fbpx
256

2019: Forex Trading In The Philippines — What Is LEGAL, What Is NOT

On October 30, 2018, the Philippines Securities and Exchange Commission (SEC) Issued it’s latest advisory stating categorically that “Forex Trading Is Illegal In The Philippines” For Context, here are the highlights of that advisory:

October 30, 2018

FOREIGN EXCHANGE TRADING IS ILLEGAL IN THE PHILIPPINES.

The public is hereby advised to STOP engaging in Foreign Exchange Trading and to STOP investing in foreign-registered investment platforms of commodity futures, contracts for difference, indices, binary options and the like. Further, the SEC advises the public that persons and entities acting as brokers, salesmen or agents of these securities have NO LICENSE to engage or deal in any manner with these securities and should therefore be AVOIDED or IGNORED…

…The public is encouraged to report to the Commission entities and/or persons operating Foreign Exchange Trading platforms and those acting as brokers, salesmen or agents of these operators to the Enforcement and Investor Protection Department (EIPD) at telephone numbers 818-76-50 and 818-63-37.”

My name is Mark So and I have been trading the Forex Market online for approximately 15 years already. I am based in the Philippines and I have been educating our fellow Filipino’s on the dangers as well as facts about this highly speculative industry.

When this advisory came out, I had a lot of people ask me questions, but a lot more people keeping quiet and slowly move away from Forex trading. I would therefore like to share some more information and clarification on this topic in a simple Q and A (Question and Answer) format.

Q: “Is Studying and Analyzing Currency Movements Illegal in The Philippines?”

A: “NO”

Q: “I have an existing trading account with a Foreign registered broker, am I in trouble?”

A: “NO”

Q: “Can I still trade my forex account? Or should I just withdraw the funds”

A: “Yes you can still trade your account. You can also just withdraw the funds if you do not want to trade anymore”

Q: But what about the advisory of SEC that Forex trading is illegal in the Philippines, what aspect is considered illegal?

A: As the Advisory states, the public should not invest in actual foreign exchange trading. This would literally mean that you should not open a trading account with any Foreign registered investment platform moving forward. Attending a seminar on understanding what it is all about is not considered illegal.

Q: Why did SEC issue this advisory?

A: The advisory came about because of a lot of complaints from investors who lost money trading forex due to entities acting as brokers, salesmen or agents and have no regulatory licenses in the Philippines. So please beware of entities and personalities that use deceptive advertising and marketing tactics that lure a lot of unsuspecting investors giving them false hopes. 

Q: Are you concerned that the SEC may pursue a case against you and your education in Forex?

A: NO. My intentions are very clear. My purpose is to educate and protect people in this industry, not to deceive and scam people.

In fact, a few days after the SEC advisory came out, I placed a call directly to the Enforcement and Investor Protection Department (EIPD) at telephone numbers 818-76-50 and 818-63-37 and talked to the person in charge of pursuing those in violation of this advisory and clarified. I stated my name and what I do.

From my understanding, the priority for the EIPD is to pursue cases where there are complaints of fraudulent activities which have come to their attention. Realistically, this is what the SEC can do at this point. Reading between the lines However, if you already have a trading account and have no complaints, there really is nothing the EIPD can and will do.

Q: What is your plan as a Forex Trainer in the future?

A: I have already volunteered to be a resource person for the SEC to get policies in place to regulate the Forex Market in the Philippines. I’ve had ongoing productive phone conversations with the EIPD in 2018 and stating this year 2019 with the Markets and Securities Regulatory Division (MSRD) who will be issuing policy guidelines for properly regulating Forex in the Philippines. I have offered my help in several key issues in getting these policies done and from how our conversations are going, they are open to collaborate with me. 

I do understand the plight of uninformed investors who want to get into the Forex trading space. I also have a deep appreciation of what the SEC is trying to do to protect the investment public in general.

We are still early stages but according to the MSRD, they’ve been wanting to release policy guidelines already since last year, but they still need some more research. Needless to say, I will be doing my very best to help the SEC get Forex Trading and Investing in the Philippines legal and regulated already and STOP those who victimize people in our industry.

Q: “Will the SEC Regulate the Forex Market In The Philippines?”

A: “According to the MSRD of SEC, Yes, however there is no definite time table yet for this.”

Q: “What Should I do Now If I’m Really Interested In Forex?”

A:  “Study first, when the regulations or clearer guidelines are in place in the Philippines, then start trading.”

Q: “What’s the point of studying and Analyzing Currency Movements If I Can’t Trade Yet?”

A: “Understanding when to exchange your USD to Pesos or Pesos to Euros or Yen or Pounds and other currency movements is important when it comes to mainstream businesses and Overseas Filipino Workers who regularly transact businesses in foreign currencies. Money Changers and forex remittance companies, even regular tourists and travelers who want to minimize foreign conversion losses due to fluctuations can also benefit from what I teach. Furthermore, Understanding currency movements is the foundation that is needed when learning to invest outside of the Philippines.”

Do you have questions? Leave a comment below and I will try my best to answer them.

