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.
Best Indonesia Brokers Comparison
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Regulators | CMA, CySEC, FCA, FSC Mauritius, FSCA | CySEC, FSCA, MWALI International Services Authority | ASIC, CySEC, DFSA, FSC Belize | ASIC | ASIC, BaFin, CMA, CySEC, DFSA, FCA, SCB | CMA, CySEC, FCA, FSA, FSC Belize, FSC Mauritius, FSCA | ASIC, CMA, CySEC, FSCA |
Year Established | 2011 | 2011 | 2009 | 2011 | 2010 | 2008 | 2005 |
Execution Type(s) | ECN/STP, Market Maker | Market Maker | Market Maker | ECN/STP, Market Maker | No Dealing Desk, NDD | Market Maker | ECN/STP |
Minimum Deposit | |||||||
Average Trading Cost EUR/USD | 0.1 pips | 0.9 pips | 0.1 pips | 1.1 pips ($11.00) | 1.1 pips | 0.6 pips | 1.2 pips |
Average Trading Cost GBP/USD | 0.2 pips | 1.3 pips | 0.2 pips | 1.1 pips ($11.00) | 1.4 pips | 0.7 pips | 1.4 pips |
Average Trading Cost Gold | $0.18 | $0.30 | $0.19 | $0.15 | $0.15 | 11.3 pips | $0.16 |
Trading Platform(s) | MetaTrader 4, MetaTrader 5, Proprietary platform | MetaTrader 4, MetaTrader 5, Proprietary platform | MetaTrader 4, MetaTrader 5, Proprietary platform | MetaTrader 4, MetaTrader 5 | Other, MetaTrader 4, MetaTrader 5, cTrader, Proprietary platform, Trading View+ | MetaTrader 4, MetaTrader 5, Proprietary platform | MetaTrader 4, MetaTrader 5, cTrader, Proprietary platform, Web-based |
Islamic Account | |||||||
Negative Balance Protection | N/A | N/A | N/A | ||||
| Visit Website | Visit Website | Visit Website | Visit Website | Get Started Visit Website75-95% of traders on margin lose | Visit Website | Visit Website |
FXTM
In Summary Best all-around broker with high floating leverage and fast executionFXTM 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. FXTM features quality education, offers Islamic accounts, and is one of the few Forex brokers accepting Indonesian Rupiah deposits.
Pros & Cons
- 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
- A highly regulated broker with a tier-1 license
- No cryptocurrencies and limited choice of commodities
Octa
In Summary A commission-free broker with a proprietary copy trading serviceOcta maintains a balanced asset selection of 300+ assets, including 30 cryptocurrency CFDs and 150+ equity CFDs listed on 16 exchanges. Traders can use MT4/MT5 or opt for the proprietary web based OctaTrader. With 40M+ accounts, an in-house copy trading service, a dedicated copy trading mobile, and a high-paying affiliate program paying up to $12 per lot, I rank Octa among the best Forex brokers in Indonesia.
Traders get commission-free fees from spreads of 0.6 pips or $6.00 per 1.0 standard round. The four-tier status program decreases trading fees for active traders, and Octa offers a 50% withdrawable deposit bonus.
Pros & Cons
- Quick withdrawals and deposits
- 0% commission and no overnight charges
- Space with personalised trading ideas
- Customer Support 24/7
- Mobile copy trading services available only for Android
XM
In Summary Exception range of assets + negative balance protectionI rank XM among the best Forex brokers in Indonesia for beginners, due to its outstanding educational options. The live education room, free for XM traders, available Monday through Friday between 06:00 and 15:00 GMT stands out. Traders also receive six exclusive technical indicators for the MT4/MT5 trading platforms. The minimum deposit of $5 makes XM accessible to all Indonesian Forex traders.
XM offers a competitively priced commission-free pricing environment in its Ultra Low Standard Account with Forex spreads from 0.6 pips or $6.00 per 1.0 standard round lot. Traders can also benefit from deposit bonuses and a four-tier loyalty program.
Pros & Cons
- Outstanding trading tools and loyalty program
- Low minimum deposit, high leverage*, and competitive trading cost
- Excellent research and education
- Trustworthy and transparent with generous bonuses and incentives
- Inactivity fee
ACY Securities
In Summary Swap-free trading with the MT5 trading platformTraders at ACY Securities get 15 plugins to upgrade MT4/MT5 and Capitalise AI, which enables algorithmic trading in a code-free environment. Copy traders can choose signal providers from embedded MT4/MT5 services, Signal Start, and SoFinX. It makes ACY Securities one of the best Forex brokers in Indonesia. Adding to its advantages are fast order execution under 30ms and a well-balanced asset selection of 2,200 assets.
Passive income seekers benefit from a high-paying partnership program, and ACY Securities offers VPS hosting for 24/5 low-latency algorithmic trading. It also segregates client deposits at Commonwealth Bank and maintains professional indemnity insurance.
Pros & Cons
- Large repository of daily analysis and educational content
- Low spreads starting at 0 pips in the Spread Zero account
- 16 payment processors, including cryptocurrencies
- Competitive trading fees in its commission-based accounts
- Only 1 regulator
Pepperstone
In Summary Great ECN execution on MT4/5, cTader, TradingView and Pepperstone proprietary platformI rank Pepperstone among the best Indonesian Forex brokers as it ensures a distinct advantage few Forex brokers can offer with the availability of Capitalise AI, enabling algorithmic trading in a code-free environment. It also developed a proprietary mobile trading app for copy and mobile traders. Copy traders can diversify via embedded MT4/MT5/cTrader services, Myfxbook Autotrade, and DupliTrade. Pepperstone connects social traders with 50M+ peers to TradingView.
The well-balanced asset selection of 1,500+ assets includes Forex, Forex indices, cryptocurrencies, and ETFs. Traders get competitive commission-based fees with raw spreads from 0.0 pips for a $7.00 commission per 1.0 lot.
Pros & Cons
- Excellent choice of trading platforms consisting of MT4/MT5, cTrader, TreadingView and Pepperstone Platform
- Market-leading MT4/MT5 upgrade package, Autochartist, and API trading
- Social trading support via Signal Start, MetaTrader Signals, Copy Trading by Pepperstone, DupliTrade
- Leverage of up to 1:400 depends on jurisdiction and superb trade execution
- Demo accounts have 60-day time limits
How to Choose a Competitive & Trusded Forex Broker in Indonesia
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:
- Regulation and Security
- Trading Costs
- Asset Selection
- Account Types
- Trading Platforms
- Unique Features
- Research and Education
- Customer Support
- Bonuses and Promotions
- Account Opening Process
- Deposits & Withdrawals Processes
International and Indonesian Forex Regulation
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.
Can Indonesian Traders Verify FSA Regulation?
The FSA does not maintain a database with regulated entities, but traders may contact the FSA with specific inquiries to ensure verification.
What Qualifies as a Low-Cost Trading Environment in Indonesia?
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.
What Trading Platforms Exist at Competitive Forex Brokers in Indonesia?
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.
What is the Best Account Type?
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.
How Can Traders Identify Good Customer Service?
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.
What Additional Services Can Benefit Indonesian Traders?
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.
Is Trading Forex Legal in Indonesia?
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.
How Can I Start Forex Trading in Indonesia?
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.
What is the Best Time to Trade Forex in Indonesia?
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.
Do I Have to Pay Tax on Forex Trading in Indonesia?
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.
Final Thoughts
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.
