Best Forex Brokers Philippines for 2023

The Securities and Exchange Commission (SEC) Philippines is the principal regulator for the financial markets in the republic of the Philippines. The SEC Philippines oversees local capital markets, including broker-dealers, investment companies, lending and financing firms, financial institutions, and other licensed intermediaries. There are over 351,000 stock corporations, as per the SEC’s latest annual report. While forex and CFD trading is not regulated in the Philippines, the SEC regulates the following types of entities:

• Stock corporations
• Non-stock corporations
• Partnerships
• Securities brokers and dealers
• Dealers in government securities
• Investment houses
• Transfer agents
• Underwriters of securities
• Investment company advisers
• Financing companies
• Lending companies
• Mutual fund/ Investment companies
• Mutual fund/distributors
• Issuers of unlisted securities
• Issuers of proprietary/non-proprietary securities
• Exchange-traded funds
• Publicly-listed companies
• Public companies
• Self-regulatory organizations (SROs)
• Accredited surety companies
• SRO exchanges
• Clearinghouses
• Securities depositories
• Operators of alternative trading systems (ATSs)
• Registrars of qualified buyers

Unfortunately, there is not a list of authorized forex brokers, however, residents can currently view a list of registered firms on the SEC website, or contact an office to verify the authorisation of a broker.

The exchange of local currency is regulated under Circular Number 1389 and applicable to authorized agent banks (AAG), but retail forex trading is not legal in the Philippines nor are any local brokers licensed to offer forex and CFDs, according to the local financial market’s regulator (the SEC Philippines). The SEC Philippines has repeatedly advised the public to stop engaging in foreign exchange trading and warned against trading CFDs and other off-exchange derivatives offered by international brokers.

This highly conservative stance against forex is representative of the government's long-standing view that margin-based derivatives such as forex and CFDs are not suitable investments, and is meant to protect local residents from losing money to scam brokers. In a 1993 case brought to the Supreme Court of the Philippines, Onapal vs. Court of Appeals, the court ruled that commodity futures contracts (including forex and CFDs) are considered to be “purely gambling and declared null and void by law.” This ruling is referenced in an SEC Advisory, dated November 2013, and the SEC’s latest advisory regarding the illegality of forex in the Philippines was in October 2018.

Yes, citizens and residents of the Philippines must declare all of their worldwide income, including income from any forex brokerage accounts with international brokers. If you are not a resident or citizen of the Philippines, your countries of residence and/or citizenship will have their own tax obligations.

The Bureau of Internal Revenue of the Philippines further states that in the event of double taxation from other countries and/or potential tax treaties, residents are still obliged to report all foreign-sourced income to the Philippines government. In cases where there are tax treaties, residents can apply for a Tax Residency Certificate using their Tax Identification Number (TIN).

Note: If you are a resident or national citizen of the Philippines, be sure to contact a local tax accountant to learn how the local tax laws apply to you.

As a resident or citizen of the Philippines, your options for forex trading are limited. There are currently no SEC-regulated brokers that offer forex trading in the Philippines (and the SEC Philippines advises its citizens against forex trading). That said, should you decide to open an account with an international broker to trade forex, it is best to choose one that is highly trusted and well-regulated to reduce your risk of becoming the victim of a potential scam. From among the most trusted brokers that accept clients in the Philippines, you can open a live account with the following brokers to start trading forex:

• IG - Best overall broker, most trusted
• Saxo Bank - Best web-based trading platform
• Interactive Brokers - Great overall, best for professionals
• FOREX.com - Excellent all-round offering
• XTB - Great research and education
• AvaTrade - Great for beginners and copy trading
• Capital.com - Great for beginners, easy to use

Pro tip: Once your new forex trading account is established, it is important to learn how your broker’s trading software works. A demo account can be a great way to familiarize yourself with the software and test trading strategies before placing real trades in a live account. If you are just getting started as a forex trader, check out our popular guide to forex trading for beginners.

IG is our top choice among forex brokers that hold regulatory licenses around the world, and accept residents of the Philippines. IG is a highly trusted, publicly-traded brand that operates a bank, and it ranks at the top across nearly every category important to traders. That said, it’s important to note that the SEC Philippines warns its residents against forex trading, as it is not a locally regulated activity. To learn more, check out our full-length review of IG.

Forex Risk Disclaimer

There is a very high degree of risk involved in trading securities. With respect to margin-based foreign exchange trading, off-exchange derivatives, and cryptocurrencies, there is considerable exposure to risk, including but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or related instrument. It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable, or that they will not result in losses. Read more on forex trading risks.