You May Also Want to Read This Article: “3 Ways Scams Come Into The Forex Market, And How To Protect Yourself”

256 thoughts on “2019: Forex Trading In The Philippines — What Is LEGAL, What Is NOT”

  1. what is illegal is that if acted as investment company asking investor with the assurance of return of invesment without authority by law. there is no mention of individual who want to trade their own money in any form of foreign forex platform.

  2. Hi! So can I still trade CFDs on a foreign investment platform? What i am doubtful now is how to withdraw the funds to a local bank… they will ask where the money come from for sure…Knowing SEC just banned foreign exchanges trading….and how should i declare my capital gains to Income Tax Returns if this is “illegal”??
    I just want to be an honest citizen as much as possible and follow the law. Better to do everything legal than regretting it later on…
    Thank you.

    • The default withdrawal method is usually back to your funding source. So if you deposited through debit card, it goes back to your debit card, same goes for credit card or us dollar savings. They will usually only ask if you withdraw through bank wire transfer. But in any case, if they do ask just tell them the truth, that it is profits from your online trading of cfd’s. With regards to declaring taxes, you will need to ask your accountant how you want to declare it. But generally, it will fall under additional income. Hope this clarifies

      • Do we need to submit documents sa bank if ever magwithdraw ng funds from foreign investment platform? kelangan pa po ba ng license or certificate? im using wire transfer.

        • Usually banks just need to know the purpose of the withdrawal so just say that it is from your investments abroad. If they ask for supporting docs just give them the withdrawal forms you used with your broker

          • E kung small amounts lang naman po meron pa bang documents? Im expecting kc diretso lang sa bank account if ever magwithdraw ng funds

    • Your broker is remitting money to your bank account with supporting document to prove it’s legal. SEC is not banning but informing the public through Advisory that we don’t have regulation in the Philippines for Forex or CFD trading in the Philippines. If you say in the Philippines, the transaction has been made in the Philippines through any acting agent, expert or brokers based in the Philippines. If you have a foreign broker, verify if you can transact with them. Foreign brokers have list to which countries they are banned. The foreign brokers are paying taxes where they are based. Since our transaction is buy and sell, we are charged based on commission or by spreads. Our transaction cycle is, you are sending money to your foreign broker to deposit in your trading account using either credit/debit/ewallet/wire transfer..is this illegal or is this subject to tax or do you pay the transaction charge?..then next you trade it by buying and selling..don’t you pay your transaction fee with your broker?..when you took profit and want to withdraw, your broker will send it back to your local bank account through the same process. Our local bank is charging tax in our account. Why should we be charged of Income Tax if our foreign broker is not under the regulation of Philippines and our transaction has been done only through online? Same in the Philippines Stocks Exchange, do traders and investors really need to pay income tax? Of course not. It’s a buy and sell so we pay taxes like VAT and sales tax. Likewise, our foreign broker is charging us which already included in the transaction fee.

  3. What kind of Philippine government we have, we just need a simple and regulated laws on forex trading, how’s can we know if certain forex broker is legitimate or not. If lawmakers are concerned with the Filipino people they should pass a law to regulate and give protection to those who will want to engage in forex trading so that they can help to uplift the financial status of ordinary people. Why other countries can do that, why our Legislative body cannot including this stupid department or institutional heads in order us to be confident in making additional passive incomes. Trading is only for rich and powerful people, and the poor become more poorer? What the heck you people in the government, protect us, do your job.

    • Yes but not automatically, you have to declare it in your income tax return as other income. Ask your accountant on details na lang

  4. Hi Sir… How much is the average cost for coaching forex tradign.. And what will be the remedy in case that I was not qualified as per the company but i already invested money..pls do help me…thank u

      • Me too sir Mark been this full time trader for almost 5 years… and planning to share my real world experience to our fellows not online but lecture base.. Tend to have this office for 15 seats this early 2020.. Do you any idea what are the requirements needed aside from DTI and local permit… for Forex Learning Centre. thank you much for your time Sir Mark.

  5. Sir, I sent you an email. Though I would like to post my concerns here as well. Here is the content of the email I sent to you:

    Hello Sir Mark!

    I am Dayanara Delos Angeles and I started doing binary options last month using IQ Options as my platform. I’ve been doing pretty great about it. However, I need help on the following matters:

    Although there is an alternative way to withdraw my profits using Skrill – Gcash, I would still like to use my bank account for my profits in the long run. However according to the bank (BPI), I need to secure business permits first before they allow the bank account to be used for trading purposes. My questions are

    1) You as a Forex Trader, what permits or license did you secure in order to trade legitimately in the country?
    2) How do you present your income from trading in your Income Tax Return? (I think this has already been answered, as you said it is presented as Other Income)
    3) Are there any Filipinos who were able to secure business permits for options trading? (or for forex trading)
    4) How can I become a legitimate binary options trader in the Philippines?

    Thank you so much for taking the time in reading this email. I’m conducting this research before I go through the hassle of securing business permits. And I don’t know my chance of being granted permits, I’m trying to avoid unneccessary expenses.

    I hope for your immediate response. Have a great day Sir!

