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AuthorBy Jeffrey Cammack
Updated: October 22, 2020

The Commodity Futures Trading Regulatory Agency (BAPPEBTI) is the local regulator of financial institutions involved in derivative trading in Indonesia, including Forex brokers who open a dedicated brokerage in the country. Though BAPPEBTI does hold regulatory powers, these are limited when compared to major international regulators.

The Majelis Ulama Indonesia (MUI) council has issued fatwas in relation to Forex trading, but the majority of Indonesian traders do not take these too seriously. The MUI or Ulema Council has no interventive involvement whatsoever in official lawmaking.  That said, in 2015 the MUI issued a fatwa permitting Forex trading as it is not a form of gambling.

While there may seem to be an advantage of your broker being registered with BAPPEBTI, the trading conditions are typically less attractive than those offered by international brokerages. Since Indonesian residents are not legally required to trade with BAPPEBTI-registered brokers, the choice is more open, and traders can register with the broker of their choice.

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Best Forex Brokers in Indonesia 2021

Last updated on 22 Oct 2020
Updated 22 Oct 2020
by Editorial Director Jeffrey Cammackby Jeffrey Cammack
Jeffrey Cammack
All Brokers Regulated
All Brokers Regulated
by Trusted Authoritiesby Trusted Authorities
Trusted
1
IG Markets
Min. Deposit
GBP 250
4.694.69
Min. Spread
0.60 pips
Fx Pairs
80
REGULATED BY
Overall Rating
11110.54.69/ 5
AlertAccepts UK Clients. Average spread EUR/USD 0.60 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, ProRealTime and L2 Dealer platforms supported. IG Markets Group is regulated by FCA, ASIC, and the FSCA. 75% of traders lose money with this provider.
2
Pepperstone
Min. Deposit
GBP 5
4.614.61
Min. Spread
0 pips
Fx Pairs
60
REGULATED BY
Overall Rating
11110.54.61/ 5
AlertAccepts UK Clients. Average spread EUR/USD 0.69 pips with 0.0 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, MT5 & cTrader platforms supported. Pepperstone is regulated by the FCA, ASIC, and the DFSA. 79.3% of traders lose money with this provider.
3
InstaForex
Min. Deposit
GBP 1
3.323.32
Min. Spread
0 pips
Fx Pairs
110
REGULATED BY
Overall Rating
1110.503.32/ 5
AlertAccepts UK Clients. Average spread EUR/USD 3 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 platform supported. Instaforex is regulated by CySEC and FSC (British Virgin Islands). 71.71% of traders lose money with this provider.
4
FXCM
Min. Deposit
GBP 50
4.134.13
Min. Spread
0 pips
Fx Pairs
40
REGULATED BY
Overall Rating
11110.54.13/ 5
AlertAccepts UK Clients. Average spread EUR/USD 1.30 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & Ninja Trader platforms supported. FXCM is regulated by FCA, ASIC, and the FSCA. 76.31% of traders lose money with this provider.
5
Go Markets
Min. Deposit
GBP 200
4.104.10
Min. Spread
0.20 pips
Fx Pairs
50
REGULATED BY
Overall Rating
11110.54.10/ 5
AlertAccepts British Clients. Average spread EUR/USD 1 pips on trading account with lowest minimum deposit. Max leverage 500:1. No Islamic account available. MT4 platform supported. Go Markets is regulated by ASIC, CySEC, FSA, and FSC.
6
Amana Capital
Min. Deposit
GBP 50
3.833.83
Min. Spread
0.10 pips
Fx Pairs
66
REGULATED BY
Overall Rating
1110.503.83/ 5
AlertAccepts UK Clients. Average spread EUR/USD 1.40 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & MT5 platforms supported. Amana Capital Group is regulated by the CySEC, FCA, and the DFSA.
7
Tickmill
Min. Deposit
GBP 100
4.484.48
Min. Spread
0 pips
Fx Pairs
62
REGULATED BY
Overall Rating
11110.54.48/ 5
AlertAccepts UK Clients. Average spread EUR/USD 0.00 pips with 4 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 platform support. Tickmill is regulated by CySEC, FCA, FSCA, and the FSA-Seychelles. 73% of traders lose money with this provider.
8
IC Markets
Min. Deposit
GBP 200
4.464.46
Min. Spread
0.10 pips
Fx Pairs
64
REGULATED BY
Overall Rating
11110.54.46/ 5
AlertAccepts UK Clients. Average spread EUR/USD 0.10 pips with 7 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, MT5 & cTrader platforms supported. IC Markets is regulated by CySEC and ASIC.
9
HYCM
Min. Deposit
GBP 100
4.184.18
Min. Spread
0.20 pips
Fx Pairs
70
REGULATED BY
Overall Rating
11110.54.18/ 5
AlertAccepts UK Clients. Average spread EUR/USD 1.20 pips on trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. MT4 platform supported. HYCM is regulated by CySEC, FCA, and the DFSA. 74% of traders lose money with this provider.
10
FP Markets
Min. Deposit
GBP 100
4.284.28
Min. Spread
0 pips
Fx Pairs
60
REGULATED BY
Overall Rating
11110.54.28/ 5
AlertAccepts UK Clients. Average spread EUR/USD 0.10 pips with 6 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4& MT5. FP Markets is regulated by CySEC and ASIC.
