No, binary options trading is considered illegal in the Philippines.
According to the Securities Regulation Code of the Philippines, binary options are illegal in the Philippines. However, many people still trade through software and offshore sites. Although binary options trading is regarded as illegal, it continues to grow because of weak enforcement.
Following the Asian trend, more people are trading binary options in the Philippines. Local brokers and agents aggressively promote their platforms, often blurring the lines between legitimate brokers and fraudulent applications. Filipino traders willing to continue trading binary options should ensure that they only work with licensed companies.
This article will provide a step-by-step guide for trading and investing in binary options and deliver research on their legality status.
Key facts about binary trading in the Philippines
- Binary Trading is not legal in the Philippines.
- Traders continue to make trades using offshore applications and websites.
- Filipino traders can start to trade Binary Options with a low minimum deposit of $10
- Different brokers with a high return, like Pocket Option or Quotex are available.
A Step-by-Step Guide to Trading Binary Options in the Philippines
Understanding the trading process is crucial for those new to binary options trading in the Philippines. Binary options trading may be very profitable if you have the appropriate information and use a strategy tailored to the Filipino market. Our all-inclusive tutorial takes you step-by-step so that even the most inexperienced traders in the Philippines may trade with confidence.
1. Pick an available binary options broker in the Philippines
Traders need to confirm the binary brokers‘ regulatory compliance first. Well-known regulatory bodies that ensure the security of traders’ money, such as ASIC, CySEC, and the Financial Services Authority (FSA), typically oversee binary brokers.
It is essential to remember that binary options are not regulated in many countries.
This implies that traders from specific countries might not be allowed to purchase or sell binary options through a local broker and will need to look for an offshore broker approved by a reputable authority.
You must deal with a licensed broker rather than an unregistered broker to protect yourself. A licensed broker will protect your cash by providing you with an appropriate cost that isn’t influenced by market manipulation.
100+ Markets
- Min. deposit $10
- $10,000 Demo
- Fast Execution
- High Profit up to 95%
- Fast Withdrawals
- Free Signals
100+ Markets
- Welcomes International Clients
- Offers High Payouts: 90% – 97%+
- Professional-grade Platform
- Swift Deposit Process
- Enables Social Trading
- Provides Free Bonus Incentives
100+ Markets
- Min. deposit $10
- $10,000 Demo
- Fast Execution
- High Profit up to 95%
- Fast Withdrawals
- Free Signals
from $10
(Risk warning: Trading is risky)
100+ Markets
- Welcomes International Clients
- Offers High Payouts: 90% – 97%+
- Professional-grade Platform
- Swift Deposit Process
- Enables Social Trading
- Provides Free Bonus Incentives
from $ 5
(Risk warning: Trading is risky)
Quotex
Quotex is a well-known brokerage that prioritizes the client experience and offers a prominent platform for trading options and derivatives.
Quotex was a market leader for binary options and contracts for differences backed by Bitcoin and other cryptocurrencies, and it has a reputation for building infrastructure.
A wide range of trading choices are available on Quotex, including currencies, equities, indexes, and commodities like silver and oil. Additionally, traders can trade Ethereum, Litecoin, Ripple, and Bitcoin—four well-known cryptocurrencies.
Features
- Minimum Deposit: $10
- Account Types: Demo, Live
- Trading Platform: Web platform & Mobile platform
- Instruments: Currency pairs, commodities, indices, and cryptocurrencies
- Minimum Trade: $1
- Expiry Times: 1 minute to 4 hours
(Risk Warning: Your capital can be at risk.)
Pocket Option
Pocket Option is a user-friendly platform in the Philippines that makes it easy for beginners and seasoned traders to execute trades. With a valid brokerage licence from the Mwali Intenational Services Authority(MISA), Binary Options traders can consider Pocket Option a reliable source. Throughout the years, it has gained recognition as a significant player in the financial industry. This binary options firm is rated in the top three.
Pocket Option provides the widest selection of trading choices. The website offers over 35 cryptocurrencies, including the quickly booming Bitcoin and Ethereum, currency, commodities, stocks, and indices.
