CFD Trading In Indonesia

CFD trading in Indonesia is an exciting form of trading that allows investors to speculate on the price movements, both positive or negative, of stocks, forex, cryptos and other securities without owning the underlying asset. The country is one of the fastest-growing day trading markets in South East Asia and CFD trading in Indonesia is attractive to beginner and experienced traders alike. This article will break down the fundamentals of CFD trading in Indonesia, from regulation to taxation.

Top CFD Brokers in Indonesia

Leading forex and CFD broker regulated in Ireland, Australia, Canada and South Africa. Avatrade are particularly strong in integration, including MT4
FXTM is a leading forex and CFD broker. Offering a huge range of markets and 6 account types, they cater to all levels of trader.
Diversify your portfolio with contracts for difference in multiple financial markets.
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Deriv.com are a new brokerage, offering options and CFDs on a simple, reliable, flexible platform. Get access to volatility indexes exclusively at Deriv.
BDSwiss offer 250+ Shares, Indices, Forex, Commodities and Cryptocurrencies markets via CFDs. With spreads from 1 pip and an award winning app, they offer a great package.
Open an account with just $10. Trade over 14 Cryptocurrencies directly, traditional forex with low spreads or trade digital options with payouts up to 900%.
XM.com Offer a range of Account types and a low minimum deposit to appeal to all levels of trader. With 1000+ markets and low spreads they offer a great service.
Markets.com offer CFDs across a huge range of assets from shares and indices to commodities and cryptocurrencies.
Axi is a global online FX and CFD trading company, trusted by 60,000+ ambitious customers in 100+ countries around the world.
72.6% of retail investor accounts lose money when trading CFDs with this provider
Finq.com offer a great all round service with trading on 2100+ assets and immediate bonus offers. Up to $4000 in Deposit Bonuses.
Forex.com boast a global reputation. Regulated in the UK, EU, US and Canada they offer a huge range of markets, not just forex, and offer very tight spreads and a cutting edge platform.
easyMarkets.com - Simply Honest. Trade CFDs on Forex, Commodities, Indices, Shares & Cryptos With a Top Rated Forex Broker
Trade CFDs in a range of financial markets.
Reliable and affordable trading since 2009. Join over 400,000 others trading on 300+ CFD products over assets like forex, gold, indices and shares from 0.0 spreads through TradingView, MT4 or MT5. Vantage is ASIC regulated and client funds are segregated. Open an account in under 5 minutes.
Global brand offering exceptional execution, low deposit requirements and advanced charting and trading platform features.
Trade Forex on 0.0 pip spreads with the world's leading True ECN forex broker - IC Markets.
Trade CFDs on popular indices, shares, forex, crypto & commodities. Award winning platform, zero commission, free education and low spreads.
Capital.com offer CFDs and Forex on a huge range of assets, with competitive spreads and unique platforms, including the fully functional mobile app.
75.26% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Trade CFDs with up to 1:2000 leverage.
FXChoice offers leveraged CFD products on a breadth of financial markets.
Trade on a range of CFDs with competitive spreads and leverage.
Fusion Markets are delivering low cost forex and CFD trading via low spreads and trading costs. Their message is - Stop paying too much to trade
XTB is one of the largest stock exchange-listed FX & CFD brokers in the world, offering access to over 2000 instruments on their trading platforms.
73% of retail accounts lose money.
Invest in the markets with online CFDs.
Access multiple financial markets with CFDs.
FXCM are an FCA regulated, London based broker. Companies under the FXCM umbrella are also regulated in Australia and South Africa.
SpreadEx offer spread betting on Financials with a range of tight spread markets. Popular award winning, UK regulated broker.
Invest in the markets with CFDs at FBS.
A regulated bank, Saxobank offer Equities and Forex trading on 40,000+ markets via the SaxoTrader Pro and SaxoTrader Go platforms
Trade CFDs on forex, indices, shares, precious metals, and energies.
CFDs are available on multiple markets, including FX, indices, shares, commodities & cryptocurrency
71.89% of retail investor accounts lose money when trading CFDs with this provider.
IG offer spread betting, CFD and Forex trading across a range of markets. They are FCA regulated, boast a great trading app and have a 40 year track record of excellence.
IronFX offers online trading in forex, stocks, futures, commodities and cryptocurrencies
Multi-Award winning broker. Specialising in Forex but also offering stocks and tight spreads on CFDs and Spread betting across a huge range of markets.
Dukascopy is a Swiss-based forex, CFD, and binary options broker
Binary.com are the established pioneers of binary options. The choice of the advanced trader, Binary.com offer the greatest flexibility of any binary broker. They also offer Forex and CFD via the MT5 platform.
CFDs are available on multiple financial markets including FX, indices & shares.
Trade on a range of leveraged CFD products at HYCM.
AdroFX offers margin trading on CFDs across popular financial markets.
Contracts for difference are offered on popular financial markets with tight spreads.
Buy and sell across the financial markets with leveraged CFD products.
Trade leveraged CFDs on the financial markets.
CFDs are supported for US stocks, equity indices, currency indices, energies and metals.
Start trading on the financial markets with up to 1:500 leverage using competitive CFDs.
Rockfort Markets clients can trade a range of CFDs with high leverage rates, covering crypto, forex, commodity and international equity markets.
Trade on the financial markets with CFDs.
Trade CFDs with tight spreads and leverage.
CFDs are available on hundreds of markets including FX, indices, shares, & commodities.
CFD trading is available across multiple financial markets.
Trade CFDs with up to 1:30 leverage in multiple markets.
Trade thousands of CFDs across a range of markets with up to 1:500 leverage.
Trade online CFDs with up to 1:30 leverage.
Trade CFDs with leverage across multiple markets.
Trade CFDs on currency pairs, indices, & commodities with tight spreads.
CFDs available on major indexes, stocks, FX, commodities, and cryptocurrency
CFDs are available on thousands of markets, including forex, indices, shares, and commodities
Trade CFDs on stocks, indices and commodities.
Buy and sell CFDs on the financial markets.
Zulutrade provide multiple automation and copy trading options across forex, indices, stocks, cryptocurrency and commodities markets
Fondex is an award-winning forex and CFD broker with industry low trading costs
83.57% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
A suite of contracts for difference are available across popular markets with up to 1:500 leverage.
Pepperstone offers CFD trading to both retail and professional traders. Clients can trade FX, indices, commodities and shares on MT4, MT5 and cTrader platforms.
CFDs and FX are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs.
Trading 212 Offer a truly mobile trading experience. With tight spreads and a huge range of markets, they offer a dynamic and detailed trading environment. Recent customer care issues have severely damaged the reputation of the brand.
Ayondo offer trading across a huge range of markets and assets. They also offer negative balance protection and social trading.
Alpari offer forex and CFD trading across a big range of markets with low spreads and a range of account types that deliver for every level of trader from beginner to professional.
Trade CFDs on forex, indices, & commodities
Show All Brokers ⇩

