Over the last few years, the popularity of binary options trading has grown extensively and traders globally have joined in on the action. If you are a citizen of the Philippines or you are located in this beautiful Southeast Asian country, you too can trade options online while taking advantage of the high rewards and low risk that this form of trading offers.
Is Options Trading in the Philippines Legal?
To be a successful trader, you need to first establish if online trading is legally accepted in your country. The good news is that binary options trading is legal in the Philippines and it is regulated by the Securities and Exchange Commission (SEC) of the Philippines. As the regulator of the Forex business in this Asian nation, SEC ensures that brokers offering their services within the country are under their regulatory rules. While there are very few brokers based in the country itself, most brokers are regulated with other authorities outside the Philippines, yet they offer their services to Filipino traders. For example, many binary options brokers are regulated by the Financial Conduct Authority (FCA) and the Financial Policy Committee (FPC) in the United Kingdom or by CySEC (Cyprus Securities and Exchange Commission) in Cyprus and this enables these brokers to offer their services based on the regulations of the Philippines.
How to Select A Reliable Binary Options Broker
Now that we have established that you are allowed to legally trade online in the Philippines, the next step in successful trading is selecting a reputable binary options broker. Since this market has grown extensively, you are not spoilt for choice but finding a broker that is regulated as well as accepts traders from your country, is your starting block. This information can easily be obtained directly from the broker themselves or you can search online.
When you chose a broker to sign-up and register with, you should look at this broker as a partner. That is, this partner needs offer the services and features that are important to you as a trader. In the options trading world, this means you need to be looking at the broker’s trading interface, trading tools, rate of return, educational material, assets and much more. While this may sound a little daunting, let’s break down the key features you should be focusing on.
Binary Options Trading Platform
In order to trade online, you need to have access to a reliable and intuitive trading interface. This is the platform from where you can make your trades. Most brokers in the Philippines offer a 100% web-based platform which means that you will not need to download any software in order to trade. A good way to test the interface before you sign-up, is to find a broker who offers a demo trading account. This will allow you to trade within a real trading environment without the risk of losing any money. This training account will also give you the opportunity to check the features of the trading interface and to learn how it works.
Another important feature of the trading platform is to look at the trade options that the broker offers. This may include the standard binary options trade option, the One Touch option which can be traded over the weekends, the Option Builder trade option which provides the trader with the flexibility to build the trade based on their choices such as, selecting the expiry time as well as the profit/loss ratio, the 60 Seconds trade option which offers an expiry time of a trade of only one minute or 60 seconds, the Pairs trade option which allows the trader to trade one asset against another to see which will perform best by the expiry of the trade and many other. If day trading is important to you in the Philippines, selecting a broker that offers trade options that enable you to day trade, is important. That is, you will select a broker if they offer short-term trade options from 60 seconds to one day, in order to meet your trading needs.
When you trade binary options, you have the flexibility to trade in a variety of assets which include commodities, indices, currency pairs and stocks. You can usually find a detailed asset index on the broker’s website or you can see this information on the trading platform. If you enjoy trading Forex, then check that the broker offers the relevant currency pairs you like to trade in, or if stock trading in the Philippines is your passion, check that the broker offers the stocks you enjoy trading. While you can trade binary options without any experience or knowledge of the markets, having some familiarity with a particular asset, enables you to predict the price movements of the asset more accurately, thereby boosting your trading success.
Keep An Eye On Your Money
As we have said, in order to trade binary options in the Philippines, you need to sign up with a broker. Registering an account with a broker is usually free of charge but most brokers require an initial minimum deposit in order to access their trading platform. This can be as low as $50, right up to $400. In order to be a successful trader, you should only trade with money you can afford to lose and so you should select a broker that offers an affordable minimum deposit requirement.
Many brokers also offer a welcome bonus up to 100%. This means that if you make an initial deposit of $200, the broker will give you an additional $200 in your trading account to trade with. While this definitely has its advantages, the terms and conditions of these bonuses are usually very strict and they often require that you trade the full balance of your account over twenty times before you can withdraw any funds. This could result in you losing all your money so be sure to check the terms carefully and remember, you do not need to accept the welcome bonus.
The fact is, trading online is all about making money. Because of this, the rate of return offered by the broker is an important element to look at when selecting a broker. Most brokers offer a return of up to 85% on successful trades and a rebate of up to 15% on losing trades. Be careful though because in some cases, a broker may offer a return of up to 95% on a trade that ends in-the-money but they could then have a minimum trade amount of $50 or more so be sure to check these details carefully.
Your personal and financial information is sensitive so it is important to select a broker that guarantees the safety of this information. Being able to withdraw your funds from your trading account as well as make a deposit is also an important area. Check that the broker offers payment options that are accepted in the Philippines in order to ensure that you can access your funds with ease.
Binary options trading in the Philippines is growing daily and you can easily become a part of this profitable and exciting world. As we have seen, selecting the right broker to partner with, is important to your trading success and effectiveness, so make sure to take your time to check what the broker has to offer and to ensure that this meets with your trading needs.