Investasi Valas (forex)

Forex or foreign exchange investments can be relied upon to gain profits. This investment instrument has easy transactions because most foreign exchange brokers in Indonesia provide a platform or application.

To better understand foreign exchange investment, the following is a discussion of what is meant by, how to invest, and which foreign currencies are suitable for investment.

Definition of Forex (Foreign Exchange)

Forex is a useful currency for international trade transactions. The currency must be recognized or approved for transactions by both parties working together.

To be able to use foreign currency, you must first exchange it from the local currency to the currency that applies internationally

What is the Use of Foreign Currency?

Foreign currencies are generally used for international transactions. Does not apply to local transactions in a country that has its own currency where the protection is so tight.

Foreign currencies are also usually used as a comparison of exchange rates, so that the prevailing rate is known clearly. An example is the Rupiah, whose exchange rate on July 20, 2022 reached IDR 14,983 per 1 United States Dollar.

Or it can also be used to invest. However, not all foreign currencies are used as investments. There are certain criteria that make foreign currency worth investing in, one of which is that it is frequently traded internationally.

What is Foreign Exchange Investment?

Foreign exchange investment is also known as forex investment, which is an investment or transaction to gain profit by using foreign exchange as an instrument.

Foreign exchange investment has existed for a long time and is considered one of the legal investment instruments in Indonesia.

To be able to invest in foreign exchange, you must first register with a broker who specializes in providing transactions in the forex market. Apart from providing capital, you also have to provide fees when each time you make a foreign exchange sale and purchase transaction.

Is Forex Investment Profitable?

Forex investment is profitable for those of you who take it seriously. Here are the various benefits that you can achieve.

The advantages of investing in foreign exchange are large

Flexible investment time

Suitable for those of you who intend to make a profit in a short time

The liquidity must be high

There is a margin facility in forex investment

1. The advantages of investing in foreign exchange are large

The benefits that you can get from investing in foreign exchange are large. This is due to high fluctuations in foreign exchange. You can potentially make a profit every day if you do day trading.

The reason is because foreign exchange is always transacted, so the price can change within a day.

2. Flexible investment time

You don't need to be afraid of missing out on investing in the forex market because you can do it at any time. The forex market is open 24 hours globally.

There is no specific right time to trade because all the time you have has the same opportunity.

3. Suitable for those of you who intend to make profits in a fast time

Investing in foreign currency is more suitable in the short term because foreign currency prices change so frequently.

This short foreign exchange timeframe makes it easier for you to achieve profits that tend to be fast.

The most important thing is that you never miss following the news about the foreign currency that you hold.

4. Liquidity must be high

Because the asset used is money, you can use it right away. Usually you just have to wait when the money from the profits can be received.

Transactions made internationally certainly take time, but you only have to wait a few days which is certainly not long.

5. There is a margin facility in forex investment

Every forex broker provides an opportunity for investors to use margin or leverage facilities. You can make capital loans to brokers when the market is green.

Later you can pay it according to the principal amount of the loan plus the interest set.

How to Invest in Foreign Exchange?

In order to invest in foreign exchange smoothly, you need to know how to invest in foreign exchange correctly and safely, as follows.

Define forex investment goals

Choose a forex broker that is legal in Indonesia

Choose the currency that is most frequently traded

Stay up to date with international currency news

1. Determine the goal of foreign exchange investment

What do you expect from foreign exchange investing? You need to set it up from scratch. For example, the profit you get from the investment will be used to buy a house.

Then determine the percentage of profit you want to earn. Because foreign exchange investments are usually short term, you don't need to set high targets. Starting from a profit of 3% to 15% per day, that's good too.

2. Choose a forex broker that is legal in Indonesia

There are many legal forex brokers in Indonesia. The legal characteristic is that it has obtained a permit from Bappebti.

Why should it be legal? Because the broker means that the system is in accordance with the standards set by the government and its performance is monitored. You will be safer transacting at a legal broker.

3. Choose the currency that is most frequently traded

Many foreign currencies are present in the forex market, but of course only certain foreign currencies can bring in profit. Especially those that are traded the most. It will also be easier for you to buy and sell it because other investors are also interested in it.

4. Stay up to date on international currency news

The value of foreign currency is very dependent on the state of the world economy and the policies of the government or central bank that oversees it, so you need to keep abreast of international economic news.

What Currency is Good for Investment?

There are several foreign currencies that are often used as transactions for investment or trading. Here are the foreign currencies to choose from.

American Dollar (USD)

Japanese Yen (JPY)

European Euro (EUR)

Singapore Dollar (SGD)

Pounds Sterling (GBP)

Kuwaiti Dinar (KWD)

1. American Dollar (USD)

The US dollar is a currency that is frequently traded internationally. It is even used as a benchmark for assessing exchange rates around the world. Not surprisingly, many rely on USD investments. The exchange rate with Rupiah reached IDR 14,983.

2. Japanese Yen (JPY)

The Japanese Yen is also widely traded in the forex market. Another plus is the exchange rate with Rupiah which is quite cheap, which is 108.48 per 1 Yen.

3. European Euro (EUR)

Euro is one of the strongest money in the world. However, in the middle of 2022 it will be almost equal to the US Dollar. For 1 Euro, IDR 15,341 applies.

4. Singapore Dollar (SGD)

Singapore dollars can also be relied upon for foreign exchange transactions and for those of you who have important business in Singapore. For 1 Singapore Dollar, IDR 10,769 applies.

5. Pounds Sterling (GBP)

Pound Sterling is one of the highest currencies in the world. The exchange rate is expensive, but it can be profitable. For 1 pound sterling, Rp. 18,016 applies.

6. Kuwaiti Dinar (KWD)

The Kuwaiti Dinar is the most expensive currency in the world. Just imagine for 1 Kuwaiti Dinar it applies to IDR 48,696. To have this currency you need a large capital, but the benefits are multiplied.

Conclusion

Those of you who want to invest in forex must choose a legal broker and also consider the advantages and disadvantages. No less important, you also need to understand forex in order to invest successfully.

Start Funding in People's Capital to Grow Your Profits

Want to make real profits? Come on, grow your funds now at People's Capital P2P Lending. Here you help MSMEs make their business bigger.

The capital that you lend starts from IDR 500 thousand and the profit is 18% per year.