Why is the Fixed Rate Broker Rounded to Rp10,000

Forex trading
M
mcr2000
10 Nov 2020, 11:01 384 Views
Why is the average fixed rate broker set at 10,000? Like GKInvest, FBS, FirewoodFX, FXOptimax, OctaFX, etc. Even though the current rate is already over 14,000. Why aren't the fixed rates set closer to the average price, like 14,000? Where does the profit or loss come from?

1 Answer

R
rizki rosadi 13 Nov 2020, 06:55

@mcr2000: The reason the fixed rate broker is pegged at Rp10,000/USD is for the convenience of transactions, both deposits and withdrawals. With that nominal value, exchanging money is very easy because every deposit and withdrawal of funds from the broker only needs to be divided or multiplied by 10,000.

For example:

  • Deposit of Rp100,000 becomes $10 in the account
  • Deposit of Rp1,000,000 becomes $100 in the account
  • Deposit of Rp10,000,000 becomes $1000 in the account
  • Withdrawal of $5 from the account becomes RP50,000
  • Withdrawal of $50 from the account becomes Rp500,000
  • Withdrawal of $500 from the account becomes Rp5,000,000
It is very easy to convert using a fixed rate of Rp10,000/USD. There is no additional benefit to using a fixed rate of Rp10,000/USD compared to Rp14,000/USD.

Click for more complete info about fixed rate deposit withdrawal.

Hopefully this helps, thank you.

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