Best Binary Brokers
Binary options trading in Indonesia like many other countries is gaining popularity rapidly. It was hardly a decade ago when online trading was the exclusive domain of institutional investors or high net worth individuals. But all that has changed today with the introduction of retail binary trading in 2008. Simple and easy to trade, this trading type has become one of the most profitable online activities for the average Indonesian. However when compared to the financial markets in Europe, the Indonesian financial market is considered relatively unsophisticated. Most traders in Indonesia lack the experience and technical knowhow making them easy pickings for scammers. To help Indonesian traders from being scammed, we have come up with a list of recommended brokers that are ideal to work with. These brokers are selected based on certain criteria such as:
- Operating with transparency
- Reliablity and trustworthy
- Supports Bahasa Indonesia on their website
- Low Fees
Best Brokers in Indonesia
Due to the specific regulatory landscape of the Indonesian financial services industry, we have researched and reviewed a number of firms which are ideally suited to meet the trading needs of the Indonesian trader. These binary firms are well established and are regulated in the countries that they are based in. Most importantly, they are able to offer Indonesian traders a better deal when it comes to the fees which they have to pay. Finally as a word of caution to our readers in Indonesia, while it is possible to sign up to any international binary options broker from Indonesia, we strongly urge our readers to consider only those operators which are regulated and have a good track record of paying their clients promptly when they make a withdrawal request. So check out the list of brokers that we have shortlisted below:
Regulation
It goes without saying that the growth of the binary options industry in Indonesia depends largely on the available regulatory oversight over the industry. In Europe, the industry is well regulated by established financial regulatory agencies such as the Cyprus Securities Exchange Commission (CySEC). In Indonesia, the industry comes under the jurisdiction of the Financial Services Authority or “Otoritas Jasa Keuangan” (OJK) in Indonesian. Prior to the establishment of the OJK, the financial services industry was regulated by a separate agency called “Badan Pengawas Pasar Modal dan Lembaga Keuangan” or Bapepam – LK for short (Capital Market and Financial Institutions Supervisory Agency). Established in 2011 under the Act No. 21 of 2011, the OJK now operates as an independent agency without interference to supervise and regulate the financial services industry.
The main responsibilities of the OJK include:
- Ensuring that the financial services industry operate in a fair, orderly and transparent manner
- Establishing a financial system which is able to grow steadily in a stable manner
- Ensuring the interest of consumers and the society in general are well protected
Under the OJK, the online financial trading industry such as binary and forex trading are tightly regulated. While there are no express prohibitions on Indonesian traders to trade binary options in Indonesia, traders are subjected to high taxes on the returns which they make from their gains. Furthermore, investors in Indonesia are faced with higher fees than what most traders in other countries are paying. This is because of the “Introducing Broker” business model which offshore brokers have to adopt in order to establish a physical presence in the country.
Hence it is important for Indonesian binary options traders to take into account the overall fees which they have to pay when selecting the right binary options broker to sign up with. Choosing the wrong broker can easily result in all the profits earned from trading eaten up by these ancillary fees imposed by the brokers as well as the Indonesian government.
Deposit Methods Available In Indonesia
As an emerging economy with a strong export base, Indonesia has a well established payment infrastructure to facilitate payments in and out the country. In this respect, Indonesian binary traders will face no difficulty in finding a payment transfer method to fund their trading account. In Indonesia, bank wire transfers are common and are widely used for transferring payments in the import and export sector. Major credit and debit cards are also widely used among the upcoming middle class segment of the population. Finally, as more and more households in Indonesia are becoming internet savvy, the uptick in eWallets has also increased among the younger segment of the population. In short, Indonesian traders will have no problem in finding a broker which can support the widely used methods of transferring funds in Indonesia.
FAQ
- Is it legal to trade binaries in Indonesia?
Yes. It is legal and permitted in Indonesia.
- Are binaries regulated in Indonesia?
Yes. Financial services including OTC trading is regulated by the Indonesian Financial Services Authority known locally by its abbreviation OJK.
- How to trade binaries in Indonesia?
In order to trade in Indonesia, you must first open a trading account with a binary options broker. The broker can be one based in Indonesia through an IB or an offshore based brokerage firm.