This brokerage rewards fewer than others, as popular cryptocurrencies are volatile and subject to large price fluctuations. They also provide a fair-market reward for deals involving Bitcoin options.
Features
- Secure and dependable trading platform
- Minimum deposit of $5
- Complimentary demo account with $10,000 virtual funds
- Over 100 diverse trading assets are available
- Round-the-clock trading options
- High potential returns up to 95%
- Multilingual support for international traders
- Cash-back program for active traders
- Attractive bonus offerings
(Risk Warning: Your capital can be at risk.)
2. Sign up for a trading account
Before you start the account opening process, you’ll need to gather the following information, regardless of your chosen platform or kind of account. To register your account, you must provide some basic personal information. Your social security number, date of birth, and your type of job are all required.
You’ll receive questions on how you feel about taking on financial risks and how long you intend to hold on to the assets you purchase.
You don’t have to stress over whether or not your responses are accurate to the nearest penny or percentage, as the broker will only use this information to improve your risk profile and help you achieve your objectives. It does not affect your verification process.
(Risk Warning: Your capital can be at risk.)
3. Use a demo or live account
Demo accounts for binary trading aren’t just for beginners. Even seasoned traders frequently participate in demo testing. For a variety of reasons, including mistakes, shifts in the market, psychological issues, and more, your techniques may not always work as intended.
You may practise and feel the market’s pulse with a demo account for binary options without risking any money. It enables more experienced traders to improve and adjust their methods without jeopardising their wealth.
With a demo account for binary options, you may practise and understand the market’s current situation without worrying about losing money. More seasoned traders may also use it to refine and modify their strategies without having to risk their money.
4. Pick an asset to trade
Before trading on a live account, beginners and new traders should choose a small number of assets to practise and become comfortable with on a demo account. However, most traders concentrate on just one market, sector, or class of assets. Start with a single asset if you’re new to binary options trading so you may become accustomed to certain market behaviours, pricing patterns, and methods without being distracted by continuously switching between markets.
Experienced traders ought to familiarise themselves with the platform prior to trading with their usual selection of assets.
5. Make an analysis
Indicators are added to charts in binary options analysis to examine market movements. Binary options traders use them to search the underlying markets for trends and patterns that might influence their trading decisions. The majority of traders include indicators in their trading strategies.
Technical indicators consist of 3 categories:
- Trend – These indicators indicate price movements. They are also referred to as oscillators sometimes.
- Momentum – Momentum signals help traders to determine how strong a pattern is. They can also indicate reversal moments in your trades and tell you when a price movement is weakening.
- Volatility – Volatility indicators measure the degree to which market changes cause price swings.
If you’re new to trading binary options, check out a basic strategy that you may apply to the asset of your choice. If you find that these methods work for you, go ahead and make improvements. After all, each trader has their unique approach.
Experienced traders can employ the strategy you used for your analysis, or you can go through our list of updated strategies.
6. Place the trade
Since traders base their judgements on whether they believe the value of an asset will increase or decrease, binary options are among the simplest options contracts to trade. Traders who are new to the financial markets find binary options appealing because they only have two options to choose from. To place a binary options trade, traders must choose which option to stake.
It is suggested that beginners start with a small investment in a binary options transaction to understand how the option’s price changes in tandem with the asset’s price movement. As you acquire experience, you may raise your trade investment to increase your profits.
After becoming acquainted with the platform, experienced traders can execute trades based on their analysis.
7. Wait for the result
If a binary option contract is kept until expiration, traders will either get a payout or nothing at all. Once the trade has ended, traders will be aware of the outcome of their binary options trading depending on the end value of the asset and whether or not it has moved according to the trader’s prediction.
The trader will be paid if the outcomes match the trader’s analysis. Alternatively, the trader will not get a payout and loses their initial investment amount if the binary options result does not match the trader’s prediction.
You may adjust your strategies to achieve better signals and outcomes or keep making trades based on how the last trade turned out.
Payment Methods for Traders in the Philippines
Here are some of the most typical deposit and withdrawal methods for trading binary options in the Philippines:
- Bank Wires – The banks in the Philippines allow their customers to carry out bank transactions and purchase foreign currencies, which encourages the usage of bank wires.