    Regards,
    Dayanara, CPA

      • Good day sir.. Gusto ko po Sana malaman Yung sagot niyo sa tanong ni mam dayanara.. Pwede po Paki forward din sa aking email.. Thank you..

        • My conversation with Dayanara….Online forex trading is not a business and is not required for business permits. It is trading and a method of investment…. Much like if you bought and sold stocks on the Phil stock exchange.

          Chances are, how you explained it to BPI was percieved as a Money changing or physical foreign exchange operation, those are the ones that require business permits and licenses.

          Like Options trading, You are not required to have business permits to trade and invest in those. That falls under the purview of personal investments.

          I hope this clarifies things for you.

          Good luck and god bless.

          On Sun, Sep 15, 2019, 5:34 PM D, wrote:
          Thank you for all your advice.

          But I’m just curious, does this mean that you don’t possess any kinds of permit or license in doing Forex?

          Anyway, I have tried Forex trading in IQ Options but I really prefer Binary Options. I know that Options are much riskier but I am more comfortable in doing it.

          My honesty might be because I came from an Auditing Firm and I really don’t want to engage in anything illegal or anything I might be subjected to investigations.

          Thank you so much Sir!

          On Sun, Sep 15, 2019, 5:26 PM Mark So / Forex Club Asia wrote:
          To proceed, Just withdraw as normal and place the dollar bank account you have as the withdrawal option in your trading platform. Then look at my previous message. Note that Your bank account is personal just as your trading account is personal. But if you declared it as a business then that is probably why the bank is asking you for those additional papers. In the end, while your honesty is appreciated and to be admired, the reality is, most Bank people dont understand how online investments are done and will not know how to do so for the foreseeable future and will resort to conventional and outdated policies.

          Also and please note I do not recommend binary options, i do jot touch it. I trade forex not binaries.

          Best of luck

          Mark

          On Sun, Sep 15, 2019, 5:10 PM D wrote:
          Hmm, I bet maybe because I intend this to be my primary source of income so I wanted to declare it in the bank. And the bank manager clarified that this kind of activity is not considered as investment, but a business. And as a result, they wanted me to secure permits. I actually mentioned that it is like Forex trading, and the manager told me I need to secure a permit that says I’m licensed to do forex trading, which is I don’t know what permit is that because when I search in google I saw that Forex Trading is illegal here.

          Please, I don’t know how to proceed in this.

          On Sun, Sep 15, 2019, 5:05 PM Mark So / Forex Club Asia wrote:
          First time I’ve ever heard if this. When you withdraw, it just goes to your bank account. The bank just asks for the purpose of the money that was wire transferred to your account and the response would be proceeds from your trading. If they are asking for permits it is probably because they dont understand what it is you want to do.

          Sun, Sep 15, 2019, 9:23 PM
          to Mark

          Gosh thank you so much that is very insightful and helpful!

          Thank you!

          Regards,
          Dayanara

        • My conversation with Dayanara….Online forex trading is not a business and is not required for business permits. It is trading and a method of investment…. Much like if you bought and sold stocks on the Phil stock exchange.

          Chances are, how you explained it to BPI was percieved as a Money changing or physical foreign exchange operation, those are the ones that require business permits and licenses.

          Like Options trading, You are not required to have business permits to trade and invest in those. That falls under the purview of personal investments.

          I hope this clarifies things for you.

          Good luck and god bless.

          On Sun, Sep 15, 2019, 5:34 PM D, wrote:
          Thank you for all your advice.

          But I’m just curious, does this mean that you don’t possess any kinds of permit or license in doing Forex?

          Anyway, I have tried Forex trading in IQ Options but I really prefer Binary Options. I know that Options are much riskier but I am more comfortable in doing it.

          My honesty might be because I came from an Auditing Firm and I really don’t want to engage in anything illegal or anything I might be subjected to investigations.

          Thank you so much Sir!

          On Sun, Sep 15, 2019, 5:26 PM Mark So / Forex Club Asia wrote:
          To proceed, Just withdraw as normal and place the dollar bank account you have as the withdrawal option in your trading platform. Then look at my previous message. Note that Your bank account is personal just as your trading account is personal. But if you declared it as a business then that is probably why the bank is asking you for those additional papers. In the end, while your honesty is appreciated and to be admired, the reality is, most Bank people dont understand how online investments are done and will not know how to do so for the foreseeable future and will resort to conventional and outdated policies.

          Also and please note I do not recommend binary options, i do jot touch it. I trade forex not binaries.

          Best of luck

          Mark

          On Sun, Sep 15, 2019, 5:10 PM D wrote:
          Hmm, I bet maybe because I intend this to be my primary source of income so I wanted to declare it in the bank. And the bank manager clarified that this kind of activity is not considered as investment, but a business. And as a result, they wanted me to secure permits. I actually mentioned that it is like Forex trading, and the manager told me I need to secure a permit that says I’m licensed to do forex trading, which is I don’t know what permit is that because when I search in google I saw that Forex Trading is illegal here.

          Please, I don’t know how to proceed in this.

