Forex for a trader
Forex currency philippines

Forex currency philippinesThe Asian forex market is among the busiest markets in forex. Asian countries such as Indonesia, Singapore, Japan, and Malaysia have established themselves as big names in the forex space over a number of years. In the Philipines, however, forex trading hasn’t taken as big a hold as its Asian counterparts. That could be good news for investors looking to venture into the unexplored market. Since it offers a wide range of opportunities for new brokers and even more potential investors, forex trading in the Philippines could be tricky to set up. If you find trusted forex brokers in the Philipines, you could be in peak position to make substantial financial gains from the underserved territory. Here’s how to choose trusted forex brokers in the Philippines: Regulatory bodies. For its profitability, the forex business is a prime target for rogue brokers who would like to take advantage of new entrants. Fortunately, forex brokerage firms in the Philippines are regulated by Bangko Sentral ng Pilipinas (BSP). The BSP is the Central Bank of Philipines. As one of the most highly recognized financial institutions in Asia, it is responsible for maintaining financial market oversight in the Philippines. Trusted Forex Brokers in the Philippines are required to adhere to the standards imposed on them by the BSP. Overall, the BSP was established with the key mandate of ensuring that the Filipino finance industry maintains a good business practice, fairness, and accountability. Its policies are geared towards providing fair competition and sustainable growth. The business environment resulting from sound economic policies is sure to attract more investors. BSP does not have regulations aimed strictly at forex traders. Instead, it regulates all kinds of foreign exchange. This could be because the bank itself is a young institution and so is forex as a business opportunity in the Philippines. If you intend to find trusted forex brokers in the Philippines, you should know that the BSP has put in place a policy known as Know Your Customer.

Due to the massive amounts of withdrawals in forex, BSP requires that brokers confirm the identity of the people trading with them. As an investor trading with a BSP-regulated broker, you will be required to provide some sensitive documents. However, it is always safe to trade with a regulated forex broker for maximum consumer protection. Trading Platforms. An investor’s next best tool is the trading platform on which they ply their trade. Trusted forex brokers in the Philippines should be able to provide you with a stable and responsive trading platform. This platform should be user-friendly enough even for beginner investors who would first like to initiate themselves into the trade. An excellent trading platform should provide you with real-time charts and analytical tools that help you make profitable trades. The ideal platform should offer current news as news has the power to change the profitability of open positions.

Most trading platforms offer demo accounts that help you learn the ropes before venturing into live trading. Most importantly, a trusted forex broker in the Philippines offers a transparent deposit and withdrawal method that ensures that you can access your profits and maintain control over deposits. Most brokers use popular platforms such as MetaTrader 4 (MT4) or MetaTrader 5 (MT5). However, others will have their own tailor-made platforms that offer additional and specific benefits to the trader. Choice of commission and spreads. Commission based transactions take a large chunk of your profits as a trader. Fortunately, trusted forex brokers in the Philippines do not rely on commissions for their earnings as they operate using spreads. A spread is a difference between the buy and the sell or what the market calls bid and ask price. One of the reasons why brokers use spreads as their take-home is because spreads are often fixed. Other brokers will have variable spreads. Major currency pairs such as the Dollar-Pound pair have spreads of between 0.1-0.8. On crosses (currency pairs that don’t include the dollar), the spread will be between 2 and 5. Best Places to Exchange Currency in the Philippines. Known for its sunny beaches, stunning scenery and the rich biodiversity of its flora and fauna, the Philippines is a popular tourist destination: During 2014 (the most recent data available), this land of 7,000+ islands hosted more than 4.8 million international tourists, according to United Nations World Tourism Organization (UNWTO) ' s "Tourism Highlights, 2015 Edition" report. If you are planning to become one of them soon, you’ll probably need to exchange some of your home currency for Filipino pesos (PHP). Here's how to do it. Airport currency-exchange kiosks typically offer a relatively poor deal, but they do offer convenience, especially if you are arriving exhausted after a long trip with no local coin in your pocket. Manila Ninoy Aquino International Airport (MNL) has several currency exchange facilities. Since you're going to take a hit on the rate, do what savvy travelers do and convert only as much cash as you need to get the trip started (taxi ride to the hotel or that first meal).

