Our trading scheme is classified as Order Routing to Foreign Exchanges (PALN) for single-stock foreign equity derivative contracts, whereas CFDs are generally categorized under the Sistem Perdagangan Alternatif (SPA).
CFDs are typically characterized by high leverage, overnight financing fees, the ability to short stocks, and up to 1% in hidden fees embedded in the bid-ask spread of stock prices. Gotrade Indonesia uses the National Best Bid and Offer (NBBO) scheme to ensure you receive the best price, offering fully backed contracts by the underlying stocks and free from any of these characteristics.
Gotrade provides access to U.S. stocks from Indonesia through fully backed contracts.
You are entering into a contract with PT Valbury Asia Futures (“Valbury”), a broker registered with and supervised by the Financial Services Authority (OJK) in Indonesia for financial derivative products with underlying assets in the form of securities. 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 are entering into a contract with Valbury. For example, let’s say you buy 0.10 shares of Facebook at $100 per share, totaling $10.
Valbury takes your $10 and buys 0.10 shares of Facebook in the U.S. through Alpaca Securities. After a week, the price of Facebook rises 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 U.S. and returns $15 to you, with T+1 settlement, meaning it will take one business day for the transaction to become withdrawable cash in your Gotrade account.
All of your trades are recorded and reported to the Jakarta Futures Exchange.