Indonesia continues to see growing demand for Forex and CFD brokers, with international Forex brokers competing with Indonesian Forex brokers for market share, creating an ever-expanding choice for traders.
I have conducted an in-depth review of Forex brokers accepting Indonesian resident traders. Read on to review my list of the most competitive brokers with a trustworthy reputation and clean regulatory history, and my tips for choosing the best Forex broker in Indonesia for you.
High floating leverage + fast execution
Generous bonuses for active traders
Highly-competitive cost structure
Daily market research and Autochartist access
Solid broker for scalping and hedging
Institutional-style trading opportunities for retail traders
5.0/5 in this category
Best all-around broker with high floating leverage and fast execution
FXTM is one of the most competitive Forex brokers in Indonesia. Trading costs range between $0.80 and $4.00 per 1 standard lot, depending on monthly trading volume – the more you trade, the cheaper the cost - creating an industry-leading pricing environment. Forex traders get upgraded MT4/MT5 trading platforms and the proprietary mobile app FXTM Trader, ideal for the Indonesian market in which mobile platforms are extremely popular.
Traders are required to deposit at least $500 and get maximum floating leverage of 1:2000 with deep liquidity. A Mini account is available for $10, but with higher trading costs. FXTM has also developed its in-house copy trading service FXTM Invest, features quality education, offers Islamic accounts, and is one of the few Forex brokers accepting Indonesian Rupiah deposits.
Excellent commission-based Forex pricing environment and transparency
Upgraded MT4/MT5 trading platforms plus proprietary mobile trading app
Quality market research and educational content for beginner traders
Proprietary copy trading platform, low minimum deposit, and high leverage
5.0/5 in this category
5.0/5 in this category
A commission-free broker with a proprietary copy trading service.
OctaFX presents Indonesian traders with a competitive cryptocurrency selection and remains one of the most competitively priced of all Indonesian Forex brokers. Its commission-free cost structure commences at 0.6 pips (or $6.00 per standard lot), while it offers its MT5 trading platform without imposing any overnight swap fees, presenting a unique advantage for leveraged overnight trading strategies. World Finance awarded the OctaFX Islamic account the Best Islamic FX Account 2020.
Besides the core MT4/MT5 trading platforms, OctaFX also offers its proprietary mobile app. Together with its in-house copy trading service, this creates a competitive solution for social traders in Indonesia. The minimum deposit of $100, maximum leverage of 1:500, and generous bonuses together ensure accessibility with a competitive edge.
Well-regulated globally, with the Bank of Ireland as the primary regulator
Low minimum deposit and in-depth educational tools
Wide asset choice across seven sectors
Superior mobile trading platform
High maximum leverage
5.0/5 in this category
ECN trading with leverage up to 1:500.
FP Markets made our best Indonesian Forex brokers list as it offers Forex traders raw spreads of only 0 pips with a commission of $6.00 per 1 standard lot, maintains Islamic accounts, and upgrades the MT4/MT5 trading platforms with twelve free plugins through its Traders Toolbox. FP Markets’ no dealing desk (NDD) execution model, lack of requotes, and deep liquidity create a competitive core trading environment.
A minimum deposit of $100 is required for all new clients, but a maximum leverage of 1:500 is available on some Forex currency pairs. FP Markets caters to portfolio managers via an MT4 MAM/PAMM module, while algorithmic traders get VPS hosting. FP Markets serves social traders through Myfxbook Autotrade, plus its proprietary copy trading service. It is also one of the rare Forex brokers accepting Indonesian Rupiah deposits, via PayTrust88.
Choice of trading platforms and auxiliary trading tools
Very competitive cost structure and excellent asset selection
Low minimum deposit requirement and leverage of up to 1:500
Well-regulated and trustworthy
4.5/5 in this category
Best ECN trading environment, with scalping and hedging
BlackBull Markets was founded in 2014 in New Zealand. Like many antipodean Forex brokers, BlackBull Markets is an ECN broker, offering raw spreads and commissions. They are regulated in New Zealand by the Financial Services Providers Register (FSPR) and offer a maximum leverage on some Forex currency pairs as high as 500 to 1. In addition to their global headquarters in New Zealand, BlackBull Markets also has presences in the form of branch offices in New York and Malaysia. BlackBull Markets offers a relatively tight range of tradable assets: 27 Forex currency pairs and crosses, gold, silver, crude oil, natural gas, and 6 major equity indices. That should be sufficient for those traders with more focused strategies not requiring wide diversification.
