10 Criteria for Choosing the Trusted Indonesian Forex Trading Brokers 2022

How to find the best forex broker? This a  criteria should you consider in how to choosing a forex broker for trading? I tried to answer it by collecting the criteria for selecting a forex trading broker in Indonesia. The data is updated in 2022 to add the latest issues regarding forex trading today, especially when there are many frauds and fraudulent investments in 2021 and continuing into 2022. 

How to choose a forex broker that is not only the best but also trusted. Forex is also the most traded financial instrument in the world, they outperforming stocks and other instruments. Forex investment market must be big too. I have a friend, a director at a brokerage company, who told me that the Indonesian forex market is growing rapidly in Asia, especially since the rise of online investment, only lost to the Chinese market, whose population is many times larger than Indonesia. 

I myself often receive forex trading offers, both traditional and online. But, to be honest, I don't know how to choose the best forex broker, while the existence of a broker is very important in playing forex. For this reason, I researched various sources, finding out about how to choose the best forex broker in Indonesia. Here are 10 Criteria to choose the Best and Trusted Forex Trading Brokers in 2022: 

1. Broker Legality
There are many fake investment offers that harm consumers, OJK has repeatedly announced that investment companies have their licenses revoked or banned for violating regulations, one of which is the most banned Forex fraudulent investment company. The first criterion for choosing a broker is the legitimacy of the brokerage firm. Indonesian Forex Brokers Make sure you check the legality of local forex brokers with the Commodity Futures Trading Regulatory Agency (BAPPEBTI), the Jakarta Futures Exchange (JFX), and the Indonesian Futures Clearing House (KBI). 

Currently, the CoFTRA website shows 62 forex brokerage companies registered or officially operating in Indonesia. However, the question is whether the registered status with CoFTRA is sufficient to ensure the legality and security of the broker. In my opinion, not enough. In addition to your status at CoFTRA, you need to do your own checks regarding: Has the broker ever had any problems, especially legal issues Have the authorities ever froze a broker's license What is the history of the forex brokerage company Now, checking the factors above, you can easily do it by looking at the digital track record, googling and if possible asking people who have been in forex investment for a long time. International Broker This one is a little more difficult, but that doesn't mean it can't, you have to make sure that the international forex broker has clear and trustworthy licenses and legalities. From looking at several international brokers, 

I found several institutions that regulate forex trading: Financial Conduct Authority (FCA) UK, Australian Securities and Investments Commission (ASIC) and UK Australian Financial Services License (AFSL), Australia Cyprus Securities & Exchange Commission (CySEC), Cyprus Japan Financial Services Agency (JFSA), Japan Markets in Financial Instruments Directive (MiFID) Europe The broker names the regulatory agency and lists their company's license number. You can cross-check with the agency that issued the license by looking for whether the broker is really registered there. 

Forex Trading Traders Forum In addition to official regulations, you also need to look at the digital track record to catch negative issues or news, one way is to check on the trader forums, namely: forexpeacearmy.com, forexfactory.com, kaskus.com, dan online online forum where forex traders gather. Of course, you need to read the discussion in online forums carefully because not everything is necessarily true. In checking the legality of brokers, local or international, my advice, don't trust one source, especially sales from the broker in question, try to cross-check yourself. 

2. Minimum Deposit Forex Trading
For novice investors like me, getting into financial instruments requires caution because they are new. It takes time to learn the instrument carefully. Therefore, I need a broker that has an affordable (small) minimum deposit so that I can start trading with small amounts, and over time I can increase my trading volume as my trading skills improve. I've seen international brokers who set a minimum deposit of $200 to start trading, while Indonesian brokers are slightly above the minimum deposit.

3. Forex Trading Education
The job of a broker, in my opinion, is not only to encourage customers to trade to collect the maximum possible fee, but also to provide education about the right way and strategy to invest to customers. You should choose a broker that has the best educational services, for example: Offers a trial account for investors to practice trading without worrying about losing money Provide complete training materials for free on the website Make regular webinars to provide updates on the latest market conditions. Demo Trial Account Using a trial account is one way you can check the quality of service, both applications, customer service and other features. The reason is simple, if on a trial account, you will find many problems or errors, especially in real accounts. So, you should use a trial account to test transactions. Training & Webinars I like brokers who provide training materials, which are not only complete but also up to date because the financial industry is very, very dynamic. This also shows the broker's commitment to always grow with clients. 

4. Commissions and Trading Spreads
Before choosing a broker, you need to understand how the broker makes a profit or in other words how much commission you have to pay to the broker. Brokers benefit from two sources, namely: Commissions and Spreads. Commission Commission is the fee you pay every time you make a transaction, for example $40/lot, when buying and selling forex. You pay the fee based on the number of lots you trade. Spreads In every trade the broker sets the spread, which is the difference between the BID price and the ASK price. The BID price is the price level at which you can sell (Sell), and ASK is the price at which you can buy (Buy). 

