Tips for Avoiding Scams in Forex Trading
Forex trading is increasingly popular as information technology advances. People can easily get information about forex through Google.With the keyword “forex”, you will get a variety of information: from brokers / brokers, trading strategies, to people who offer their services to manage your funds.
Most that appear on Google are usually information about brokers / brokers. In Indonesia, brokers who can facilitate the public to conduct forex transactions online are called Futures Brokers. This is because in Indonesia forex trading in derivatives incorporated commodity futures and is facilitated also by the futures exchange. So far, there are only two futures exchanges in Indonesia. The first is the Indonesia Futures Exchange (BBJ) and the Indonesia Commodity and Derivatives Exchange (ICDX). Both exchanges operate with permits and under the supervision of the government of the Republic of Indonesia.
Beware of Fraud!
The echo of forex trading also managed to reach the Indonesian people. Unfortunately, there are still many people in this country who still do not understand what and how exactly forex trading is. Unfortunately, there are many irresponsible parties who take advantage of public knowledge by pretending to provide services to manage investment funds. Lack of information causes many people to become victims of fraud that impersonate “forex investment” because it is tempted by the promise of spectacular profits.
Well, what exactly should you know before deciding to involve your funds in forex trading ? Let’s review it.
Make sure the broker is legal!
Forex trading in Indonesia is regulated by the Law of the Republic of Indonesia Number 10 of 2011 concerning Amendments to Law Number 32 of 1997 concerning Commodity Futures Trading.
One aspect explained in the Act is that each broker (Futures Broker) operating in Indonesia must have a permit from the Commodity Futures Trading Supervisory Agency (Bappebti).
So, if you intend to allocate part of your funds in this sector, make sure you do it with a Futures Broker who has registered and has permission from Bappebti.
Why do you have to transact through a Futures Broker that is clearly legal? Of course is to protect you from fraud. Imagine if you transact through a forex broker that has no clear legality, then the broker runs away or goes bankrupt. To whom will you complain? Any government will not want to be responsible, because the government does not guarantee the collection of funds to companies or individuals that are not officially registered in the regulatory body that regulates the matter.
Check the Account Used
When you open a trading account through a Futures Broker, you will be asked to deposit some money as your capital to make the transaction.Well, make sure that you deposit funds into a special account called a segregated account or a “separate account”. This separate account is closely monitored by the Indonesian Futures Clearing House.
Funds in separate accounts may only be used to settle obligations arising from transactions made by customers. What do you mean? For example, when a customer experiences a loss, the loss will be charged to the customer’s funds stored in the separate account. Likewise if you experience profits, the customer funds in separate accounts will increase.
In addition, this separate account is also one of the “safeguards” for customer funds, because it has been regulated by the Act that brokers / brokers cannot use these funds for other purposes than those mentioned above. Simply put, only customers who can access their funds are stored in separate accounts.
Don’t get me wrong, sometimes there are “bad” brokers even though they have obtained permission from Bappebti. They lead customers (victims) to deposit funds into accounts that are not separate accounts and are not registered with Bappebti. Well, if that’s the case, don’t expect your funds to be safe. It must be prone to being distorted.Horrified !
So, if you intend to open an account at one of the brokers, you should first check the account number to deposit your funds. You can check whether the account number has been registered or not in the official Bappebti website link: http://www.bappebti.go.id/ . If the account is not on the list, never deposit your funds.
Check the service
What you also need to know is what services are provided by the broker.Is there a special route for customers if anyone wants to ask? More importantly: do they provide special services for education?
Keep in mind that in addition to offering big and fast profit potential, as a consequence forex trading also has a high level of risk. Therefore, education is very important for anyone who wants to go into this business.
Imagine if you made a transaction without knowing anything about the ins and outs of the business. Especially if you don’t know how to do the right analysis, manage capital and get around risk.
Indeed, forex trading holds tremendous potential profits, but only those who enter through the right path can truly exploit this potential. Learn first, the right way too.
Welcome to the club.