Top 10 list of the best Forex brokers in Philippines

Forex trading is getting more and more popular among the citizens of every country. Many third world countries have are already actively involved in the forex market. One of the countries that have recently introduced fired trading in the Philippines. Many people are urging to learn more about forex trading and have started investing market more and more rapidly. While the market is relatively less regulated in the Philippines than in many other countries, there still are quite a few forex brokers in Philipinnes. Thus, if you re willing to start trading online in that region, you have to be extremely careful while choosing the right broker and have to consider several major factors in order to become the victim of scam or fraud.

Forex brokers in PhilippinesCurrently, the situation in terms of regulations and the common framework for the ones who are willing to start trading in Philipinnes is relatively confusing. This is due to the fact that the country’s financial system is still in the early stages of development and is currently working on overcoming the high competition from Japan, Malaysia, Hong Kong, and Singapore.

There is only one official regulator in Philipinnes, which is Banko Sentral ng Pilipinas also knows as BSP. The official authority is responsible for monitoring the country’s economy and providing a safe and stable environment for the traders as well as for the costumers. The regulation of a number of different financial institutions is the responsibility of the BSP. Despite this fact, the official authority responsible for regulating Philipinne FX brokers is the SEC.

Before you go further, we have great news for you! While working on this guide, we have decided to do research and find some of the best Forex brokers on the market. Below, you can see the list of the best FX brokers in the Philippines and start trading now.

XM

XM review – One of the best Forex brokers on the market

Minimum deposit

$5

Licences

ASiC

Maximum leverage

1:30

Platforms

MT4, MT5

Oinvest

Review of Oinvest FX broker – can it be trusted?

Minimum deposit

$250

Licences

FSC

Maximum leverage

1:500

Platforms

MT4, WebTrader

IQ Option

IQ Option FX broker review – should you use it?

Minimum deposit

$10

Licences

CySEC, FSA

Maximum leverage

1:30

Platforms

Web

Securities and Exchange Commission PhilippinesThe regulator of the FX brokers in the Philippines

Forex brokers in the Philippines are regulated by the Securities and Exchange Commission. It is an agency of the government responsible for monitoring the security of the whole local industry. As well as having regulatory functions, it is also the holder of the country’s register of companies and has a number of other functions. Take a close look at the functions and responsibilities of the company, which are the following:

  • Supervision of all SEC-registered business entities, along with the power to suspend or revoke registrations
  • Writing of market securities policies
  • Management and approval of security registration statements
  • Looking into securities law violations, instigating investigations, and imposing any required sanctions
  • Issuing of subpoenas, punishments, and cease-and-desist orders.

What is SEC and what are the responsibilities

Besides the fact that SEC is regulating the FX industry in Philipinnes, the agency has a couple of other responsibilities to deal with. The main concern is to safeguard the stability and the economic integrity of the company’s financial markets and it does so, by the means of the ultimate control it has over the financial services providers, including the brokers regulated by the BSP. There are certain rules and regulations as well as requirements the best Forex Brokers Philippines have to comply with in order to recover the license. Breaching the regulation is not tolerated by the financial authority.

Besides the responsibility and the ability to provide the licenses, SEC also has the right to revoke, cancel, and terminate them as well. SEC is the responsible authority to have the final word, whether the provider is legal and able to operate in the region or not.

Phillipines regulated forex brokersAdditional Responsibilities of SEC

The Commission’s aim is to increase transparency and confidence in the financial markets in the Philippines and to meet this aim it develops regulatory guidelines and recommendations. It also advises the government, Congress, and other federal agencies. There is, however, a slight difference from the normal work of a regulatory agency. It has absolute power over individuals and companies and is even able to ask for help from ministry, civil, or independent enforcement bodies to help it carry out its regulatory responsibilities. It has the power to issue “cease and desist” notices if it is considered that the wrongdoing is putting the public at risk. It has the power to take the matter to the courts in order to reach a resolution, and issue search-and-seizure notices in order to obtain the necessary evidence.

Being the Philippines Forex Brokers is none of the easy things to do. The whole licensing process is very complicated and long-lasting. This can be the reason of not that many brokers being available for the Philipinos. There is a number of leading experts who consider the Commission to have too much power, and thus sometimes being irrational and subjective.

Some fo the experts also argue that too much power processed by SEC has to lead to the dramatic effect on the regulations of national financial companies and the effects are not considered to be positive at all. While everything this might be very much true, the benefits of the power usually reserved for much higher authorities.

What is the role of the BSP in the forex industry?

trade with Philippine forex brokersWhile SEC is the regulatory authority that processed too much power, the BSP is mainly concerned about the financial stability of the country. However, it does playa a huge role in the development of the Philippines brokers association. Some of the responsibilities of the regulatory authority involve the streamlining of the money exchange process and other financial transactions, which are very important for the retail trading industry overall. The BSP also holds the responsibility for determining the exchange rate policy for the Philippine Peso (PHP) against other currencies. To be honest, this is another very important power that the agency holds, and it should not be underestimated over the SEC, especially when the country’s currency reserves are also managed by the BSP.

