Under Bappebti regulation, our scheme is classified as “Channeling of Order to Foreign Future Exchanges (PALN) for derivative contract of overseas single stocks”, whereas CFDs are typically under the Alternative Trading System (ATS) scheme.
Further, CFDs are typically characterised by high leverage, overnight financing charges, the ability to short stocks and up to 1% in hidden fees built into the bid-ask spread on the stock prices. Gotrade Indonesia offers fully backed contracts which does not contain any of these characteristics.
Gotrade enables access to US stocks from Indonesia through fully backed contracts.
You enter into a contract with PT Valbury Asia Futures ("Valbury"), a Bappebti registered broker in Indonesia. Valbury fully backs 100% of its contracts with Alpaca Securities LLC, a FINRA licensed broker-dealer in the United States.
When you buy a stock, you enter into a contract with Valbury. Let’s say you buy 0.10 shares of Facebook at $100 per share i.e. $10.
Valbury takes your $10 and buys 0.10 shares of Facebook in the US through Alpaca Securities.
After a week, the price of Facebook goes up to $150 per share. Your 0.10 shares are now worth $15. You decide to sell.
Valbury sells the 0.10 shares of Facebook in the US and credits you the $15 back.
All your trades are registered and reported to the Jakarta Futures Exchange.