Trading has recently become very popular in the Philippines, and Forex is especially well-liked by lots of novice traders. They flock to the market in hopes of earning significant profits without investing too much time and effort. However, it’s not that simple: you should find a reliable Forex broker first. Make sure it has a valid license, or else you risk losing all your money to some scammers. In this article, we explain how Forex is regulated in the country and how to choose a truly reputable broker.
Forex regulations
The growing popularity of Forex trading has also led to a rise of many scam projects. Retail traders in the country have suffered heavy losses, so the main regulator in the Philippines called the Securities and Exchange Commission (SEC) has decided to outlaw Forex trading altogether. The regulator has advised citizens not to invest in any foreign-registered platforms and stopped issuing any licenses to brokers, even the most reputable ones.
So, is Forex trading legal in the Philippines? The short answer is: no. However, there is a long answer as well, and it’s more optimistic. While SEC has advised against Forex trading, it’s not forbidden. You can still participate in trading and choose brokers freely as long as you understand that it’s up to you to protect your own rights. In practice this means that you can still trade currencies in the country, just choose the most well-known brokers regulated by other major institutions like FCA or ASIC.
How to trade
Forex trading is possible in the Philippines: you can use one of the remaining opportunities to trade or learn. First of all, you can always find an international broker that provides free demo accounts to use for practice: this way, you don’t risk any money. Many brokers have extensive libraries of educational materials for beginners, so you can study Forex trading even without investing a single dollar. That’s a great opportunity for starters who don’t want to invest real money just yet.
When you’re ready to start trading with real money, make sure you choose a broker with low minimum deposit requirements and comfortable fees: this way, you can start small while still learning. Choosing a user-friendly platform is also a huge advantage for your trading effectiveness. Finally, don’t forget to check out all the passive income options and bonuses offered by brokers: these can be rather useful for starters.
