What are the best CFD brokers in the Philippines?

What is a CFD or Contract for Difference?

The term CFD is the abbreviation for Contract For Difference.

A CFD is a financial instrument in the derivatives category. Indeed, the value of a CFD is based on the performance of one or more underlying assets. The assets represented by a CFD can be diverse, such as stocks, indices, currencies, commodities, or even bonds or cryptocurrencies.

One of the particularities of CFDs is that they allow speculation on both the rise and fall of the prices of a financial asset.

The profit or loss generated when closing the position corresponds here to the difference between the price of the underlying asset at the time of purchase and the price of that asset at the time of sale.

Attention !

81% of retail investor accounts lose money when trading CFDs.

What is a CFD broker?

A CFD broker is a trading platform that allows investors to speculate on the price movements of a financial asset without actually owning the underlying asset. CFD stands for "Contract for Difference," a derivative product that reflects the price movement of an asset such as a stock, currency, commodity, or stock index.

A CFD broker provides traders with an interface where they can buy (long position) or sell (short position) a CFD on a given asset. The difference between the entry price and the exit price determines the trader's profit or loss.

The main elements that characterize a CFD broker are:

• Market access: Brokers generally offer a wide range of assets in the form of CFDs, including stocks, indices, Forex, cryptocurrencies and commodities.
• Leverage: Traders can use leverage, allowing them to amplify their market exposure with reduced capital. However, this also increases the risk of losses.
• Trading fees: A CFD broker may charge spreads (the difference between the buying and selling price), commissions or financing fees for positions held open overnight.
• Regulation: In the Philippines, CFD brokers must be registered with the Securities and Exchange Commission (SEC) and comply with regulations regarding investor protection and leverage limitations.

Types of CFD Brokers: Market Maker vs STP/ECN

When choosing a CFD broker, it is important to understand the differences between Market Makers and STP/ECN brokers. These models influence order execution, fees, and the trading experience.

What type of broker should I choose?

• Market Maker: Ideal for beginner traders and those who prefer simple pricing with fixed spreads.
• STP/ECN: Suitable for experienced traders looking for lower costs, better transparency, and direct market access.

What Regulations and Security Measures are in Place for CFD Brokers in the Philippines?

In the Philippines, the primary regulatory authority overseeing financial markets is the Securities and Exchange Commission (SEC). While the SEC does not currently license or regulate Contracts for Difference (CFD) trading, it has issued advisories warning the public against engaging with unregistered foreign CFD platforms. As a result, Filipino traders are advised to exercise caution and to consider brokers regulated by reputable international authorities.

Given the lack of specific CFD regulations in the Philippines, traders should consider the following precautions:​

• Verify Broker Regulation: Ensure the broker is licensed by a reputable international authority such as the FCA, ASIC, or CySEC.​
• Understand Leverage Risks: Be aware of the leverage offered by the broker and understand how it can amplify both gains and losses.​
• Risk Disclosure: Choose brokers that provide clear information about the risks associated with CFD trading.​
• Segregation of Funds: Opt for brokers that keep client funds separate from their own operational funds to protect your investment.​
• Negative Balance Protection: Select brokers that offer protection against losing more than your initial investment.

How to Choose a CFD Broker?

Choosing the right CFD broker is a crucial step for any trader aiming to speculate on financial markets. Several factors should be carefully considered to ensure the broker matches your trading style and complies with safety and regulatory standards.

1. Available Assets

A good CFD broker should offer a wide range of financial assets allowing traders to diversify their investments. Here are the main types of assets accessible in CFDs:

2. CFD Broker Regulation

Regulation is one of the most important criteria when selecting a trustworthy CFD broker. In the Philippines, where CFDs are not directly regulated by the local SEC, it’s essential to choose brokers authorized by well-established international financial authorities.

Here are the main regulatory bodies Filipino traders should look for:

Warning

Avoid brokers that are unregulated or registered in offshore jurisdictions like Belize or Vanuatu, as these offer little to no investor protection.

3. Leverage in the Philippines and Elsewhere

Leverage allows traders to control a larger position with a smaller capital outlay. While it can enhance potential profits, it also significantly increases the risk of losses.

Since the Philippines has no formal regulation on CFD leverage, Filipino traders are subject to the leverage limits of the broker’s regulatory jurisdiction. Here’s a comparison of maximum leverage levels in regulated regions:

Professional traders may access higher leverage by waiving certain retail protections, but this comes with greater responsibility and risk.

4. Available Orders

A good CFD broker should offer a variety of trading orders to optimize strategies and better manage risks.

5. Available Features

The best trading platforms offer advanced features that facilitate analysis and order execution.

