Choosing a Forex Broker

Did you know, that the turnover of capital in the foreign exchange market, aka foreign exchange (forex) reached an average of $ 4 trillion per day? Great right? This is what causes the forex became the largest financial market in the world. Well, because in fact there is no center specifically for forex trading, then you should be selective in choosing a forex broker to facilitate your trading activity.

These days more and more forex brokers; ranging from a bona fide until the "Abal Abal", in the sense of not having offices and legality clear. The danger, belonging Abal Abal was more assertive in promoting on the internet. Yet we all know that the business / financial investments is one of the sectors of investment are prone to fraud. It is conceivable dong, how risky the funds you Leave to broker Abal Abal.

So, how the hell do I choose the right broker? Some of the things below can you make a benchmark.

1. Notice the Regulation
In Indonesia, the term "commodity futures broker (PBK)" was officially used to replace forex broker said, referring to Law No. No. 10 of 2011 on the Amendment of Law Number 32 Year 1997 on the Commodity Futures Trading. Long ya name of his law?

Quiet. We will not discuss in detail why the law. So you know that in Indonesia, forex trading has been regulated in the Act. The subject of forex trading is not only just the truth: there is gold, stock indices, CPO (Crude Palm Oil), olein and others.

Each PBK operating in Indonesia must have permission from a body called the Commodity Futures Trading Regulatory Agency (Bappebti). The agency acts as a regulator as well as supervisors, under the Ministry of Commerce of the Republic of Indonesia. So, if there is no consent of the agency can be sure the broker did not obtain permission to operate in Indonesia. Language trivial: illegal in Indonesia.

To be more bona fide, PBK would you choose should also was a member of the exchange. In Indonesia there are currently two futures exchanges, namely Indonesia Futures Exchange (BBJ) and Indonesia Commodity and Derivatives Exchange (ICDX).

In addition, there is a futures clearing institution named Indonesian Derivatives Clearing House (KBI), which has the function of clearing and guarantee, settlement of all transactions in the stock futures contracts were registered by the Clearing Member.

Well, so be sure the broker you choose is registered in Bappebti, BBJ, ICDX and KBI.

2. Note Trading Account Details
Usually every forex brokers have different conditions. Among others are:

The Commission and spread
Brokers benefit from a commission, so any transaction that you make must take into account the amount of commission. The combination of commission and spread into a number of "charges" should you spend for each transaction. So, for the cost of this transaction was not only seen on commission only, or spread, but rather a combination of both. The smaller the combination of the amount of commissions and spreads the better.

For example like this:

X brokerage commissions apply $ 50 / lot and a 1 pip spread (= $ 10). Means the total cost of the transaction at the Broker X is $ 60 / lot. Well, FOREXimf.com applying commission $ 5 / lot and spread of 2 pips (= $ 20), meaning the total cost of the transaction in FOREXimf.com is $ 25 / lot. In conclusion, cheaper trading with Broker X FOREXimf.com compared with earlier.

Initial deposit
Now you can already trading with just $ 500 with a magnitude of 0.1 lot. With a fixed rate of $ 1 = Rp 10.000, - this means you can start trading with only 5 million. By Bappebti, this so-called "partial account". The more popular name is a "mini account", although it is not actually pure "mini" because its contract size is $ 100,000.

Ease of deposit and withdrawal
In FOREXimf.com you can make a deposit (the deposit) and withdrawal (withdrawal) of your fund without any fees or a certain time period. Simply put, you deposit the morning, the afternoon had been able to do a withdrawal. However, if you use a different account from bank to bank accounts FOREXimf.com registered in segregated accounts (for example if you wear Mandiri, while FOREXimf.com wear BCA), requested a withdrawal above at 12.00 pm (hours clearing bank) will processed on the next working day.

Be careful, if there is a forex broker that impressed "hold" your funds for a variety of reasons. There is a possibility of "something" on your funds. To anticipate, make sure you make a deposit to separate numbers (segregated accounts) registered in Bappebti.

Well, in part 2, we'll discuss what else you need to consider before selecting a broker.