Wait until you can hit a place with better rates to exchange more money. Later and Better Options. ATMs are considered one of the best ways to get cash while traveling abroad, including the Philippines (see Best Ways to Save on Currency Exchanges ). Withdrawals are calculated based on the wholesale exchange rate, so you’ll generally get a better deal than you would at currency exchange dealers (see below). In the larger cities, you’ll be able to find international bank ATMs from such institutions as Citibank and HSBC. Depending on your home bank, you might be able to skip some of ATM charges (check with your bank before your trip so you know what to expect) and foreign transaction fees (see How Foreign Transaction Fees Work ). If you do have to pay a per-transaction fee, it’s better, obviously, to make a few large transactions than a bunch of little ones. If you prefer in-person transactions, banks and credit unions offer the most reliable service, at reasonably good rates. Some good choices include BDO Unibank (known as Banco de Oro and BDO), Bank of the Philippine Islands (BPI), Metrobank and Philippine National Bank (PNB). Currency exchange dealers, aka money changers, are another option, and they are easy to find throughout Manila. Strong competition among the dozens of money changers means you’ll get a better exchange rate than you might at a bank or credit union, but be careful: It's possible to get ripped off by some of these types.

Even though many advertise "no commissions," you can still end up with a less-advantageous exchange rate andor “hidden” fees. One thing to watch out for when exchanging currency in the Philippines is getting fleeced by someone who is very good at counting out the cash so it looks like the correct amount, when in reality, it's short a few bills – and not in your favor. These sleight-of-hand scams are especially common when using small street money exchanges. They may offer a better rate than the banks, but just be sure you count your money in front of them before you walk away. Be leery of anyone walking up to you on the street offering to change your foreign currency into pesos. It’s not unheard of for an unsuspecting tourist to follow someone into an alley or some other dark corner in search of a great exchange rate – only to be robbed. Use common sense, and remember that those few extra pesos aren’t worth any risk. Finally, one other scam worth noting: counterfeit bills. Here’s how it works. You give your cash to a money exchanger, who in turn says something like “Let me go check the exchange rate with my boss.” When the person returns, you are told the boss didn’t approve the exchange rate, so you are given back your money.

But – and here’s the scam – instead of handing back your actual bills, he or she gives you funny money (which you don't realize until you try to exchange it somewhere else). Moral of the story: Hold on to your cash until the actual exchange; don't let anyone disappear with it. ATMs often have the best rates and can be the best deal as long as you don't have to pay high ATM fees. Money changers are next, but you have to watch out for scams. If that concerns you, go to a bank: While a little less advantageous, the rates are still good. Many travelers find a combination of in-person currency exchange, ATM withdrawals and credit card purchases works best. No matter where you exchange money, always ask how much local currency you’ll receive before handing over any cash. And once you receive the local cash, remain in place until you’ve had a chance to count it yourself. Philippines - Foreign Exchange Controls Philippines - Foreign Exchange. The BSP has actively pursued reforms to liberalize and simplify the foreign exchange regulatory regime since the 1990s as part of continuing efforts to keep the framework responsive to economic conditions. As a general policy, the BSP allows Philippine residents and non-residents to purchase foreign exchange from authorized agent banks (AABs) andor banks’ subsidiaryaffiliate foreign exchange corporations (AAB-forex corps) and from non-bank entities operating as foreign exchange dealers (FXDs) andor money changers (MCs) to fund legitimate foreign exchange obligations, subject to the provision of information andor documents on the underlying obligations. The sale of foreign exchange by AABs and AAB-forex corps is governed by the Manual of Regulations on Foreign Exchange Transactions, issued under Circular No. 645 in February 2009, as amended. The sale of foreign exchange by FXDsMCs is governed by Circular No. 471, issued in January 2005, as amended.

