Forex trading in the Philippines

Is Forex trading legal in the Philippines?

Forex trading in the Philippines has been declared illegal by the Securities and Exchange Commission (SEC) due to multiple scams and fake financial advisors that have cost Filipinos a lot of their money.

However, you can still trade in the Philippines if you don’t breach any rules. You can learn about Forex trading, get training, and use a demo account for your practice. In the Philippines, it is only illegal to ask a group of people for money to trade currencies or run a brokerage. Still, if a broker is regulated, the trades made through that broker will be legal.

How is Forex trading regulated in the Philippines?

The regulation of the Forex market in the Philippines is under the auspices of the Bangko Sentral Ng Pilipinas (BSNP). A purchase undertaken in Philippine pesos must be included in the FX Manual. Forex transactions include all bank transactions; and adhering to the laws, rules, and regulations is essential. A "Know Your Customer" (KYC) policy is in effect. Filipinos can use their currency for whatever purpose they deem fit. SEC provides licenses to financial companies operating locally, including Forex traders and brokers. But many Forex traders in the Philippines trade through international Forex brokers.

Forex trading limitations in the Philippines

Since the SEC has proclaimed that Forex trading is illegal, it is hard to conduct trades in the Philippines right now. This is due to the large number of scams and fake financial advisors that have cost locals their money. However, you can still trade in the Philippines without breaking any rules. For example, a Forex broker can offer you training and a demo account for your practice. In the Philippines, if a broker is regulated, the trades made through that broker will be legal. Filipinos can earn maximum leverage up to 1:500.

How to choose a trusted broker in the Philippines

Choosing a reliable Forex broker can be life-changing. They can either make or break your profits. To help you choose the best broker in the Philippines, we have gathered a few tips below that you should follow when choosing a trusted broker. If you are a beginner, you should choose a broker with a lower deposit requirement and an easy-to-use trading platform. Also, the broker should offer educational materials, like videos that explain what each number and chart means. The broker should also provide you with a demo platform through which you can test all the features the broker has to offer.

A safe and secure Forex trading broker is vital. Your broker should be eligible for Tier 1 jurisdiction. There should also be reviews of the broker and the platform so that you can compare them and make an informed decision. As a seasoned Forex trader, you should look for a trading platform that has a variety of offers and assets. This will give you the freedom to make a good trading strategy. The trading platform should also have a vast offering of automation tools. Test them beforehand, and if they meet your requirements, then choose that broker.

Choose a broker that provides transparent fee structures and clear documentation of your trades. Avoid brokers with hidden or confusing fees. Understand all the potential fees and charges you may incur, including spreads, commission rates, and any other costs associated with trading.

Look for responsive customer support. You want a broker who will promptly address any questions or concerns. Having a local office can be beneficial for face-to-face meetings and support.

Best Forex trading platforms in the Philippines

1

9.4/10

Go to broker

eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. Don’t invest unless you’re prepared to lose all the money you invest.

Minimum deposit:

$50

Bonus for deposit:

0%

Regulation:

CySEC, FCA, ASIC

Review

The eToro broker was founded in 2007. The company promotes itself as a social trading platform working with traders from over 140 countries. The broker has several divisions operating under different jurisdictions and licensed by different regulators. For example, eToro (Europe) is licensed by the Cypriot regulator CySEC (109/10) and eToro (UK) is licensed by the British regulator FCA (583263). The broker also has a representative office in Australia and the USA. eToro Profile Details

Pros/Cons

•the minimum transaction amount for copying is $1;

•handy functionality for passive investing;

•regulated by independent monitors;

•it is possible to purchase contracts for fractional shares (that is, to invest amounts less than the cost of one share);

•it is possible to buy shares at once (not CFDs) on the US stock exchanges.

•high spreads;

•periodic technical failures in order execution;

•lack of the most popular platforms such as MetaTrader 4 and MetaTrader 5 in Europe and the CIS;

•no access to ECN systems, orders are processed only according to the STP (straight-through processing) scheme with access to specific liquidity providers;

•there is a commission for withdrawing funds;

•impolite support staff;

•inconvenient website.

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2

9.2/10

Go to broker

Your capital is at risk.

Minimum deposit:

No minimum

Bonus for deposit:

0%

Regulation:

FSC (BVI), ASIC, IIROC, FCA, CFTC, NFA

Review

The name OANDA is an acronym for “Olsen & Associates” or “Olsen AND Associates”. It is registered in the United States and provides its clients with a wide range of financial services in most countries of the world. The company was founded in 1996 and is currently regulated in four jurisdictions. The main regulator of the broker is the UK Financial Conduct Authority (FCA). Oanda Canada is licensed by IIROC. The company has several significant awards to its credit, including a victory in the category "Best Forex Trading Technologies" from the UK Forex Awards, "Best Trading Platform" from FX Week, as well as "Best Customer Service" from the US Foreign Exchange Report.

Pros/Cons

•Minimum deposit from 1 dollar.

•A large selection of the most popular trading instruments.

•Several reliable and reputable financial regulators.

•Inconvenient and poorly functioning site.

•Lack of cent accounts.

•Lack of bonus programs.

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