List of Brokers with BAPPEBTI Regulation
Badan Pengawas Perdagangan Berjangka Komoditi (BAPPEBTI) is an institution owned by the Ministry of Trade that was established to assist in overseeing and drafting regulations related to commodity trading, futures, and foreign exchange markets in Indonesia. Founded in 1997, the agency is known for restricting foreign brokerages to take clients from Indonesia. Here's a list of BAPPEBTI-regulated forex brokers.
| Established | : | 1997 |
| Country | : | Indonesia |
| Website | : | https://bappebti.go.id |
| Total Brokers | : | 16 |
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BAPPEBTI stands for "Badan Pengawas Perdagangan Berjangka Komoditi," which translates to the "Commodity Futures Trading Regulatory Agency" in English. BAPPEBTI is an Indonesian regulatory agency that oversees and regulates the trading of commodity futures and derivatives in the country.
BAPPEBTI operates under the Ministry of Trade of the Republic of Indonesia and is responsible for supervising and ensuring the proper functioning of commodity futures exchanges, commodity brokers, and other entities involved in commodity futures trading activities. Its main objectives include maintaining market integrity, protecting investors, and promoting fair and transparent trading practices in the Indonesian futures and derivatives markets.
The agency sets rules and regulations that govern the operation of commodity futures exchanges and the conduct of market participants, including brokers and traders. BAPPEBTI also enforces compliance with anti-money laundering (AML) and anti-terrorism financing measures to prevent the misuse of the commodities markets for illicit activities.
What Does BAPPEBTI-regulated Mean for Forex Traders?
Considering the Indonesian demographic that primarily consists of Muslims, forex brokers under BAPPEBTI are stipulated to enforce trading conditions in accordance with the Sharia Law. That means no interest or riba to be earned or paid, no excessive risk (gharar), and no speculation or gambling.
Due to the fee policy applied to its members, BAPPEBTI-regulated brokers charge spreads in addition to trading commissions. The amount of leverage is also limited to 1:100 to protect clients against market risks.
International forex brokers are banned from offering services in Indonesia since 2013. Traders within the country are advised not to open accounts with overseas brokers since they won't be trading under the protection of BAPPEBTI's regulation.
What Are the Powers of BAPPEBTI?
BAPPBETI has the power to investigate suspicious brokers operating in Indonesia. The agency has the authority to suspend, impose sanctions, and liquidate any members who have been proven guilty of violating BAPPEBTI's guidelines.
As an official financial regulator, BAPPEBTI can give recommendations to other official institutions like the Indonesian Department of Communication to block scam brokers as well as unlicensed financial companies in Indonesia.
How to Check a BAPPEBTI-Regulated Forex Broker?
- Go to the official page of BAPPEBTI.
- Open "Pelaku Pasar" on the upper menu, then click on "Pialang Berjangka".
- Immediately, there would be a complete list of registered brokers under their regulation. To simplify your search, type a broker's name on the search column as indicated below.
- If your broker is an official member, the identity will be automatically displayed like this.
How Is BAPPEBTI Compared to Other Forex Regulators?
BAPPEBTI primarily regulates commodity futures and derivatives trading in Indonesia, rather than specifically regulating the forex market. It's important to note that different regulatory bodies have varying scopes and focus areas.
Here's a comparison between BAPPEBTI and other well-known forex regulators:
| Aspects | 🇮🇩 BAPPEBTI (Indonesia) | 🇨🇾 Cyprus Securities and Exchange Commission (CySEC - Cyprus) | 🇬🇧 Financial Conduct Authority (FCA - UK) | 🇺🇸 Commodity Futures Trading Commission (CFTC - US) | 🇦🇺 Australian Securities and Investments Commission (ASIC - Australia) |
| 🔍Focus | Regulates commodity futures and derivatives trading in Indonesia. | Regulates financial markets and investment firms in Cyprus, including forex and CFD trading. | Regulates financial markets and firms in the UK, including forex trading. | Regulates commodity futures and options markets in the United States, including forex trading. | Regulates financial markets and firms in Australia, including forex trading. |
| Scope | Oversees the trading of commodities such as agricultural products, energy, metals, and other futures contracts. | Oversees a wide range of financial activities, including forex trading, investment services, and other financial instruments. | Oversees various financial activities, including forex and CFD trading, investment management, and more. | Oversees derivatives markets, including forex, commodities, and swaps. | Oversees various financial activities, including forex trading, securities, and investments. |
| 🔨Authority | Operates under the Ministry of Trade of the Republic of Indonesia. | An independent regulatory agency with authority to license, supervise, and impose regulations on financial services providers. | An independent regulatory body with the power to create rules, supervise financial firms, and enforce regulations. | An independent agency with the authority to regulate and enforce rules for derivatives trading. | An independent government agency responsible for regulating and enforcing rules for financial services providers. |
| Oversight | Ensures fair and transparent trading practices, market integrity, and investor protection in the commodity futures market. | Aims to ensure investor protection, market integrity, and adherence to European Union (EU) regulations. | Focuses on consumer protection, market integrity, and promoting competition in financial markets. | Aims to prevent fraud, manipulation, and abusive practices in derivatives markets while ensuring market integrity and investor protection. | Focuses on market integrity, investor protection, and maintaining a fair and transparent financial market environment. |
Additional FAQ
How is the forex regulation in South Africa?
African countries are forex-friendly, but naturally, there are minor restrictions from the government. Forex brokers must hold a license before running their business in any of these countries. The status of forex trading in these countries is still unclear; it is not yet legalized but not against the law.
The South African Financial Sector Conduct Authority (FSCA), previously known as Financial Services Board (FSB), is one of the most well-known forex regulatory bodies.
Continue Reading at Is Forex Trading Legal in Africa?
What are the forex regulaors in UAE?
Official regulators in the UAE are as follows:
- The Dubai Financial Services Authority (DFSA)
- The Abu Dhabi Global Market (ADGM)
- The Securities Commission Authority (SCA)
- Central Bank of the United Arab Emirates (CBUAE)
It is important to understand that the UAE is divided into two financial areas, namely the Mainland and Free Zones. Brokers who operate in the Mainland are regulated by the SCA or CBUAE. Meanwhile, DFSA and ADGM regulate brokers in the Free Zones, which are designated to encourage foreign investments and allow foreign-owned companies to be located.
Continue Reading at Best Forex Brokers in United Arab Emirates (UAE)
What should we do if the broker's regulation is still "in process"?
Some brokers might claim that they are in the process of applying for a license or a license extension. But in reality, not all brokers are true to their words. Some of them don't actually apply for any license and only use those words to steal the clients' funds. Even if the license is indeed "in the process", the broker's still unregulated during that time.
Continue Reading at Forex Regulation Insights: Defining Your Broker's Status
What are the regulations for offline forex trading in Nigeria?
The foreign exchange transaction activity in the offline market is supported by law. Some of these include the Central Bank of Nigeria Act of 1958, the Foreign Exchange (Monitoring and Miscellaneous Provisions) Act of 1995, the Exchange Control Act of 1962, the Banks and Other Financial Institutions Act of 2007, and the Investments and Securities Act of 2007.
Continue Reading at Is It Safe to Trade Forex in Nigeria?
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