Forex trading in the Philippines is growing in popularity on a yearly basis. Here’s our list of the best forex broker Philippines for 2022. The criteria set looks at whether the forex brokers meet the FCA regulation and whether they offer clients favorable trading conditions.
|OctaFX||yes||up to 50%||50||OctaFX Review||9|
|LiteFinance||yes||30% + 15%||10||LiteFinance Review||8|
|XM||yes||$30 no deposit||5||XM Review||8|
|InstaForex||yes||$100 No Deposit Bonus||1||InstaForex Review||7|
|FxPro||yes||up to $1,000||100||FxPro Review||5|
Trading forex (currencies) in the Philippines is popular among residents. While recommended, forex brokers are not required to become authorised by the Securities and Exchange Commission (SEC) to accept residents of the Philippines as customers.
Forex Trading Regulations in the Philippines
All forex brokers in the Philippines must abide by the regulations set by the Bangko Sentral ng Pilipinas (BSP), the main regulatory body. The Forex Market is regulated by the Bangko Sentral Ng Pilipinas (BSNP). Any purchase that’s funded by the Philippine peso must fall under the FX Manual.
How to Verify SEC Authorization
The SEC does not maintain a list of authorized Forex brokers, but traders can check the website for claimed registration by a company or contact them via e-mail or phone.
5 Tips for Choosing the Best Forex Broker in the Philippines
1. Demo Platform
Before you pick a forex broker in the Philippines, it’s essential to ensure that you can have a demo on the platform. The demo will allow you to view all the features the platform offers and test everything out.
When you’re just starting with forex trading, safety is crucial. Make sure that your forex broker falls under tier 1 jurisdiction.
3. User Reviews
Read through the user reviews as they can give you a proper idea of how the platform behaves.
4. Research Options
There’s no point in going for a forex broker that doesn’t offer a decent variety of research options. Make sure that you can have a demo of the research options before you make your final decisions.
5. Automation Tools
One of the best features of modern trading platforms is that they offer a variety of automation tools. Test out the automation tools and assess whether they meet your requirements.
Is Forex Trading Legal in the Philippines?
Yes it is legal as long as you choose a regulated forex trading company. As the economy of Philippines continues to grow, there are more and more locals open forex accounts with foreign forex companies who offer them the best trading services.
Do you want to open a forex trading account in Philippines and you are still unsure?
Are you uncertain about some forex brokers ? Feel free to ask below in comments! Our staff is monitoring this forum and replying to all questions usually within 48 hours.
How Can I Start Forex Trading in the Philippines?
The first step is committing to making a serious attempt at trading Forex successfully. This will take some hard work - if you aren’t prepared to study, you almost certainly will not be successful at it. Most most new traders find it is a challenging process, both practically and psychologically. If you are a patient person and you can spend time on your own in front of a computer figuring out puzzles without losing patience, then you might have the right personality and skill set to be good at trading Forex.
It is also important that you accept an outcome where you lose money, especially at the beginning, as almost all traders struggle to avoid significant losses while they are learning. If you are a compulsive gambler, or if you have no ability to take a series of controlled losses by limiting your risk, you will struggle to succeed at trading Forex.
If you decide to try to become a profitable Forex trader, you will need enough money to get started. Although there are many Forex brokers that do not require any minimum deposit, to trade safely and limit your risk appropriately you need at least $12 if you are trading nano-lots, or $120 if you are trading micro-lots. Typically, the higher the sum you deposit with a broker, the better trading conditions you will get in return.
The last step in starting Forex trading is opening a demo account with the best broker for you, and then after practicing, opening a real money account. You will be able to choose the best Forex broker for you by reading the rest of this article and assessing each of the Forex brokers listed here.
What Time Does the Forex Market Open in the Philippines?
The Forex market is open continuously from Monday morning in New Zealand until the close of business hours in New York on Friday, which is basically all hours except weekends. This means that most Forex brokers offer continuous trading from 5am Monday until 4am Saturday every week local Philippines time.
In the Philippines, the London session opens at 3pm, and the New York session opens at 8pm.
Forex brokers in the Philippines fall under the regulation of the Securities and Exchange Commission, a government agency responsible for the supervision of the domestic securities industry. This regulatory body safeguards the stability and integrity of local financial markets and also aims to improve transparency and confidence in local markets.
Locally regulated Forex brokers do offer a certain level of protection for retail investors, but yet, the latter is free to choose any other brokerage, including those regulated by reputable Forex authorities elsewhere.
At the same time, the Banko Sentral ng Pilipinas (BSP) is responsible for monitoring the country’s economy and ensuring its financial system’s stability. Despite that the central bank is not directly responsible for regulating Forex market participants, it plays an essential role in Forex trading since it determines the exchange rate policy for the Philippine Peso against currencies worldwide and manages domestic currency reserves.
Disclaimer: We should note that similar to other countries with developing financial systems, the Philippines Forex industry has also seen numerous cases of scams – unethical behavior by online brokers resulting in huge losses for retail traders.
Trading the financial markets will always carry a risk especially when dealing in foreign currencies, so make sure that you are trading with a broker that holds a regulatory license.
Which Forex Brokers Are Legal in the Philippines?
Best forex broker Philippines is legal when the respective financial regulatory body regulates it, which makes it safe for forex traders.
Can I Trade Forex in the Philippines?
Yes, you can if you are eligible enough to do forex trading.
Is Forex Trading Allowed in the Philippines?
Foreign exchange trading in the Philippines is allowed only in a few regions where you can safely do forex trading.
Do Forex Traders Pay Tax in the Philippines?
The CTA determined that a currency gain gained or realized by changing dollars to peso under a hedging contract is not part of an entity’s PEZA or BOI-registered activity and is not taxable for forex traders.