Best Forex Brokers in 2025

What is Forex or the foreign exchange market?

Forex (Foreign Exchange), also known as the currency market, is the largest financial market in the world, where currencies are traded continuously. It operates 24 hours a day, 5 days a week, with a daily trading volume reaching several trillion dollars. This market is based on the exchange of currency pairs, where one currency is bought and the other is sold simultaneously. Each pair is expressed in the format XXX/YYY, such as USD/PHP (US Dollar versus Philippine Peso) or EUR/JPY (Euro versus Japanese Yen). The first currency in the pair is called the base currency, and the second is the quote currency. So, if USD/PHP is quoted at 56.00, it means that 1 US dollar is worth 56 Philippine pesos.

Forex is driven by several types of participants. Central banks influence the market through monetary policy decisions. Financial institutions and hedge funds execute large-scale trades, while multinational companies buy and sell currencies for international operations. Finally, individual traders access the market through Forex brokers who enable them to speculate on currency movements using leverage.

This market offers several advantages that attract investors. It is accessible around the clock, providing opportunities at any time. Its high liquidity allows for quick order execution without concern for a lack of counterparties. Leverage offered by Forex brokers lets traders open positions significantly larger than their initial capital, although it also increases risk. Moreover, unlike stock markets, Forex allows speculation in both upward and downward directions by selling one currency against another.

What is a Forex broker?

A Forex broker is a platform that allows investors to buy and sell currencies in the foreign exchange market. It serves as an intermediary between the trader and the interbank market, where large financial institutions exchange currencies on a large scale. Thanks to online brokers, Forex has become accessible to individuals, who can speculate on the evolution of exchange rates from an intuitive interface and with relatively little capital.

Forex brokers offer currency pairs such as EUR/USD, GBP/JPY, or USD/CHF, allowing positions to be opened with or without leverage, depending on the desired level of risk. They provide advanced tools for market analysis, such as real-time charts, technical indicators, and automated trading functionalities. Some brokers also offer access to CFDs (Contracts for Difference), allowing speculation on currency fluctuations without actually owning the underlying asset.

Compare the best Forex brokers regulated in the Philippines.

How to choose a Forex broker?

Choosing a Forex broker is an essential step for trading currencies under good conditions. Several criteria must be taken into account to select the platform that best suits your needs and trading style. Here are the main elements to analyze before opening an account.

1. Regulation and Security of Funds

A reliable Forex broker must be regulated by a recognized financial authority to ensure client fund protection and transparent trading practices. In the Philippines, traders should prioritize brokers that are registered with or authorized by reputable regulators such as:

• The Securities and Exchange Commission (SEC) Philippines
• The Bangko Sentral ng Pilipinas (BSP) for financial institutions operating within the country
• ASIC (Australian Securities and Investments Commission) – often chosen by regional traders
• FCA (Financial Conduct Authority) in the UK
• CySEC (Cyprus Securities and Exchange Commission) in Europe

A regulated broker ensures that client funds are kept in segregated accounts, minimizing the risk of fraud or insolvency. Always verify the broker's registration number and check it on the regulator’s official website.

2. The type of broker: Market Maker or ECN/STP

There are two main categories of Forex brokers:

What type of broker should I choose?

• Beginner: Market Maker (fast execution, no commission)
• Advanced Trader: ECN/STP (more transparent execution, tight spreads)

3. Spreads and Commissions

Forex brokers primarily earn revenue in two ways:

• Spreads: the difference between the buying and selling price of a currency pair. These can be fixed or variable.
• Commissions: applied to each transaction, generally per lot of 100,000 currency units.