11
Admirals
Min. Deposit
GBP 100
4.244.24
Min. Spread
0.70 pips
Fx Pairs
50
REGULATED BY
Overall Rating
11110.54.24/ 5
AlertAccepts UK Clients. Average spread EUR/USD 0.50 pips with 0.0 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, MT5 & MT4 Supreme Edition platforms supported. Admiral Markets is regulated by ASIC, CySEC, the JSC, and the FCA. 76% of traders lose money with this provider.
12
Vantage FX
Min. Deposit
USD 200
3.783.78
Min. Spread
0 pips
Fx Pairs
40
REGULATED BY
Overall Rating
1110.503.78/ 5
AlertAccepts UK Clients. Average spread EUR/USD 1.40 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & MT5 platforms supported. VantageFX is regulated by the FCA & ASIC.
13
XTB
Min. Deposit
GBP 5
4.144.14
Min. Spread
0.80 pips
Fx Pairs
48
REGULATED BY
Overall Rating
11110.54.14/ 5
AlertAccepts UK Clients. Average spread EUR/USD 0.50 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. xStation5 platform supported. XTB Group is regulated by CySEC, DFSA, FCA and the IFSC. 82% of traders lose money with this provider.
14
TrioMarkets
Min. Deposit
GBP 500
3.643.64
Min. Spread
0 pips
Fx Pairs
63
REGULATED BY
Overall Rating
1110.503.64/ 5
AlertAccepts UK Clients. Average spread EUR/USD 2.40 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & Sirix platforms supported. TrioMarkets is regulated by CySEC and the FSC. 73.6% of traders lose money with this provider.
15
Plus500
Min. Deposit
GBP 100
4.094.09
Min. Spread
0 pips
Fx Pairs
70
REGULATED BY
Overall Rating
11110.54.09/ 5
AlertAccepts UK Clients. Average spread EUR/USD 0.80 pips on trading account with lowest minimum deposit. Max leverage 30:1. Cryptocurrency availability subject to regulation. Islamic account available. Plus500 proprietary trading platform supported. Plus500 is regulated by FCA, CySEC, ASIC, and MAS. 72% of traders lose money with this provider.
16
BDSwiss
Min. Deposit
GBP 100
4.324.32
Min. Spread
1.40 pips
Fx Pairs
50
REGULATED BY
Overall Rating
11110.54.32/ 5
AlertDoes not accept UK Clients. Average spread EUR/USD 1.50 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & MT5 platforms supported. BDSwiss is regulated by CySEC, FSC, and the FSA-Seychelles.*Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.3 % of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
17
Trade.com
Min. Deposit
GBP 100
3.423.42
Min. Spread
1.80 pips
Fx Pairs
55
REGULATED BY
Overall Rating
1110.503.42/ 5
AlertAccepts UK Clients. Average spread EUR/USD 1.90 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 platform supported. Trade.com is regulated by CySEC, FCA and the FSCA. 71.36% of traders lose money with this provider.
18
IronFX
Min. Deposit
GBP 50
3.743.74
Min. Spread
0 pips
Fx Pairs
83
REGULATED BY
Overall Rating
1110.503.74/ 5
AlertAccepts UK Clients. Average spread EUR/USD 1.10 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. Only MT4 platform supported. IronFX is regulated by CySEC, FCA, ASIC, and the FSCA. 75.35% of traders lose money with this provider.
19
eToro
Min. Deposit
USD 50
3.693.69
Min. Spread
1 pips
Fx Pairs
60
REGULATED BY
Overall Rating
1110.503.69/ 5
AlertAccepts UK Clients. Average spread EUR/USD 1 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. Only eToro proprietary trading platform supported. eToro is regulated by CySEC, FCA, and ASIC. 67% of traders lose money with this provider.
20
easyMarkets
Min. Deposit
GBP 25
3.983.98
Min. Spread
0.90 pips
Fx Pairs
103
REGULATED BY
Overall Rating
1110.503.98/ 5
AlertAccepts UK Clients. Average spread EUR/USD 2 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & the proprietary easyMarkets platform are supported. easyMarkets is regulated by CySEC, ASIC, and the FSA in Seychelles. 74% of traders lose money with this provider.
21
XM
Min. Deposit
GBP 5
4.254.25
Min. Spread
0.60 pips
Fx Pairs
57
REGULATED BY
Overall Rating
11110.54.25/ 5
AlertAccepts UK Clients. Average spread EUR/USD 1.60 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & MT5 platforms supported. XM Group regulated by CySEC, ASIC, and the IFSC. 77.19% of traders lose money with this provider.
22
markets.com
Min. Deposit
GBP 100
4.494.49
Min. Spread
0.60 pips
Fx Pairs
67
REGULATED BY
Overall Rating
11110.54.49/ 5
AlertAccepts UK Clients. Average spread EUR/USD 0.70 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, MT5 , and Marketsx platforms supported. Markets.com is regulated by the FCA, CySEC, ASIC, and the BVI FSC. 74.93% of traders lose money with this provider.
23
AvaTrade
Min. Deposit
GBP 100
4.484.48
Min. Spread
0.90 pips
Fx Pairs
55
REGULATED BY
Overall Rating
11110.54.48/ 5
AlertAccepts UK Clients. Average spread EUR/USD 0.9 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & MT5 platforms supported. AvaTrade Group regulated by ASIC, FSCA, B.V.I FSC & FSA. 72% of traders lose money with this provider.

