Broker/Exchange Due Diligence
Exercise W8-1: Platform Research Checklist
Before you fund ANY trading platform, complete this checklist. This protects you from scams, unlicensed platforms, and unnecessary risks.
- Is this platform BSP-licensed as a VASP? (Check at bsp.gov.ph)
- Did I verify on the official BSP website?
- Are there any SEC advisories against this platform? (Check sec.gov.ph)
- Is the platform accessible without VPN? (If NO, do not use)
- For forex brokers: Verified country of regulation and license number
Red Flags to Watch For
- Platform publishes a clear fee schedule
- Found and bookmarked the fee schedule page
๐ Fee Schedule Notes
- Two-Factor Authentication (2FA) available & enabled
- Google Authenticator / Authy support
- Withdrawal allowlist/whitelist feature
- Device approval/recognition
- Email alerts for logins and withdrawals
- Anti-phishing code
Final Decision
Personal Fee Calculator
Exercise W8-2: Calculate YOUR actual trading costs
Calculate YOUR actual trading costs. Understanding your break-even point is crucial for profitable trading.
Forex Cost Calculator
Crypto Spot Cost Calculator
Maker vs Taker Tip
Using limit orders (maker) instead of market orders (taker) typically saves 0.05-0.10% per trade!
Crypto Perpetual Futures Calculator
โ ๏ธ Advanced: Perpetuals involve leverage and are high-risk. Only for experienced traders.
Break-even % = (Total Cost รท Position Size) ร 100
Fee Impact % = (Break-even % รท Target %) ร 100
Forex Spread Cost = Spread (pips) ร Pip Value
Funding Cost = Position ร Funding Rate ร Intervals
Philippine Funding Test
Exercise W8-3: Document Your Test Deposit & Withdrawal
Document your ACTUAL test deposit and withdrawal. Use small amounts (โฑ200-โฑ500) for this exercise.
- Verified exchange is BSP-licensed (crypto) or properly regulated (forex)
- Completed KYC verification (approved and active)
- Linked bank account or e-wallet
- Enabled 2FA on account
- Read the deposit and withdrawal fee schedule
Custody & Security Setup
Exercise W8-4: Security Implementation
Download Authenticator App
Get Google Authenticator or Authy on your phone
Go to Security Settings
Navigate to your exchange's Security page
Scan QR Code
Use your app to scan the displayed QR code
Save Backup Codes
Write down codes in 2 secure locations!
Verify Setup
Enter 6-digit code and test by logging out/in
โ ๏ธ Critical: Never lose your backup codes. You may be locked out permanently!
- Found "Withdrawal Whitelist" in settings
- Enabled whitelist feature
- Added my personal wallet address
- Added my bank for fiat withdrawals
Network & Memo Safety
Exercise W8-5: Pre-Send Crypto Checklist
Use This Checklist EVERY TIME You Send Crypto
Wrong network or missing memo = PERMANENT loss of funds!
Coins Requiring Memo/Tag
XRP, XLM, EOS, BNB (some cases), ATOM, HBAR
Forgetting memo = funds lost in exchange's main wallet!
Final Pre-Send Checklist
- Network matches on BOTH sides
- Memo/tag included (if required)
- Address verified (first/last 4 chars)
- Test transaction sent first (new addresses)
Order Practice Log
Exercise W8-6: Track Your Practice Trades
๐ Trade Practice Entry
Chapter Summary & Commitments
Exercise W8-7: Your Personal Action Plan
- I will ONLY fund BSP-licensed exchanges for crypto in the Philippines
- I will check SEC advisories regularly for warnings
- I will research any forex broker's regulation before funding
- I will NEVER use VPNs to access blocked platforms
- I have enabled 2FA on my account
- I have set up withdrawal allowlist
- I will NEVER share 2FA codes or passwords
- I will ALWAYS verify network and memo before sending
My Signature
I commit to following the principles I learned in Chapter 8.
Knowledge Check
Test your understanding of Chapter 8
Key Terms Flashcards
Click cards to flip and reveal definitions