4. The Leverage Offered

Leverage enables traders to increase their exposure in the market with a relatively small amount of capital, which can amplify both profits and losses. In the Philippines, there is no unified domestic leverage cap for retail Forex trading. However, international brokers accepting Filipino clients often adhere to the following standards:

• Up to 1:30 leverage on major currency pairs with brokers regulated by ASIC or FCA
• Up to 1:500 with brokers registered in offshore jurisdictions (e.g., Seychelles, Belize), though this carries significantly higher risk

It's important for beginner traders to start with low leverage (e.g., 1:10 or 1:20) and increase only with experience and a proper risk management strategy.

5. Available Trading Platforms

A good Forex broker should offer an intuitive and efficient platform. The most popular are:

• MetaTrader 4 (MT4): Ideal for automated trading and technical indicators.
• MetaTrader 5 (MT5): Improved version of MT4 with more assets.
• cTrader: Appreciated for its speed of execution and transparency.
• Proprietary Platforms: Some brokers develop their own online and mobile trading software.

6. Deposit and Withdrawal Methods

A reliable broker should offer several methods to deposit and withdraw funds easily. Check the available options:

💳 Bank card (Visa/Mastercard)
🏦 Bank transfer
📱 Electronic wallets (PayPal, Skrill, Neteller)
💰 Cryptocurrencies (Bitcoin, USDT, etc.)

Hidden Fees

Some brokers charge withdrawal fees or impose long delays for processing requests.

7. The quality of customer service

A good broker should offer responsive and available customer service in the event of a technical or administrative problem. Before opening an account, test:

• Contact methods: online chat, phone, email
• Responsiveness: quick response and in English if possible
• Availability: 24/7 support, especially during trading hours

8. Educational Tools and Resources

If you are new to Forex trading, favor a broker offering:
📊 Webinars and online training
📈 Market analysis and trading signals
📘 Guide to learn how to use the platforms

Which Forex broker for a beginner?

Choosing a Forex broker when you are starting out can be complex, as you need to prioritize a simple, secure platform with transparent fees. A good broker for beginners should offer:

• An intuitive interface: a platform that's easy to learn, with clear tools and mobile access.
• A free demo account: to practice without risk using virtual money.
• Competitive fees: reasonable spreads and no hidden commissions.
• Responsive customer service: available and accessible via chat, telephone, or e-mail.
• Reliable regulation: a broker approved by a recognized authority (such as the Securities and Exchange Commission of the Philippines).
• Access to educational resources: guides, webinars, market analysis and tutorials.
• Appropriate leverage: limited to comply with the regulations of the Securities and Exchange Commission of the Philippines to limit risks and avoid rapid losses.
• A wide choice of currency pairs: to trade the main Forex pairs (EUR/USD, GBP/USD, USD/JPY…).

How to Trade Forex with an Online Broker?

Trading Forex with an online broker involves several key steps. 

1. Choose a Reliable Forex Broker

The first step is to select a regulated broker that offers an intuitive platform, competitive fees, and appropriate leverage. Check the following criteria:

• Regulation by a recognized authority (such as the Securities and Exchange Commission of the Philippines).
• Competitive spreads and no hidden fees.
• Access to a high-performance platform (MetaTrader 4, MetaTrader 5, cTrader...).
• Responsive customer service.

2. Open a Trading Account

Once the broker is selected, you need to create an account. The procedure generally includes:

• Fill out a registration form with your personal information.
• Verify your identity by sending an ID and proof of address.
• Select the account type (standard account, ECN account, demo account, etc.).
• Accept the broker's terms of use.

3. Deposit Funds into Your Account

To start trading, you need to fund your account via:
💳 Credit card (Visa/Mastercard)
🏦 Bank transfer
📱 E-wallets (PayPal, Skrill, Neteller)
💰 Cryptocurrencies (depending on the brokers)

4. Choosing a currency pair to trade

Forex trading is based on trading currency pairs such as:

• Majors: EUR/USD, GBP/USD, USD/JPY (the most liquid and least volatile).
• Minors: EUR/GBP, AUD/NZD (less traded but interesting).
• Exotics: USD/ZAR, EUR/TRY (more volatile with higher spreads).

