Binary options trading has become popular in Indonesia recently. Market analysts point to several social media influencers as to be responsible for this present trend.
We find this report quite interesting regarding the binary options’ increasing popularity in Indonesia. We think our followers will also find this update worthy of reading as they will learn how people from other countries view this trading activity.
According to the news posted online by Cambodian international newspaper The Phnom Penh Post, last 2021 and early 2022, social media influencers in Indonesia performed ostentatious testimonies of their success in binary options trading.
Some of them put their wealth on display. These social media influencers supposedly gained their affluence via binary options investing.
In Indonesia today, novel money-making propositions, including binary options trading, have attracted a growing number of retail investors. This development comes despite the capital markets being among the most enigmatic industries for Indonesians.
In the largest country in Southeast Asia, capital market literacy stood at merely 4.9 percent of the population based on the poll conducted by Indonesia’s Financial Services Authority or Otoritas Jasa Keuangan (OJK) in 2019.
Furthermore, data from the OJK demonstrated that capital market literacy in Indonesia grew by just 1.1 percentage points over the past decade. With this reality, Indonesia’s Financial Services Authority has proclaimed binary options trading unlawful.
Moreover, Indonesia’s Commodity Futures Trading Regulatory Agency or Bappebti has commenced cracking down on the practice, warning investors that they could lose their hard-earned money on such financial instruments.
The Bappebti explained that there is no formal resolution mechanism in binary options trading. Indrasari Wisnu Wardhana is the acting chief of Bappebti.
In a press release in early February, he referred to binary options trading as a gambling scheme disguised as an investment. Bappebti prohibited 92 web domains selling binary options last year, including the infamous Binomo that social media influencers hyped up.
The Indonesian bureau also blocked 1,222 websites or platforms falling under the commodity futures trading category during the same period. We agree that social media influencers can be convincing in their presentations.
However, we urge Indonesian investors, especially the novice ones, not to give in to the tempting offers right away. We gathered that many unwitting traders in Indonesia had lost grip of significant amounts of their hard-earned money.
Additionally, we learned that the gambling mindset had gripped a fair share of Indonesian investors’ behaviors lately. Binary options trading requires participants to make a guess on an investment asset’s price and place their money on it.
The investment asset can be a foreign exchange rate, stock, cryptocurrency, or commodity. We do not have anything against binary options trading.
In fact, we suggest curious investors try it. Nevertheless, we recommend investors trade small as they learn about binary options trading’s risks to prevent themselves from losing substantial amounts of their hard-earned money.