          On Sun, Sep 15, 2019, 5:05 PM Mark So / Forex Club Asia wrote:
          First time I’ve ever heard if this. When you withdraw, it just goes to your bank account. The bank just asks for the purpose of the money that was wire transferred to your account and the response would be proceeds from your trading. If they are asking for permits it is probably because they dont understand what it is you want to do.

          Sun, Sep 15, 2019, 9:23 PM
          to Mark

          Gosh thank you so much that is very insightful and helpful!

          Thank you!

          Regards,
          Dayanara

        • My conversation with Dayanara….Online forex trading is not a business and is not required for business permits. It is trading and a method of investment…. Much like if you bought and sold stocks on the Phil stock exchange.

          Chances are, how you explained it to BPI was percieved as a Money changing or physical foreign exchange operation, those are the ones that require business permits and licenses.

          Like Options trading, You are not required to have business permits to trade and invest in those. That falls under the purview of personal investments.

          I hope this clarifies things for you.

          Good luck and god bless.

          On Sun, Sep 15, 2019, 5:34 PM D, wrote:
          Thank you for all your advice.

          But I’m just curious, does this mean that you don’t possess any kinds of permit or license in doing Forex?

          Anyway, I have tried Forex trading in IQ Options but I really prefer Binary Options. I know that Options are much riskier but I am more comfortable in doing it.

          My honesty might be because I came from an Auditing Firm and I really don’t want to engage in anything illegal or anything I might be subjected to investigations.

          Thank you so much Sir!

          On Sun, Sep 15, 2019, 5:26 PM Mark So / Forex Club Asia wrote:
          To proceed, Just withdraw as normal and place the dollar bank account you have as the withdrawal option in your trading platform. Then look at my previous message. Note that Your bank account is personal just as your trading account is personal. But if you declared it as a business then that is probably why the bank is asking you for those additional papers. In the end, while your honesty is appreciated and to be admired, the reality is, most Bank people dont understand how online investments are done and will not know how to do so for the foreseeable future and will resort to conventional and outdated policies.

          Also and please note I do not recommend binary options, i do jot touch it. I trade forex not binaries.

          Best of luck

          Mark

          On Sun, Sep 15, 2019, 5:10 PM D wrote:
          Hmm, I bet maybe because I intend this to be my primary source of income so I wanted to declare it in the bank. And the bank manager clarified that this kind of activity is not considered as investment, but a business. And as a result, they wanted me to secure permits. I actually mentioned that it is like Forex trading, and the manager told me I need to secure a permit that says I’m licensed to do forex trading, which is I don’t know what permit is that because when I search in google I saw that Forex Trading is illegal here.

          Please, I don’t know how to proceed in this.

          On Sun, Sep 15, 2019, 5:05 PM Mark So / Forex Club Asia wrote:
          First time I’ve ever heard if this. When you withdraw, it just goes to your bank account. The bank just asks for the purpose of the money that was wire transferred to your account and the response would be proceeds from your trading. If they are asking for permits it is probably because they dont understand what it is you want to do.

          Sun, Sep 15, 2019, 9:23 PM
          to Mark

          Gosh thank you so much that is very insightful and helpful!

          Thank you!

          Regards,
          Dayanara

        • My conversation with Dayanara….Online forex trading is not a business and is not required for business permits. It is trading and a method of investment…. Much like if you bought and sold stocks on the Phil stock exchange.

          Chances are, how you explained it to BPI was percieved as a Money changing or physical foreign exchange operation, those are the ones that require business permits and licenses.

          Like Options trading, You are not required to have business permits to trade and invest in those. That falls under the purview of personal investments.

          I hope this clarifies things for you.

          Good luck and god bless.

          On Sun, Sep 15, 2019, 5:34 PM D, wrote:
          Thank you for all your advice.

          But I’m just curious, does this mean that you don’t possess any kinds of permit or license in doing Forex?

          Anyway, I have tried Forex trading in IQ Options but I really prefer Binary Options. I know that Options are much riskier but I am more comfortable in doing it.

          My honesty might be because I came from an Auditing Firm and I really don’t want to engage in anything illegal or anything I might be subjected to investigations.

          Thank you so much Sir!

          On Sun, Sep 15, 2019, 5:26 PM Mark So / Forex Club Asia wrote:
          To proceed, Just withdraw as normal and place the dollar bank account you have as the withdrawal option in your trading platform. Then look at my previous message. Note that Your bank account is personal just as your trading account is personal. But if you declared it as a business then that is probably why the bank is asking you for those additional papers. In the end, while your honesty is appreciated and to be admired, the reality is, most Bank people dont understand how online investments are done and will not know how to do so for the foreseeable future and will resort to conventional and outdated policies.

          Also and please note I do not recommend binary options, i do jot touch it. I trade forex not binaries.

          Best of luck

          Mark

          On Sun, Sep 15, 2019, 5:10 PM D wrote:
          Hmm, I bet maybe because I intend this to be my primary source of income so I wanted to declare it in the bank. And the bank manager clarified that this kind of activity is not considered as investment, but a business. And as a result, they wanted me to secure permits. I actually mentioned that it is like Forex trading, and the manager told me I need to secure a permit that says I’m licensed to do forex trading, which is I don’t know what permit is that because when I search in google I saw that Forex Trading is illegal here.

