Day Trading In Indonesia 2023 – How To Start

Day trading in Indonesia is one of the fastest-growing markets in South East Asia. This guide will cover everything you need to know about day trading in Indonesia, including what to look for in a broker and some of the most popular strategies. We’ve also compiled a list of the top platforms for Indonesian traders below.

Day Trading In Indonesia Explained

A day trade is simply defined as any trade that is opened and closed in one trading day. Day trades can last anywhere from a few minutes to the entire market day.

If you are day trading in Indonesia, you will want to stay informed about news that will cause short term market fluctuations. Local and international markets react to events such as economic statistics, corporate earnings or interest rates and day traders can take advantage of the resulting short-term volatility.

Is Day Trading In Indonesia Legal?

In Indonesia, it is legal to day trade in the most popular financial markets such as forex, cryptocurrencies, stocks, bonds, indices and commodities like gold. Traders in Indonesia are also able to make use of derivative products like CFDs.

It is just as easy to trade on the Indonesian stock market (IDX) or Indonesia Commodity and Derivatives Exchange (ICDX) as it is on international markets like the New York Stock Exchange (NYSE). With that said, it’s worth checking your day trading broker offers access to local markets before opening an account.

Market hours will vary across the world, so be sure to find out the opening and closing times of the markets you wish to trade in, whether they are in Indonesia or international.

In Indonesia, forex and derivative markets are regulated by the BAPPEBTI, which also approves brokers for trading on the IDX and ICDX. Some markets and brokers may be regulated by foreign bodies but be wary of scams online. If your broker is not regulated by the BAPPEBTI, ensure it is registered with a reputable offshore agency such as the CySEC (Cyprus Securities and Exchange Commission).

How To Start Day Trading In Indonesia

Before you start day trading in Indonesia, you’ll need to find a broker. Here are some of the key areas to consider:

• Regulation: The BAPPEBTI is the financial regulatory agency in Indonesia. It oversees all markets in Indonesia, including forex, stocks, commodities and cryptocurrencies. Using a broker regulated by the BAPPEBTI will afford you legal protection and the company should segregate your capital from their own, helping to protect funds.
• Rupiah: Not all brokers will offer the Indonesia Rupiah (IDR) as a base currency. If you want to day trade in Indonesia using the Rupiah, take the time to find a broker that supports it. Otherwise, you will have to use a conversion service and you may incur extra costs.
• Platforms: Whether you are day trading in Indonesia as a beginner or professional, you will want to find a platform that is intuitive and user friendly. MetaTrader 4 and MetaTrader 5 are popular platforms available to download for free. They offer a wide range of technical analysis tools and signals. Some brokers in Indonesia will also offer their own software to use on a browser or mobile app. If you want to test a platform before you commit, the best brokers will offer a demo account with which you can practice trading using virtual funds.
• Fees: As a day trader in Indonesia, you will want to find a broker that offers low commissions and tight spreads. There is a lot of competition out there, so be sure to make a thorough comparison of fees before committing.
• Deposits & withdrawals: Look for a broker with straightforward deposit and withdrawal processes for day trading in Indonesia. Some brokers will charge deposit and withdrawal fees but these can be avoided if you properly investigate the competition.
• Asset range: If you are day trading in Indonesia you will need to find a broker that offers the markets you are interested in. The best brokers in Indonesia will faclitate access to the Indonesian Stock Exchange (IDX), the Indonesia Commodity and Derivatives Exchange (ICDX) and currency pairs like IDR/USD, IDR/EUR and IDR/JPY.

Once you’ve found your broker, you’re ready to begin day trading in Indonesia. We’ve prepared a simple step-by-step guide to get you going:

1. Find A Trend – It’s best to go into a position with a plan. Find an asset and use market research and analysis to find a trend. Use this trend to plan your entry and exit points.
2. Open A Position – If you predict the price of a stock, like Bank Jago, will go up, buy the asset and open a long position. If you believe the value of Bank Jago will fall, you can ‘sell’ and open a short position.
3. Manage Risk – Most good brokers for day trading in Indonesia will offer automated risk management features like stop losses and take profits. These features will automatically close your position if it breaches a pre-determined point. Using a stop loss will help mitigate your losses, especially if you are unable to always keep an eye on things.
4. Monitor The Position – Day traders focus on the short-term market fluctuations that happen on an intraday basis. It is important to monitor your positions closely to ensure you exit your position at the right moment.
5. Close Your Position – Choose your moment and close the position. As a day trader in Indonesia, you may be closing several trades in one day. Use risk management tools to keep on top of activity.

Strategies For Day Trading In Indonesia

Scalping

This is the process of making small profits across many trades. Scalpers close a trade as soon as it becomes profitable. This limits the opportunity for a trade to swing in the opposite direction and profits are made meaningful through a high volume of trades. Scalping distributes risk and is best used on the most volatile and liquid markets, such as forex.

News Trading

Day traders in Indonesia can take advantage of increased volatility around news events. This might be economic news, an election or even celebrity culture.

Automated Trading

You can use advanced algorithms and bots when day trading in Indonesia to profit from small or short-term market fluctuations. Robots and high frequency trading (HFT) is similar to scalping, though it is fully automated and has even smaller profit margins.

Taxes

Profit made day trading in Indonesia that exceed the basic income rate will be considered capital gains and taxed accordingly. Tax rates for day traders in Indonesia can range from between 0% and 30%, depending on your total earnings. If you are day trading on the Indonesian Stock Exchange (IDX), there is a further tax of 0.1% on the total value of the trade.

Consult a local tax advisor to find out more about day trading taxes in Indonesia.

Final Word On Day Trading In Indonesia

If you are interested in day trading in Indonesia, you will find the wide range of markets and brokers available appealing. Choosing a broker regulated by the local BAPPEBTI will help protect your capital and mitigate your risk of being scammed. Offshore brokers can also be used, though you should ensure they are regulated. Find a list of our top-rated day trading brokers in Indonesia here.

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