List of Brokers with BAPPEBTI Regulation
Badan Pengawas Perdagangan Berjangka Komoditi or abbreviated as 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. To make it easier for Indonesians to utilize BAPPEBTI, this institution has innovated with digital service breakthroughs, which can be accessed online, whether it be licensing, complaints, or futures broker feasibility tests.
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What does BAPPEBTI regulated mean?
Being regulated by BAPPEBTI (Badan Pengawas Perdagangan Berjangka Komoditi) means operating under the standards of an Indonesian financial regulator. The institution was founded in 2005 to regulate different types of financial entities in the Indonesian financial markets.
What are BAPPEBTI rules?
Considering Indonesian demographic that primarily consists of Muslims, forex brokers operating in Indonesia 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 protect clients against the risk.
International forex brokers are banned to offer services in Indonesia since 2013. Traders can still open accounts in overseas brokers, but they are advised not to and won't be trading under the protection of BAPPEBTI's regulation.
What is the main purpose of BAPPEBTI?
To oversee the financial services industry in Indonesia. Since because so many Indonesian investors had fallen victim to broker frauds in the past, BAPPEBTI aims to eradicate financial scams by spreading awareness to the general public about suspected and confirmed scams.
What are the powers of BAPPEBTI?
BAPPBETI has the power to investigate suspicious brokers operating in Indonesia. The agency also has the authority to suspend, impose sanctions, and liquidate any of its members who have been proven guilty for violating BAPPEBTI's guidelines. As an official financial regulator, BAPPEBTI can give recommendations to other public institutions like the Indonesian Department of Communication to block the websites of scam brokers as well as unlicensed financial companies in Indonesia.
If you are interested to open an account in one of the brokers in the list above, make sure to try the forex demo account before proceeding to register in the live account.