How CFD Trading Works

Contracts for difference, or CFDs, are a type of derivative that allows traders to speculate on both bullish (increasing) and bearish (decreasing) price movements. CFD trading in Indonesia can be done on lots of underlying assets, including stocks, indices, foreign exchange and cryptocurrencies.

Therefore, if you believe that the price of bitcoin (BTC) will rise you can ‘go long’ on the asset. Then, if the price does go up, you can close the position and earn the difference in price as profit on top of the original investment. Similarly, if you want to try CFD trading in Indonesia and think the price of the Jakarta Stock Exchange Composite Index (JCI) is going to fall, you can open a short position. If the price does drop, the price difference at the point of closing the position will again be taken as profits.

How CFD trading in Indonesia works

Being a derivative, the underlying asset of the CFD is never owned by the trader, which also means that settling times are instant. The value of the CFD is derived from the price of the asset and there is no need to buy a full share (in the case of stock CFDs), you can choose exactly how much money you want to invest.

CFD trading in Indonesia is overseen by the Commodities Futures Trading Regulatory Agency (BAPPEBTI) in Jakarta. If a brokerage firm is regulated by BAPPEBTI, their clients capital is safer than otherwise as they must segregate their own funds.

Pros Of CFD Trading In Indonesia

  • Leverage: CFD trading can be done using leverage, which increases market exposure and amplifies any profits made. This is essentially done by the brokerage opening a larger position than you have the capital for, taking on the risk of the extra position size. CFD trading in Indonesia is limited to 1:30 leverage rates.
  • Hedging: A popular method for mitigating the risk involved with opening a position, hedging covers yourself against large market swings or downturns by making extra trades in different markets or assets.
  • No delivery: The lack of ownership associated with CFDs means that the cumbersome aspects associated with transferring ownership rights are avoided. This includes settling times and order executions. When trading commodity CFDs in Indonesia, rather than buying 100 barrels of oil and then having to physically take delivery and hold the barrels, you simply make a profit off the market price movement.
  • Shorting: CFDs are more flexible than spot assets as you can profit from the market falling instead of being limited to investing in markets you believe will go up.