- Credit/debit cards – All binary options companies do not accept credit/debit cards provided by banks in the Philippines.
- Digital wallets – International digital wallets like Skrill, Neteller, and Webmoney are growing in popularity among Filipino traders. The inclusion of various regional e-wallets, including WeePay DragonPay, JuanPay, PesoPay, PayEasy, Smart Money, and GCash, has partly contributed to its popularity. These regional e-wallets work with regional bank cards as well.
How Do You Make Deposits and Withdrawals?
How do I deposit?
Different deposit choices are offered based on the broker. Once you’ve logged in, go to the deposit page. Here, you may select the method that will add money to your account the quickest.
To deposit funds, traders can follow these steps:
- To deposit, visit the broker’s website or open the application.
- Login to your trading account.
- Click on the ‘deposit funds’ or ‘add funds’ option the broker offers.
- Enter the deposit amount.
- Choose a payment method.
- Authenticate the payment
The broker authenticates the trader’s payment and deposits the entered amount into your trading account once traders confirm it. This sum may be used to trade binary options and make money.
How do I withdraw?
The majority of platforms limit the withdrawal process based on the deposit method. You might only be allowed to withdraw funds through the same method you used to deposit your funds into the account. You may apply for a withdrawal on the withdrawal page. Depending on the broker, the withdrawal process might take weeks or a few hours. Furthermore, circumstances could change based on your location.
To withdraw funds, traders can follow these steps:
- Choose the ‘withdraw funds’ or ‘withdraw my funds’ option on the dashboard.
- Enter the amount you wish to take out.
- Choose a withdrawal method.
- Submit the request
(Risk Warning: Your capital can be at risk.)
Pros and Cons
Pros
Free trading demo accounts
Brokers allow you to establish free demo trading accounts with fictional funds. This enables novice traders to trade binary options risk-free using current data. It is a fantastic opportunity to practice the trading technique and become accustomed to this type of trading.
Trade Anywhere, Anytime
Traders have access to the world market from any location whenever it is open.
Risk and reward that are predetermined
Before entering a deal, consumers know the dangers and potential profits of binary trading.
Cons
Trading against the house
Binary options are comparable to sports betting because the broker reveals bets, and you either win or lose. It is also important to understand that you are only betting on the progression of an underlying asset and that you do not own anything. The only thing that exists is a deal between yourself and the broker. The house always prevails, so keep that in mind!
Fraud Risk
Be careful to work with a reputable broker if you trade binary options. This industry has numerous phoney offers and brokers, which are highly vulnerable to fraud. Always exercise caution when dealing with websites or people that lure you with “100% guaranteed” offerings.
Conclusion: Binary options trading is available in the Philippines
Binary options trading, while not yet available everywhere, is becoming increasingly popular in the Philippines. Although all the brokers are located outside the country and are subject to Filipino regulations, introductory brokers are present in the Philippines who can assist you in trading more effectively.
It’s essential to understand the rules and regulations of your chosen broker and the services they offer. If you’re based in the Philippines, it’s worth considering all available options before making a final decision.
Frequently Asked Questions (FAQ)
Are binary options permitted in the Philippines?
As per the specifications of the Securities Regulation Code, binary options trading is not allowed in the Philippines.
Is binary options trading secure in the Philippines?
Trading binary options is currently not secure in the Philippines. Numerous investors have complained to the SEC about losing money to foreign brokers. These losses are most likely incurred on illegal broker sites. Many Filipino traders find distinguishing between licensed and unlicensed brokers challenging since both compete in the Filipino market.
Can I trade binary options with foreign brokers as a Filipino citizen?
The SEC considers offshore binary options brokers unauthorised organizations in the Philippines. As a result, trading binary options with foreign brokers is forbidden in the Philippines. However, little is being done to enforce the law to prevent local dealers from trading with foreign brokers.
Is PayPal a viable payment method for binary options dealers in the Philippines while utilizing binary options platforms?
Local binary options traders in the Philippines are unable to use PayPal.