5. Analyze the market and define a strategy

Before opening a position, you need to analyze the market using:

• Technical Analysis: using charts, indicators (RSI, MACD, moving averages) to identify opportunities.
• Fundamental Analysis: monitoring economic news (interest rates, inflation, employment) to anticipate trends.
• Trading Plan: defining objectives, acceptable risk, and money management.

6. Placing a Trade Order

On your platform, you need to:

• Select the currency pair to trade.
• Define the position size (in lots).
• Choose the order type:✅ Market order: immediate execution at the current price.✅ Limit order: buy or sell at a defined price.✅ Stop order: execution when the price reaches a certain level.
• Add a stop-loss (to limit losses) and a take-profit (to secure gains).
• Validate the order.

7. Manage Your Positions and Adjust Your Trading

Once the order is executed, it's important to monitor your trade in real-time:

• Adjust the stop-loss or take-profit according to market movements.
• Follow the evolution of economic news that may impact the currency pair.
• Close a position manually if necessary to secure profits or limit losses.

8. Withdrawing Your Profits and Optimizing Your Strategy

Once you have accumulated profits, you can request a withdrawal to your bank account or e-wallet. Remember to:

• Verify the withdrawal times and fees imposed by the broker.
• Analyze your trading performance and adjust your strategy.
• Continue to learn and improve through the broker's educational tools (webinars, market analysis, demo accounts, etc.).

What Currency Pairs to Trade on Forex with an Online Broker?

Forex trading involves trading currency pairs, classified into three main categories: majors, minors, and exotics. Each type of pair has specific characteristics in terms of liquidity, volatility, and spreads. Here is a summary table of the main currency pairs to trade with an online broker.

Which currency pair to choose?

• Beginner? → Prioritize major pairs (EUR/USD, USD/JPY, GBP/USD) for their tight spreads and liquidity.
• Experienced Trader? → Opt for minor pairs (EUR/GBP, GBP/JPY) for more volatility and opportunities.
• High-risk tolerance? → Exotic pairs (USD/ZAR, EUR/TRY) offer high potential gains, but with wider spreads and significant volatility.

What are the Fees Charged by Forex Brokers?

Forex brokers apply different types of trading fees that can impact the profitability of investors. These fees vary depending on the type of broker (Market Maker or ECN/STP), the currency pair traded, and market conditions. Here are the main fees to know before choosing a Forex broker.

1. Spreads (Price Differences Between Buy and Sell)

The spread is the difference between the buying price (Ask) and the selling price (Bid) of a currency pair. This is the main fee applied by Market Maker brokers. It can be fixed or variable, depending on market volatility.

Example of average spreads

• EUR/USD → 0.5 to 1.5 pips
• GBP/USD → 1 to 2 pips
• USD/JPY → 0.8 to 1.5 pips

Tip: An ECN/STP broker generally offers tighter spreads but applies a commission per trade.

2. Transaction fees

Some brokers charge a fixed commission per lot traded, in addition to the spread. This model is common among ECN brokers, where orders are executed directly on the interbank market.

ECN Commission Example:

5 $ to 7 $ per standard lot (100,000 currency units) for a round trip (buy + sell).

3. Swap Fees (Overnight or Rollover)

Swap fees are applied when you keep a position open after the market closes (usually at 11 PM GMT). This cost depends on the interest rate differential between the two currencies in the traded pair.

Example of swap

• On EUR/USD, if the euro has a lower interest rate than the dollar, a trader buying EUR/USD will have to pay a fee to keep their position open.
• Conversely, if they sell EUR/USD, they may receive a credit (positive if the currency sold has a higher rate).

4. Currency Conversion Fees

If you trade a currency pair that is not denominated in your base currency (e.g., an account in PHP trading USD/JPY), the broker will apply a currency conversion fee.

Example of Conversion Fees

A broker may charge 0.25% of the amount converted for a USD transaction with a PHP account.