There is no mandatory foreign exchange surrender requirement for residents’ foreign exchange earnings, which may be sold for pesos onshore, retained in foreign currency, andor deposited in foreign currency accounts in the Philippines or abroad. Registration of foreign investments either with the BSP or custodian banks is optional, unless the foreign exchange which will be used to service the repatriation of capital andor the remittance of related earnings will be sourced from AABs and AAB-forex corps. Public sector foreignforeign currency loans require prior BSP approval pursuant to existing laws, including the 1987 Philippine Constitution, except for short-term foreign currency loans obtained by certain public sector entities (such as commodityservice exporters, oil companies, and public utility concerns) from banks operating in the Philippines. Private sector borrowing requires prior BSP approval if the loans: a) are covered by any government guarantee or involve any exposure by the public sector; or b) will be serviced using foreign exchange sourced by the borrowercreditorguarantor from AABs andor AAB-forex corps and are not exempt from prior BSP approval under current regulations. Some private sector borrowings are subject to certain conditions, such as the purpose of the loan andor the usedisposition of the loan proceeds. The following private sector borrowings are exempt from prior BSP approval: a) offshore loans that will not be serviced with foreign exchange purchases from AABs and AAB-forex corps; b) foreign currency loans from banks operating in the Philippines that are not government-guaranteed and that are duly reported by the creditor bank to the BSP; c) short-term interbank loans; d) short-term loans in the form of export advances from buyers abroad; e) short-term loans of exportersimporters from offshore banking units (OBUs), offshore foreign banks with branches in the Philippines and, other offshore creditors; f) private sector foreign loans not guaranteed by foreign governmentsofficial export credit agencies covering importation of freely importable commodities under deferred LCs or DA - OA arrangements with a term of more than one year; g) inter-company loans granted by foreign companies to their local branchessubsidiaries; and h) loans of resident private sector borrowers from offshore sources that are not guaranteed by public sector entities to finance the government’s Public Private Partnership projects. Although there are a few exceptions, private sector borrowing generally should be registered with the BSP whether or not they are subject to prior BSP approval to be eligible to source foreign exchange for debt servicing from AABs andor AAB-forex corps. As a general rule, private sector non-bank borrowers should maintain a 7525 long-term debt-to equity ratio or better during the duration of their loans. Foreign exchange purchases from AABs and AAB-forex corps for trade and non-trade current account transactions (such as travel, medical and educational expenses, royalties, copyright, patent, franchise and licensing fees) of up to US$50,000 for individuals and US$1,000,000 for corporatesother entities or their equivalent in other foreign currencies require only the submission of a BSP prescribed application form to the foreign exchange selling institution; amounts in excess also require the submission of supporting documents evidencing the underlying transaction). The BSP does not require registration of importations under any mode of payment but requires banks to report such transactions to the BSP prior to payment. Foreign exchange purchases from foreign exchange dealersmoney changers for non-trade current account purposes are allowed up to US$10,000 or its equivalent without need for additional supporting documents other than a BSP-prescribed application form to purchase foreign currency, but not to exceed US$50,000 per month per customer. Purchases of foreign exchange from FXDsMCs for other than non-trade current account purposes require submission of the BSP-prescribed foreign exchange application form and supporting documents on the underlying transactions, regardless of amount. Further information is available at: Ms. Patria B. Angeles Director – International Operations Department Bangko Sentral ng Pilipinas Rm. 301, 5-Storey Building A. Mabini St., Malate, Manila. Try forex trading instead of stocks.

The foreign exchange or forex market is one of the fastest-growing financial markets today, and Filipinos need to take advantage of this, says a finance executive. FOREX TRADING. A finance executive shares some tips on foreign exchange trading at the Money Summit and Wealth Expo on July 12. Photo by AFP. MANILA, Philippines - The foreign exchange (FX) or forex market is one of the fastest-growing financial markets today, and Filipinos need to take advantage of this, a finance executive stressed. Paul Familiaran, Asia Account Manager of Forex Capital Markets (FXCM), said 9 out of 10 clients he works with have made the move from stocks to FX trading. At the Money Summit and Wealth Expo in July, Familiaran said the public must consider participating in the FX market as there are many avenues to learn the basics of FX trading locally. FX trading advantages. FX trading has an edge over the stock market, which remains popular, Familiaran said. "In the stock market, you can only make money if the market is bullish. Here, bullish or bearish, you can earn,” he told his audience. Familiaran also said the FX market is a 24-hour market – a major advantage since most equity traders have day jobs. The FX market allows them to trade and study the market longer and during their free time. The FX market pays rollovers due to the trading of currency pairs like, say, the euro and US dollars. Rollovers are interest paid to the investor everyday, resulting in higher returns. Where to begin. It will help if newbies and professional investors alike seek the help of forex brokers.

Familiaran said his firm, FXCM, has "in terms of accounts, around 90,000 live accounts and 700 institutional clients. In terms of scope of clients, it deals with retail investors… fund houses and even banks." It doesn’t require a massive investment to open an account with FXCM. A beginner can easily sign up and trade with a $50 account. “FXCM provides margin. We give you a 200 to 1 leverage, giving you buying power… so people can hold positions 200 times their investments,” said Familiaran. The FXCM and the dailyfx. com offer potential investors a glimpse into the FX market. The site contains several valuable applications that participants can use to watch the movement of the market and their investments. The site dishes real-time news and interactions with professional FX traders.

