Is Forex Trading Legal in the Philippines?

Forex trading is legal in the Philippines. However, since the Bangko Sentral ng Pilipinas (BSP) does not currently regulate Forex brokers, Filipino residents will have to trade with licensed brokers based overseas. Even though the Filipino government has no laws governing the legality, the BSP controls international monetary exchange, overseeing outgoing cash flow from the country.

Therefore, Filipino Forex traders must comply with financial regulations to prevent money laundering (see more below) and ensure their income is properly declared for taxation to the Bureau of Internal Revenue (BIR). For more specific information on Filipino tax legislation, please consult a registered tax practitioner or the Bureau of Internal Revenue.

KYC - Anti-Money-Laundering

Banks and financial institutions globally have signed up to a program called KYC. It is a law set in place to stop money laundering by anonymous actors. When you sign up for a Forex trading account, and before you are allowed to make a deposit, you will need to complete your KYC documentation. It requires you to submit:

• A colour copy of a valid ID can be a passport, driver's license or ID Card.
• A recent utility bill (e.g. electricity, gas, water, phone, oil, Internet and/or cable TV connection, bank account statement) issued in the past three months and confirms your home address.

Scam Brokers and Reporting Regulatory Violations

If you are unsure about the reliability of your Forex broker, you can use our Broker Trust Checker. If you believe your broker has scammed you, the first thing to do is contact the BSP. You can contact and read more about how to file a complaint here, and the BSP can advise you on the next steps. We also have a report a scam broker form, which we use to gather information so that we can spread the word. Your personal details will not be shared externally.