For example, a spread of 1 pip or $10. Spread values may vary by broker and by account type. What is often a concern for investors is that the broker provides zero commission but compensates with a high spread value. Therefore, when comparing commissions between brokers, what you should pay attention to is the accumulated commission and spread, because the combined fee you have to pay the broker, for example in the example above is $50 ($40 commission + $10 spread). 

Although in reality, comparing commissions and spreads between brokers is not easy and requires effort because brokers usually distinguish spreads based on the type of account an investor opens. Zero Commission The trend in international brokers today is to provide zero-zero commissions for investors. So when the transaction you do not need to pay a commission at all. Unfortunately, brokers in Indonesia have not implemented zero commission and still ask for commissions from customers every time they make a sale and purchase. 

5. Product and Market
Choice A good forex broker should be a trading 'supermarket' that provides a wide variety of instruments and market access. Instrument The broker offers not only Forex, but also other instruments such as stocks, indices, commodities etc., so that investors can optimally diversify. Investment diversification is increasingly important, to manage risk, in the uncertain and highly volatile world market conditions. Market Access to various world exchanges, not only in Indonesia, gives investors the opportunity to better diversify their portfolios. For example, when the Covid-19 pandemic hit the world, investors could prioritize investing in countries that recover the fastest, and this method can only be done if the broker provides access to various markets in the world. Market access is limited if you use a local broker because they usually only serve markets in Indonesia and not markets in other countries with bigger markets. 

6. Customer Service
The Forex market operates 24/7, with one market closed and the other open alternately, so investors need CS services that are always available and always able to help. CS in Indonesian. The main requirement is that brokers, especially from abroad, provide CS who can speak Indonesian. It's useless if CS can only communicate in foreign languages. Skillful CS and having adequate expertise are very important for investors, especially in increasingly complex investment instruments. 24 hour live chat service. A good broker offers a 24/7 live chat service that you can easily reach anytime, anywhere. Also, in addition to the availability of the service, the waiting time in the queue should not be too long. in my opinion, CS is so very important,  especially if you are a newbie, new to investing in forex or other financial instruments.

7. Trusted Trading Application
The trading platform is a very important tool for investors to be able to trade in the financial markets. Therefore, it is very important for investors to have a trading platform that is not only simple but also powerful. I have criteria for a trading platform that I think is ideal, namely: User's Friendly, easy to use and easily accessible from various platforms - mobile phones, laptops, tables and desktops Complete features that make it easier for customers to make transactions and analyze. Apps based, as more and more mobile phones are used, customers can use the platform through apps on their cellphones. To ensure whether it is compatible with the trading platform that the broker provides, you can start with a trial account, which does not require placing any investment money. 

8. Copy Trade
I've tried at one of the international brokers that provide Copy Trade facilities. As the name implies, copy trade is that you follow or literally copy the trading of investors who have proven successful. Good as a reference for those of you who are just starting to jump into investing to learn from the experts. There are two types of models, namely Copy Trader and Copy Portfolio. Copy Trader In copy trader, you follow the trading strategy of a particular trader, in the following way: The broker provides a database of traders from all over the world with their respective return performance, then you can access the data Select the trader you will follow using the filters that the broker has provided, for example, the return of traders in various periods, the country of origin and the rating of the trader. Trade according to the trader's portfolio that you have chosen. 

Copy Portfolio In a copy portfolio, unlike a copy trader, you follow the portfolio that the broker has created. So, the broker mixes Copy Portfolios based on artificial intelligence algorithms to build portfolios automatically according to the criteria they have set. In each type of copy portfolio, the broker provides the historical performance and composition of the portfolio's instruments. You can follow the one that best fits your criteria and risk profile. 

9. How to Deposit & Withdraw Funds
Investors need to pay attention to how they deposit and withdraw funds in their brokerage accounts. It is so very important that you pay attention and to how easy and cheap it is to deposit and withdraw money at the broker. Deposit For a deposit, you need to pay attention to how to make a deposit, is it possible to do a local bank transfer or must transfer to an international bank, and what are the options for deposit methods, such as transfer, credit card, debit and others. In my experience, the choice of depositing by means of transfer through a local bank is very helpful because it is only subject to transfer fees between banks in Indonesia. Withdraw To withdraw, you need to pay attention to several factors, namely: How to withdraw is easy and provides many choices. 

For example, through local banks, Paypal and Debit Cards (Visa and MasterCard). Withdrawal fee. Generally, forex brokers charge a fee for withdrawing funds. For example, one of the brokers I used to cut the fee by $ 5 every time a customer withdraws funds, but there is also a cut fee to $ 25. Minimum withdrawal of funds. Brokers set minimum withdrawals You should pay attention to the withdrawal provisions from the start when you open an account because these provisions have cost implications which are sometimes not small. 

10. Administration Fee
Each broker sets a certain amount of admin fee. The problem is, sometimes we don't read in detail about these costs and only find out after we dive into them. It is not only a matter of the amount of the cost, but what is also important is the costing requirements.

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