When thinking about the Philippines, the strong economic position and well-developed trading market are most likely not the first things that come into your mind. Fair enough, as the, to be honest, the Philippines is still in the list of the developing Asian countries which is also not the most favorable hub for the Forex brokers to settle.
However, things are not all negative there. As the Forex trading is regulated by the American-originated Securities and Exchange Commission, widely known as simply SEC. Thus, the market is striving to develop and yet do that properly in order to ensure the safety of both traders and brokers.
Therefore, today we will provide you with the best Forex broker Philippines 2019 list, as well as explain what are the FX regulations like in the country, and what shall the company do in order to become one of the legitimate Forex brokers in Philippines.
First, let’s find out what BSP is. You remember that SEC stands for the Securities and Exchange Commission. BSP, in turn, is the domestic Philippines regulatory institution that operated as a Central Bank of the Philippines and stands for Bangko Sentral ng Pilipinas.
Notably, SEC is the governmental body that is responsible for the securities industry regulation. It holds lots of functions that are targeted to provide transparent and free from scam financial environment. But what the organization also does, it controls the authorization of licenses for all of the companies located within the country. Thus, there is no chance for the Philippines Forex scams with the unlawful intentions to start operating on the market.
The main office of SEC is located in Mandaluyong City, Metro Manila. Now let’s see what are the exact functions and responsibilities carried out by that institution. Those include, but are not limited to:
Generally saying, SEC is allowed to control any type of financial institutions in the Philippines, and even the BSP regulated Forex brokers. It has absolute power over all organizations operating within the country. They are eligible to regulate various federal authorities, as well as the Government and even Congress. What SEC is striving to do really is to ensure the integrity and stability of the financial markets in the Philippines. And it has all of the tools that help to make sure their rules will be obeyed and followed. As they have a right to request help from civil forces, and even governmental military in order to assist it in the establishment/enhancement of the regulations.
Many believe that SEC was granted to much power and that is sometimes far from positive. However, at the end of the day, the only aim they are seeking is to reach the transparency and safety of financial, as well as Forex, market.
Basically, being a Central Bank and bearing all of the following responsibilities is not easy at all. Thus, there is no wonder why certain regulatory responsibilities were put on the SEC shoulders. In the meantime, BSP maintains the stability on the financial, as well as Forex, market. The BSP, being a Central Bank of the Philippines, does all the things that type of governmental body shall do, meaning that it is responsible for:
The BSP was established not that long ago, only in 2003. And ever since it was putting all of the efforts into ensuring that the whole financial ‘machine’ functions smoothly and properly. Thus, to become one of the BSP top regulated brokers, the company needs to follow precise rules and regulations created by the governmental body. As it will not tolerate scams, machinations, deceptions, and lack of transparency in the operations carried.
The BSP organization is imposing strict rules and requirements on those who are planning to establish the Forex brokerage company. Why? Because for the developing country, the possibility of scams and money laundering is the last thing desired.
The aspects that might be attentively studied are who exactly has a right to trade, what currencies can be traded, and in what amount.
However, there is one main concept that is the deciding one for the BSP organization, and so is for the prospect BSP Forex broker. That is the so-called Know-Your-Customer principle aka KYC. That means that before starting the trade, the broker shall hold the personal information of the trader. That is needed to prevent the money laundering from happening. As that is still a scourge in the small developing countries.
Thus, when you are creating an account with one of the brokers that were officially included in the Philippines Forex brokers list, you need to be ready to provide certain documents that will state your true identity and prove you do not have any unlawful intentions.
We would also like to warn you that the whole KYC authorization process might be quite tricky and, what is more important, time-consuming. So keep in in mind when registering on one of the Forex brokerage website valid in the Philippines.
Well, firstly, we would like to mention that you are free to go with whichever broker you like, it is totally up to. No one will stop you from creating an account with the uncertified broker in the Philippines.
However, when choosing the BSP, or even the SEC regulated brokers Philippines, you will be much calmer and feel the ground under your feet. As in case if something will go wrong, you will face the unlawful action from the side of the broker, you can always file the report to the BSP organization, and the certain measures will be taken immediately.
But what is even better in this case, is that those incidents are not likely to happen, as those brokers have undergone a ton lot of checkings and verifications. And none of the Forex scams will go through all those steps, gave out lots of money, and prepare dozens of documents, to then just lose it all after they will be checked again.
Moreover, with the recommended Forex broker Philippines, you will even get a chance to receive professional financial advice regarding your investments and further steps in the Forex trading.
Of course, the Philippines cannot provide the prospect and mainstream brokers as of yet. However, the market keeps evolving and moving into a promising future.
A huge benefit is that there are no restrictions imposed neither by SEC or BSP to trade with the foreign Forex markets. Thus, what traders sometimes do, they created accounts with the brokers from the nearby countries like Japan, Singapore, or Malaysia, and trade from there with the foreign brokers.
Now let’s see what are the best Forex broker Philippines.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Usually, the brokers are taking certain commission from every trade, regardless of how successful it was. Luckily enough, the best FX broker Philippines do not charge any commissions as they are not relying on those as much. They are rather operating with spreads, which are basically the difference between the initial bid and ask prices.
Even though the Philippines is not that much of a Forex trading giant, it definitely has some attractive factors that keep bringing investors and traders there. Moreover, some trading gurus are even predicting a bright future for the country in the upcoming future.
As the market is still at its development stage, there is not that much of the competition there still. Thus, if you have good intentions to trade fairly and have nothing to hide, establishing the brokerage company there, as well as just start trading with the legit Forex brokers Philippines.
However, don’t hurry and try to find your broker in one day, it will make you no good, trust us. Spend your energy and time for finding the one that would correspond to all of the security regulations and would be completely transparent about their own policies as well. As that is your time and your money that might be simply wasted unless you won’t conduct proper research and make sure your decision is solid and based on the real arguments.
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