Best Binary Brokers
One of the most populated country’s on earth, yet the Philippines has around 10 million of its inhabitants living in other countries. The reason is clear – unless you live in the capital or one of the major cities you will find unemployment levels rife, especially in the Islands and villages. That’s where the internet plays such an important role and particularly the ability to make money online. As such Binary Options trading is becoming ever more popular as a way to make an income without leaving the comfort of your own home.
In order to trade binaries in the Philippines it is essential to take the necessary precautions to avoid unsavoury scams in this largely unregulated market. As there are no local binary options brokers based in the country, traders in the Philippines will need to seek the services of brokers located outside of the country. With most brokers being located far away from the Philippines, there is no way to perform physical verification of these brokers. That’s why Filipino traders should definitely consider only working with regulated brokers.
Best Brokers in Philippines
There are no laws prohibiting this type of trading in Philippines. However you can only open a trading account using a local introducing broker (IB) where these exist, or you would open the account directly from the website of an offshore broker.
The market is largely unregulated, so you must be very careful with your broker selection. We have been able to sift out some of the best brokers for your business. These are firms with established track records, no scam history and are well regulated in their countries of domicile. So check out the list of brokers that we have shortlisted below:
Regulation
The financial markets are regulated by the Securities and Exchange Commission (SEC). This is an autonomous agency of the central government of Philippines, and is responsible for the supervision of the local securities market. In addition, the SEC provides oversight functions for the Philippines Stock Exchange as well as member brokerages.
Banks in Philippines also engage in OTC and forex trading activity. Supervision of banks is provided by the Central Bank – Bangko Sentral ng Pilipinas (BSP). The BSP is mandated to provide regulatory direction, promote monetary stability and supervise the operations of banks. The BSP also has the powers control the operations of finance companies as well as financial institutions (which include introducing broker agents for offshore binary options companies).
There are relevant investment laws controlling how Filipinos can invest in the financial markets. The major law is the Investment Houses Law (Amended Presidential Decree No. 129) which mandates that corporations that carry the roles of financial consultancy, investment advisory services, portfolio management, financial agents, and brokerage businesses must be licensed as investment houses. Foreign entities are permitted to take up to 60% of the voting stock of an investment house.
Given that most Filipinos interested in binary trading will have to deal with offshore entities, what are the most important points to watch out for?
a) Regulation
Why is it important to use a broker that is regulated in the country where it is located?
- Regulation makes the brokerage answerable to the regulating authorities. These regulators provide rules and regulations under which the brokers must function. The rules are meant to protect traders, especially if such traders are in the Philippines and the brokers are in a country which is 10,000 miles away.
- Regulators function as an enforcement agency which punish errant brokers where there are proven infractions.
- A regulated environment brings out the best in brokerages as they will strive to be ay their best for the trader. Always use a regulated broker.
b) Great Reviews
It is important to distinguish objective reviews provided by those who have used a broker’s services, and paid reviews provided by affiliates. You can get access to objective reviews from online forums dedicated to trading. You will always find traders who can provide an objective description of their experiences.
c) Trading Conditions
Take some time to study the trade conditions which are available on the trading platform of your preferred broker. Does the broker offer a multi-lingual platform? Are there tutorials to provide guidance on how to start using the trading platform?
Deposit Methods Available In Philippines
Traders in Philippines will be able to use the following methods of transaction on trading platforms.
a) Bank wires: These are a universal method of bank transactions and are open to all Filipinos.
b) Credit/debit cards: There are some restrictions on what cards can be used on certain binary options platforms. The use of credit/debit cards are therefore not a universally accepted method. The broker that is chosen and the payment method offered on the platform will determine if local credit cards can be used.
c) E-wallets: There is presently an upsurge in the use of e-wallets on trading platforms. In addition to the major ones such as Skrill, Neteller and Webmoney, there are other country-specific e-wallets which can be used to transact on the major ones as well as on the binary options platforms. PesoPay is one of the leading e-wallet companies in Philippines. Others include Paysafecard, PayEasy, Perfectmoney, Smart Money, WeePay GCash, JuanPay, Payza and DragonPay are other e-wallet companies which are available for online transactions. These e-wallets integrate with many of the local banks in Philippines. Traders can therefore use their bank ATM cards (debit cards) to deposit money available on the integrated e-wallets.
FAQ
- Is it legal to trade binaries in Philippines?
Yes. It is not illegal and is open to anyone above the age of 18 years who wants to participate in it.
- Are binaries regulated in Philippines?
Yes. Financial services including OTC trading is regulated by the Indonesian Financial Services Authority known locally by its abbreviation OJK.
- How to trade binaries in Philippines?
There are no local brokers in Philippines. In order to perform binary options trading in Philippines, you must first open a trading account with an offshore broker. There may be local introducing brokers representing offshore firms.
