Best Forex Brokers in Philippines 2023
Forex Trading in the Philippines is a relatively new concept, with only a handful of brokers and traders operating in the market. Although forex trading is a popular way to increase your investment portfolio, Filipinos have a relatively tiny chance to take benefit of forex as it is not allowed in the Philippines. However, you can still trade via international brokers using some tricks. This article will provide you with a list of the best forex broker in Philippines that is operated by other regulated countries.
However, before you dive in, it's important to understand the basics and the risks involved. Forex trading platforms Philippines is no different than any other country; certain risks come with the territory. But with a little bit of research and proper planning, you can be on your way to success in the forex market.
Best Forex Brokers in Philippines List:
Is Forex Trading Legal in Philippines?
You should know that the Philippines Securities and Exchange Commission (SEC) released an advisory in 2016 and 2018 saying that foreign exchange trade was not legal. However, many of the clients who use the top forex brokers in the Philippines continue to trade.
It is not an issue that has cut into how the market works. Trading still happens. The top forex brokers list is your best bet at finding the best people to work with. We know the top forex brokers in the Philippines worldwide because of international reputation.
Most of the ones listed here are the best forex brokers in the Philippines. They are competent and regulated from at least one major regulator. Most of the top forex brokers in the Philippines are available online in English. FXC is the only known broker that offers information in Tagalog (Filipino), the native language.
According to the Securities and Exchange Commission of the Philippines forex trading is illegal in Philippines. Hence, there is no local broker in the Philippines and international brokers may not operate lawfully either. You must use an international forex broker to make your trades if you do want to open an account and trade on your own behalf. This means that a Filipino individual can only trade forex trading sites on their behalf by using a foreign investor's account and funding it. The Philippine Securities and Exchange Commission (SEC) has spelled out in their official memorandum that dealing with transactions inside the Philippines is not allowed.
This means that you cannot trade forex with other Filipinos or other local brokers. The only legal way of trading is through top forex brokers in the Philippines from the international marketplace. forex broker who will accept your Philippine funds and will charge a small fee for the transaction. This applies to both forex trading platforms Philippines and offline trading.
Further, Bangko Sentral NG Pilipinas (BSP) also known as the central bank of the Philippines regulates the Filipino forex market. So, you may keep an eye on the BSP website if they ever offer BSP regulated forex broker in the Philippines.
Why Forex Is Not Legal in The Philippines?
SEC of Philippines banned forex trading due to an increase of fraudulent activities. Hence there are no SEC regulated forex brokers. The authority issued an advisory on October 10, 2016, about stopping forex trading in the country. It was because they wanted to discourage fraud and save people’s hard-earned money. The Philippines also requested everyone to report any broker, dealers, or individuals who trade or influence forex in the country.
However, now the Philippine individual can trade forex through foreign brokers and quote rates at their own risk. This means that individuals may not be allowed to buy or sell foreign currencies for profit by themselves.
How does forex trading work in Philippines?
Forex trading is a type of investment that comes with the potential to generate high rates of return. In the forex market, buyers and sellers exchange currencies. As a result, markets are open 24 hours a day and money can be traded anytime throughout the day. Nearly every country in the world plays some role in this daily global currency exchange. Still, there are specific countries whose banking and trade regulations allow them to issue more forex-related instruments than others. These include Canada and Australia as examples of countries where banks can offer various currencies for trade through their institutions. However, it is different for the Philippines.
You will need to open forex accounts via anyone living abroad using their name and identities. They can deposit for you perhaps trade for you. Moreover, you might be able to trade using your computer. But, you cannot with any funds to the Philippines.
Trading in the forex market is a 24-hour-a-day, 5 business day per week process. If you want to trade currencies then you need to be aware of what is happening in the market at all times (or follow a forex trading strategy that is able to trade for you). You should invest in financial instruments that are appropriate to your risk tolerance and this will determine the level of investment capital required.
One of the most commonly used financial instruments on the best forex trading platform Philippines is known as a currency pair. Currency pairs are generally expressed as the first currency in terms of the second currency. These exchange rates can be expressed in a variety of different ways including a fractional value, or simply as a ratio.
Forex Trading Strategies in Philippines
To get a better understanding of how forex trading works it is helpful to understand what you can do with your money once you've bought and sold it. Here are some of the most common forex trading strategies:
Best forex broker in Philippines: Spot Forex Trading
This involves buying one currency to sell it at a higher price when interest rates are higher on that particular currency. You can also sell your currency at a lower price when interest rates are low and sell them back at a premium when they get high again. This is a popular strategy for Philippine investors who want to hold their money over a long period and benefit from interest rate swings.
Forex brokers in Philippines: Forward Contracts
This is more of a financial hedging mechanism that protects you from possible losses and enables you to fix your financial exposure to currencies over a specified period of time. Suppose you have recently bought items in foreign markets and have not yet sold them. In that case, this is a mechanism that allows you to protect yourself against currency exchange fluctuations until those transactions are complete. You can also use forward contracts to reduce the risk associated with agreements that are priced in foreign currencies and need to utilize cash flow in another market.