Members of dailyfx. com get the chance to learn from FXCM strategists and discuss with them their investment plans. For those who want to try investing without shelling out an actual amount, FXCM offers demo accounts. The Asian forex market is among the busiest markets in forex. Asian countries such as Indonesia, Singapore, Japan, and Malaysia have established themselves as big names in the forex space over a number of years. In the Philipines, however, forex trading hasn’t taken as big a hold as its Asian counterparts. That could be good news for investors looking to venture into the unexplored market. Since it offers a wide range of opportunities for new brokers and even more potential investors, forex trading in the Philippines could be tricky to set up. If you find trusted forex brokers in the Philipines, you could be in peak position to make substantial financial gains from the underserved territory. Here’s how to choose trusted forex brokers in the Philippines: Regulatory bodies. For its profitability, the forex business is a prime target for rogue brokers who would like to take advantage of new entrants. Fortunately, forex brokerage firms in the Philippines are regulated by Bangko Sentral ng Pilipinas (BSP). The BSP is the Central Bank of Philipines.

As one of the most highly recognized financial institutions in Asia, it is responsible for maintaining financial market oversight in the Philippines. Trusted Forex Brokers in the Philippines are required to adhere to the standards imposed on them by the BSP. Overall, the BSP was established with the key mandate of ensuring that the Filipino finance industry maintains a good business practice, fairness, and accountability. Its policies are geared towards providing fair competition and sustainable growth. The business environment resulting from sound economic policies is sure to attract more investors. BSP does not have regulations aimed strictly at forex traders. Instead, it regulates all kinds of foreign exchange. This could be because the bank itself is a young institution and so is forex as a business opportunity in the Philippines. If you intend to find trusted forex brokers in the Philippines, you should know that the BSP has put in place a policy known as Know Your Customer. Due to the massive amounts of withdrawals in forex, BSP requires that brokers confirm the identity of the people trading with them. As an investor trading with a BSP-regulated broker, you will be required to provide some sensitive documents. However, it is always safe to trade with a regulated forex broker for maximum consumer protection. Trading Platforms. An investor’s next best tool is the trading platform on which they ply their trade. Trusted forex brokers in the Philippines should be able to provide you with a stable and responsive trading platform.

This platform should be user-friendly enough even for beginner investors who would first like to initiate themselves into the trade. An excellent trading platform should provide you with real-time charts and analytical tools that help you make profitable trades. The ideal platform should offer current news as news has the power to change the profitability of open positions. Most trading platforms offer demo accounts that help you learn the ropes before venturing into live trading. Most importantly, a trusted forex broker in the Philippines offers a transparent deposit and withdrawal method that ensures that you can access your profits and maintain control over deposits. Most brokers use popular platforms such as MetaTrader 4 (MT4) or MetaTrader 5 (MT5). However, others will have their own tailor-made platforms that offer additional and specific benefits to the trader. Choice of commission and spreads. Commission based transactions take a large chunk of your profits as a trader. Fortunately, trusted forex brokers in the Philippines do not rely on commissions for their earnings as they operate using spreads.

A spread is a difference between the buy and the sell or what the market calls bid and ask price. One of the reasons why brokers use spreads as their take-home is because spreads are often fixed. Other brokers will have variable spreads. Major currency pairs such as the Dollar-Pound pair have spreads of between 0.1-0.8. On crosses (currency pairs that don’t include the dollar), the spread will be between 2 and 5. Best Forex Brokers in Philippines 2018. Currency trading is relatively new in the country and as you may guess there are a lot of scammy brokers around. How do you protect your money from those guys? You need to trade with a BSP regulated broker and we inside this article we will show you which are the very best of these brokers. How to Choose a Forex Broker as a Philippines trader. Philippines is still among the developing countries in the world. However, it does not mean opportunities are not there when it comes to investment. On the contrary, the smartest investors search for opportunities to develop their businesses where there are still few competitors. This is very true about Forex.

A new and fresh market for the country means lots of brokers are coming to gain a market share of those Philipinos who want to trade and make money. However, one should not forget that where big money is involved, a lot of scams follow too. So, when in search for a reliable Forex broker you need to remember to look for the one who is regulated by BSP. Then, you need to check what trading platform the broker offers, are there any hidden fees or commissions, is there a choice of accounts that would fit your needs, is customer service good or not and whether there are any other additional services. General Regulation & Philippines Regulation. Gone are the days, when just any broker can open an offshore company and offer his services wherever he wants. Most countries have implemented quite strict regulation frameworks and you can hardly find a place in the world where an unregulated broker is not frowned upon. This means more security and confidence for the average trader and fewer opportunities for scammers who prey on your hard earned money. Philippines is no different. BSP is the Central Bank of the Republic of the Philippines. It was founded in 2003, which makes the Bank quite a young financial institution. The main responsibility of the entity is to supervise financial markets and ensure that they function smoothly, competitively and transparently. The Bank also supervises market players offering their services to local citizen with intention to regulate their services. All regulated brokers have to keep to the regulations set by the Bank while performing their transactions in the Foreign Exchange Market and protect their customers‘ capital by limiting risks of their operations. Despite the fact the regulator allows market intermediaries freely trade any market they want, BSP will not tolerate any scams, price manipulation and money laundering schemes, but punish any broker who dares to engage in those. So, a Philippino trader should feel safe with a BSP regulated broker.

