Binary options is a famous trading market that has gained rapid popularity throughout the world. After getting available for public transactions in 2008, this market has seen a rise.
But even after having millions of traders from around the world, this trading market is not legal in certain countries. Do you know why? Because there is a high risk of losing a vast amount of money in this trading market.
Of course, the binary market offers a chance to win massive profitability for an accurate assumption. But if you have incorrectly analyzed the market, you will end up losing all the traded amount. It happens because binary options is an all-or-nothing trading market.
One thing that helps traders to improve their chances of winning is trading indicators. With the help of the correct trading indicator, one can understand the market movement.
But before you start trading, it’s essential to know whether this trading is legal in your area or not. For instance, if you live in Indonesia, you must know about the status of this trading market and other crucial information related to the regulation of trading.
This post answers essential questions related to the operation of binary options in Indonesia.
Indonesia’s financial market
Indonesia is an emerging country in SouthEast Asia that is within touching distance from some prominent countries like Japan, China, Australia, New Zealand, and South Korea.
Talking about the financial market, it’s regulated by the Indonesia Financial Service Authority. This authority is also known as OJK i.e., Otoritas Jasa Keuangan. After getting formed in 2011, this organization played a significant role in the development of Indonesian finance.
After 2011, Indonesia became quite popular among brokers from around the world. Also, it’s now seen as a popular destination for retail trading. Before the formation of OJK, the financial condition of Indonesia was weak. But now, everything has taken speed.
Is Binary Options legal in Indonesia?
As far as binary options trading is concerned, it is legal in Indonesia. Why? Because there is no such law that truly bans binary options trading. Also, no one has ever been arrested for trading options in this country. So, it’s safe to say that binary options have a bright future here.
But one thing that you might want to know is that the traditional form of investing here is done at a higher tax rate. Due to this, people living here are attracted to the trading of financial products with offshore brokers.
Young people of Indonesia are confidently trading binary options with offshore brokers. Because of this, the binary options market is growing rapidly here.
As compared to the European market, binary options trading is considered unsophisticated. That’s because many traders here lack basic market knowledge. Also, they don’t have much experience and technical knowledge. It makes them an easy target for scammers.
Furthermore, the Indonesian rupee is not traded on the international market. That means these traders have to use an asset or trading currency pair that they might not be familiar with. The closest asset that Indonesia is familiar with is the Australian dollar, which is traded in the binary options market.
So, if you are an Indonesian trader, you must trade accordingly without getting scammed. And it’s only possible when you have a deeper understanding of the trading market, charts, and indicators.
Regulation of trading in Indonesia
Indonesian traders are always advised to trade with a broker that operates with transparency, is reliable, trustworthy, have low fees, and is registered by a legal organization.
As far as regulations are concerned, the growth of binary options largely depends on regulatory oversight. That’s because the regulatory agency is constantly watching binary options trading.
The OJK in Indonesia is responsible for ensuring that the financial service industry is operating correctly and better. This organization also ensures that the interest of society and people are protected. And lastly, this organization establishes a financial system that helps in a seedy growth in a stable way.
The Financial Services Authority in Indonesia looks after regulating certain types of non-bank products and financial banks. It shows that OJK is firmly directing the financial investment and market in Indonesia.
Now, you might wonder that since OJK has such a powerful impact on the financial system, how binary options trading is possible? The reality is even though binary options trading is possible in Indonesia, OJK has blocked access to numerous offshore websites.
It has been done because no law bans binary options trading. Thus, OJK has limited the number of people actively taking part in binary options trading.
The blocked binary options trading websites are mainly the one that has any complaint against them. Blocking certain websites has protected several Indonesian traders who might have lost their hard-earned money.
Recommended Binary Options broker in Indonesia
Since there are a limited number of brokers available for trading in Indonesia, you should smartly select one. But you don’t have to stress about looking for a broker. That’s because we did a quick research and are recommending some of the best trading platform options available in Indonesia.
Pocket Option
It is the best overall binary options broker available as it’s a reliable option. While there is a lack of real regulation by any organization, this platform is safe and trustworthy. It started in 2017 and has plenty of good feedback online, making it a better option.
It offers numerous amazing features to new and existing traders. For instance, through Pocket Option, traders can get instant access to social trading. Also, traders get a chance to win around $50,000 by winning the tournaments conducted by this platform.
This trading platform requires traders to deposit $50 to start an account. After that, one can make a trade with as low as $1.
Olymp Trade
Next on the list of best binary options brokers is Olymp Trade. This platform offers a payout of around 91%. This platform is safe because it has membership in FinaCom through KYC protocols. It made Olymp Trade meet and exceed the international’s broker standard.
With a minimum of $10 deposit amount, this platform never fails to impress binary options traders. Also, its services are accessible to anyone who wants to try their luck in binary options trading.
But US and EU citizens cannot access it. Also, there are some complaints about lagging. Keeping these drawbacks aside, Olymp Trade is an excellent choice.
ExpertOption
If you are looking for a trading platform that can offer more than 50 trading assets, ExpertOption should be your choice. This excellent trading platform offers demo accounts to practice. Also, you can access it on your mobile phone.
It’s a legitimate trading platform that VFSC regulates. ExpertOption is an FMRC authorized broker that has never scammed any trader.
This platform offers a safe trading environment to traders for entering the market.
It has low deposit fees, and it gives access to different trading accounts. These trading accounts are accessible at different amounts. Also, you get the support that is available in 15 plus languages.
Quotex
It is one of the biggest trading platforms that was founded in 2020. This platform offers market signals and copies of trading, making it easy for traders to make correct speculations.
It’s a legit platform that doesn’t believe in manipulating the trading moves. It has a better interface and offers dozens of commonly used indicators. You can use these indicators to make finely tuned trades as per your style.
The minimum deposit for Quotex is $10, and the minimum trade amount is $1. It’s regulated by IFMRRC and accepts different payment methods, including Credit Card, Mastercard, Perfect Money, Bitcoin, and Visa.
IQ Option
Among the available options, IQ Options are widely used. This platform started in 2013, and it provides round-the-clock customer support to traders.
Entering the market with the help of IQ Options is quite profitable because then, you get a chance to choose from more than 300 assets. It charges a minimum deposit amount of $10 and gives a chance to traders to start a trade with as low as $1.
Not to mention the payout percentage is more than 90%. So, if you are interested in winning a huge payout, you should trade with IQ Option.
Deposit and Withdrawal Options
Before you start trading, it’s essential to know about Indonesia’s available withdrawal and deposit options. Here are the popular ones.
Bank wires
Multiple Indonesian banks provide transfer and card services through VISA.
Digital Wallets
The country’s central bank has regulated the use of digital wallets. But it is restricted to local methods like Indomaret Card, Mandiri e-money, and T-cash.
Card Option
The last one is the card option. Several international and local brands are available.
Conclusion
Binary options is a legal trading method in Indonesia. But the OJK has put certain restrictions on a few offshore trading brokers. It is done after these platforms scammed traders. Also, this step has been taken to limit the number of people involved in binary options trading activity in Indonesia.
If you live in Indonesia and want to trade binary options, you can choose one of the suggested brokers to enter the market. Also, you must remember the regulations. Otherwise, you might land in any legal complications.
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