In the world of trading, there is the term futures broker. The term in trading is not known to many and is actually less popular than the term broker itself. In Indonesia, the terms of futures brokers and futures broker representatives are still very unfamiliar and need intensive socialization actions.   Futures broker representatives are part of the trading industry as stated in the Constitution of the Republic of Indonesia regarding trade.

Based on Law of the Republic of Indonesia Number 10 of 2011, which reads: "Futures Trading is everything related to the buying and selling of Commodities with subsequent delivery based on Futures Contracts and Options on Futures Contracts." Referring to the Constitution above, every futures trading in Indonesia must involve traders or representatives of futures brokers and the futures brokers themselves. To know more about it.

Let's start the discussion by reviewing the meaning of a futures buying and selling broker. But before that, you can register as an IB or invite your friends to join GIC and get additional income in the program.


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What is a Futures Broker?

A buying and selling intermediary representative or futures broker representative is an individual or someone who conducts trading activities from a futures broker. In simple terms, a futures brokerage representative is a profession or career that can be pursued in the world of futures trading. You can't just become a representative of a futures buying and selling broker. There is a professional exam and selection to pass as a deputy broker.

There are also professional certifications and training that can be followed. The certification and training process that is followed is one of the requirements so that prospective deputy brokers can take the professional exam. After being declared passed, it is valid and certified as a representative of BAPPEBTI futures broker. BAPPEBTI is a government institution that takes care of industrial and trade issues that occur in Indonesia.

This also includes futures trading. The issue of the professional exam for deputy brokers is also taken care of by BAPPEBTI, including licensing issues and so on. This is regulated in the Decree of the Head of Bappebti No. 57/Bappebti/KP/9/2005. The content of the decision reads more or less: "The approval of the Futures Broker Representative License granted is only valid as long as the Futures Broker Representative works for the Futures Broker company in question."
 

The validity period of the permit is valid as long as the representative of the buying and selling intermediary is still working at a futures brokerage company. If the representative of the buying and selling intermediary is no longer working in the futures brokerage company in question, then Bappebti will revoke his license as a representative broker. So what are the duties of a futures buying and selling intermediary representative?

Duties of a Deputy Broker 

An explanation that is no less important, is about the duties of a futures buying and selling intermediary representative. WPB itself generally has a big task, namely:

  1. Providing education to customers
  2. Providing assistance during transactions
  3. Socialization about trading

Do you understand the duties of the deputy broker? You also have a duty as a GIC platform user to be able to fill out internal surveys so that the GIC team can improve its existing performance. If you listen to the role and function of the deputy futures buying and selling broker in the PBK industry above, it is not wrong if BAPPEBTI provides a number of tests for someone to get permission to become a WPB.

Because of its duties and functions, WPB can be likened to a spearhead of the company. On behalf of a futures brokerage company, WPB has the authority to communicate directly with customers or prospective customers to convey customer mandates in futures contract transactions on the futures exchange. In addition, the brokerage business in the place where the WPB is located, is carried out by the WPB.
 
The issue of permits to become WPB, professional certifications and exams and so on carried out by BAPPEBTI is also to protect the community (customers) from adverse acts caused by WPB. Regarding WPB work permits, it can be said that they are very strict and under high supervision.

Difference Between Futures Broker & Deputy Broker

If we listen to the explanation above, we may be confused about the difference between a futures broker and its representative. However, the two differences are very clear. If you listen back to the understanding, that a representative of a futures brokerage (WPB) is an individual or someone who conducts futures brokerage trading activities at a futures broker. Therefore, we can interpret that a futures broker is a business entity or company that carries out futures trading.

A futures broker is a company that conducts business activities by buying and selling commodities, based on futures contracts that occur at the mandate of fund customers or securities. All futures trading activities are carried out by futures brokers, and WPB is an individual or individual who does so under the auspices of a futures brokerage company.
 
If simplified, a futures broker is a company while a representative of a buying and selling intermediary is an individual or individual who carries out all the activities of a company or futures broker. Both of them operate with permission and supervision from BAPPEBTI, not necessarily able to simply trade futures in Indonesia. Before continuing about the characteristics of official futures brokers, you can consult your interest in trading with GIC by filling out the Trader Assessment.

Characteristics of Official Futures Brokers in Indonesia

For every representative of a futures broker, they must carry out activities and carry out activities at an authorized futures broker in Indonesia. The official permit is regulated by BAPPEBTI. For every Futures Broker who has a license, it means that they have met the conditions given by BAPPEBTI. The following are the characteristics of a futures broker that is authorized in Indonesia and at the same time it is the obligation of the futures number to meet the following aspects:

  1. Providing education to each customer, so that customers can have trading knowledge and experience. So that when customers trade directly, customers are not so difficult. One way is that every futures broker must have a trading simulator for every novice customer.

  2. Have a segregated account. To ensure that every deposit withdrawal process and also withdrawal of funds is carried out through a segregated account.

  3. You can withdraw funds and deposits quickly, easily and safely through local banks in Indonesia.

  4. Providing transparency of trading rules to customers. With transparent trading rules, futures brokers can get a license from BAPPEBTI. Transparent trading rules can also be publicly explained through terms and conditions. Every trader or customer also has the right to sign these terms and conditions, as a statement of agreement to the specified terms and conditions.

  5. Employing trained WPB, obtaining permission for participants to have passed the official exam conducted by BAPPEBTI. This is to ensure that every transaction of a trader is handled by experts, and of course to ensure security and minimize irresponsible actions.

