Best Forex Brokers in Indonesia for 2023

Indonesia is the most populous island country on the planet, where a large group of young, capable, and eager citizens are looking for additional opportunities to profit and gain financial independence, which drives a thriving forex market. Both foreign and locally licensed brokers are allowed to operate in Indonesia, making it a competitive market for forex brokers. To help traders choose the best forex brokers in Indonesia, we have compiled in this article a list of the top brokers based on factors such as regulations, deposits, and spreads etc.

Top 10 Best Forex Brokers in Indonesia

Pepperstone: Pepperstone offers access to raw spreads, fast execution, and efficient customer support. The company holds licenses with reputable bodies including the FCA, ASIC, DFSA, and CySEC, and is known for its reliable trading platform with a global footprint.

FxPro: FxPro is a well-regulated and offers a wide range of accounts, reasonable minimum deposits, and an excellent selection of trading platforms. It offers Negative Balance Protection of a client on a real account, which is a unique broker service.

Admirals: Admirals charges low forex CFD fees and offers a unique package of over 60 unique tools, indicators, and add-ons the MetaTrader Supreme Edition, which is available for both MT5 and MT4. Admirals' traders can access MetaTrader WebTrader to trade Forex directly from their web browser, without needing to download any software.

Forex.com: Forex.com is regulated by multiple top-tier authorities, including the FCA, ASIC, and CFTC. It offers a powerful web-based platform with advanced charting and integrated trading tools.

FXTM: FXTM complies with all the requirements of the local regulator in Indonesia, and offers upgraded MT4/MT5 trading platforms and the proprietary mobile app FXTM Trader, ideal for the Indonesian market in which mobile platforms are extremely popular. It also features quality education and offers Islamic accounts.

FXCM: FXCM also offers a variety of educational resources, including webinars, video tutorials, and trading guides, and a glossary of forex terms to help traders understand the language of forex trading. It also provides a variety of trading platforms, including Trading Station, MetaTrader 4, and NinjaTrader.

IC Markets: IC Markets offers competitive pricing with no requotes, live quotes without redrawing, and no limitations on strategies. It offers over 60+ currency pairs, including majors, minors, and exotics, with the tightest possible spreads, and provides a great education section on its website.

ActivTrades: Regulated by multiple top-tier authorities, ActivTrades has low trading fees, and the account opening process is excellent. Deposits and withdrawals are free. It also offers a variety of trading platforms, including MetaTrader 4 and 5, and the ActivTrader platform.

EightCap: EightCap offers decent dealing spreads for the majors and major crosses, and there is no inactivity fee, and deposits and withdrawals are free. It uses the MetaTrader platforms, including the improved MT5 for web trading and MT4 for mobile and desktop, which are popular among traders.

FBS: FBS offers over 100 currency pairs, including majors, minors, and exotics, and charges no withdrawal and inactivity fees. It is also continuously developing and improving its services, and provides a great education section on its website.

Comparison of the Best Forex Brokers in Indonesia

How to Find the Best Forex Broker in Indonesia?

Forex trading is legal in Indonesia, and the country's demographic composition makes it an attractive destination for foreign exchange companies from around the world. Offshore FX companies licensed in well-regulated countries are also allowed to operate in Indonesia. Here are a few steps to help you find the best Forex broker in Indonesia.

Research: Begin by researching different Forex brokers available in Indonesia. Look for brokers that are regulated by the local financial authorities or top-tier regulators in other countries, as this ensures they meet certain standards and regulations.

Reviews and ratings: Check out online reviews and ratings from other traders to get an idea of their experiences with various brokers. Pay attention to factors such as customer service, trading platform features, and reliability.

Account types and trading conditions: Compare the account types and trading conditions offered by different brokers. Consider factors like minimum deposit requirements, spreads, leverage options, and available trading instruments. Make sure it aligns with your trading preferences and goals.

Customer support: Determine how well the brokers' customer support team handles customer inquiries and resolves issues. Look for brokers that offer multiple channels of communication and prompt responses to any queries or concerns you may have.

Demo account: Open a demo account with a few shortlisted brokers. This will allow you to test their trading platforms and get a feel for their services without risking real money. Take note of the user-friendliness and functionality of the platform.

Additional services: Consider any additional services or resources provided by the brokers, such as educational materials, research tools, or market analysis. These can be valuable resources to enhance your trading knowledge and decision-making skills.

Security and safety: Ensure the broker has proper security measures in place to protect your funds and personal information. Look for brokers with segregated client accounts and use reputable payment methods for deposits and withdrawals.

How Much Money Does a Trader Need to Start Forex Trading?

The amount of capital required to start forex trading varies depending on several factors such as the expected rate of return, risk profile, and trading strategy. However, the minimum amount to start forex trading is usually $100, but many brokers do not have a minimum amount, so traders usually start trading by paying $500 as the first deposit. 