• Trading Platforms: MetaTrader 4 (MT4), MetaTrader 5 (MT5), TradingView, proprietary platforms.
• Charts and Technical Indicators: Moving averages, RSI, MACD, Fibonacci, etc.
• Analysis and Reporting Tools: Price alerts, trading signals, real-time market analysis.
• Mobile Compatibility: iOS/Android app for trading on the go.
• Trading Automation: Trading robots (Expert Advisors on MT4/MT5) and API for algorithmic trading.
• Customer Service: Assistance in English, 24/7 support via chat, phone, or email.

Which CFD Broker is Best for a Beginner Trader in the Philippines?

Choosing a CFD broker when you are new to trading can be difficult. Here are the essential criteria for selecting a broker suitable for novice Filipino traders.

• Simple and intuitive platform: Choose a broker with a clear interface like eToro or XTB. MetaTrader 4 (MT4) is also a popular option, but a bit more technical. It is recommended to test a demo account before going live.
• Regulation and security: A reliable broker must be regulated by the Securities and Exchange Commission (SEC) or a recognized authority in the Philippines. They must guarantee protection against negative balance and segregation of client funds. Avoid offshore brokers (Belize, Vanuatu) that do not protect investors.
• Transparent and competitive fees: Compare the spread (difference between buying and selling prices), commissions (some brokers are commission-free on stocks/ETFs), overnight fees (swap) and deposit/withdrawal fees. Opt for a broker with tight spreads and free withdrawals.
• Customer support in English: Check if the broker offers assistance in English via chat, email or telephone, as well as a detailed FAQ. A support available 24/5 or 24/7 is a real plus.
• Educational resources and training: A good broker for beginners should offer video tutorials, webinars and trading guides. A free and unlimited demo account is essential for practicing without risk.

How to Trade CFDs with an Online Broker?

Trading CFDs with an online broker involves several essential steps. Here’s a detailed guide to get you started effectively.

1. Choose a Regulated CFD Broker

Before you start trading, it's essential to select a regulated and secure online CFD broker. Since the Philippine SEC does not currently regulate CFDs, make sure the broker is authorized by a trusted international regulator such as the FCA (UK), ASIC (Australia), or CySEC (Europe).

Look for the following features in a broker:

• A user-friendly and reliable trading platform (like MetaTrader 4 or 5)
• Competitive spreads and low trading fees
• Responsive customer support (ideally with 24/5 availability)
• Clear risk disclosures and client fund protection

2. Open a Trading Account

Once the broker is selected, opening an account requires:

• Online registration with your personal information
• Identity verification (identity card, proof of address)
• An initial deposit according to the broker's requirements (often between ₱5,000 and ₱25,000)

Some brokers offer a demo account to practice without risk before trading with real money.

3. Choose an asset to trade

CFD brokers offer access to a wide variety of financial instruments, allowing traders to diversify and align trades with their market interests. Some of the most popular asset classes among Filipino traders include:

• Stocks (Apple, Tesla, Ayala Corp., Jollibee Foods)
• Indices (PSEi, S&P 500, Nasdaq 100, Nikkei 225)
• Forex (USD/PHP, EUR/USD, GBP/USD)
• Commodities (Gold, Crude Oil, Natural Gas)
• Cryptocurrencies (Bitcoin, Ethereum, Solana)

Choose an asset that fits your strategy, risk appetite, and trading knowledge.

4. Analyze the market and take a position

Before opening a position, analyze the market with:

• Technical analysis: indicators (RSI, MACD, moving averages) and chart patterns
• Fundamental analysis: economic news, company results, central bank decisions

Next, you can open a position:

• Buy (Long): if you think the price will go up
• Sell (Short): if you anticipate a decrease

5. Defining Leverage and Protective Orders

Leverage lets you control a larger market position with a smaller capital deposit. However, it also increases your exposure to potential losses. For example, a broker regulated by the FCA or CySEC may limit leverage to:

• 1:30 for major Forex pairs
• 1:20 for gold and major indices
• 1:5 for individual stocks

Some offshore brokers may offer higher leverage—up to 1:500—but without the same level of investor protection.

To manage your risk, always set up protective orders:

• Stop-loss: Automatically closes your trade if the loss exceeds a set limit.
• Take-profit: Locks in profits once your target level is reached.

6. Monitor and Close Your Position

Once your position is open, monitor its performance through the broker's platform. Depending on your strategy, you can:

• Manually close your position
• Let your take-profit or stop-loss execute automatically
• Adjust your orders according to the market

Attention!

Positions held open for several days may incur overnight fees (swap), to be verified according to your broker.

