What this means for traders registered with BSP regulated Forex brokers is that you can expect to be asked to provide relevant documents, proving you are who you claim to be prior to making any trades or, more often, before you are allowed to make a withdrawal. Its policies are geared towards providing fair competition and sustainable growth. No massive amount of funds tied up in inventory 4. These are live accounts on which traders use their deposits to make real-time trades. At the end of the day, Philippine Forex brokers regulated by BSP work in the same way as those operating in the western world.
Forex trading is a damn risky business. Many people have went from millionaires to homeless in less than days trading the markets. Many people have went from millionaires to homeless in less than days trading the markets.
General Regulation & Philippines Regulation
However, it does not mean opportunities are not there when it comes to investment. On the contrary, the smartest investors search for opportunities to develop their businesses where there are still few competitors. This is very true about Forex. A new and fresh market for the country means lots of brokers are coming to gain a market share of those Philipinos who want to trade and make money.
However, one should not forget that where big money is involved, a lot of scams follow too. So, when in search for a reliable Forex broker you need to remember to look for the one who is regulated by BSP. Then, you need to check what trading platform the broker offers, are there any hidden fees or commissions, is there a choice of accounts that would fit your needs, is customer service good or not and whether there are any other additional services.
Gone are the days, when just any broker can open an offshore company and offer his services wherever he wants. Most countries have implemented quite strict regulation frameworks and you can hardly find a place in the world where an unregulated broker is not frowned upon.
This means more security and confidence for the average trader and fewer opportunities for scammers who prey on your hard earned money. Philippines is no different. It was founded in , which makes the Bank quite a young financial institution. The main responsibility of the entity is to supervise financial markets and ensure that they function smoothly, competitively and transparently.
The Bank also supervises market players offering their services to local citizen with intention to regulate their services.
Despite the fact the regulator allows market intermediaries freely trade any market they want, BSP will not tolerate any scams, price manipulation and money laundering schemes, but punish any broker who dares to engage in those.
So, a Philippino trader should feel safe with a BSP regulated broker. If you live in the Philippines, want to trade and think you have found a decent broker, you also need to check what kind of trading platform and software the broker offers you. The trading platform will be your main tool you work with. If it is bad, it does not matter how good you are in trading or how good your trading system is, you can make a bad decision due to not knowing what icon or button you need to push and accidentally make a wrong trade which will cause you to lose money.
So, the platform has to be easy to use. Each button and function on the platform should be understood easily by you. You should also be able to open as many charts on it as you need for analysis, both technical and fundamental. Back testing function should also be there, so that you know whether the strategy or code you want to use work well or not. Finally, you should be able to copy other traders who might be more successful than you.
So the copy function should be there. One of the best platforms that is downloadable is Metatrader and any good broker should offer you that. All traders know how commissions can take a huge bite off their profits and they search for brokers who offer the lowest commissions on transactions.
Contrary to stock brokers, Forex brokers typically do not charge commissions, but they make money on spreads. A spread is the difference between buy and sell or bid and ask price. Spreads tend to be fixed and variable. Brokers who offer fixed spreads will charge from pips on major currency pairs and around on currency crosses.
Those who operate with variable spreads will typically offer much smaller spreads. On majors variable spreads can be 0. However, you should remember that these spreads are under normal market conditions. When markets react to some unexpected fundamental event and prices start jumping up and down, brokers extend those variable spreads and they can become 10 or even 50 times bigger than usually. Of course, this will typically last just a few minutes till markets calm down, but you still have to know when to avoid opening or keeping positions open.
A lot of brokers offer different levels of accounts that depend on size of capital you have and two hundred dollars is not too little to start with.
Traders who have bigger capital than 10k can open a standard account and trade standard lots. SEC also maintains an online register of companies. The local community is being serviced mainly by foreign companies, some of which have established local branches or representative offices.
As governments around the globe are mulling how to regulate the crypto currency market, bold new legislation in Thailand and the Philippines gives an insight for a potential solution. IronFX, the Forex broker operating from the island of Cyprus, has just announced it's continuing with its global expansion — this time it's opening an office in Manila City, the Philippines.
Quotes from Barclays Capital: However, we think the central bank may be biased to withdraw some monetary stimulus with a possible 25bp hike in Q4 Philippines' international reserves grew from the previous month in December, preliminary data released by the Bangko Sentral NG Pilipinas showed Monday. Quotes from Barclay Capital: We forecast full-year growth of 6. Robust growth through suggests potential inflation risks ahead.
Forex trading carries a high level of risk and may not be suitable for all investors. Before you engage in trading foreign exchange, please make yourself acquainted with its specifics and all the risks associated with it. All information on ForexBrokerz.
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What is Forex Trading
Business, Investments & Personal Finance. Ready To Be Rich. Learn How To Trade Forex in The Philippines Updated: August 18, Do you want to learn how to trade and make money in the foreign exchange market? Then I have good news for you. Forex trading is the best business model in my opinion and my long term goal should be (logically) go this way. Studying and learning more about forex and testing strategies should be mandatory if I want to be profitable in this trade. The Securities and Exchange Commission of the Philippines is the regulator of the forex business in the Asian nation. As a developing economy, Philippines cannot be said to be a major hub for forex brokerage, and the local community is being serviced by U.S. based firms which are regulated under the rigorous oversight that any domestic American broker is subject to.