Currency trading in the Philippines is becoming increasingly popular. Financial trading in the country is regulated by the Securities and Exchange Commission (SEC) and the Bangko Sentral ng Pilipinas (BSP), which is the central bank of the Philippines.
Forex exchanges operate using a network of institutions, such as banks, brokers, and trading platforms. The market participants are individual traders, institutional investors, corporations, and governments.
Currency trading is available 24 hours a day, 5 days a week. However, some trading hours are not as active as others. Intraday traders, scalpers, algorithmic traders and those who are looking for tight spreads prefer trading during the most liquid trading hours.
Best hours to trade FX in Philippines
An ideal Forex trading hours in PH are during New York and London trading sessions. It should also be mentioned that traders are more active during New York and London trading hours than during Tokyo sessions and this is why best Filipino traders are trading during those two sessions.
- New York trading session runs from 8:00 PM to 4:00 AM (Philippine Time)
- London trading session runs from 4:00 PM to 2:30 AM (Philippine Time)
- Tokyo trading session runs from 7:00 AM to 4:00 PM (Philippine Time)
Please note that these timeframes are subject to change due to daylight savings adjustments. Daylight saving time (DST) is a practice of adjusting the clock forward by one hour during the warmer months to extend evening daylight.
Currency exchanges work differently than Stock exchanges. You can trade a stock only when a certain exchange is open. However, when it comes to currency trading, traders can buy currency pairs during the Tokyo session and sell during the New York session. Let’s learn more about each exchange and find out the best time to trade PHP.
New York trading session
New York Forex exchange is a significant financial hub and plays a crucial role in the Forex market. The major financial institutions based in New York, such as banks, wealth management funds, hedge funds, etc. actively participate in currency trading. As a result, the trading session is very active and offers many opportunities to retail traders.
London trading session
The London currency trading session is considered one of the most important and active sessions in the FX market due to the significant trading volume and liquidity. Trading hours start at 8:00 AM GMT and overlap with other major trading sessions, such as the New York trading session. The overlaps create even higher liquidity in the market.
Currency trading in London is a significant part of the global FX market. London is one of the world’s financial centers and is often referred to as the “Forex capital”. There are a couple of key factors that make London a prominent hub for forex trading:
- High liquidity: The high liquidity allows traders to trade efficiently and receive tight bid-ask spreads.
- Financial infrastructure: London has a well-established financial infrastructure that includes banks, regulations, and brokerages. In addition, London is home to important economic announcements, such as monetary policies of the Bank of England, and geopolitical news that can impact currency valuations.
Asian trading session time in Philippines
Asian trading session time includes the period when the major financial centers in Asia, such as Hong Kong, Singapore, Sydney and Tokyo are engaged in Forex trading. The Asian session is one of the three primary trading sessions in the Forex market.
The Asian sessions overlap with the end of the European sessions and are generally less liquid. It should be mentioned that the Tokyo trading session that runs from 7:00 AM to 4:00 PM, is the most active in Asia. PH Forex market open hours start along with Asian sessions. Forex market is open from Monday to Friday 24/5. Trading resumes around 10:00 PM GMT (Greenwich Mean Time) on Sunday.
The most liquid Forex pairs
The best trading hours are during high liquidity sessions. In addition, it should be noted that some currency pairs are more liquid than others. Major currency pairs such as EUR/USD, USD/JPY, etc. are more actively traded than minors and exotic currencies.
High liquidity brings more trading opportunities and tight spreads. Here is the list of the most liquid pairs:
- EUR/USD – Euro vs US Dollar
- USD/JPY – US Dollar vs Japanese Yen
- GBP/USD – British Pound vs US Dollar
- USD/CHF – US Dollar vs Swiss Franc
- AUD/USD – Australian Dollar vs US Dollar
- USD/CAD – US Dollar vs Canadian Dollar
- NZD/USD – New Zealand Dollar vs US Dollar
- EUR/JPY – Euro vs Japanese Yen
- GBP/JPY – British Pound vs Japanese Yen
- EUR/GBP – Euro vs British Pound
Be noted that minor currency pairs, also known as cross currency pairs do not involve US Dollar. They consist of major currencies. As for the exotic currency pairs, exotic currencies are referred to currencies of developing economies, such as Mexican Peso, Turkish Lira, South African rand, etc. Pairs made from exotic currencies are not traded actively, and therefore have high spreads. For this very reason, many professional and beginner traders stick to only trading major currencies.
How to set up a currency watchlist for best trading hours
A currency watchlist is a list of FX pairs that traders monitor regularly to find the best trading opportunities. When setting up your currency watchlist, there are a couple of things to take into account:
- Correlation: Some currency pairs are highly correlated with other currencies, or commodities. For instance, New Zealand, Australia and Canada are heavy exporters of commodities and their local currencies are largely impacted by certain commodity prices. For this very reason, currency pairs of these countries are called commodity pairs. In addition, currencies can be highly correlated with other currencies as well. For instance, the Euro and British pound are highly correlated currencies.
- Information: Select currencies that are easily researchable. Philippine Peso PHP is considered to be an exotic currency and not all brokers are offering it for trading. If you feel that you can trade the currency profitably, you can keep it on your watchlist. It should be noted that information is easily accessible on most major currencies.
Forex trading and different trading styles
There are many ways to make money in the market. Some traders day trade, while others position trade, invest or swing trade. The most active FX trading hours Philippines might be more important for day traders than for swing traders. Swing traders are the type of traders that open and keep positions for a couple of days, sometimes even weeks. Swing traders place larger stop loss and take profit targets and high spreads are not as significant for them. As a result, traders that trade on higher time frames, have a free Forex trading schedule Philippines. On the other hand, profitability of day traders largely depends on tight spreads.
The best Forex session time Philippines is important for algorithmic traders as well. Algorithmic traders place orders using trading robots. Trading robots are typically programmed to only trade during the best Philippines currency trading hours. Robots do not feel emotions and never get tired. On the downside, trading algorithms cannot read economic announcements as well as humans do. For this reason, traders turn off trading robots before and during major economic and political announcements.
FAQs on the best time to trade Forex in Philippines
What is trading session in Philippines?
Forex trading is conducted Over The Counter (OTC), which means that there are many exchanges open during trading hours. This enables traders to enjoy 24/5 trading. Major trading sessions are during the open of New York (8:00 PM to 4:00 AM Philippine Time), London (4:00 PM to 2:30 AM Philippine Time), and Tokyo (7:00 AM to 4:00 PM Philippine Time) hours.
What are best hours to trade Forex in Philippines?
The best trading hours are when the markets are most liquid. That’s when traders get the tightest spreads and best trading opportunities. The best hours to trade FX are between London (4:00 PM to 2:30 AM Philippine Time) and New York (8:00 PM to 4:00 AM Philippine Time) trading sessions.
Should you trade Forex during New York session in Philippines?
Yes. Best Forex trading hours Philippines occur during London and New York sessions. The New York session partly overlaps with the London session that creates even better liquidity. The New York trading session runs from 8:00 PM to 4:00 AM (Philippine Time).