          Please, I don’t know how to proceed in this.

          On Sun, Sep 15, 2019, 5:05 PM Mark So / Forex Club Asia wrote:
          First time I’ve ever heard if this. When you withdraw, it just goes to your bank account. The bank just asks for the purpose of the money that was wire transferred to your account and the response would be proceeds from your trading. If they are asking for permits it is probably because they dont understand what it is you want to do.

          Sun, Sep 15, 2019, 9:23 PM
          to Mark

          Gosh thank you so much that is very insightful and helpful!

          Thank you!

          Regards,
          Dayanara

        • My conversation with Dayanara….Online forex trading is not a business and is not required for business permits. It is trading and a method of investment…. Much like if you bought and sold stocks on the Phil stock exchange.

          Chances are, how you explained it to BPI was percieved as a Money changing or physical foreign exchange operation, those are the ones that require business permits and licenses.

          Like Options trading, You are not required to have business permits to trade and invest in those. That falls under the purview of personal investments.

          I hope this clarifies things for you.

          Good luck and god bless.

          On Sun, Sep 15, 2019, 5:34 PM D, wrote:
          Thank you for all your advice.

          But I’m just curious, does this mean that you don’t possess any kinds of permit or license in doing Forex?

          Anyway, I have tried Forex trading in IQ Options but I really prefer Binary Options. I know that Options are much riskier but I am more comfortable in doing it.

          My honesty might be because I came from an Auditing Firm and I really don’t want to engage in anything illegal or anything I might be subjected to investigations.

          Thank you so much Sir!

          On Sun, Sep 15, 2019, 5:26 PM Mark So / Forex Club Asia wrote:
          To proceed, Just withdraw as normal and place the dollar bank account you have as the withdrawal option in your trading platform. Then look at my previous message. Note that Your bank account is personal just as your trading account is personal. But if you declared it as a business then that is probably why the bank is asking you for those additional papers. In the end, while your honesty is appreciated and to be admired, the reality is, most Bank people dont understand how online investments are done and will not know how to do so for the foreseeable future and will resort to conventional and outdated policies.

          Also and please note I do not recommend binary options, i do jot touch it. I trade forex not binaries.

          Best of luck

          Mark

          On Sun, Sep 15, 2019, 5:10 PM D wrote:
          Hmm, I bet maybe because I intend this to be my primary source of income so I wanted to declare it in the bank. And the bank manager clarified that this kind of activity is not considered as investment, but a business. And as a result, they wanted me to secure permits. I actually mentioned that it is like Forex trading, and the manager told me I need to secure a permit that says I’m licensed to do forex trading, which is I don’t know what permit is that because when I search in google I saw that Forex Trading is illegal here.

          Please, I don’t know how to proceed in this.

          On Sun, Sep 15, 2019, 5:05 PM Mark So / Forex Club Asia wrote:
          First time I’ve ever heard if this. When you withdraw, it just goes to your bank account. The bank just asks for the purpose of the money that was wire transferred to your account and the response would be proceeds from your trading. If they are asking for permits it is probably because they dont understand what it is you want to do.

          Sun, Sep 15, 2019, 9:23 PM
          to Mark

          Gosh thank you so much that is very insightful and helpful!

          Thank you!

          Regards,
          Dayanara

    • Good day po mam.. Ask lang po ako kung anong bank po ginamit nimo pag deposit sa Skrill?? Bpi po ba?? Magkano po ang transfer fee?? Gusto ko rin kasi mag trade sa iq option.. Thank you..

    • My reply to Dayanara FYI….Online forex trading is not a business and is not required for business permits. It is trading and a method of investment…. Much like if you bought and sold stocks on the Phil stock exchange.

      Chances are, how you explained it to BPI was percieved as a Money changing or physical foreign exchange operation, those are the ones that require business permits and licenses.

      Like Options trading, You are not required to have business permits to trade and invest in those. That falls under the purview of personal investments.

      I hope this clarifies things for you.

      Good luck and god bless.

      On Sun, Sep 15, 2019, 5:34 PM Dada 379, wrote:
      Thank you for all your advice.

      But I’m just curious, does this mean that you don’t possess any kinds of permit or license in doing Forex?

      Anyway, I have tried Forex trading in IQ Options but I really prefer Binary Options. I know that Options are much riskier but I am more comfortable in doing it.

      My honesty might be because I came from an Auditing Firm and I really don’t want to engage in anything illegal or anything I might be subjected to investigations.

      Thank you so much Sir!

      On Sun, Sep 15, 2019, 5:26 PM Mark So / Forex Club Asia wrote:
      To proceed, Just withdraw as normal and place the dollar bank account you have as the withdrawal option in your trading platform. Then look at my previous message. Note that Your bank account is personal just as your trading account is personal. But if you declared it as a business then that is probably why the bank is asking you for those additional papers. In the end, while your honesty is appreciated and to be admired, the reality is, most Bank people dont understand how online investments are done and will not know how to do so for the foreseeable future and will resort to conventional and outdated policies.

