Choose Indonesian Brokers

When you start investing, the first thing to know is whether the investment has legality and clear legal basis, especially in forex trading. The legality (particularly regarding the licensing of brokers and broker representatives) becomes a very important issue because of the absence of the legality of the Government, then it means the existence of a fund investor's existence is not guaranteed by the Government and there is no protection for the rights of investors.

Because there are a number of quotes from brokerage firms that are not licensed(illegal) with the risk of bringing the blur due to lack of customer funds oversight of government instruments. Permissions required to supervise and ensure that the brokerage firm is a company that clearly and bona fide.

In Indonesia, the Government agency that regulates the licensing and investment activities of forex trading is held by Bappebti, JFX (Jakarta Futures Exchange) and HOUSE (Futures Clearing Indonesia).

A broker or official Legal means the Broker listed on the third body of the futures trading Authority (BBJ, Bappebti and HOUSE), beyond that or incompletenesspermission means that the Broker is not Legal and security customer funds are not guaranteed by the Government. For foreign brokers, for example, in the u.s. the official brokers must be registered on Commission Merchant (FCM), the NationalFutures Association (NFA) and the Commodity Futures Trading Commission (CFTC).

Does the broker not pocketed such permission? There are. Many even. As alreadyexplained above, the forex market is very big. Many people are interested to invest inthis. It became fertile ground the incidence of various types of fraud by posing as a broker-forex broker.

If the official permission, then the funds deposited the customer to invest will bechanneled to the BBJ through a separate account that is commonly called the "segregated account". A separate account is handy to hold all customer funds that invest so that it is not exploited by any party including the brokerage in question.

Those who do not permit could have pocketed wears a variety of promotions that pompous to ensnare would-be clients, so want to make trades forex and deposit their funds (certainly not to a segregated account). The result? Customer funds can not beaccountable of its existence.

Well, the question arises how to distinguish legal brokers with illegal? There are anumber of ways:

First, make sure we know they have permission to run his business by BBJ andBappebti. If they have a website, usually they attach their consent on coffee page.

Second, make sure that when we make a deposit in their account number, the other isa segregated account.

Lastly, we should suspect brokers-brokers who promote that in forex transactionsthrough them we are exempt from the charge. This is impossible to occur inIndonesia. Because the Government charge on each licensed brokers that will be charged to customers. If outside of the country there is indeed free of charge, butimpossible to exist in Indonesia (at least for now until there is a change ofGovernment Regulation).

Some cases have occurred among these is the presence of brokers who bring in a blurof customer's funds or doing action pembandaran (bucket), namely by not forwarding the funds deposited into the customer's stock even until the onset of action ofthuggery/violence in the subject of customer withdrawals.

All of the above cases detrimental to the customer/investor at once gave a bad imageabout futures trading especially forex trading. For it is highly recommended for any investor run the investment on a broker that has permission from the Government.List of brokers-brokers berjangkan official clearances from the Government can be seen at http://www.bappebti.go.id/data/perusahaanpialang.asp

Illegal brokers characteristics are:

a. not in the BBJ.

b. not listed on Bappebti.

c. is not registered in the HOUSE.

d. do not have Permit transactions abroad.

Jakarta Futures Exchange

The main function of the BBJ is to provide facilities for members to meet and Transactfutures contracts. The price is determined through electronic methods, through the interaction between supply and demand in the trading system. The following details about BBJ

• Founded on November 21, 2000

• Providing facilities for members to meet and Transact futures contract market or a meeting place between sellers and buyers of all types of futures trading in Indonesia.

• Has the same role with the Jakarta Stock Exchange (JSX) on world stocks. It's just theBBJ is a ' floor ' for each trade futures products like indices, commodities and forex.

• Official website: http://www.bbj-jfx.com

Bappebti

Commodity futures trading Watchdog agency or Bappebti formed based on law No. 32 of 1997 about commodity futures trading is one of Echelon I unit under the auspices of the Ministry of industry and trade. The following details about Bappebti

• Based on law No. 32 of 1997 about commodity futures trading

• Echelon Unit I is under the Ministry of industry and trade.

• In charge of carrying out the construction, arrangement and supervision of the activities of futures trading as well as the physical market and services.

• Official website: http://www.bappebti.go.id

• List of registered Brokers in Bappebti:http://www.bappebti.go.id/data/perusahaanpialang.asp

Practically Bappebti serves as overseer of security transaction in all futures trading inIndonesia, including Forex Trading. Actively Bappebti issued various regulations and rules with the purpose of maintaining the security of investors in transactions in the field of perda.