Steps to find the best Forex broker in the Philippines
Forex trading is the biggest financial market in the world. Although it is becoming more and more popular in the Philippines, there still are not as many Forex brokers that offer local traders their services.
Although the country has a regulatory agency, the brokers are not required to get a license to offer people services. That said, the number of people interested in the Forex trading market in the Philippines is increasing very actively.
Many of the Forex traders in the Philippines prefer to trade with international Forex brokers because the trading laws in the country are not strict enough to guarantee the safety and security of traders.
In this guide, we are going to talk about the Forex Philippines market, so, if you are looking for the best FX broker in the country, follow our comprehensive guide and start trading with the best Forex broker in the Philippines.
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The Forex trading market is legal and regulated in the Philippines. However, it is still relatively new and the regulatory framework is not as strict as it is in other jurisdictions. There are two bodies that take care of the Forex trading market in the country.
The first one is the Central Bank of Philippines, BSP, and the second one is the Securities and Exchange Commission, simply called SEC. BSP has very extensive responsibilities when it comes to regulating the Forex trading market.
The central bank of the country is responsible for overseeing the national currency, exchange rates, monitoring the market liquidity, and maintaining the monetary policy of the country.
The second regulatory body, Philippine Securities and Exchange Commission is directly responsible for the Forex trading market of the country. SEC is the body that gives out the licenses to local Forex brokers.
However, it should be noted that local laws do not require Forex brokers to be registered locally to offer Philippinos trading services. Because of this, international Forex brokers are able to offer local traders their services.
Staying safe with trading companies in the Philippines
While trading Forex in the Philippines, there are several things that you can do to make sure that you are staying safe. As we have already said, a regulatory body responsible for giving out licenses in the country is the SEC.
Although brokers are not required to own a license in the Philippines, traders are still advised to use regulated brokers. To make sure that you are trading with a regulated broker, there are several things you can do.
First of all, you can directly contact the regulatory authority of the country, the SEC, which will provide you with information about regulated entities. The Enforcement and Investor Protection Department, EIPD, is very helpful when it comes to providing clarity. You can even report scams and fraudulent activity with the department and it will act upon the information.
If you decide to trade with an international Forex broker that is not registered locally, you should make sure that the broker owns a license of a top-tier regulatory body. The majority of well-known Forex brokers globally offer services to traders from the Philippines, which means that you should not have a hard time finding a safe and secure broker.
Among the best-known regulatory bodies around the world are CySEC, FCA, ASIC, and many others. Brokers that own licenses from top-tier regulatory bodies are safe to trust.
Is it safe to trade Forex in the Philippines?
Although the Forex trading market is legal in the country and is regulated by two agencies, there still are some risks associated with this trading market in the Philippines. One thing is that the market is not heavily regulated and since brokers are not required to get a license to offer services, there might be some companies that use these conditions for scamming people.
Because of this, it is very important for traders in the country to the only trust regulated brokers.
Steps to start trading with brokerage firms in the Philippines
There are several steps that traders in the Philippines will have to take to start trading in the country. The most important step that you might have to take is to find a trustworthy, safe, and secure Forex broker.
One thing to always keep in mind while looking for a safe broker is to only trust companies that own licenses from regulatory agencies. This way, you can feel safer when trading Forex. After you find a Forex broker, you will have to create a trading account. In most cases, brokers offer traders different types of accounts depending on their experience and level of expertise.
To create a live trading account, you will be required to make deposits on your account.
Most popular payment methods in the Philippines
There are numerous payment solutions available for Forex traders in the Philippines. You can make deposits using various types of solutions, such as E-Wallets, or more traditional solutions, such as credit/debit cards or direct bank transfers.
Majority of Forex brokers offering traders from the Philippines their services access mobile payments. Some of the most popular mobile payments in the country are GCash, PayMaya, Coins.ph, and many others. The leader in the market is GCash which is among the most popular payment methods in the country.
After you have deposited funds on your trading account, you can continue by downloading the trading platform. There are numerous trading platforms available on FX brokers of the Philippines.
Most popular trading platforms in the Philippines
Finding the best trading platform Philippines’ brokers offer is very important for traders. You will be spending most of your time using a trading platform and because of this, it is very important to use the platform that fits your needs the best.
While looking for a trading platform, it would be a great idea to use the one that is available in the Filipino language. Among the most popular trading platforms in the country are MetaTrader 4 and MetaTrader 5. Both of these platforms were created by the same company called MetaQuotes and are very popular in the market. Both MT4 and MT5 are available in Filipino.
There are many other trading platforms available for traders from the Philippines. In fact, many brokers even offer custom trading platforms created specifically for their customers.
The national currency of the Philippines
The national currency of the country is the Philippine peso, with an official code of PHP. The national currency of the country is controlled by the Central Bank of the Philippines. Trading Philippines peso is not very popular in the Forex trading market. This currency is mostly traded in a pair with USD.
The Philippines is estimated to be the 45th largest economy in the world, with a GDP of $216 billion. The economy of the country largely depends on exports of goods such as semiconductors, equipment, closing, copper, and so on. Recently, the country has shown signs of transitioning from an agricultural-based economy to one that mostly relies on services and manufacturing.
Final thoughts on Forex trading in the Philippines
Although the Forex trading market is still pretty new in the country, there are numerous Forex brokers who are offering services for the citizens of the Philippines. While looking for the best brokers in the Philippines, there are certain things that traders should look out for.
The market is developing very fast in the country and there are numerous possibilities for traders. In addition to local Forex brokers, there are many internationally acclaimed brokers that offer services in the Philippines.
Are you sure you want to miss out on great trading opportunities?