Trading Platform & Software. If you live in the Philippines, want to trade and think you have found a decent broker, you also need to check what kind of trading platform and software the broker offers you. The trading platform will be your main tool you work with. If it is bad, it does not matter how good you are in trading or how good your trading system is, you can make a bad decision due to not knowing what icon or button you need to push and accidentally make a wrong trade which will cause you to lose money. So, the platform has to be easy to use. Each button and function on the platform should be understood easily by you. You should also be able to open as many charts on it as you need for analysis, both technical and fundamental. Back testing function should also be there, so that you know whether the strategy or code you want to use work well or not. You should also find all technical indicators you need there and a good news feed to check some “hot” fundamental data. Finally, you should be able to copy other traders who might be more successful than you. So the copy function should be there. One of the best platforms that is downloadable is Metatrader and any good broker should offer you that. Commissions & Spreads. All traders know how commissions can take a huge bite off their profits and they search for brokers who offer the lowest commissions on transactions. Contrary to stock brokers, Forex brokers typically do not charge commissions, but they make money on spreads. A spread is the difference between buy and sell or bid and ask price. Spreads tend to be fixed and variable. Brokers who offer fixed spreads will charge from 2-5 pips on major currency pairs and around 5-15 on currency crosses. Those who operate with variable spreads will typically offer much smaller spreads. On majors variable spreads can be 0.1-0.8 and 2-5 on crosses.

However, you should remember that these spreads are under normal market conditions. When markets react to some unexpected fundamental event and prices start jumping up and down, brokers extend those variable spreads and they can become 10 or even 50 times bigger than usually. Of course, this will typically last just a few minutes till markets calm down, but you still have to know when to avoid opening or keeping positions open. Let’s say you have $200 that you want to invest in currencies, but you doubt if that is enough. A lot of brokers offer different levels of accounts that depend on size of capital you have and two hundred dollars is not too little to start with. With most brokers it is now possible to start with as little as $100, some even allow you to start trading with $50. In that case, you will trade micro lots the minimum size of which are $1000. If you want invest 1000$ or a little bit more, a mini account would probably be the best choice. A mini lot is now $10 000 worth transaction and a price of a pip is around $1. Traders who have bigger capital than 10k can open a standard account and trade standard lots. One standard lot size is 100k position. Of course, you had better have a bigger amount thank 50k to trade standard lots, just to ensure you control your risk. Before you open an account with a broker be sure to visit section on their website where customer service is. Ask as many questions as you want to find out how they respond and how they treat your problem. You should expect fast replies, quick solutions and a polite way of dealing with your issues.

If questions are not answered in a timely fashion and issues are not solved for weeks, do not trade with that broker. Additional services that a broker provides may seem unnecessary and unimportant, but that is not the case. If a broker cares about their traders they will do as much as they can to improve the quality of their services. Educational materials are expected on any broker‘s website. Forex is a complex market and you need to find out about it as much as you can, so lots of resources about that should be available with the broker. A broker will typically employ experts who do technical and fundamental analysis, market recaps, news interpretation and etc. for their website and the material will be free. The more material that is available, the better. Successful trading is not just about implementation of your excellent trading strategy, but also trading with confidence and peace of mind with the broker that is regulated and who cares about his customers. The article indicated specific steps that you need to make in choosing a reliable broker.

Review them, do your own research and only then open an account with the broker that you have tested yourself. Or to save time simply pick from our list of regulated and recommended brokers below. Try forex trading instead of stocks. The foreign exchange or forex market is one of the fastest-growing financial markets today, and Filipinos need to take advantage of this, says a finance executive. FOREX TRADING. A finance executive shares some tips on foreign exchange trading at the Money Summit and Wealth Expo on July 12. Photo by AFP. MANILA, Philippines - The foreign exchange (FX) or forex market is one of the fastest-growing financial markets today, and Filipinos need to take advantage of this, a finance executive stressed. Paul Familiaran, Asia Account Manager of Forex Capital Markets (FXCM), said 9 out of 10 clients he works with have made the move from stocks to FX trading. At the Money Summit and Wealth Expo in July, Familiaran said the public must consider participating in the FX market as there are many avenues to learn the basics of FX trading locally. FX trading advantages. FX trading has an edge over the stock market, which remains popular, Familiaran said.