The stabilization fo the countries economy as well as making it internationally visible is of vital importance for the development of every sector in the country including the forex industry. For example, it is a lender, a financial advisor, and a body that can help to maintain market liquidity. How is it able to do this? By helping other banks and government agencies. The BSP is able to extend loans, raise capital, issue advances, act as a depository, and offer discounts for other financial entities.

Overall, while the BSP does not have the primary role in the regulation of the local forex industry, it does contribute a lot to the country’s economic sustainability and the economic formation in general. The economic stability and processes, on the other hand, contribute a lot to the formation of the local forex industry and here we have the whole chain of processes that come out of each other. Philippine regulated forex brokers have to comply with the regulations imposed by SEC, yet SEC operates in accordance with the actions taken by the BSP.

Philippines regulated forex brokersAre there any forex brokers regulated by the BSP?

As mentioned before, all brokers operating in the Philippines are regulated and licensed by the SEC. There is no restrictions to prevent local traders from choosing any broker they want, which is available for the region. The regulatory framework for the financial services may still be under the development process, but the BSP Forex broker is still considered a better option than the unregulated broker at all.

This means that best forex broker trading for the Philippines should all be regulated by SEC, while the legit brokers might still have the license provided by the BSP. Yet, the brokers who do not process any of those two should instantly be claimed as a scam, and you should know how to pay any of your attention to them at all.

While there are great regulatory authorities available locally, the regulated brokers still provide the traders with the relatively safe environment and safety of their funds. SEC-regulated brokers are believed to provide the traders with relatively better service and opportunities rather than the BSP. Also, you should not expect the same safety from the BSP regulated brokers as from the SEC ones. Thus, choosing the SEC-regulated broker can never harm your experience and your funds.

While the regulations and the license are of vital importance while choosing the right broker for yourself, there are some other factors that contribute a lot to becoming the Best Forex Brokers in the Philippines 2020.

Phillipines forex brokersAccount Types of the Brokers

Many different brokers offer different variations fo the accounts. The main differences between the accounts are the deposit value, the withdraw limits, and the commissions or the spreads. Very often brokers suggest several different account types, in order for you to have the free choice. It can be confusing sometimes, but what we would suggest, is that if you are the beginner to the industry, then start from the lowest package, try yourself and then upgrade the account.

What is very important that the top Philippines brokers often offer the demo accounts or the no deposit account. Those are very important, especially for the newcomers. While the traders might have theoretical knowledge regarding the tools and the options the forex trading offers, some of the practical experience is essential in order to become a really successful trade. In the beginning, everyone makes mistakes, and it is completely okay. Though, it is better if you can learn and make mistakes without spending too much money on it.

The Demo account offers the initial virtual fund, provided by the broker. You can spend the virtual fund the way you want and learn all of the tricks and tips of trading during the process itself. On the other hand, there is the No Deposit Bonus account. With the no deposit bonus, the broker offers a specific amount of money for the first try. The amount is usually not very big, but it is completely enough to have the first bite.

Check the Background

Philippines forex brokersKnowing who are you working with is very important. You should know who is the broker and how does the broker earn money. It should not only be about your loses, otherwise, do not expect any big success with that type of brokers. Best Philippine brokers will earn through spreads and not the commissions. Now, what is the real difference?

The spread is the nation of the currency that the broker uses. There are fixed and variable spreads. While the fixed spreads are higher, the varied spreads are affected by every single change fo the value in the market. The varied spreads have a lower ration, though might impact your winnings drastically. If you lose, the broker wins, and even if you win the broker still wins some slight portion of it.

The commissions, on the other hand, are not considered to be good at all. If there rea commissions on the withdrawal or the deposits, this means that the broker has some hidden fees and charges, which means that the broker earns money from the traders who whether want to earn or want to withdraw their earnings.

Know what you want to trade with

Choosing a broker is of course very important, but even before that, there are some steps you need to take into considerations dn need to fulfill. Many forex brokers in the Philippines offer different options for trading. Those are the currency pairs, different metals, or other CFDs. Before knowing what you want you to have to get acquainted with the majority of trading tools. If you want to trade with currencies learn how the market, the stocks, and other contributors work. The most common trading pairs are the EUR/USD, but rather than that some of the brokers might be offering the local currency of PHP. Make sure to check which broker offers this opportunity before even thinking about any other brokers.

Available platforms with Forex Brokers in the Philippines

Some of the best Philippine forex brokers use the most common trading platforms, which are the MetaTrader4 and the more upgraded version MetaTrader 5. Those two platforms are the most used and time tested trading platforms all over the world. Thus, they have no complications and you barely can come across any technical issues connected with those two platforms. The MT5 is the more upgraded version of the MT4 and thus offers some more opportunities and offers a bigger number of CFDs.

Trusted Forex brokersHow to avoid scams and fraud

Many Philipinos have been the victims of scams and frauds. Though, the number of victims of the scams has decreased dramatically since the regulation process of the Philippine forex brokers has become stricter and complex. In order to avoid the scams, make sure that the broker is regulated by the SEC or at least the BSP. also check the terms and conditions offered by the broker, that can be found in the section of terms and conditions on the webpage of the broker. Check the reviews and the rating of the broker, which should be available online. The best possible option is that the local traders have provided certain feedbacks regarding their experience with the brokers.