      Also and please note I do not recommend binary options, i do jot touch it. I trade forex not binaries.

      Best of luck

      Mark

      On Sun, Sep 15, 2019, 5:10 PM Dada 379, wrote:
      Hmm, I bet maybe because I intend this to be my primary source of income so I wanted to declare it in the bank. And the bank manager clarified that this kind of activity is not considered as investment, but a business. And as a result, they wanted me to secure permits. I actually mentioned that it is like Forex trading, and the manager told me I need to secure a permit that says I’m licensed to do forex trading, which is I don’t know what permit is that because when I search in google I saw that Forex Trading is illegal here.

      Please, I don’t know how to proceed in this.

      On Sun, Sep 15, 2019, 5:05 PM Mark So / Forex Club Asia wrote:
      First time I’ve ever heard if this. When you withdraw, it just goes to your bank account. The bank just asks for the purpose of the money that was wire transferred to your account and the response would be proceeds from your trading. If they are asking for permits it is probably because they dont understand what it is you want to do.

      On Sun, Sep 15, 2019, 4:35 PM Dada 379, wrote:
      Hello Sir Mark!

      I am Dayanara Delos Angeles and I started doing binary options last month using IQ Options as my platform. I’ve been doing pretty great about it. However, I need help on the following matters:

      Although there is an alternative way to withdraw my profits using Skrill – Gcash, I would still like to use my bank account for my profits in the long run. However according to the bank (BPI), I need to secure business permits first before they allow the bank account to be used for trading purposes. My questions are

      1) You as a Forex Trader, what permits or license did you secure in order to trade legitimately in the country?
      2) How do you present your income from trading in your Income Tax Return?
      3) Are there any Filipinos who were able to secure business permits for options trading? (or for forex trading)
      4) How can I become a legitimate binary options trader in the Philippines?

      Thank you so much for taking the time in reading this email. I’m conducting this research before I go through the hassle of securing business permits. And I don’t know my chance of being granted permits, I’m trying to avoid unneccessary expenses.

      I hope for your immediate response. Have a great day Sir!

      Regards,
      Dayanara, CPA

      Dada 379
      Sun, Sep 15, 2019, 9:23 PM
      to Mark

      Gosh thank you so much that is very insightful and helpful!

      Thank you!

      Regards,
      Dayanara

  6. Kindly comment on my interest re Binary Option Trading which I found very productive on my working peers when I was out of Pinas. I researched that this BOT is not LEGAL here in Pinas But Brokers (foreign & Local personnel) invite me to deal with them for a minimum fee of $50, Please comment on this ASAP, Thanks & God Bless

    • Hi Jesse, thanks for reaching out, unfortunately I do not trade binary options so I can’t answer you here properly. Just make sure that you keep your risks small. Good luck

  7. Hello Sir. What if my investment grows bigger, how can i deposit my earnings to my bank account here in our country Philippines? I’m afraid about our law regarding money laundering. May i know the process on how to transfer my earnings from platform to my bank account without worrying about getting caught in money laundering? Thank you for your immediate answer.

    • Hi Nina, please see my response to Neil. Here it is for convenience: Hi Neil, Requirements depend on how you withdraw. If you are using Paypal, the method you said will be fine. When the money lands into your bank account, your bank will just ask you what the purpose of the money was for, just tell the truth these are proceeds from your investments abroad. Usually that is enough, but if they ask for more info, just give them the records of your trading. All they want to know is if the funds came from a legal source and not through money laundering or any criminal activity. Trading is legal and the profits, if gotten from trading is legal. Good luck

  8. Hi Sir Mark,

    Pretty sure this was asked before but I’ll ask again so you can give me the complete details regarding this single question.

    – What are the requirements needed to withdraw money from the bank without any issue?
    – What if the bank does not let me withdraw my hard earned profits?
    – I’m currently using IC Markets and it’s connected via Paypal. My plan is to withdraw profits to Paypal then to bank. Any possible issues with this method?

    It’s most likely that I won’t have any problems for small profits but when(if) it becomes very large is what worries me.

    Thank you.

    • Hi Neil, Requirements depend on how you withdraw. If you are using Paypal, the method you said will be fine. When the money lands into your bank account, your bank will just ask you what the purpose of the money was for, just tell the truth these are proceeds from your investments abroad. Usually that is enough, but if they ask for more info, just give them the records of your trading. All they want to know is if the funds came from a legal source and not through money laundering or any criminal activity. Trading is legal and the profits, if gotten from trading is legal. Good luck

  9. I want to help the legalization of forextrading here in the Philippines I have friends in congress who is willing to get information and data that can be use to creat a law in forex trading… You can call me and reach me at 09503311865

    • That’s awesome. I suggest you go straight with your assistance to SEC like what I have done. The hotlines are found in the article. Good luck!