"In the stock market, you can only make money if the market is bullish. Here, bullish or bearish, you can earn,” he told his audience. Familiaran also said the FX market is a 24-hour market – a major advantage since most equity traders have day jobs. The FX market allows them to trade and study the market longer and during their free time. The FX market pays rollovers due to the trading of currency pairs like, say, the euro and US dollars. Rollovers are interest paid to the investor everyday, resulting in higher returns. Where to begin. It will help if newbies and professional investors alike seek the help of forex brokers. Familiaran said his firm, FXCM, has "in terms of accounts, around 90,000 live accounts and 700 institutional clients. In terms of scope of clients, it deals with retail investors… fund houses and even banks.

" It doesn’t require a massive investment to open an account with FXCM. A beginner can easily sign up and trade with a $50 account. “FXCM provides margin. We give you a 200 to 1 leverage, giving you buying power… so people can hold positions 200 times their investments,” said Familiaran. The FXCM and the dailyfx. com offer potential investors a glimpse into the FX market. The site contains several valuable applications that participants can use to watch the movement of the market and their investments. The site dishes real-time news and interactions with professional FX traders. Members of dailyfx. com get the chance to learn from FXCM strategists and discuss with them their investment plans. For those who want to try investing without shelling out an actual amount, FXCM offers demo accounts. The foreign exchange market—or forex for short—is the buying and selling of currencies, and it’s one of the fastest growing markets in the world. Forex trading works much like it does with stock trading; you buy low and sell high.

You can trade forex conveniently online 24 hours a day, 5 days a week. Plus, you can buy and sell at any time, in bull markets and in bear markets. Forex is the world’s most traded market, with an average turnover in excess of US$5 trillion per day. Essentially, forex trading is the act of simultaneously buying one currency while selling another, primarily for the purpose of speculation. Currency values rise (appreciate) and fall (depreciate) against each other due to a number of factors including economics and geopolitics. The common goal of forex traders is to profit from these changes in the value of one currency against another by actively speculating on which way forex prices are likely to turn in the future. The foreign exchange market—or forex for short—is the buying and selling of currencies, and it’s one of the fastest growing markets in the world. Forex trading works much like it does with stock trading; you buy low and sell high. You can trade forex conveniently online 24 hours a day, 5 days a week. Plus, you can buy and sell at any time, in bull markets and in bear markets. Forex is the world’s most traded market, with an average turnover in excess of US$5 trillion per day. Essentially, forex trading is the act of simultaneously buying one currency while selling another, primarily for the purpose of speculation. Currency values rise (appreciate) and fall (depreciate) against each other due to a number of factors including economics and geopolitics. The common goal of forex traders is to profit from these changes in the value of one currency against another by actively speculating on which way forex prices are likely to turn in the future.

There are many benefits and advantages of trading forex. Here are just a few reasons why so many people are choosing this market from babypips. com: No Commissions. No clearing fees, no exchange fees, no government fees, no brokerage fees. Most retail brokers are compensated for their services through something called the “bidask spread“. No middlemen. Spot currency trading eliminates the middlemen and allows you to trade directly with the market responsible for the pricing on a particular currency pair. No fixed lot size. In the futures markets, lot or contract sizes are determined by the exchanges. A standard-size contract for silver futures is 5,000 ounces. In spot forex, you determine your own lot, or position size. This allows traders to participate with accounts as small as $25 (although we’ll explain later why a $25 account is a bad idea). Low transaction costs.

The retail transaction cost (the bidask spread) is typically less than 0.1% under normal market conditions. At larger dealers, the spread could be as low as 0.07%. Of course this depends on your leverage and all will be explained later. A 24-hour market. There is no waiting for the opening bell. From the Monday morning opening in Australia to the afternoon close in New York, the forex market never sleeps. This is awesome for those who want to trade on a part-time basis, because you can choose when you want to trade: morning, noon, night, during breakfast, or in your sleep. No one can corner the market. The foreign exchange market is so huge and has so many participants that no single entity (not even a central bank or the mighty Chuck Norris himself) can control the market price for an extended period of time. Leverage.

