How to Trade Forex in the Philippines as a Beginner

How to start Forex trading in the Philippines

Forex trading has really picked up in the Philippines over the past few years, as more people see the potential to earn from it.

If you are looking into trading Forex, you will be glad to know that it has a relatively low entry threshold, meaning that you don’t need a finance degree or thousands of dollars to access the market and start your trading journey. What you do need is a stable internet connection, a laptop or a phone, a reliable and regulated broker, and the desire and curiosity to learn and practice. It’s equally important to get the basics down: how currency pairs work, simple trading strategies, and of course, how to manage your risks. This information is often provided by your broker.

Is Forex trading legal in the Philippines?

Forex trading can be legal in the Philippines, but there are some rules you need to know. Brokers here have to be licensed either by the Securities and Exchange Commission (SEC) or the Bangko Sentral ng Pilipinas (BSP). Any income you make from Forex must be declared and taxed properly.

Now, here’s the thing: while a lot of people are interested in earning through Forex, the SEC in the Philippines has made it difficult for a domestic Forex industry to develop. The Commission has continuously applied various restrictions, and in 2016 and 2018 the SEC issued stronger warnings indicating that engaging in Forex trading through foreign unlicensed brokers was illegal under Philippine law. The good news is, that doesn’t mean you can’t trade; you absolutely can, you just need to make sure you’re doing it legally.

Since there aren’t any local Forex brokers offering access to the global market, traders in the Philippines usually go through overseas brokers instead. The SEC and BSP don’t exactly encourage this setup. They’ve issued warnings about the risks. But they also haven’t completely banned individuals from signing up with foreign platforms.

If you sign up with an international broker, you will be accepting their terms of service and agreeing to be regulated by their regulatory authority. FBS is an international broker regulated by the Belize FSC and offers its services on a cross-border basis. You must clearly understand that overseas companies do not provide you with the same level of protection as locally licensed brokers. However, in the absence of domestic options, if you choose to trade with an international broker, it is crucial to carefully review the company’s legal status, regulatory framework, and terms of service, and be fully aware that you are assuming these risks yourself. Still, having an overseas license is far better than having no license at all.

How to trade Forex in the Philippines step by step

Now that we have figured out the legality of trading in the Philippines, let’s focus on what the exact steps a beginner trader should follow to start off on the right foot trading Forex.

Step 1: Choose your broker and sign up

To start trading Forex in the Philippines, your first step is to find a reliable online broker. There are a number of options out there, but as there is a lack of local brokers, traders can turn to international platforms that give them access to the global market.

No matter what international trader you pick, just make sure the broker is properly licensed and regulated. And it’s not just about access, it’s also about trust and security, as well as the availability of a steady education. This includes webinars, a demo account, and other learning materials.

Step 2: Check out the learning section

Try exploring possible trading webinars and learning guides. FBS offers a variety of learning tools and materials for both beginners and experienced traders. Check out our video tutorials and quick course on how to start trading Forex.

Step 3: Complete the verification process

It’s a standard step for any financial services, and it aims to ensure the security of your transfers and your account. Verification simply means verifying your identity, that the information you put into your account matches the information on your ID.

To complete your verification, you need to log in to your Personal Area and provide a photo or a PDF of your valid document: this could be your driver’s license, ID, or passport. Once that’s done, you might be asked to take a selfie to see that the photo you provided matches your face and then just follow the in-app instructions. You can read our complete verification guide here.

Step 4: Deposit funds

FBS offers over 200 payment methods you can use to deposit and withdraw funds, and the minimum deposit amount is as little as just $5. At the same time, you should also check the minimum requirements set by your payment provider.

In the Philippines, you can use: GCash, PayMaya, and bank transfers, as well as e-wallets like Skrill, Neteller, Sticpay, and Perfect Money.

Step 5: Try demo trading and find a trading strategy

When you are new to trading, there is nothing more important than getting into it with a clear head, a plan or trading strategy, and a decent amount of practice on a demo account. Use it to experiment with trading various markets and currencies, trading at different times of the day, and finding an effective trading strategy.

If you want to find a solid Forex trading strategy, start by thinking about your goals.

• Then study the market using basic tools like charts to understand what’s driving the market prices.

• Follow the news and main economic and political reports.

• Choose indicators that help you spot trading opportunities.

Risks and tips, and best practices for Forex traders in the Philippines

Let’s wrap up this article with a short summary:

• Forex can be a great opportunity, but it also comes with risks. That’s why you shouldn’t skip the learning part. Take time to understand the basics first, watch tutorial videos, and if you feel like it, join trading webinars.

• Start with a demo account so you can practice without risking real money.

• When you’re ready to go to your real account, make sure you’re using a broker that’s regulated and has good reviews from other traders here.

• Have a trading plan and stick to it. Don’t let emotions like excitement or fear control your trades. And always manage your risk; even small trades should have a backup plan.

• Take your time to really learn trading and get comfortable with the platform — there’s no need to rush.

• And one more thing: don’t forget to enjoy the process. You’ve got this.