  10. What if you want to get into forex despite the advisory? I think it’s ridiculous because as far as I know there IS NO LAW against trading in the financial markets, like forex or NYSE or any other exchanges OTHER than PSE. If there is, can you please enlighten me. I am genuinely curious because I am seriously taking forex trading as a career in the near future.

    • Hi Charles, if you read the article and understood the spirit of the advisory and my explanations, do what you believe is right, but understand the risks. Good luck!

  11. That”s why I am saying YES to Forex and Foreign Trading System in the Philippines and calling the attention of our dignified Congressmen and Senators to author a Law Legalizing and Regulating Foreign Exchange Trading in our country. YES to Forex Trading.

  12. Hi Sir Mark, how do we know if the if the salesman or agent is legal or legitimate. Im planning to invest in the forex trading but they are not registered, only salesman or agent.

    • Hi Teresita, there will never be a legally registered salesman in the financial industry. There are certified Financial Planners, Insurance Agents etc, but a salesman/sales agent for Forex?, none exists so please read the article I have and understand the spirit of my message. Lastly, if it doesn’t feel right, just save yourself the trouble and don’t get into it. Good luck

  13. Gud pm po. I just attended a somewhat symposium here in our city about “4 expert automated strategies”. They’re offering an online robot who wil do d job 4 u.. s ds legal? Tnx

    • Hi Lerma, rule of thumb, if you don’t understand how those strategies work, don’t have a deeper understanding of the investment you are getting into, please follow this advice: DON’T GET INTO IT. Study it first, ask for a deeper explanation and if you understand it already, the next question is “how much am I supposed to invest?” If you cannot afford it, DON’T. It is not anymore if it is a scam or not, it is if you understand the context and the risks of getting into something half-baked. Good luck.

    • No. Bitcoin is a cryptocurrency that is not backed by any country. Forex is the trading of currencies that are backed by the country issuing the specific currency

  14. Hi,sir, I saw a news that there are at least 10 entities which had got the business permits engaged in forex trading in General Santos. Would you tell me which they are, because they are under regulation, I think it will be much safer. Hope to get your reply’

    • Robots or “EA” (Expert Advisors) that you use on MT4 are purely technical trading and does not have a feel for Market sentiment or Fundamental analysis which is why sooner or later it will blow up your account. Trading requires “human” experience and understanding which cannot be provided by an automated software. Also, don’t be fooled into thinking that the software is “A.I” No such thing exists yet.

  15. Good day sir Mark. I am interested in trading Forex. I have some exposure to the financial markets, but not Forex. Reading your article, and reading other articles regarding the same issue, I am confused about the status of opening a FOREIGN brokerage account. If you would be kind to answer my queries, it would help me in my journey to becoming a Forex trader.

    As a Filipino citizen living in the Philippines:
    1. Am I allowed to create a NEW brokerage account this day, or any other day in the future?
    2. Am I allowed to transfer funds from a USD account in a local bank to my foreign Forex brokerage account?
    3. Assuming that I have gained from my trading, am I allowed to transfer back these gains from my Forex brokerage account back to my USD account in a local bank?

    These are the questions that have been on my mind ever since I set my eyes to Forex trading. Thank you and have a great day sir!

    • As a Filipino citizen living in the Philippines:
      1. Am I allowed to create a NEW brokerage account this day, or any other day in the future? – You mean new Trading account? If so, yes
      2. Am I allowed to transfer funds from a USD account in a local bank to my foreign Forex brokerage account? Yes
      3. Assuming that I have gained from my trading, am I allowed to transfer back these gains from my Forex brokerage account back to my USD account in a local bank? Yes.That is the normal process.

    • Trading license is not required for traders who trade their own money. Its like you opening an investment account

  16. All forex brokers advertised here in the Philippines are Binary options and CFDs,and they should be banned. They’ve already been banned in the usa and europe. They’re all here now because the law is too slow here. I know this industry well, people should stay away. Brokers are making alot of money!

  17. Considering what you have mentioned, can i still open an account with a foreign broker, and start trading forex? Is there a legal implication on my part?

    As to taxes, are we required to file for income taxes or we should only treat this as passive income?

    As to withdrawal, payment to 3rd party, can this be considered wire transfer?

  18. Hi: You stated that some people are closing (or scaling down) their established Forex trading. Since new accounts can not be opened, do you personally know of people who would sell/transfer their already operational Forex account? (Sort of like buying an ongoing business.) Please send this info to my e-mail. Super thanks.

  19. Good Day Sir, I’m a victim of Bitcoin Investment Fraud & lost hope in investing again until a friend of mine invited me to do Forex Trading but I’m quite skeptical.. While reading your Q & A with some other people I find it very interesting to join your group. Can you Pls help me, how can I start?

  20. Hi,

    Can you recommend any forex broker (if with options but not binary options, better). Based here in Philippines as dual citizen (half-japanese).

    Thanks!

  21. Sir, anong bank po ung pwede gamitin sa deposit? Bank of.commerce.gamit ko.pero restricted ung deposit ko, di ako nkakakuha ng OTP from.the bank kasi restricted nga.

