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
| | | | ||
Regulators | CySEC, FSCA, MWALI International Services Authority | ASIC, BaFin, CMA, CySEC, DFSA, FCA, SCB | FSCA | ASIC, CMA, CySEC, FSCA | ASIC, CySEC, FCA, SCB |
Year Established | 2011 | 2010 | 2022 | 2005 | 2009 |
Execution Type(s) | Market Maker | No Dealing Desk, NDD | Market Maker | ECN/STP | ECN/STP, Market Maker |
Minimum Deposit | |||||
Average Trading Cost EUR/USD | 0.9 pips | 1.1 pips | $8.00 | 1.2 pips | 1.0 pips |
Average Trading Cost GBP/USD | 1.3 pips | 1.4 pips | $18.00 | 1.4 pips | 1.2 pips |
Average Trading Cost Gold | $0.30 | $0.15 | $25.00 | $0.16 | $0.12 |
Trading Platform(s) | MetaTrader 4, MetaTrader 5, Proprietary platform | Other, MetaTrader 4, MetaTrader 5, cTrader, Proprietary platform, Trading View+ | MetaTrader 4, MetaTrader 5 | MetaTrader 4, MetaTrader 5, cTrader, Proprietary platform, Web-based | MetaTrader 4, MetaTrader 5, Trading View |
Islamic Account | |||||
Negative Balance Protection | N/A | ||||
| Visit Website | Get Started Visit Website75-95% of traders on margin lose | Visit Website | Visit Website | Visit Website |
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
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
Headway
In SummaryTraders can open a Headway account from $1 and may use cryptocurrencies. Traders get reasonable commission-free fees and fast order execution from 0.16 seconds in MT4/MT5. The balanced asset selection exceeds 475 assets, and a $111 no-deposit bonus is available. Copy traders get the in-house copy trading service, and the maximum retail Forex leverage is 1:2000, which increases to unlimited after more than 5.0 standard lots are traded.
The NOVA entity offers traders access to tokenized real estate investments globally and makes Headway stand out among its competitors. So, I rank Headway among the best Forex brokers in Indonesia.
Pros & Cons
- Generous no-deposit bonus and partnership program
- NOVA tokenized real estate service
- Proprietary copy trading service
- Competitive commission-based trading fees
- Questions over the scope of available payment processors
FP Markets
In Summary ECN trading with leverage up to 1:500FP 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.
Pros & Cons
- 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
- Availability of Iress geographically restricted
Eightcap
In Summary 1:500 maximum leverage and cutting-edge trading toolsEightcap established itself among the best Forex brokers due to its superb trading infrastructure, excellent order execution amid deep liquidity, competitive fees, and cutting-edge trading tools. Manual traders get a well-designed AI-powered economic calendar, and Eightcap upgrades MT4 via Capitalise AI, which enables algorithmic trading in a code-free environment. MT5 traders benefit from Flash Trader, while the dedicated cryptocurrency solution Crypto Crusher caters to cryptocurrency traders.
Copy traders get the embedded MT4/MT5 services, and Eightcap connects social traders to the active TradingView community. Beginner traders get an outstanding educational and research offering via Eightcap Labs and Eightcap Trade Zone.
Pros & Cons
- Low minimum deposit and high leverage of up to 1:500
- Competitive cost structure
- Excellent technology infrastructure and seasoned management team
- Daily research and quality educational content
- Limited leverage in some areas
How to Choose a Competitive & Trusted 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.
