.
5 Steps To Start Forex Trading in Indonesia
Before you jump to trading right away, there are several steps you need to make sure are covered. Here are five steps to start forex trading in Indonesia:
- Self-educate – Start by learning everything you can about forex trading and this market in Indonesia before practicing it for real money. Use an online trading simulator or a broker’s demo account.
- Set some capital aside – It’s never wise to enter the trading world with your primary capital. Instead, use funds that are your extra cash.
- Discover your forex strategy – Today, many forex trading strategies are available. You can choose the ones that suit you best and start applying them to your buying and selling on the forex market.
- Find a broker – Each Indonesian broker must follow the rules and laws and act accordingly. This matter is regulated by BAPPEBTI – Badan Pengawas Perdagangan Berjangka Komoditi. The number of Indonesian brokers is not vast, but Indonesians are accepted by all international brokers as well.
- Fund your account and start trading – Once you have a broker and you’ve opened an account with them, all you need is to connect your bank and deposit funds. Most brokers work with particular trading platforms, so you may need to download it. Once all of this is covered, you are free to trade on the forex market in Indonesia.
Forex Trading Strategies for Indonesians
All experienced traders use one or several forex trading strategies. Here are the most used ones on the forex market in Indonesia:
- Reversal Candles – This strategy uses candlesticks as indicators of the fluctuation of the currency in the opposite direction. For instance, if a currency rises in value, triggering a reversal candlestick would mean that trend is likely to change, so it’s time to sell it.
- Return to Mean – The formula for this strategy is simple: when a currency moves outside of its range, it’s time to sell/buy.
- Triple Moving Average Crossover – This is a long-term method that requires you to calculate the average value of the currency when you plan to hold it. You recalculate a different average for each day that the standard stays on the mean trend. The moment its rate fluctuates out of it, a buy/sell trigger activates.
Best Brokers for Indonesian Forex Trading
As mentioned, the Bank of Indonesia oversees the activity of forex brokers in this country and international ones. It also regulates the exchange rate of IDR – Indonesia’s official currency.
Having that in mind, all brokers must comply with the Indonesian law regulating this topic. Here are some top forex brokers for Indonesians:
- IFSC regulated
- Fixed exchange rate of 10,000 IDR
- Has the Indonesian language for customer support
- Trading accounts are only USD and EUR, but you can deposit in IDR
- IFSC regulated
- You can deposit in IDR
- 50+ currency pairs
- BVI FSC licensed
- There is no IDR account currency, but you can deposit in IDR
- 50+ currency pairs
Indonesia has seen tremendous development in recent years, and the slow rise of the economy has enabled growth in the forex market.
Exchanging currencies can be an excellent way to strengthen your active and passive financial portfolio, so don’t wait. Considering that forex trading is legal in Indonesia, you only need to find a reputable broker and start trading.