    • I use BDO If your bank has restrictions most of the time you just call them to lift restrictions or ask what can be done

  22. if someone offer you some forex strategy and offer to trade your money that is the rue scam so dont be fooled with that because retail trader did not accept money or true forex trader may teach you but never offer to trade your money, if you want to trade in forex trade at your own risk period.

  23. Hi sir,

    I have traded forex in 2013 just for a short while and I am now going back to trading again.
    I have read some articles saying that the banks are stricter these days regarding forex. Will it be a problem with withdrawals and other transactions? How do you go about this?

    Thanks and more power!

    • Yes banks are stricter, however as mentioned in previous comments, just tell them that the money comes from your investments abroad. as long as it is not money laundering or from any other criminal activities you should be fine.

  24. Hi,

    I’m British and planning to move to the Philippines full time to be with my wife and son.

    I trade Forex for a living.

    Will I encounter any problems?

    Kind regards
    Jamie

    • I don’t see any reason why you would. Just as long as you are trading and not doing something criminal like money laundering then that should be fine.

    • If you haven’t tried it yet, don’t get into it anymore. there are better ways to trade the market

  25. Hi Mark,

    I’m a foreigner living in PH for 16 years. Im trying to make the best decisions and it boils down to the SEC advisory law that everyone is concerned about.

    1. Is the Forex SEC a law or advisory?

    2. If my bank BDO asks where the money came from and I show them records of trading a FOREX trading account investment and not money laundering, Is this legal with the SEC advisory? You said trading is legal and the profits. Please help me to understand this fine line.

    Thanks

    The paragraph below was a reply you stated from NEIL above.

    Requirements depend on how you withdraw. If you are using Paypal, the method you said will be fine. When the money lands into your bank account, your bank will just ask you what the purpose of the money was for, just tell the truth these are proceeds from your investments abroad. Usually, that is enough, but if they ask for more info, just give them the records of your trading. All they want to know is if the funds came from a legal source and not through money laundering or any criminal activity. Trading is legal and the profits, if gotten from trading is legal. Good luck

    http://www.sec.gov.ph/foreign-exchange-trading-is-illegal-in-the-philippines/

    • Hi Joe, apologies for the super late reply, its been crazy lately. 1. It is an advisory 2. this is okay. Recently, my bank, BDO also asked me the same question, I just said that these are proceeds from my foreign investments. They usually are okay already with that and they don’t need any further records. Honestly, they just need to fill up a form as part of their internal reporting requirements. As mentioned, as long as the money was made through honest trading / investing and not money laundering, you should be ok.

  26. I had an experience with this same company they took money from me and when i tried withdrawing kept acting weird and trying to make me pay more. dimitru(at) ivtcysec-recovery,tech. pls report experiences and wrong fraudulent trading companies. if someone had warned me or i read of this somewhere i would have stayed off.

  27. Hi. Thanks for this summary of the legality of ForEx Trading in the Philippines.

    Question though. You enrolled with a certain company (do I have to say their name?) whom will train you to learn this that includes their software that you can use to trade but not guaranteeing profit. But you will be the one doing the trade yourself.

    As you mentioned in this article, the goal of the SEC is apprehend those that came into their attention. In this case, if you pursue trading and you are satisfied w/ the results, then there should be no problem, right?

    Also, do we have specific laws that says ForEx Trading is indeed illegal? Coz I just thought of, if this is illegal, then there should be no established company offering training services and software applications, unless their registration is not the same as what they actually do.

    Hope you can send me a reply for this. BTW, I’m also interested with ForEx Trading. 🙂

    Thanks.

    • Hi Joe, if you are satisfied and feel you were not duped then no worries. This is an advisory even though it is worded otherwise. Good luck

  28. Sir,
    Thank you for the info. I’m Japanese living in the Philippines. I was planning to open XM trading account here in the Philippines. In this case, what is illegal exactly?

    Legal: Open FX account by using my JP bank account and with my PH address living in the philippines.
    Illegal: Open FX account by using my PH bank account and with my PH address living in the philippines.

    Is my understanding correct?

    • First, you can’t open an account using your Japanese bank in Japan and place Philippines as your residence, AMLA (Anti Money Laundering Act) will not allow that. Next, it’s ok to open an account using ph address and ph bank account. The SEC advisory is an advisory to basically say do this at your own risk. So if you have no complaints about the account you opened with any particular broker then do so, but don’t complain to SEC as they will say, “didn’t you read our warning?” Lol!

  29. But do we have specific laws that says ForEx Trading is indeed illegal? Coz I just thought of, if this is illegal, then there should be no established company offering training services and software applications, unless their registration is not the same as what they actually do.

  30. good noon sir, I’m curious if i can use to transact my savings account (regular atm account BDO) using XM forex trading platform, is this legal?

    • Sorry, you will have to talk to them directly as I have not dealt with XM. As for legitimacy, you will have to do your own due dilligence. Stay safe and healthy, invest wisely

    • Yes, by including it when filing for income taxes. Unlike local markets i.e. stocks, it is not automatically deducted or declared, so you have to declare and deduct it on your own. Please just consult your accountant on how to best do that for yourself

Leave a Reply to Marichu Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.