Even so, Forex trading is a high-risk form of investment that requires you to devote some of your time to gain the necessary knowledge, experience, and emotional control. The first and most important aspect of trading currencies in Indonesia is finding a trusted forex broker to broker forex ecn indonesia embassy with.
A good Forex broker should be able to meet all your trading needs and requirements. A Forex broker that is appropriately regulated assures investors that they maintain fair trading practices by keeping their funds secure. What’s more, it shows that the broker is adequately funded and their clients can trade in all events, even losses. Commodities and Futures Trading Regulatory Agency. BAPPEBTI was established in 2005 with the primary aim of regulating financial markets and supervising financial intermediaries in Indonesia. In 2013, this agency introduced stringent requirements for those providing financial services in the country. This was after a lot of private investors had reported losing money to scammers, illegal traders, and mismanagement by non-regulated brokers.
Since the Forex Market is open for 24 hours, 5 days a week, traders do not really have to limit themselves to a 9 to 5 job. They have the option to work day and night or skip a few days and only trade for a few hours or minutes a day. Regardless of how long you choose to work, the most important feature you need is a fast and reliable trading platform. Other Forex trading brokers opt to provide their own personalized browsing software. Make sure to give these platforms a test drive first to make sure they have all the necessary functions you need to trade effectively. Once you have chosen an FX broker, start by practicing on their demo account to get a feel for how stuff works and if it meets your needs or not. Forex brokers make money by getting commissions that are in the form of spreads.
A spread is simply the difference between the buy price and sell price being offered by your broker. USD currency pair whose typical difference in buy and sell price is usually between 1 to 3 pips, depending on the broker you are using. Spreads can be fixed or floating. For most brokers, the fixed spreads for major pairs have pips from 1-5 with crosses having from 6 to 20 pips. On the other hand, variable spreads are lower under normal market conditions. For major pairs, the pip is between 0.
1 to 1 pip, and 1 to 6 for crosses. However, you should know that these pips are subject to change in case something extraordinary happens in the market. For instance, in the event the FED announces new interest policies or changes overnight, the lending rates and markets will start moving up and down like crazy. Brokers offer different types of accounts to attract clients of varied incomes based on the size of capital they are willing to trade. This one offers the least lot size of 1K at just 10 cents per pip.