In forex trading, a small deposit can control a much larger total contract value. Leverage gives the trader the ability to make nice profits, and at the same time keep risk capital to a minimum. For example, a forex broker may offer 50-to-1 leverage, which means that a $50 dollar margin deposit would enable a trader to buy or sell $2,500 worth of currencies. Similarly, with $500 dollars, one could trade with $25,000 dollars and so on. While this is all gravy, let’s remember that leverage is a double-edged sword. Without proper risk management, this high degree of leverage can lead to large losses as well as gains. High Liquidity. Because the forex market is so enormous, it is also extremely liquid. This is an advantage because it means that under normal market conditions, with a click of a mouse you can instantaneously buy and sell at will as there will usually be someone in the market willing to take the other side of your trade. You are never “stuck” in a trade. You can even set your online trading platform to automatically close your position once your desired profit level (a limit order) has been reached, andor close a trade if a trade is going against you (a stop loss order). Best Places to Exchange Currency in the Philippines. Known for its sunny beaches, stunning scenery and the rich biodiversity of its flora and fauna, the Philippines is a popular tourist destination: During 2014 (the most recent data available), this land of 7,000+ islands hosted more than 4.8 million international tourists, according to United Nations World Tourism Organization (UNWTO) ' s "Tourism Highlights, 2015 Edition" report. If you are planning to become one of them soon, you’ll probably need to exchange some of your home currency for Filipino pesos (PHP). Here's how to do it. Airport currency-exchange kiosks typically offer a relatively poor deal, but they do offer convenience, especially if you are arriving exhausted after a long trip with no local coin in your pocket. Manila Ninoy Aquino International Airport (MNL) has several currency exchange facilities. Since you're going to take a hit on the rate, do what savvy travelers do and convert only as much cash as you need to get the trip started (taxi ride to the hotel or that first meal).

Wait until you can hit a place with better rates to exchange more money. Later and Better Options. ATMs are considered one of the best ways to get cash while traveling abroad, including the Philippines (see Best Ways to Save on Currency Exchanges ). Withdrawals are calculated based on the wholesale exchange rate, so you’ll generally get a better deal than you would at currency exchange dealers (see below). In the larger cities, you’ll be able to find international bank ATMs from such institutions as Citibank and HSBC. Depending on your home bank, you might be able to skip some of ATM charges (check with your bank before your trip so you know what to expect) and foreign transaction fees (see How Foreign Transaction Fees Work ). If you do have to pay a per-transaction fee, it’s better, obviously, to make a few large transactions than a bunch of little ones. If you prefer in-person transactions, banks and credit unions offer the most reliable service, at reasonably good rates. Some good choices include BDO Unibank (known as Banco de Oro and BDO), Bank of the Philippine Islands (BPI), Metrobank and Philippine National Bank (PNB). Currency exchange dealers, aka money changers, are another option, and they are easy to find throughout Manila.

Strong competition among the dozens of money changers means you’ll get a better exchange rate than you might at a bank or credit union, but be careful: It's possible to get ripped off by some of these types. Even though many advertise "no commissions," you can still end up with a less-advantageous exchange rate andor “hidden” fees. One thing to watch out for when exchanging currency in the Philippines is getting fleeced by someone who is very good at counting out the cash so it looks like the correct amount, when in reality, it's short a few bills – and not in your favor. These sleight-of-hand scams are especially common when using small street money exchanges. They may offer a better rate than the banks, but just be sure you count your money in front of them before you walk away. Be leery of anyone walking up to you on the street offering to change your foreign currency into pesos. It’s not unheard of for an unsuspecting tourist to follow someone into an alley or some other dark corner in search of a great exchange rate – only to be robbed. Use common sense, and remember that those few extra pesos aren’t worth any risk. Finally, one other scam worth noting: counterfeit bills. Here’s how it works. You give your cash to a money exchanger, who in turn says something like “Let me go check the exchange rate with my boss.” When the person returns, you are told the boss didn’t approve the exchange rate, so you are given back your money. But – and here’s the scam – instead of handing back your actual bills, he or she gives you funny money (which you don't realize until you try to exchange it somewhere else). Moral of the story: Hold on to your cash until the actual exchange; don't let anyone disappear with it. ATMs often have the best rates and can be the best deal as long as you don't have to pay high ATM fees.

Money changers are next, but you have to watch out for scams. If that concerns you, go to a bank: While a little less advantageous, the rates are still good. Many travelers find a combination of in-person currency exchange, ATM withdrawals and credit card purchases works best. No matter where you exchange money, always ask how much local currency you’ll receive before handing over any cash. And once you receive the local cash, remain in place until you’ve had a chance to count it yourself. A How-To Guide for Trading Forex in PH. Do you want to invest in forex but are at a loss on where to start? This article will serve as a mini-handbook for beginners to maneuver the world of foreign currencies. This is assuming you already know the pros and cons of forex trading and are fully decided on investing in currencies. If you are entering with a blank slate, it’s best to read this introductory article on forex before you decide to trade. Foreign currencies work relatively with one another. Unlike the stock market where a company’s share price is not affected by other stocks in the market, in forex you are betting on one currency against the other. Let’s say you travel to Hong Kong for a short vacation.

