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Want to try binary options? Remember, this instrument has no legal umbrella in Indonesia

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A number of conveniences and advantages in a short period of time offered by binary options have made it a public conversation. Advertisements for service providers and binary options applications always adorn digital advertisements in Indonesia.

Binary options themselves can be said to be more similar to gambling than as an investment instrument. The reason is, users only need to guess an asset within a certain period whether the price will go up or down.

In fact, binary options are nothing new. Its existence has existed since several years ago. It’s just that this instrument is always shrouded in controversy considering that many countries consider binary options to be gambling rather than investing. Thus in some countries binary options are considered illegal.

The President Director of the Jakarta Futures Exchange (BBJ) Stephanus Paulus Lumintang said that legally, binary options can be said to be illegal. This is because the contract is not included in the contract that has already been approved by the Commodity Futures Trading Supervisory Agency (Bappebti) as the supervisory body.

“Thus, the existing binary options application can be categorized as not licensed by the government. Regarding investors who become customers in the application, the investment will also be illegal, ”explained Paulus to Kontan.co.id, Wednesday (27/1).

Paulus admitted that he was quite worried about the proliferation of applications such as binary options because they did not have permission from the government. Moreover, there are many people who do not know and understand the risks associated with the existence and validity of the application.

Therefore, Paulus continues to warn the public to be more observant and careful in choosing applications and companies. According to him, people are better off investing in applications or companies that are licensed in Indonesia.

Meanwhile, President Commissioner of HFX International, Sutopo Widodo, believes that the proliferation of binary options in Indonesia is due to massive online advertising on various platforms. In the end, it seems as if it displays a message that it’s easy to get a large profit.
Moreover, Sutopo sees that Indonesians are easily provoked by something simple, fast and easy.

“Therefore, the main task of industry players and policy makers is to provide education to the general public about the world of trading and investment. Investors or traders must understand the risk of losses that will occur and learn more about the products they choose, “said Sutopo.

Zaki Abdulrokim, a forex broker and member of the Indotrader Community, admitted that he had played binary options in mid-2016. However, he immediately stopped when he realized that binary options did not work like other investment instruments. In fact, playing binary options is considered not much different from gambling.

Also Read: Rampaging again, what are the concepts and practices of binary options trading?

In addition, Zaki is aware that legally binary options are not legally protected because the basis is because the basis for the buying and selling system transactions does not meet the applicable criteria and conditions. Understanding these risks, he feels uncomfortable and safe because he does something without being protected by a clear law.

“So, beginner investors should first understand the workings and risks of an instrument. After that, choose a service provider that is already a legal entity and its existence is recognized, whether it’s from clear and transparent transactions or by brokers registered with Bappebti and Indonesian Derivatives Clearing House, “concluded Zaki.

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