Forex trading in the Philippines: market review and top online brokers

The Philippines is an archipelago country in the Pacific Ocean, consisting of approximately 7641 islands. English is one of its two official languages, which encourages swift global communications. It is primarily considered a newly industrialized country with an economy in transition from one based on agriculture to one based on services and manufacturing.

The economy of the Philippines is the world’s 32nd largest, the 12th largest economy in Asia, and the 3rd largest economy in ASEAN after Indonesia and Thailand.

The Philippines has been named as one of the Tiger Cub Economies, alongside Indonesia, Malaysia, Vietnam, and Thailand. It is currently one of Asia’s fastest-growing economies, with predictions to become the 4th largest in Asia and 19th biggest in the world by 2050.

As a newly industrialized country, the Philippines is still an economy with a large agricultural sector. However, the country’s service industry has recently expanded. Much of the industrial sector is based on assembly operations in the manufacturing of electronics and other high-tech components, usually from foreign multinational corporations.

Another distinctive country feature is that overseas Filipino workers – also known as OFWs — have become significant contributors to the local economy. Remittances they sent back home are also credited for the Philippines’ recent economic growth, which results in continuous international investment status upgrades. For example, in 2018, Filipino Americans sent 43% of all remittances sent to the Philippines, totaling US$10.6 billion.

However, the county continues to grow economically, pushing living and education standards up. More and more people are looking for alternative income sources, proportionate to international levels, and ones that allow them to avoid OFWs’s path. Financial markets and online trading may satisfy both of these needs, so the popularity of Forex trading is rising. For sure Forex trading will add to the overall financial well-being of traders.

Forex market in the Philippines

The Philippines benefits from having a Southeast Asian emerging market status. As living and education are getting better, local people are turning from manual labor to something that actually requires skills and knowledge. Also, now Filipinos are more aware of income source options available for them online, and Forex trading becomes a solid option for possible extra income and financial independence. Consequently, as the number of people who get into trading goes up, more and more world-renowned regulated brokers accept clients from the country. 

Together with trading infrastructure, security is also advancing at a fast pace, and that is crucially important for attracting new retail traders. In the current market state, they can enjoy the protection of the Philippines’ Securities and Exchange Commission (SEC), which recommends trading only with regulated brokers that satisfy multiple security criteria.

The Philippine national currency – the peso – ranks 30th within the foreign exchange market among currencies all over the world. However, with these regulated brokers available in the Philippines you can trade not only the local currencies but also the world’s most popular pairs that include USD, EUR, or YEN.  The highly liquid market and selection of currency pairs create trading opportunities at almost all times. It offers traders flexibility and numerous trading strategies to follow. 

XM Group provides you with the opportunity to trade these popular currency pairs mentioned above. It has some of the most favorable conditions for currency pairs trading, including good leverage and a Forex bonus of up to $5000 for your first deposit. Also, XM offers an outstanding selection of high-quality educational content and market research.

To serve users from more than 190 countries, XM has pursued regulation from some of the most relevant financial authorities, including ASIC, CySEC, and FCA.

Traders of all experience levels can learn to trade skillfully using the site’s inclusive educational materials. In addition, for any questions, the XM team provides customer support in more than 30 languages, including Filipino, English, and Spanish.

Types of Forex market in the Philippines

Concluding that there is no shortage of suitable brokers for you in the Philippines, they all offer different but equally attractive and reliable opportunities. And while Forex brokers handle all aspects of trading, there is a piece of market info you may find useful to build your trading confidence. 

There are different types of Forex markets in the Philippines because some brokers offer traders a choice. Most retail trading remains confined to derivatives via contracts for difference (CFDs).

Here are three types of Forex markets:

• Spot Forex Market: It refers to the physical exchange of currency pairs on the spot at the given market rate. Forex trading in the Philippines often occurs using spot rates; for example, rates for exchanging currencies at your bank or at your office. Forex brokers also grant access to spot rates for CFD trading.
• Forward Forex Market: Agreement to exchange currencies at a set price in the future or at forward rates.
• Futures Forex Market: It is similar to the Forward Forex Market, but the contracts are legally binding. The buyer and seller must change the agreed amount of currencies at the specified price.

OANDA‘s list of financial instruments consists of CFDs on indices, commodities, and bonds. The broker gives access to two types of trading platforms: fxTrode (Oanda’s personal development) and MetaTrader 4. Both of these platforms are available in three types: desktop, mobile, and Web.

In addition to CFDs, traders can choose from a variety of instruments such as Forex: more than 70 currency pairs; metals: Gold and Silver; commodities: Oil, Natural Gas, Copper, and Wheat; indices – 16 in total and Bonds.

Globally, OANDA offers three account types: demo, Standard, and Advanced Trader, which makes the broker a fine fit for both new and seasoned trades. Moreover, it requires no minimum deposit to open an account with OANDA, but new traders who’ll top up their accounts get a welcome bonus of up to $1000.

Why Forex trading is popular in the Philippines?

Firstly, Forex trading in the Philippines can provide a sustainable income stream and greatly improve traders’ financial situation. And though before people thought that getting into trading would require time, effort, and solid knowledge, with the appearance of Copy Trading public view has changed. 

Of course, if you do spend time and master the required discipline and knowledge, the long-term beneficial impact will be well worth the effort. However, Copy Trading made everything so much easier. With the feature, you can subscribe to professional traders – just like on any other social media – and automatically copy their trading decisions. Profit earned is rightfully yours, and also you can learn from experienced traders: look at their moves to create your own trading strategies. 

Secondly, technological advancements make Forex trading accessible to everyone. And unlike traditional markers, Forex, being open 24/5, offers a convenient way to increase income since traders can develop a plan around their day jobs.