You bring Php 5,500 with you and decide to have it exchanged to Hong Kong dollars (HKD). At HKD 1: Php 5.5, your Php 5,500 for pocket money will be converted to HKD 1,000. Once in Hong Kong, you meet up with friends who decide to pay for you, and you end up not spending any of the Php 5,500. Once you get back to the Philippines, you find out that the peso took a beating and the exchange rate is now HKD 1 = Php 6. You then exchange your HKD 1,000 back to pesos, and you get Php 6,000 back. You just made a profit of Php 500. Forex works in the exact same way without you having to go to another country or bank to exchange your money. You can trade forex in the convenience of your home. Online trading platforms give you the ease and convenience of buying and selling foreign currencies. Best of all, opening a forex trading account can be done 100% online. Forex trading platforms (mentioned below) provide you with online application forms which you will also be asked to submit together with the necessary documentary requirements which you can just email. Even depositing and withdrawing funds can be done via credit or debit card and wire transfers. There’s no need to leave the convenience of your home. Online forex trading platforms: Choosing a currency pair. Trading forex requires time and effort to be able to come up with promising currency pairs. You need to study the markets and economies of the countries whose currencies you plan to trade. You are your own fund manager in forex; thus, in choosing currency pairs, you need to use both fundamental and technical analyses to come up with decisions that will turn a profit.

1. Using fundamental analysis. As with trading stocks, fundamental analysis provides you with the information you need to pick a promising currency pair. Staying up-to-date with news reports regarding economic and political issues will give you an idea on the value of the currency and how it will perform in the near future. An example would be the looming Fed hike. The possibility of the US Federal Reserve increasing interest rates shows that the US economy is bouncing back from the 2008 crisis. What this means for other economies, especially those of emerging markets such as the Philippines, is that they run the risk of losing their foreign investors, who will prefer to invest in more stable markets such as the US. We saw how this affected the Philippine peso which reached Php 47, the highest since 2009. Using fundamental analysis allows you to come up with a decision based on facts. 2. Using technical analysis. Past performance cannot predict future performance – completely. But you can use past data as a reference for future performance. This applies for forex trading as well.

Studying the trends and patterns of currency pairs provides statistical and numerical information which are useful in picking when to trade currencies. Technical analysis will allow you to come with a decision based on numbers. You’ve opened a trading account and are now ready to trade foreign currencies. After careful fundamental and technical analyses, you’re ready to place an order. In the main page of your forex trading platform, you’ll see a series of currency pairs and their buying and selling prices. You pick the pair you want to trade and click the ‘buy’ or ‘sell’ options. An order form pops up. Now, you’re confused with the technical terms in the order form. What is a pip, a stop order, and a limit order? To come up with a strategic trade and avoid your losses, understand what the terms mean. Here is a simple explanation for you to be able to place an order: Pip – the unit used in a currency quote. It is the smallest value by which a quote can change. 1 pip = 0.0001 for currencies displayed to four decimal places. If you choose to trade the currency pair EURUSD at EUR 1 = USD 1.1250, and the USD loses value and is now USD 1.1255 to a euro, that displays a five-pip increase (0.0005) in the quote.

Stop Order – the order used to set the minimum and maximum price to buy and sell. If you’re buying a currency, the stop order is the limit you set to minimize your losses. Once the currency reaches the amount in your stop order, your order will be processed. You may have lost, but you were able to minimize your losses by placing a stop order. Limit Order – the order used to set the amount at which you are willing to buy and sell a particular currency. Since forex is an online marketplace for buyers and sellers, the limit order serves as a guarantee that you won’t be overpaying. You can liken the limit order to an auction where you set a threshold – the maximum amount you’re willing to buy an item, or in this case, a currency. These three terms will be your companions every time you buy and sell currencies. You can’t trade forex (unless you want to risk losing money) without understanding these basic terms.

Diversifying with forex. As discussed in the introductory forex article, forex is a good way to further diversify your investments. Since you’re trading foreign currencies, you’ll be buffering yourself against local economic downturns by using the currencies of other countries. At the same time, forex has its drawbacks. Investing in forex requires time and effort. You need to learn to earn, unlike mutual funds and UITFs where a fund manager handles your investments. With this in mind, it is important that you invest with due diligence. As Marvin Germo, author of the Stock Smarts series of books, says, “Don’t listen to your emotions when it comes to investing, and only invest money you can afford to lose.” Protect your money by being disciplined, but at the same time, grow your net worth through investments such as forex.



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