Indonesian Traders Guide
For those looking to trade binary options, Indonesia is a great place to be, and you probably have many questions. These can range from the legalities and regulations that apply to how to choose the best broker. While there are no laws that prevent trading, there are regulations to ensure the safety of your money.
Indonesia is an example of a country where just a few years ago, trading was limited. Now it is regulated by the country's national bank, and there are no sanctions to prevent local or international brokers from offering their services to local traders. You won't have any finding a great broker from the many available to you.
Our website is there to help make choosing your broker easier. We have compiled a list of only the best brokers along with reviews and ratings based on the various aspects of what they have to offer. Our recommendations are based on not only the trust and safety of a broker but also the ease of use and all the other benefits they have to offer.
In this article, you will learn:
- The brokers best suited to your needs
- What local payment methods are accepted
- Taxes and fees that apply to ID residents
Traders in Indonesia
Binary options trading in Indonesia is a perfectly acceptable practice so you won't struggle to find a local broker. As with the UK and Cyprus, all legitimate brokers are expected to operate under the licensing and regulation of a regulatory body. In Cyprus, this is CySEC, and in the UK, it is the FCA. In Indonesia, all binary options trading falls under the remit of the Indonesian National Bank who are responsible for regulating the industry plus all other financial institutions. In addition to licensing and regulation, what else should you be considering when selecting your broker?
Trade Types And Payouts
As a new trader, you may be interested in High/Low trades but what other trade types does the broker offer? For existing traders looking for a new broker, consider the trade types that you are interested in trading. Also, what payouts does the broker offer compared to other brokers?
Bonuses And Incentives
There are many different types, and amounts of bonus offered to incentivise you to open an account. These range from a no deposit bonus to a 100% match deposit bonus. You need to decide which one is best suited to your needs when making your selection. For new traders, the no deposit bonus is an excellent way to start trading without risking your own money.
Mobile Trading Support
Trading on the go is essential to many of you, and if a broker doesn't offer a mobile trading option, then they are going to struggle to win their share of the market. Make sure you check the mobile options provided by the broker before you open an account, especially if you intend to trade from a mobile device.
Customer Help And Advice
Whether you are choosing a local broker or an offshore broker, you need to ensure that you can get hold of them with any questions or queries. Check how easy it is to get in touch and whether they offer various options such as live chat and telephone support.
With Asia being an emerging market, much like South America and in particular Brazil, when it comes to binary options and Forex, it is expected that the trend for growth will only continue. As binary options trading becomes more and more popular so will the choice of brokers. There are already a large number of foreign brokers that specifically target emerging countries and their incentives and reputation make them an attractive option for many. The question is which one is right for you?
Broker Fees And Tax
We mentioned financial penalties for trading with Indonesian brokers, and before you embark on your binary options trading venture, you must make sure you check out the tax laws surrounding this type of activity. While the fees and profits that you make are roughly the same whatever country you are trading in, there is one thing that you need to consider, and that is the tax laws of your country.
When it comes to taxes on binary options, Indonesia is on the high side. While you can trade freely with either a local or foreign broker, you must ensure that you declare your profits to the tax regulatory body and pay your taxes. Now while countries like Indonesia do allow you to trade freely and activity is governed by the national bank, some see the taxes as too high.
With the fees for trading, there are a few that you need to consider. These fees include:
When you balance what you win with what you lose you need to ensure that you are coming out on top and not handing all of your profit over to the government. As you only need to declare your overall profit it is essential that you keep accurate records of your winnings along with your losses. You need to report your total profit. You should also try and keep your fees to a minimum by using the cheapest method of funding your account and withdrawing cash less frequently.
Indonesia uses its National Bank as the regulator for all Indonesian brokers as well as any foreign brokers operating in Indonesia. What this means is that with the protection of a financial regulatory body your money is much safer than trading with a broker that isn't regulated. When you are choosing a broker, you should always check their licensing and that they are regulated and approved. Checking licensing applies to both local and foreign companies. You are taking a considerable risk if you choose one that isn't operating under the appropriate licensing or regulation.
While there are stringent regulations, much like the Philippines, Japan or Thailand, and trading is not as easy as it is in countries like the UK and Cyprus, it is still much easier to trade than it is in places like the US. Some rules make it a little more restricting, and there are financial penalties which we will cover in more detail later.
All that said though the governing body is still a bank and a bank is responsible for all sectors, not just binary options. You may be wiser to choose a foreign broker that is regulated by one of the more recognisable bodies such as CySEC which is the Cyprus Securities and Exchange Commission and one of the most recognised officiating bodies when it comes to the binary options trading across the world.
Indonesia is an example of a country where just a few years ago trading was limited.
How we Recommend Brokers
We rate and review the best Indonesian brokers in the same way that we consider all brokers. We carry out extensive checks and trade ourselves on the platforms to ensure that the advice that we give to you is accurate, reliable and that we are happy to put our name to that particular broker. We pride ourselves on making the best advice available to you, and we won't put our name to any broker that we haven't fully vetted.
Our checks include all aspects from the licensing and regulation of the broker to the ease of use of the platform and the bonuses and payouts on offer. You want to ensure that your trading experience is the best it can be so by using our service you can ensure that you are armed with all of the facts before you commit to any broker.
As we research brokers from across the globe, you can check out the differences between local Indonesian brokers and foreign brokers to see which you prefer. Sometimes the international brokers will have offerings that perhaps your local binary options brokers don't. Therefore, you have much more choice. Our advice is to make a list of what you want to get out of your trading experience and what will draw you to a particular broker and then make your shortlist based on your wish list.
Frequently Asked Questions
Is binary trading in Indonesia legal and safe?
The answer to this is yes on both counts. With regards to whether it is safe then like anything, you have to make sure you choose a licensed and reputable broker.
Do I need to pay fees and taxes on my profits?
Taxes can be high in Indonesia, so before you start trading, you should ensure that you understand the tax implications of doing so clearly.
Can I test brokers before trading with real money?
Many brokers offer demo accounts. If this is one of your criteria, then look for this when searching for a broker and be sure they provide a demo account for free.
Is it easy to make deposits and withdrawals?
Yes, making a deposit is instant with many brokers using various payment methods. Bear in mind that when withdrawing funds it can take 3-5 days to reach your account.
Can I trade using my mobile or tablet device?
Many brokers now cannot offer a competitive service without having an excellent mobile offering. The competitive market means that as a trader you should be able to operate on the go with most brokers.
Jacob has been an author for us since our launch in 2012. He has over forty years’ experience in the financial sector and has held a variety of positions within financial services corporations and venture capitalist organisations.