The largest financial market in the world, forex (FX), has a lot to offer, starting from the exciting experience of trading and to full financial freedom. Yet, all these can be achieved only with the right approach. Read the answers to frequently asked questions and learn about the basic steps to becoming a successful trader in the article below.
Is Forex Trading Legal in Indonesia
No law in Indonesia prohibits forex trading. Therefore, it is legal to trade currencies in the country by means of either local or foreign brokerage services. As most Indonesians are Muslims, it is common to trade using Islamic swap-free accounts that do not contradict Sharia law. Thus, when picking a broker, make sure they provide this option.
When Can I Trade Forex in Indonesia
The forex market operates all over the world, which guarantees its functioning 24 hours a day. However, it is recommended to trade when the prices are most volatile. The market experiences peaks in activity in the evening Indonesian time. So, the brief answer to the question above: you can trade any time from Monday to Friday, but you should trade in the evenings on those days (from 7 pm to 10 pm).
Two major trading sessions (European and North American) operate during those hours simultaneously. Since the American dollar is paired with many other currencies, this time of the day is highly volatile for almost any currency pair you trade. Thus, if you are planning on making a profit, it makes sense to schedule your trading practices around that time.
How Much Money do I Need to Start Forex
The good thing about forex is that you can start with as little as $1. Moreover, Justforex offers its clients opening Cent Accounts that imply trading with a small amount of capital involved. It is worth saying that this account is designed to help you learn rather than earn. To make any significant money in forex, one needs to trade much larger amounts. However, don’t rush to put a lot of money at risk before you feel confident in your skills. Growing your investment proportionally t o your knowledge is the only right strategy you should follow.
Read more: Can You Make a Living Trading Forex?
How to Find a Forex Broker in Indonesia
Finding a reputable broker is one of the essential steps one should take when starting to trade forex. There are thousands of brokerage firms offering online forex trading in Indonesia. Your task is to choose the one that guarantees reliable service and favorable conditions. Even the most profitable trades can be unsuccessful if you trade under bad conditions. Bad conditions typically include large spreads (difference between sell and buy prices) and commissions (deposit/withdrawal fees). Plus, slow order execution may result in lost opportunities and money loss.
Furthermore, you can find companies that claim to be brokers, but in reality, they are nothing more than scams. So when looking for a broker, pay attention to the following criteria:
- Trading conditions. This is probably the first thing to do before sending money to a trading account. This information is published on the official company’s website.
- Customer reviews. Positive reviews from real users may not guarantee you a flawless experience, but they certainly say a lot about what to expect. Look for users’ reviews on independent platforms, e.g., Trustpilot.
- Support service. It is important to refer for help if you have a question or an issue. Ideally, support service is provided 24/7.
"What does it Mean" Questions
To give you a hand with the learning process, Justforex has created a glossary page where you can find all the basic terms of the market. It contains the most important concepts of the industry and is designed to help you lay the foundation for your FX expertise. Refer to the glossary when you see a term you do not know. In addition, a lot of information on trading can be found in the forex articles.
How to Start Trading in Indonesia
It’s easy to start trading. A chain of online brokers enables retail currency trading. You choose one to your taste, register, and open a trading account. However, for real profit, one needs to go through a timely learning process that involves both theory and practice. For those who still wonder whether it is worth the effort, we recommend trying. Once you try trading, you will have a clear understanding of whether forex is for you.
Opening a trading account is pretty simple and involves five steps:
- Register with a broker;
- Complete the verification process;
- Open an account;
- Download/open a trading terminal;
- Place your first trade.
Trading Strategy for Indonesia
As a beginner, you may find it difficult to build your strategy from scratch. Thus, you can subscribe to our daily analytics and test the recommendations while trading on your demo/real account. In the newsletters, you will find daily updates on the latest events in the market and potential scenarios of future price behavior from professional traders who spend days monitoring financial markets and important data releases.
One simple strategy you can start with is trading based on support and resistance levels. Support and resistance levels are two price levels where the price tends to stop and move in the opposite direction. The support line represents the lower border of a price range, while the resistance line is where the price tends to stop moving up. The falling price of a currency pair occasionally hits the support level and starts to grow – this is where buy trades make sense. On the other hand, when the price approaches the resistance level and is about to start falling, it is best to sell. The strategy is simple and easy to master once you learn to determine both levels.
Read more: Forex Trading for Beginners in 2021
Justforex is the world’s trusted broker that offers 180 popular trading instruments. By having a trading account on Justforex, you benefit from advantageous conditions, including high leverage, low spreads (from 0 pips), as well as commission-free deposits and withdrawals. And if you have any questions, there is a helpful support team working round the clock to ensure you have the most convenient trading experience.
Try your hand at currency trading by opening a demo account on Justforex. It’s a quick and risk-free way to master trading in the most liquid financial market. A practice account will help you learn trading basics and develop a strategy before investing money. Start trading today to take care of your future tomorrow.