You must understand the characteristics of these brokers so that fraud cases do not occur that are increasingly rampant. And for those of you who don't want to be deceived by all the trading scams that exist, you can test your competence in trading on the Preliminary Test from GIC to better understand some of the trading knowledge itself. The role and function of WPB is very important, making WPB one of the characteristics of an official futures broker in Indonesia. The following are some of the names of official futures brokers in Indonesia, summarized from BAPPEBTI:

  1. PT Simbiotik Multitalenta Indonesia BAPPEBTI

  2. Morgan Stanley Sekuritas Indonesia

  3. Samuel Sekuritas Indonesia

  4. Mandiri Sekuritas

  5. Indo Premier Sekuritas

  6. MNC Sekuritas

  7. Mirae Asset Sekuritas Indonesia

In the Indonesia Stock Exchange and also the BAPPEBTI website, there are more than 96 officially registered brokers. Some of the futures brokers above are examples as well as the largest brokers in Indonesia.

Also Read :

List of Fraudulent Forex Brokers in Indonesia According to Regulators

Types of Brokers

If futures brokers in English are referred to as brokers, perhaps for the term broker we are more familiar than the broker itself. Meanwhile, brokers themselves have several types.

Types of Brokers by Investor Served

The type of broker can be differentiated based on the type of client or investor served. Let's first talk about the types of brokers based on the investors served:

Retail Brokers

In other terms, retail brokers are also known as individual brokers. This type of broker usually caters to individuals, and earns a commission when carrying out buying and selling activities. Of course, buying and selling activities are carried out at the direction of investors. Retail brokers only serve individual investors.

Institutional Brokers

If retail brokers serve individuals, institutional brokers serve institutions or institutions. This type of broker also serves calls from mutual fund institutions to be able to conduct transactions in the capital market. Institutional brokers, compared to retail brokers, carry out activities with a greater scope.
 
After knowing the types of brokers based on the investors served, GIC is also one of the trading brokers that you must know. To trade on GIC, you can download the application of GIC on the Play Store or App Store.

Types of Brokers by Service

Meanwhile, if based on the type of brokerage service. It is divided into four types of brokers, namely:

Full Service Broker

Full-service brokers provide full-service brokers. The services provided range from information, analysis reports, to buying and selling services and account maintenance owned by investors.

This type of broker is suitable for those who do not have much time and also sufficient knowledge related to the market. However, the downside is that this type of broker charges a fairly expensive commission fee.
 
Unlike other conventional brokerage firms, GIC through the GICTrade platform provides a solution for traders who do not want to be charged with high trading fees.

Global Investa Capital is the first and only company in Indonesia that provides a wide range of product services in one trading ecosystem that will help and make it easier for you to invest. By relying on blockchain technology, enjoy all the conveniences of GIC services.

Deep Discount Broker

If you need a simple brokerage service, we can use the deep discount broker service. The services of this type of broker are only about buying and selling and maintaining the investor's account. The commission we spend is not as big as a full-service broker.

Discount Broker

This type of service provided by brokers is simpler than that of deep discount brokers. Only order to buy and sell shares and provide recommendations related to stocks, in the form of information or stock market analysis reports.

Online Broker

This type of brokerage service is carried out online, with the same service system as conventional brokers. This online brokerage service is in high demand, as it is easier in the contract and its terms. Moreover, because online brokers provide an opportunity for everyone to make transactions online with only a capital of IDR 100,000.
 
Because it is done online, the commission fee is much cheaper than conventional brokers. After knowing the types of brokers above, as a guide here is a guide so that you don't choose the wrong broker, even though you already know various brokers who have obtained official licenses. At least we must know in advance what are the tips and ways to choose the right broker for Sedulur. Here are some tips and how:
  1. Find information about brokers, you can get the information on the official website of BAPPEBTI. Then trace about the broker, both its track record and legality.
  2. Choose a broker that provides knowledge and information related to capital market analysis. Because, a good broker is an open and transparent broker.
  3. We can also share with friends or relatives who have been in business for a long time, ask about the broker that is the choice of investors. Because experienced investors, have known the best brokers.
  4. The most important thing to consider is the commission fee. Choose a broker that provides commission fees according to our capabilities.

Requirements for the Broker Representative Exam 

The following is an important discussion, especially for those who intend to become a futures broker representative. Namely, the requirements for the futures buying and selling representative exam that must be met. Not just anyone can become a futures trader, as discussed at the beginning. Just like the entrance exam to become a State Civil Apparatus, the requirements for the exam to become a WPB also require conditions including:
  1. KTP (Identity Card).
  2. Have an NPWP (Taxpayer Identification Number).
  3. Photocopy of formal education diploma, minimum D-III. Or an equivalent diploma, which has been legalized.
  4. Color self-photo with a size of 4x6 as many as three sheets.
  5. Complementary files, such as certificates, charters, awards and others.
The implementation of the exam is also carried out by the KUP (Professional Examination Commission) which is under the order of BAPPEBTI. The structure of KUA and the implementation of the exam are fully carried out by BAPPEBTI. We can follow the information issued by BAPPEBTI regarding registration for the WPB exam. That's all the information related to the WPB profession that has been reviewed above. This profession, of course, is still rarely known and important to be socialized. Because as a profession, WPB is a promising profession.

The total income that can be obtained by WPB every month can reach dozens to tens of millions. This can of course be a motivation, especially for those of us who are interested in the world of stocks, choosing an educational background in economics and having a high spirit to succeed in the brokerage field. Thus the discussion on the topic of futures broker representatives. Don't forget to always look for information related to forex and other finance on the GIC Blog, and if you want to learn forex, you can check out our scalping ebook, and Forex Academy.