BlackBull Markets Pros & Cons
ECN/NDD execution model with deep liquidity
Institution-grade pricing for retail traders via proprietary price aggregation
ZuluTrade and Myfxbook for social trading
Leverage of up to 1:500
The best Forex broker in Indonesia for you depends on your individual preferences and requirements, including the size of your deposit, which assets you trade, how much you trade, and whether you prefer a shorter or longer-term trading approach. Below are the criteria I used in my in-depth analysis, covering the most important general aspects of Forex brokers:
Forex traders should select Forex brokers in Indonesia with a regulatory license in a business-friendly authority or equivalent security via alternative methods while also considering the broker’s reputational and regulatory track record.
The Badan Pengawas Perdagangan Berjangka Komoditi (BAPPEBTI) banned Forex trading in Indonesia in 2013 amid a rise in Forex scams but lifted it as BAPPEBTI no longer regulates the Indonesian Forex market.
Forex regulation in Indonesia falls under the Otoritas Jasa Keuangan (OJK), translated to Financial Services Authority (FSA). International Forex brokers can cater to Indonesian Forex traders without an FSA license.
The FSA does not maintain a database with regulated entities, but traders may contact the FSA with specific inquiries to ensure verification.
Forex traders should check the trading costs typically offered for the EUR/USD currency pair, the most liquid currency pair, where trading costs per 1 standard lot should not exceed $10.00 (equivalent to a 1 pip spread). This can either consist of commission-free spreads from 0.4 pips to 1 pip or raw spreads of 0 pips for a commission of up to $10.00. Equity CFDs should be offered at a spread under liquid market conditions no higher than 0.10%, and competitive Forex brokers should usually offer a volume-based rebate program, which can make effective trading fees even cheaper for active traders.
MT4 remains the market leader, with full support for algorithmic traders and an embedded copy trading service. It also features 25,000+ add-ons, plugins, EAs, and custom indicators. cTrader is another competitive alternative, followed by ProRealTime.
Commission-based ECN accounts usually offer the lowest trading costs, but a few Forex brokers offer an almost equally competitive commission-free alternative. Indonesian Forex traders may also wish to consider an Islamic account compliant with Sharia law for reasons other than cost.
Good customer service is defined as responsive service available 24 hours per day, at least during weekdays, and easily accessible through several channels such as phone and chat. Phone support is essential for resolving urgent issues, so responsive telephone service is absolutely essential. Multilingual support is also important, and the best Forex brokers in Indonesia will offer support in Bahasa.
As well as a solid core trading environment, the best Forex brokers in Indonesia will offer quality education for beginner traders, market research with actionable trading ideas, VPS and API trading for algorithmic traders, upgrades to the MT4 trading platform, and cutting-edge trading tools for manual traders.
Trading Forex is completely legal in Indonesia, which is something that surprises many people. There is a persistent perception that Indonesian law prohibits trading Forex, which is not correct. This probably comes from the facts that Forex trading was illegal in Indonesia some years ago, that some of Indonesia’s geographical neighbors have strict laws governing Forex trading which can make it challenging to do so legally, and also because Indonesia is a majority-Muslim country, and there is a question as to whether Forex trading is haram or halal in Sharia law.
Although there are no laws prohibiting Forex trading in Indonesia, Forex trading in Indonesia is highly regulated. All domestic brokers operating from Indonesia offering either Forex or Futures trading must be regulated. The Indonesian regulator ensures that client deposits are held in segregated accounts at one of a select small number of pre-approved depository banks.
It is important to note that Indonesian regulation can only protect traders with Forex brokers regulated in Indonesia. Many Indonesian residents deposit with offshore Forex brokers who are not regulated in Indonesia. This is legal, but it is up to the trader to make sure that the offshore broker chosen is well-regulated somewhere else.