    Forex Trading in Indonesia

    Like many countries in the region, Indonesia is a relatively new market for Forex CFD trading. That is not to say that Forex trading is not very popular, because it is one of the fastest-growing centres for retail Forex trading in Asia.

    Indonesians are legally allowed to trade with both internationally regulated brokers and locally regulated brokers, though locally regulated brokers do have to follow shariah law and are subject to much closer scrutiny by the local regulator.

    If you do not want to trade with a locally regulated broker, we always recommend trading with a broker regulated by one of the three major international regulators, these are:

    Be aware that many unregulated brokers still operate in Indonesia, so always check your broker’s regulatory status before you make any kind of a financial transaction with a company.

    Forex Trading Regulation in Indonesia

    The local regulator in Indonesia is called Badan Pengawas Perdagangan Berjangka Komoditi (BAPPEBTI), or the Indonesian Commodities and Futures Trading Regulatory Authority. It was established in 2005 but only started taking steps to regulate Forex trading in 2013, when its powers were expanded and regulatory enforcement became more commonplace.

    Following the regulatory overhaul in 2013, internationally regulated Forex brokers were given permission to operate legally in Indonesia, but the government still recommends trading only with those that hold BAPPEBTI licences. International brokers are still expected to follow Indonesian financial law, however.

    As the regulator of the derivative sector, BAPPEBTI issues business licenses for all financial bodies involved in derivative trading, investigates license holders suspected of violating financial law, and provides advice on resolving conflicts between client and broker.

    BAPPEBTI’s overarching goal is to protect Indonesian citizens from fraudulent activities and provide financial education for potential customers. In order to achieve this goal, broker auditing is carried out during the licence registration process and further inspections are conducted periodically to ensure broker compliance.

    All BAPPEBTI registered Forex brokers must operate in accordance with Sharia law. This means that several common aspects of traditional Forex trading are strictly prohibited:

    • No interest or riba to be earned or paid by client or broker
    • No excessive risk or gharar can be taken by the client (as this in direct violation of shariah business practices)
    • No speculation or gambling (as gambling is considered haram under shariah)

    While BAPPEBTI does require a licenced broker to have a clear complaints procedure, it does fall short of other regulators when it comes to assisting clients who have been defrauded by criminal brokers. As it stands, there is no avenue for victims of broker scams to reclaim their lost funds, though criminal brokers will be investigated, prosecuted and banned.

    While over 60 brokers now hold BAPPEBTI licences, most the larger international brokers have decided against creating local subsidiaries and remain regulated offshore. This is due to the unstable business backdrop in Indonesia and high taxes on local companies, making it a poor cost/value proposition for foreign brokers. As the Indonesian market continues to grow and the government continues to modernise its financial laws, we expect this to change and more international brokers to gain BAPPEBTI regulation.

     

    References

    Featured Brokers

    Trading Forex and CFDs is not suitable for all investors and comes with a high risk of losing money rapidly due to leverage. 75-90% of retail investors lose money trading these products. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

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