What is CFD trading in Indonesia

Risks Of CFD Trading In Indonesia

  • Overtrading: CFDs are often traded with lots of little positions, which can easily lead to overtrading. You should always be careful that you have enough capital in your account to cover any losses, especially when trading with leverage.
  • No ownership: While forgoing the ownership of every asset you buy can have its benefits, there are some advantages to owning assets outright. For example, dividend payments will not be paid to you if you don’t own the shares.
  • Swaps: While standard investment charges and commissions are paid at order execution and closing times, CFDs can incur charges for holding positions overnight, called swaps.
  • High risk: CFD trading comes with strong market exposure and profit potential, especially through the use of leverage, but this can incur additional losses and risks. Licensed brokerages often display a risk warning with their retail client loss rate.

How To Start CFD Trading In Indonesia

To begin trading CFDs in Indonesia there are several steps you need to follow, including the selection of a brokerage company and asset.

Select A Brokerage

One of the key steps before you can start trading CFDs in Indonesia is choosing a brokerage firm whose services you want to use. There are many different platforms out there, each with its own advantages, disadvantages and optimal trading strategies. Important things to look out for when selecting the best provider are fee structures, asset ranges, leverage rates, regulation and trading platforms.

Open An Account

You then need to open a trading account. Some platforms will have different account options that are suited to different trading styles or experience levels. You may also want to consider starting with a demo account, which is a simulated environment with virtual funds that lets you test the platform without any of the risks associated with real-time CFD trading in Indonesia.

Choose An Asset

Every CFD asset will have its pros and cons, which may come in the form of pricing, liquidity, volatility or trading hours. For example, the USD/IDR forex pair may have competitive spreads and strong liquidity, with decent volatility and limited trading hours. Cryptocurrency CFDs, on the other hand, are tradeable 24/7 and are likely to be much more volatile, though pricing may not be as consistent.

Analyse The Market

Once you have chosen your asset, you should implement a trading strategy that allows you to analyse the market and work out whether the price may go up or down. A careful strategy will help you identify the best entry point to maximise your profits.

How to start CFD trading in Indonesia

Manage Your Risk

Risk management is one of the most important aspects of CFD trading in Indonesia, letting you cut losses before they eat away at your profits or, if you are trading with leverage, cut into your base capital too. Many trading strategies will also inform where to place stop losses to save yourself from wild swings taking you by surprise.

Open And Monitor A Position

When you have decided which CFD in Indonesia you wish to trade and your strategy has informed you where to enter the market, you can open a position. You should also keep an eye on your open positions, even if you have take profits in place, to ensure your profits are maximised. Some firms offer mobile apps that support push notifications that can help with this.

Close The Position And Take Profits

You should know when to close your positions without getting too greedy or letting emotions take hold of you. Your strategy will often dictate exactly when to close the position. You can use online calculators to ensure your trades are profitable with commissions, swaps and other fees taken into consideration.

CFD Trading Taxes In Indonesia

Trading profits from CFDs in Indonesia are taxable and usually considered as capital gains. This means it gets taxed with any other income, at standard tax rates. Income tax in Indonesia can range between 0% and 30% depending on your total earnings. This includes profit made by trading with commodities, cryptos, forex and others. Any losses taken during the trading year are taken off your profits, so it is your net profit that gets taxed. CFD trading on the Indonesian Stock Exchange is also subject to a tax of 0.1%.

This information is only given as guidelines and should not be construed as advice. You should seek guidance from a licensed, qualified tax consultant.

Final Word On CFD Trading In Indonesia

CFD trading in Indonesia is an exciting investment style that can yield profits for careful traders. The flexibility of CFDs, which can be shorted, makes them perfect for high-frequency styles of trading, like scalping, as you can speculate on price movements in both directions. CFD trading in Indonesia does have some limitations, including increased risk exposure, which makes it vital that traders use regulated firms and implement robust risk management strategies.

FAQs

Can I Trade CFDs In Indonesia?

Yes, trading CFDs in Indonesia is legal and can be done with stocks, commodities, currencies and other markets, depending on the provider.

How Is CFD Trading Regulated In Indonesia?

In Indonesia, CFD trading is regulated by BAPPEBTI, the local financial watchdog. Using a firm registered with BAPPEBTI ensures your funds will be legally protected in a range of situations.

Is It Risky To Trade CFDs In Indonesia?

CFD trading in Indonesia has increased profit potential when compared with spot trading, as the underlying assets can be shorted. However, this can increase your risk of losses, especially when trading on margin.

Do I Need To Pay Taxes When CFD Trading In Indonesia?

Profits made from CFD trading in Indonesia are subject to tax at the standard rate for your income bracket. This can be between 0% and 30% depending on your total earnings.

How Do I Choose The Best Brokerage firm For CFD Trading In Indonesia?

There are many factors to consider when choosing a CFD trading brokerage in Indonesia, such as regulation, market access, fee structure and platforms.