Thirdly, many people in the Philippines have been indirect participants in the Forex market for many years. Since many Filipinos rely on remittances sent from family members overseas, a more direct approach would represent the next step. 

Many reputable, time-proven international Forex brokers accept Philippine clients, so local traders have plenty of choices to find the most suitable brokers from the world’s top ranking. 

HF Markets – before rebranding known as HotForex – is a truly global multi-asset broker with a presence in over 180 countries, 27 supported languages, and over two and a half million open accounts. It provides online trading in Forex and CFDs on commodities, gold, silver, and indices. 

HF Markets is a reliable broker that offers some of the best possible conditions, in particular for gold trading. One perfect choice if you’re looking for diversity in your trading portfolio. Also, it offers a very generous Forex bonus of up to $5000 on your first deposit and a cumulative bonus on your deals up to $8000. Moreover, HF Markets created an HFcopy – Copy Trading feature where anyone can join as a follower or as a pro trading strategy provider.

As followers, traders choose from the list of successful expert traders and link accounts to theirs, so that the performance of the latter automatically gets copied and translated into the accounts of the former. Copy Trading is a great opportunity to earn a passive income simply by following market experts. 

Forex trading regulations in the Philippines

In the Philippines, gone are the days, when just any broker can get into business and offer whatever and wherever they want. This means more security and confidence for the average trader and fewer opportunities for scammers who prey on traders’ hard-earned money.

According to the Central bank of the Philippines, The Philippine Securities and Exchange Commission (SEC) remains the sole regulatory body with oversight of the domestic Forex market. Contacting the Enforcement and Investor Protection Department (EIPD) can provide clarity, and you can report scams and fraud attempts.

International Forex brokers we recommend in this article have years on the market and millions of clients around the world to speak for their credibility. Also, they are authorized not by only one, but two or more international regulators. 

 AvaTrade – the broker regulated by 6 (!) global most reputable organizations, including ASIC and CySEC. It offers a broad variety of tradable instruments including forex, stocks, commodities, cryptocurrencies, and indices, with industry-standard spreads, on a wide selection of trading platforms for both manual and automated trading, across a variety of device types. 

Also, AvaTrade provides a Copy Trading feature – your chance to earn some passive income just by automatically following the moves of more experienced traders. The combination of AvaTrade’s global reputation with tech-advanced mechanisms gives traders the security of knowing that their trades are in the safe hands of some of the best traders.

Additionally, AvaTrade states that accounts across all jurisdictions do have negative balance protection and also offers AvaProtect which allows the client to take out insurance on a trade.

Cryptocurrency trading in the Philippines

The popularity of cryptocurrency in the Philippines has been continuously increasing as various platforms emerge and gives an opportunity for retail traders to learn how it works and be able to use it.

Also, despite being the third-largest country for remittance inflow, Philippine remittance costs are high compared to the global average estimated by the World Bank, at 7.4% for every $200. In this context cryptocurrency usage in the Philippines has grown.

Cryptocurrency trading in the Philippines is legalized and regulated by the Bangko Sentral ng Pilipinas (BSP).

If you’re in the Philippines and want to get into crypto trading, there is one, probably one of the world’s most famous brokers, which absolutely got you and we already mentioned it above. While most brokers prefer to avoid cryptocurrencies and others normally offer Bitcoin and Ethereum, AvaTrade goes the extra mile and provides you with the entire range of these digital assets!

In addition to the opposite spectrum presented by such safe-haven assets like bonds, cryptocurrencies offer an opportunity to diversify your portfolio with more volatile assets and higher risk-to-rewards potentials.

Top Forex brokers in the Philippines

Successful trading is not just about the implementation of an excellent trading strategy, but also about the confidence and peace of mind that only a regulated broker with a good reputation and record can give.

Our expert team has done their best to give you full market research and honest opinions on some of the best Forex brokers accepting clients from the Philippines. So save your time and pick from the list of regulated and recommended brokers below.

OANDA in the Philippines

OANDA is a well-known broker for experienced traders. OANDA offers trading in over 100 instruments including currency pairs, indices, commodities, bonds, and metals. There are 9 base currencies available in the company: EUR, GBP, CHF, USD, CAD, AUD, JPY, HKD, and SGD.

Globally, OANDA offers three account types: demo, Standard, and Advanced Trader, which makes the broker a fine fit for both new and seasoned trades. Moreover, it requires no minimum deposit to open an account with OANDA, but new traders who’ll top up their accounts get a welcome bonus of up to $1000.

XM Group in the Philippines

XM Group has more than 1000 financial instruments which can be traded on the MT4/MT5 platforms, including Forex pairs, equities, commodities, and other instruments with some of the most reliable and fastest order execution available.

To serve users from more than 190 countries for more than 10 years, XM has pursued regulation from the relevant financial authorities. Currently, the broker operates with licensing from multiple regulators. These institutions ensure that XM maintains complete liability for its customers and remains accountable to them. In addition, for any questions, the XM team provides customer support in more than 30 languages, including Filipino and English.

HF Markets in the Philippines

HF Markets may be a choice for traders who want to become a part of an excellent multi-level bonus program and get access to an extensive choice of trading instruments, including cryptocurrencies. 

It is a reliable broker that offers some of the best possible conditions, in particular, for gold trading. One perfect choice if you’re looking for diversity in your trading portfolio. Also, it offers a very generous trading bonus of up to $5000 on your first deposit and a HFcopy – Copy Trading feature where you can subscribe to experienced traders to automatically follow their strategies and get passive income. 

You can also manage risk by expanding your approach and registering an account with several of the best brokers. This way you can not only compare trading platforms to find the most fitting one for yourself but also maximizes the benefits you receive.

Also, you can trade on some brokers on your own, while on others you can use the Copy Trading function. It will encourage you to continue exploring trading and increase your chances to earn some passive income.