Filipino Traders Guide
Asian countries like the Philippines are a popular place to trade from. Regulation in the Philippines isn't too strict, but there are still sanctions to ensure that your money is safe. For many of you, there are questions yet to be answered. Is it legal? Can I trust this broker? Which broker should I choose?
While regulations imposed by the National Bank make it easier for local brokers to operate more and more brokers from markets like Europe are marketing their services at countries like the Philippines to try and entice more traders to use their sites. The difficulty can sometimes be in whether to choose a local or international options broker.
We've looked at a lot of country-specific criteria, and the Philippines stacks up pretty good. For those that are unsure about selecting a broker, our website removes the uncertainties and presents you with a choice of respectable, licensed brokers that offer the best user experience.
In this article, you will learn:
- The binary options brokers best for you
- What local payment methods are accepted
- Taxes and fees that apply to PH residents
Traders in The Philippines
Binary options trading is growing in popularity in countries like the Philippines. As well as the larger nations like China and India, smaller countries like Indonesia, Malaysia and Singapore, are also becoming more familiar with this type of investment trading and what it has to offer. Are binary options legal in the Philippines? Yes, it is perfectly legal to trade using this method.
There are now many brokers local to these countries, and more are popping up all the time. Some of the brokers that you will find in the Philippines have staff who were once traders themselves, and this means they have the experience to know what traders want. But what should you look for in a broker and how do you know which one to choose?
Licensing And Regulation
While you may prefer to trade with a local broker that is licensed and regulated by the central bank of the Philippines, foreign binary option brokers such as ExpertOption, Olymp Trade and IQ Option also have to be regulated before they can operate there. Whichever option you choose, make sure they are licenced.
Mobile And Tablet Trading
Ease of use and being able to trade on the go are critical to many of you who want to be able to use online brokers, wherever you are. Look at whether the broker offers a mobile version of its trading platform or at least a mobile responsive website and that you can trade from any device you own.
Bonuses And Incentives
Binary option bonuses are a great way to make your money go further. If you are a new trader, a no deposit bonus is a no-commitment way to try trading before you risk your funds. For other, more experienced traders there are lots of standard deposit bonuses and also other incentives to keep you trading. Look for a decent free demo account as these are great to practise on.
Customer Help And Support
If you have a question or a query regarding trading, or something to do with your account, you need to ensure that you can get help. Check to see what forms of support the best binary options broker offers and how easy it is to get in touch.
You may be unsure about whether or not to choose a local broker or whether in fact to follow the bright lights of a foreign broker with all of the fantastic incentives they have to offer. Whichever you choose you will be wise to do your research and follow the recommendations of a professional service like ourselves.
Broker Fees And Tax
What are the cost implications for trading and how much of your returns will be yours to keep? For those of you that are new to binary trading, the Philippines has a few rules and things you need to consider. The first is the fees that you will incur for trading. Now the commission fee for successful trades is usually taken before you receive your profit, but there are other fees you need to be mindful of:
Once you have considered the online trading fees, you need to check out any tax implications. Now different countries have different tax laws and in some nations, a second income could be taxed differently to profit from trading.
The most important thing is to keep a record of your trading, both losses and winnings as you can offset your losses against your winnings so that you only pay tax on the overall profits. You also need to ensure that you declare the profits. Hiding it and then being discovered may lead to higher penalties. If you are unsure as to how much profit you have made, it is worth tracking your trading and keeping a log of all your actions.
Most countries have some set of regulations and laws when it comes to binary options trading. You can read many reports that the US is very strict and only allows local binary trading brokers to signup new customers. On the other hand in places like Cyprus and the UK, they aren't as severe although they have some of the best licenses in the industry.
With trading binary options in the Philippines, it is somewhere in between. While there is no professional body as such to regulate online trading it is overseen but the country's central bank. Both local and foreign brokers must be controlled and allowed to solicit their services.
The trouble with having a bank regulating the industry is that it is not a foolproof system and while the local brokers may have undergone scrutiny it isn't always a guarantee that your money is safe. Sometimes it is better to look at the more effective licensing from bodies like CySEC which is more regulated and seen as a more reliable source.
You must also consider the currency that you are trading in and how that will work for you when withdrawing your winnings. If you are still unsure about which brokers to trust and how to know which one best suits you then you can take a look at our recommendations, for Filipino traders we currently recommend Olymp Trade and IQ Option.
Asian countries like the Philippines are a favourite place to trade options.
How we Recommend Brokers
We want to ensure that you have the best binary options trading experience possible and will only put our name to brokers that we are incredibly confident recommending. We vet, review, inspect and dissect every aspect of the brokers ensuring that they safe places for you to invest. We look not only at their licensing and regulation but also their history. For example, how long have they been operating and what is their financial performance during that time.
We also look at the type of trading experience they offer from their website on the desktop to the mobile offering. With so many of you now wanting to trade on a mobile phone, it is vital that every broker has an easy to use responsive website or app. Some even go so far as to cater to users of the Apple Watch with their bespoke app.
As well as the ease of use and trading experience it is also important to look at the incentives that each broker offers. If you are keen to try out a binary options broker before you commit, then you will be looking for a good demo account however if you prefer an attractive signup bonus, then many brokers offer different options.
There is also the consideration of minimum trades and how much you have to deposit. If you want to dip your toe, then you won't want to deposit as much as an experienced trader that has plenty of trading knowledge. By choosing one of our recommended brokers, you can be confident that you will be choosing wisely.
Frequently Asked Questions
Is binary trading in the Philippines legal and safe?
Trading binary options is perfectly legal either with a local or a foreign broker as long as you adhere to the tax laws. Whether it is safe or not depends on the broker being legit.
Do I need to pay fees and taxes on my profits?
Each country has its tax laws, but it is standard across the world to declare any profitable earnings whether it be a primary or secondary income and to pay any taxes owed.
Can I test brokers before trading with real money?
If the broker offers a demo account that doesn't require a deposit then yes you can trade without using real money. You need to shop around for the brokers that offer demo accounts with no deposits.
Is it easy to make deposits and withdrawals?
You merely deposit your funds, and you are ready to start trading. Before you make a withdrawal, you will need to verify your identity and pass certain security checks.
Can I trade using my mobile or tablet device?
The best brokers will offer both a mobile website but also apps for any device from Android phones to Apple watches. Again we select brokers to match your needs, and you are sure to find only the best.
Jacob has been an author for us since our launch in 2012. He has over forty years’ experience in the financial sector and has held a variety of positions within financial services corporations and venture capitalist organisations.