7. Analyze Your Performance and Optimize Your Strategy

After each trade, analyze your results to improve:

• Check what worked and what didn’t
• Adapt your risk management and entry/exit strategies
• Use the broker's tools such as trading journals and market analysis

What are the CFD broker fees?

CFD brokers charge various fees that influence the profitability of trading. It is essential to understand these costs before opening an account. Here are the main types of fees, with concrete examples.

1. The spread

The spread is the difference between the buying price (Ask) and the selling price (Bid) of an asset. It is the main source of income for commission-free brokers.

CFD Spread Example

A broker offers a CFD on EUR/USD with a spread of 1.2 pips. If you open a position of 1 lot (100,000 units), the cost of the spread will be:

• 1 pip = $10 on a standard lot
• 1.2 pips = $12 fee to open the position

2. Commissions

Certain brokers charge fixed commissions in addition to the spread, especially on ECN/STP accounts, which offer lower spreads.

CFD Commission Example

An ECN broker applies a commission of $7 per lot on a Forex trade. If you open a 1 lot position on EUR/USD, you will pay $3.50 at the opening and $3.50 at the closing, i.e. $7 in fees in all.

3. Overnight Fees (Swap)

Overnight fees, also called swaps, are charged when you keep a position open after the markets close (10 PM GMT). They are based on the central banks' interest rates.

Example of CFD swap fees

You hold a buy position on the CFD EUR/USD with a leverage of 1:30. Your broker applies a swap rate of -0.7 pips per day. If your position is 1 lot, you will pay $7 in overnight fees each night.

4. Inactivity fees

Brokers may charge inactivity fees if your account remains inactive for a certain period (typically 3 to 12 months).

Example of inactivity fees

A broker charges ₱500 per month after 6 months of no activity. If you do not trade for a year, you will pay ₱6000 in inactivity fees.

5. Deposit and Withdrawal Fees

Some brokers charge fees on bank transactions or withdrawals depending on the payment method used.

Example of deposit and withdrawal fees

A broker charges 1.5% on deposits by credit card and PHP 300 on each withdrawal by bank transfer. If you deposit PHP 60,000, you will pay PHP 900 in fees. If you withdraw PHP 30,000, you will pay an additional PHP 300.

6. Leverage Fees

Leverage allows you to trade with more capital than is available in your account, but it can lead to financing fees.

Example of Leverage Fees

You open a position of ₱580,000 (approximately) with leverage of 1:30. Your broker applies a daily financing rate of 0.01% on the borrowed amount (₱560,666.67 approximately). Each day, you will pay approximately ₱56.07 in fees to maintain this position.

What Strategy to Use When Trading with a CFD Broker?

CFD trading offers various strategies tailored to different experience levels, investment horizons, and risk appetites. Below is an overview of popular CFD trading strategies, adapted for Filipino traders with locally relevant examples:

What is the taxation of CFD income in the Philippines?

In the Philippines, profits earned from CFD trading are generally considered taxable income. It's crucial for traders to understand the tax implications to ensure compliance and optimize their tax obligations.​

1. Tax Regime for CFD Trading in the Philippines

CFD trading profits are typically classified as "Other Taxable Income" and are subject to the standard graduated income tax rates for individuals. The applicable tax rate depends on the individual's total taxable income for the year.​DailyForex+1Deloitte+1

Note: These rates are based on the latest tax schedules provided by the Bureau of Internal Revenue (BIR). It's advisable to consult with a tax professional for the most current information.​

2. Offsetting Losses and Taxation of Gains

Traders can offset losses against gains within the same tax year to determine their net taxable income from CFD trading. However, losses cannot be carried over to subsequent years.​

Example:

• Total CFD trading gains: PHP 500,000​
• Total CFD trading losses: PHP 200,000​
• Net taxable income: PHP 300,000​

Based on the tax brackets, a net income of PHP 300,000 falls within the 20% tax rate. Therefore, the tax due would be:​

• PHP 300,000 x 20% = PHP 60,000​

3. Declaring CFD Trading Income

To comply with Philippine tax laws, traders should:​

• Register as Self-Employed or Mixed-Income Earner: Visit the BIR to register and obtain a Tax Identification Number (TIN).​
• Maintain Accurate Records: Keep detailed records of all CFD trades, including dates, amounts, and corresponding gains or losses.​
• File Annual Income Tax Returns: Declare CFD trading income under "Other Taxable Income" in the annual income tax return (BIR Form 1701 or 1701A for individuals).​
• Pay Applicable Taxes: Ensure timely payment of taxes due to avoid penalties and interest.​

Important: If you're trading through a foreign broker, it's essential to report any foreign accounts to the BIR and comply with any additional reporting requirements.​

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.