Options Contracts
Forex options contracts are essentially financial derivatives which are used by traders when they want to gain the right to buy or sell a currency at a future date at a price that is determined now. This is one of the most complex financial instruments in the forex market and should be used only by investors who have adequate knowledge of how this product works.
Best forex broker in Philippines: Swaps
This involves exchanging interest payments for currency installments. You can also exchange cash flow and interest rates in different types of securities. Swaps are a very popular type of instrument among banks and corporations who use these exchanges to diversify their risks while enabling them to stabilize their cash flow.
Forex trading is a very complex process that encompasses many different features. With some capital, you can start to invest in forex through a broker. However, this form of trading is not appropriate for everyone and it is recommended that you research your options thoroughly before making any financial decisions.
However, if you're looking to break into the forex market from the Philippines with relatively little risk then it's best to look further at managed Forex accounts. These provide an opportunity for investors who don't want to trade directly in the market but still want to benefit from the impressive returns that professional traders generate on a consistent basis.
You now have a basic understanding of how the Forex market works. As you can see it's quite a complex process and is unlike other forms of trading that you may be used to. It's important to take the time to learn as much as possible before jumping into the fray. With some practice, forex trading can be a highly lucrative way of generating additional income or growing your wealth.
Forex Brokers in Philippines: Other Trading Strategies
Apart from the strategies we mentioned above there are many different forex trading strategies are available. There are three most common types of forex trading strategies - namely long-term, scalping, and medium-term you can use in the Philippines.
Long-term Forex Strategies involve setting up a long-term strategy and following it for months or even years at a time. It’s part of what is known as "position trading." One example of a long-term strategy would be to buy the GBP/USD currency pair when it falls below 1.50 and to sell it when it reaches 1.80.
They are long-term simply because the investor is hoping that once the price is low enough, it will never actually rise back up to 1.80 and that if it does rise back up to 1.80, he or she has enough money to cover his or her losses from being short (at a loss) on the GBP/USD pair.
Scalping is the quickest and most hands-off style of trading. It entails entering at the best price possible and exiting before that price gets eaten up by other traders.
Day trading is when an investor trades stocks using a series of trades from one day to another. News traders rely on the release of market-moving information to profit from a quick drop in stock prices or unexpected revisions to an earnings forecast. Swing traders are like scalpers but follow trends and ride the waves of prices.
These types of trading strategies have one thing in common - they are largely automated, or semi-automatic, which means that traders with limited computing power and knowledge can benefit from their systems. Traders who want to use these strategies will need to research what type of trading they would prefer to try. It is extremely important that traders feel comfortable with the technology and time that it will take to implement such a strategy.
The main purpose of any trading strategy is to come out with a profit. However, depending on which type of Forex trading strategy you choose, you may be able to maximize your profits by looking at short-term trends and well-known patterns in the market. These can be used to make money in the short term because they predict what will happen in the market during a certain period of time, which can be just a day or may extend with the help of trading plans.
What Is the Best Time to Trade Forex in Philippines?
Although the forex market stays open 24/7, it is not great to trade anytime. Depending on the location you should trade when some big markets open such as New York, London, Tokyo, etc. To trade on Asian session (mainly Tokyo) the best time would be 07:00 AM-04:00 PM PHT, 04:00 PM to 12:30 AM PHT for the European market (London), 08:00 PM-04:00 AM PHT for New York.
Tip to Trading in Philippines
Whether you are an experienced trader looking for a shortcut to success or someone who is just starting out, there are certain basics that you should know. The first one has to do with risk. When you are trading currencies on the exchange, there are always two sides to every trade: the "take" and the "loss." The take is what you get to keep, while the loss is what you give back. This means that every time a trade happens - even a loss - you still have money to trade with. You can use this for deciding which currency pair and which time of day to bet on.
The second thing that traders need to know is how much leverage they want on their system. Forex traders have a great deal of flexibility in terms of how much leverage they want on their trades, but that also means that they have to be careful about how much risk they are willing to take. When you are trading with leverage, you are trading with borrowed money and will eventually have to pay it back.
The third thing traders need to remember is their position size. Position size refers to the number of units traded relative to your account size. When you buy Forex, you will have to decide how much money you want to risk trying out a trading strategy.
Once you pick a trading strategy, then you need to make sure that it will work for your trading style. For example, if you are a day trader and would like to implement scalping as your strategy, make sure that the system can handle enough trading volume for the amount of time that you are willing to trade. If you are a news trader, make sure that the system can adapt to the kind of market movement that you want to take advantage of. If you are a Swing trader and are looking for a way to profit from trends, make sure that your system is set up in a way that can be used in multiple time frames.
Final Words
The Forex market can be a highly dynamic place with lots of action in the Philippines. You need to develop a strong understanding of how it works, and then understand the best way to approach trading for maximum profits. If you're looking for help then it's best to consult an expert who can walk you through the process from beginning to end. This way, you'll be able to find out how to trade forex in Philippines and which forex brokers in Philippines to choose from.
In case you are interested in trying out Forex trading strategies, there are many best forex brokers available online that offer to trade for the Filipinos.
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