5. Inactivity Fees

Some brokers charge fees if you do not make any transactions for a given period (usually 3 to 12 months).

Example of inactivity fee

PHP 500 to PHP 2,500 per month after 6 to 12 months without trading.

6. Deposit and withdrawal fees

Brokers may charge fees to deposit or withdraw money from your trading account. These fees vary depending on the payment method used.

Example of withdrawal fees

• Bank transfer: fixed fees between ₱300 and ₱3000 depending on the country and the bank.
• Credit/Debit card: some brokers charge 1 to 3% of the amount withdrawn.
• E-wallets (PayPal, Skrill, Neteller): fees between 0% and 3%.

What strategies are there for trading with a Forex broker?

Forex trading offers various strategies tailored to the profiles and objectives of traders. Some methods favor quick gains on small movements, while others rely on long-term trends. Here is a summary table of the main Forex trading strategies and their characteristics.

What is the taxation on Forex income in the Philippines?

In the Philippines, profits from Forex trading are considered ordinary income and are subject to the country's graduated income tax rates. The Bureau of Internal Revenue (BIR) treats Forex trading as a business or professional activity, regardless of whether it's a full-time occupation or a side endeavor.​

1. Taxation for Individual Traders

Forex trading profits are taxed based on the following income brackets:​

• Up to PHP 250,000: 0%
• PHP 250,001 – PHP 400,000: 15% on the excess over PHP 250,000
• PHP 400,001 – PHP 800,000: PHP 22,500 + 20% on the excess over PHP 400,000
• PHP 800,001 – PHP 2,000,000: PHP 102,500 + 25% on the excess over PHP 800,000
• PHP 2,000,001 – PHP 8,000,000: PHP 402,500 + 30% on the excess over PHP 2,000,000
• Over PHP 8,000,000: PHP 2,202,500 + 35% on the excess over PHP 8,000,000​

These rates apply to the total taxable income, including Forex trading profits. 

2. Deductible Expenses

Traders can deduct expenses directly related to their trading activities, which may include:​

• Brokerage fees and commissions
• Trading software and tools
• Internet and communication costs
• Educational courses and seminars
• Office equipment and supplies​

These deductions can help reduce the overall taxable income. ​

3. Reporting Forex Gains and Losses

• Realized Gains: Only profits from closed trades are considered taxable.
• Realized Losses: Losses from closed trades can be deducted from other income.
• Unrealized Gains/Losses: Profits or losses from open positions are not taxable until the positions are closed.

When filing income tax returns, Forex gains should be reported under "Other Taxable Income." ​

4. Tax Residency Considerations

• Residents: Individuals residing in the Philippines for 183 days or more in a year are considered tax residents and are taxed on their worldwide income, including Forex profits.
• Non-Residents: Those residing in the Philippines for less than 183 days are taxed only on income sourced within the country. Forex profits from trades executed outside the Philippines may not be subject to Philippine income tax. ​

5. Currency Conversion for Tax Reporting

Forex gains and losses must be reported in Philippine pesos. The BIR mandates using the spot exchange rate on the transaction date for converting foreign currency transactions. If using a rate other than the Bankers Association of the Philippines (BAP) published rate, traders must submit a sworn statement to the BIR and maintain consistent use of the chosen rate throughout the taxable year. 

6. Importance of Record-Keeping

Maintaining detailed records of all trading activities is crucial. This includes:​

• Dates and times of trades
• Currency pairs traded
• Amounts of gains or losses
• Exchange rates used for conversion
• Receipts for deductible expenses​

Proper documentation ensures accurate tax reporting and can be vital during BIR audits. ​

7. Penalties for Non-Compliance

Failure to declare Forex trading income can lead to severe penalties, including fines and imprisonment of up to ten years. The BIR actively pursues tax evasion cases, and reliance on accountants does not absolve individuals from responsibility.

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.