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Legality of the law became the most important factor in the world of Indonesian investment. This tool is needed to protect the rights of investors, especially those associated with investment assets. Image of the legality of the forex and indices can be slumped after various reports of theft or fraud.
However, these negative perceptions fade on its own, considering the derivatives market proved to have the highest efficiency compared to other investment markets, referring to the aspect of convenience, profit, cost, transparency and others. As with all investments legality, there are two parties to a transaction, the buyer and seller. Broker is the recipient of the mandate to carry out a transaction or act as an investor transactions mediation, to be forwarded to the market traders.
Supervision and legality
Before trading, you should check the legality of an investment service provider company. Be sure to select the legality of the company with a good reputation and a large volume of transactions, due to the large volume reflects investor confidence in the company. Selective measures can protect you from the risk of loss due to misappropriation of assets brokerage firm.
If a security companiy (stocks) has a license and registration from the Capital Market Supervisory Board of Trade (Bapepam), the same thing happens of any such futures company. Forex, Indices and Commodities trading have strong legal protection authorities in three institutions, namely:
Commodity Futures Trading Regulatory Agency (BAPPEBTI)
This institution has an equivalent function legality as well as Bappepam on the stock market. BAPPEBTI charges of making laws and overseeing their application in the futures trading activities.
Jakarta Futures Exchange (BBJ) and the Indonesia Commodity and Derivatives Exchange (ICDX)
Similar to the stock exchange, the BBJ and ICDX are two exchanges in Indonesia that provide market transactions for products and futures commodities such as Gold, Oil, Olein, Cocoa and others, including forms of Alternative Trading System (SPA), an Scope of Forex and stock index trading.
Indonesian Derivatives Clearing House (KBI) and Identrust Security International (ISI)
KBI and ISI are the agencies that guarantee the completion of transactions on customer funds also function as a guarantor of the security of customer funds that are in the broker members.
KBI is a clearing house for BBJ products, while the ISI is a clearing house for products for ICDX.
The above descriptions are the outlines of the three institutions that authorize exchanges, which can assist you in selecting a broker for your transaction partner. Therefore, the rise of interest in derivative products and futures in Indonesia has led many foreign brokerage companies into Indonesia. But only a few of them who have the legitimacy and the ability to be held accountable.
In addition, you should also be wary of institutions or parties undertake a massive campaign to attract new investors in Indonesia sympathy with various sales jargon that we've probably heard, among others:
"Quit your day time job and start making a fortune off of Forex Trading" "30-40% returns a month" or: "A forex robot that works in all conditions and all four seasons." and so forth.
All taglines are already familiar to the Indonesian business community. However, no one can guarantee those promises in line with expectations that is being promoted.
Referring to the English saying: "If it SOUNDS too good to be, it MOSTLY IS". In the end, a broker with the best reputation that would be a wise investor's choice.