Intraday traders might be recommended to have an initial capital of $2,500, while scalpers require a minimum of $10,000. For long-term traders, they might need a higher amount of capital. It is important to note that while retail forex brokers offer minimum account deposits as low as $25, it is not advisable to enter the market immediately with such a small amount of capital as it may lead to failure. 

In general, traders should avoid trying to turn their small account into a large one quickly and should instead focus on building their account slowly by properly managing risk. A trader with a $1,000 deposit can use leverage of 100:1 to trade $100,000 in the market, which can greatly increase both profits and losses. This is considered acceptable as long as the trader only risks 1% (or less) of the capital on each trade.

How to Get Started with Forex Trading in Indonesia?

A step-by-step guide to get started with forex trading in Indonesia is as follows:

- Learn the fundamentals of the forex trading via tutorials and educational courses available; 

- Select a reputable forex broker which offers a user-friendly trading platform, competitive spreads, good customer support, and account types and deposit/withdrawal options that suit your needs; 

- Open a trading account

- Practice with a demo account before trading with real money to get hands-on experience with the trading platform and test different strategies; 

- Develop a solid trading strategy based on your goals, risk tolerance, and trading style.

- Keep up-to-date with global economic news, events, and market trends.

- Start trading with real money after you feel confident with your strategy;

- Regularly review your trades to identify areas for improvement.

What Are the Most Commonly Used Strategies for Forex Trading in Indonesia?

The majority of Indonesian traders use "technical analysis" to predict how a currency will move in the future and make decisions on trading. Some commonly used strategies are as follows.

Trend following: This strategy is based on the idea that buying high and selling higher, or selling short and buying lower, is a profitable way to trade. Traders using this strategy will buy when the market is trending up and sell when it is trending down.

Breakout trading: This strategy requires traders to identify and trade on price breakouts of key support and resistance levels.

Swing trading: This strategy requires traders to keep their trades open for several days in order to profit from small price changes.

Position trading: This strategy is based on the idea that the biggest profits can be made by buying assets and holding them for the long term.

Scalping: This strategy involves making multiple trades throughout the day to take advantage of small price movements.

Do Indonesian Brokers Charge Commissions for Forex Trading?

Some Indonesian brokers charge commissions for forex trading, while some offer commission-free trading. The amount of commission charged varies depending on the broker and can range from $3 to $45 per million dollars traded. Additionally, there are other fees that may be charged by brokers, such as spreads and financing fees.

What Payment Methods Are Supported by Forex Brokers in Indonesia?

Forex brokers in Indonesia support various payment methods for depositing and withdrawing funds. Here are some of the most commonly used payment methods.

Bank transfers: This is a popular payment method for forex brokers in Indonesia. Traders can transfer funds directly from their bank account to their brokerage account.

Credit/debit cards: Visa and Mastercard are the most popular credit/debit cards used for forex trading in Indonesia. Some brokers also accept other credit/debit cards such as American Express and Diners Club.

E-wallets: E-wallets such as Neteller, Skrill, and PayPal are also commonly used by forex traders in Indonesia. These payment methods are fast and convenient, and many brokers offer instant deposits and withdrawals.

Local payment methods: Some brokers in Indonesia offer local payment methods such as bank transfers, e-wallets, and prepaid cards, which are popular among traders who prefer to use local payment options.

What Is the Best Time to Trade Forex in Indonesia?

The Forex market, as known to all, operates 24 hours a day, five days a week. The best time to trade Forex in Indonesia may vary based on your trading strategy and the currency pairs you prefer to trade.

The most active and volatile periods in the Forex market occur when multiple trading sessions overlap. In Indonesia, the most significant overlaps are between the Asian and European sessions and between the European and North American sessions. These overlapping periods often result in increased liquidity and market activity.

The Asian session, which includes the Tokyo market, is the first major session to open in the Forex market. It typically starts around 7:00 AM Jakarta time (GMT+7). During this session, currency pairs involving the Japanese yen, such as USD/JPY or AUD/JPY, are often more active.

The European session is considered one of the most active trading sessions due to the presence of major financial hubs like London, Frankfurt, and Zurich. It typically begins around 2:00 PM Jakarta time (GMT+7). Currency pairs involving the euro (EUR) or British pound (GBP) tend to see increased volatility during this session.

Important economic news releases and events can impact currency markets. For example, when major economic reports like interest rate decisions, GDP figures, or employment data are released, it often leads to increased market volatility. So adjust your trading schedule to coincide with these events if you prefer trading during highly volatile periods.

Last but not the least, consider your personal schedule and trading strategy. If you prefer scalping or day trading, you might focus on shorter timeframes and more active trading sessions. However, if you're a swing trader or prefer longer-term positions, you can be more flexible with your trading hours. The best time to trade Forex ultimately depends on your trading goals, strategy, and personal preferences.