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The Republic of the Philippines is an island country located in Southeast Asia. The country borders China, Brunei, Indonesia, Malaysia, Taiwan, and Japan, and such a diverse neighborhood has a lot to contribute to the country’s economic development. With a territory of 300 000 square kilometers and a population of over 113 million, the Philippines is listed as one of the most populated countries in Asia.
Only industrialized recently, the country is still experiencing some complications with the transformation from what once used to be an entirely agriculture-based market. Nevertheless, the country is quite a big exporter, and its trading partners include major players such as the United States, China, Japan, Singapore, Hong Kong, Netherlands, Germany, and many more. The main products that the Philippines exports are coconut oil, fruits, petroleum, copper, and electronic products, as well as transportation equipment.
In addition, the country is enjoying a well-developed tourism industry, as the Philippines has long become one of the most popular vacation spots for visitors from all over the world. The Philippine governments are also devoted to developing the science and technology sector, and with the amount of support that it receives – the potential for its growth looks very promising.
Trading Forex is legal in the Philippines, however, the market is still relatively new and is only just beginning to emerge. In this guide, we’ll provide you with the list of the best Forex brokers in the Philippines, discuss the local regulatory environment, and more.
A full list of the best Forex brokers in the Philippines
When searching for the best broker to join, there are various things to consider. First, you need to make sure that your funds are in safe hands. And therefore, look for a broker that’s regulated. Secondly, you need to make a list of your priorities and find the one that best meets your needs. What makes this whole process so exhausting is the fact that there are so many brokers to compare to one another. To make this task easy for you, we’ve created a top brokers list.
Forex regulatory environment in the Philippines
The main entity responsible for regulating Forex trading in the country is the Central Bank of the Philippines (BSP). The list of functions and responsibilities of this body is quite extensive – it includes overseeing national currency and exchange rates, monitoring market liquidity, and overseeing the Forex brokers.
Although the BSP is known for having a zero-tolerance policy towards scam schemes, and most of its operations revolve around getting rid of them once and for all, one has to note that the regulatory environment in the Philippines is not ideal. Local Forex and CFD (Contract for Difference) brokers are required to have a BSP license to be allowed to operate. However, it should be mentioned that the regulator is local and not highly experienced. In addition, there are not a lot of local brokers to choose from. Luckily, residents of the Philippines are allowed to pick internationally regulated global brokers. International regulators have more experience and tools for controlling broker activity. Some of the most popular regulatory bodies include:
- Cyprus Securities and Exchange Commission (CySEC)
- Financial Conduct Authority (FCA) in the UK
- Australian Securities and Investments Commission (ASIC)
The national currency of the Philippines
The national currency of the Philippines is the Philippine peso, which is coded as PHP. First introduced in 1967, the PHP has soon become one of the most popular currencies among the local traders and is usually traded in a pair with the USD. However, it should be mentioned that the currency is not as liquid as major currencies, and therefore day traders avoid trading it. However, the currency can be profitably trading using swing trading and position trading strategies. PHP is viewed as an exotic currency, and most beginner and professional traders avoid trading it.
Payment methods and popular trading platforms in the Philippines
A trader can find a vast variety of payment methods in the Philippines, ranging from the E-wallets to debit and credit cards of all sorts. The most popular methods are bank wire transactions, debit and credit cards, mobile and online payment options. Be noted that when making bank wire transactions, the process typically takes a couple of days, while most other deposit methods are instant.
When it comes to the trading software, the most popular ones are MetaTrader 4 (MT4), MetaTrader 5 (MT5), and cTrader. Some brokers also offer home-built platforms. MT4 and cTrader are typically used for trading Forex, indices, commodities, and crypto derivatives. On the other hand, the MT5 is a multi-asset platform. In addition to the CFDs and FX, MT5 provides access to stocks, bonds, and futures. All the named platforms enable professional technical analysis as they offer an extensive tool. In addition, they all support social and algorithmic trading. Before opening a live account, it’s best to demo trade first and find out which platform is right for you.
Summary
Overall, we can say that Forex and CFD trading is popular, legal, and regulated in the Philippines. However, the regulator is not highly experienced and the number of local brokers is limited, which is why we recommend considering international brokers that offer their services to the residents of the Philippines. Our top list includes globally regulated, reputable brokers such as: XM, exness, AvaTrade, and others.
FAQs on the complete guide to finding top Forex brokers in the Philippines
Is Philippino Peso available for trading in Forex?
Is it legal to trade Forex in the Philippines?
