How to Choose the Best Forex Broker in the Philippines: A Step-by-Step Guide
by Fintech News Philippines October 2, 2023Life in the Philippines has been turbulent over the last few years, with events like the COVID-19 pandemic sparking mass unemployment. Considering the social unrest in the country, many people have turned to investing in an attempt to put money in the bank, and forex can be one of the most lucrative options. However, it’s important to know how to choose one of the best forex brokers in the Philippines to avoid needlessly losing money.
Image by Csaba Nagy from Pixabay
Know the Regulations
The SEC (Securities and Exchange Commission) moved to make forex trading illegal in the Philippines with a rather clear statement in 2018. Essentially, it advised people not to interact with foreign brokers offering colorful promises. In some cases, these bogus forex platforms offered +400% “get rich” schemes, which led to a wave of retail investor complaints regarding loss of money. Further, there are zero forex businesses operational in the Philippines because the SEC will not license them.
Even though the SEC made forex trading illegal, people in the Philippines are still able to learn about forex, meaning it’s legal to use a demo account to practice strategies. Additionally, there are plenty of foreign-based forex platforms with a high reputation and licensing from their country of origin, and these aren’t blocked for access.
Understand the Type of Trader You Are
Before you start using the best forex broker Philippines, you have to understand what type of trader you are. For example, if you’re new to the scene, you might want to find a broker with a relatively low initial deposit, a simple user interface, and a library of educational material. Additionally, we recommend choosing a forex broker that offers a demo account, which allows you to trial strategies without any risk.
After gaining more experience, you may find that the trading platform you choose isn’t fulfilling your needs. Equipped with a viable strategy, find a broker that offers a more extensive set of analytical tools including automated trading options.
Look Into Customer Service Quality
The forex markets never sleep, and you can run into issues day or night. To reduce downtime and ensure your issues are always solved, find a forex broker that offers 24/7 customer service. As well as this, get in touch with them about a potential issue to see how responsive they are. This is your money being risked, so you can’t afford to take unnecessary gambles by choosing a shady broker.
Explore the Broker’s Reputation
Circling back to the high number of malicious forex trading platforms out there, we recommend confirming your choice by reading community reviews. There are many review sites online, so be sure to check several to make certain positive reviews are consistent. Additionally, you can check the history of a forex platform; the longer a platform has been around, the more likely it is to be legitimate.
When choosing the best forex broker in the Philippines, the most important element to consider is licensing and reputation. If you lose money to a bogus business, you won’t be insured by the SEC; they already gave a stern warning on the matter.
Featured image credit: freepik
