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Forex trading is not legal in the Philippines as per SEC (Securities and Exchange Commission of the Philippines) and traders are advised to not trade until there is a regulation in place. All brokers accepting traders from the Philippines are doing so illegally, and traders are trading at their own risk.
All of the retail traders that are currently trading forex & CFDs in the Philippines are trading via foreign brokers. Therefore, there is a huge third-party risk involved.
To avoid a scam, do not trade with any FX brokers that are not regulated with any tier-1 regulations (even though traders from the Philippines will be registered by brokers under their entity which is regulated with offshore regulation, still it is important that your FX broker is regulated with multiple top-tier regulators to ensure that it is low-risk).
| Broker | Tier-1 regulation | EUR/USD Spread (Pips) | Other Regulators | Visit |
|---|---|---|---|---|
| XM | FCA, ASIC |
1.6
|
FSC Belize, DFSA, CySEC
|
Visit Broker |
| OctaFX | None |
0.9
|
FSA (SVG), CySEC, FSCA
|
Visit Broker |
| FBS | FCA, ASIC |
0.9
|
FSC Belize, CySEC, FAIS
|
Visit Broker |
| HF Markets | FCA |
1.4
|
FSA (SVG), CMA, FSCA, DFSA
|
Visit Broker |
| FXTM | FCA |
1.9
|
FSC Mauritius, CMA, FSCA, CySEC
|
Visit Broker |
| IC Markets | FCA, ASIC |
0.8
|
FSA (Seychelles), CySEC, SC – Bahamas,
|
Visit Broker |
Note: The spread and regulation are as per information on these brokers’ websites in January 2024. Please see our methodology below.
Here are 2024’s Best Forex Brokers in the Philippines that we have reviewed:
Philippines traders are registered under the Financial Services Commission (FSC) in Belize. Their parent company, Trading Points of Financial Instruments Limited, is regulated by the Financial Conduct Authority (FCA) in the UK and the Australian Securities and Investments Commission (ASIC).
XM Pros
XM Cons
OctaFX registers Philippines-based traders under the FSA-St-Vincent & Grenadines. They do not have tier-1 regulators like the FCA or ASIC. However, they are regulated by Cyprus Securities Exchange and Commission (CySEC).
OctaFX Pros
OctaFX Cons
FBS is regulated by top-tier bodies like ASIC and the FCA (temporary permission). They are also licensed with CySEC. Traders based in the Philippines are registered under the IFSC in Belize.
FBS Pros
FBS Cons
HF Markets have just one tier-1 regulation – the Financial Conduct Authority (FCA). Philippine-based traders are registered under the FSA in St. Vincent & the Grenadines regulation.
HF Markets Pros
HF Markets Cons
The FCA (UK) and CySEC (Cyprus) regulate FXTM. Their Philippines clients are registered under the Financial Services Commission (FSC) in Belize.
FXTM Pros
FXTM Cons
IC Markets are regulated with ASIC and have temporary permission from the FCA in the UK. Philippines-based traders are likely registered with the Financial Services Authority (FSA) in Seychelles.
IC Markets Pros
IC Markets Cons
Since forex trading is not regulated in the Philippines, it is important to know what to check when choosing a foreign CFD broker. Below are some factors you should consider.
Check if your deposits are safe. Since forex trading is not regulated in the Philippines, there is no investor protection. Your broker could run away with all your money. All traders in the Philippines are trading at their own risk.
There are so many fraudulent brokers in the region who are promoting forex as a get-rich-quick scheme, even though trading forex & CFDs using leverage is very risky. Avoid any such brokers which offer promotions & promote forex as a way to get rich.
Make sure you verify that your broker is reputed, safe & well regulated. Check the tier-1 regulators the broker is regulated with.
Here is how you can do this using XM as an example (you can follow these steps using other brokers too).
At the footnote of xm.com, you will see that the parent company for XM is Trading Points as shown below
Overall fees should not be high. You lose money when you trade so giving extra money to your broker because of high fees is not helpful. Typical spreads should be low as well and if possible, no extra commission per lot. You have to check this yourself.
Here is a guide on how to go about it for OctaFX. Go to octafx.com and click on “FX TRADING”. Select “Spreads & Conditions as shown below
A limited number of CFDs will limit the number of markets you can trade. Your CFD broker should not only offer a good range of CFDs. The number must also be substantial for a good trading experience.
We will explain the steps using XM broker as an example.
1. Go to xm.com and click on “Open Account”
A Forex broker, also known as a foreign exchange broker or FX broker, acts as a middleman between you and the massive, global market for trading currencies.
Here’s what they do:
They provide access to the Forex market:
Think of them as your gateway to buying and selling different currencies.
They offer trading platforms where you can execute your trades and monitor currency prices.
They facilitate currency exchange:
You don’t directly interact with other traders. The broker matches your buy orders with sell orders from other clients or directly fulfills them (depending on the broker type).
They ensure smooth and secure transactions, eliminating the need to worry about counterparty risk.
They make money through fees:
They typically charge spreads (the difference between the buy and sell price of a currency pair) or commissions on your trades.
Yes, you generally need a forex broker to trade in the foreign exchange market. They act as an intermediary between you and the vast interbank market where currencies are actually traded. Here’s why:
1) Access to the Market: Retail traders like you and me can’t directly access the interbank market. Forex brokers have the licenses and relationships to do so, and they provide you with a platform to place your buy and sell orders.
2) Order Execution: Your broker takes your order and finds a counterparty to match it with on the interbank market. They handle the execution of the trade, ensuring it’s done efficiently and at the best available price.
Forex trading is not legal in Philippines. Forex traders in the Philippines do so at their own risk because forex trading is not regulated in the region.
No forex broker is the best. It all depends on individuals’ experiences. However, if you want to limit risk, only choose a forex broker with multiple tier-1 regulators.
The top forex brokers for forex traders in the Philippines are HF Markets, OctaFX, IC Markets, and XM Trading. Although it is important for you to do your research to choose a forex broker that has trading conditions matching your trading needs.
According to our review, IC Markets and HF Markets charge the lowest fees. For example, HF Markets have Zero accounts which has Raw spreads, and there is an extra commission of up to $7/lot.