Firstly, you need to commit to making a serious attempt at trading Forex. If you aren’t prepared to study and learn, it is very unlikely that you will be successful at it. Most people find it quite difficult, although this is mostly due to the psychological challenges of trading. If you are a patient person and you can spend time on your own in front of a computer figuring out puzzles without losing patience, then you might have the right personality and skill set to be good at trading Forex.
It is also important that you accept that you may lose money trading Forex, especially at the beginning, as almost all traders struggle to be profitable for at least some time while they are learning. If you are a compulsive gambler, or if you have no tolerance for taking losses at least temporarily, you will struggle to succeed at trading Forex or anything else.
If you decide to go ahead, you need enough money to get started. Although there are many Forex brokers with no minimum deposits, you really need at least $100 to begin safely if you are trading nano-lots, or $1,000 if you are trading micro-lots. Usually, the more money you deposit with a broker, the better trading conditions, and service you will receive in return.
The last step to start Forex trading is to choose the best broker for you, practice trading there with a demo account, and then make a deposit to open a real money account. You can find the best broker for you by working through this article and checking out each of the Forex brokers listed here.
The Forex market is open 24 hours 5 days per week, at all hours except weekends. Good trading opportunities can appear at any time while the market is open, depending upon what is going on in the world that moves markets. Despite this, it is usually true that the best time to trade Forex is during the most liquid market hours, and it is known that the time of greatest liquidity in the Forex market for all major currency pairs typically occurs during the London / New York overlap. In Indonesia, these hours occur between 7pm and 11pm WIB (Western Indonesian Time) Monday to Friday. The most liquid days of the week are usually Wednesday and Thursday. These hours mean that trading Forex as a hobby in the evening after work can be a fantastic way to get started, as these = hours produce the most active markets.
If you are going to trade during typical business hours in Indonesia and not in the evening, it can be a good idea to focus on trading Asian currencies such as the Japanese Yen, as these will usually be more liquid than European or American currencies during this time.
Yes, profits made worldwide by Indonesian tax residents from trading Forex must be declared to the Indonesian tax authorities, and when made by individuals, are subject to Indonesian income tax. Failure to declare trading profits can incur stiff criminal penalties. Indonesian income tax is applied at marginal rates ranging from 5% to 35% under tax rates in force at the time of publication, which is relatively low in global terms, and therefore competitive.
Forex / CFD traders in Indonesia may choose between local or international brokers since the legal and regulatory regime was relaxed a few years ago. There are some obvious advantages of trading with a local Indonesian broker, but beyond these advantages, industry analysts agree that the wider choice and more flexible conditions are offered by international Forex brokers operating in Indonesia, which is why our listing focuses on international brokers.
International brokers are not required to be licensed in Indonesia to accept deposits from Indonesian residents.
Indonesian resident traders will face mostly the same issues as traders anywhere in the world in selecting the best Forex broker:
- broker regulation and reputation
- minimum deposit
- a suitable selection of assets
- a fee structure which suits the intended trading style
For example, day traders will be more focused on competitive spreads while longer-term traders who typically hold positions open overnight will need to pay closer attention to whether overnight swap rates offered are competitive.
Is Forex trading legal in Indonesia?
Forex trading is 100% legal in Indonesia.
Where can I trade Forex in Indonesia?
Forex trading in Indonesia is available through either international Forex brokers or Indonesian Forex brokers.
Which broker is best for Forex trading?
The best Forex brokers offer low trading costs, deep liquidity, and ultra-fast order execution. They will also offer at least one trading platform which supports algorithmic and social trading and be well-regulated.
Is CFD trading legal in Indonesia?
Yes, CFD trading is 100% legal in Indonesia.
Can I trade Forex in Indonesia?
Yes, it is perfectly legal to trade Forex in Indonesia with either local or offshore brokers, provided you report your transactions according to local law.
How much tax do you pay on Forex in Indonesia?
Forex trading profits made by Indonesian tax resident individuals are subject to income tax at the marginal rate applicable to the slice of income represented by the profits.
What time does the Forex market open in Indonesia?
The Forex market is open from Monday morning in New Zealand until Friday evening in New York, closing only over the weekend. This means that the Forex market is open in Indonesia between 7am Monday and 3am Saturday local time (WIB).