Philippines SEC issues warnings against CFDs brokers eToro and XM

The Philippines financial regulator Securities and Exchange Commission (SEC) has issued two advisories this month, warning traders against two retail FX and CFDs brokers, eToro and XM.

The Securities and Exchange Commission (SEC) of the Philippines has recently issued advisories cautioning traders against engaging with two Retail FX and CFDs brokers, namely eToro and XM.

According to the SEC, both eToro and XM have been actively promoting their trading platforms on various social media platforms, targeting Filipinos and enticing them to participate in trading activities.

On WikiFX, XM and eToro both have been given a decent score as they have a long history of forex trading in the markets.

eToro's platform can be accessed via its primary domain, etoro.com, which offers subdomains catering to different countries, including the Philippines, along with mobile applications. Similarly, XM's platform is accessible through its main website, xm.com, and its mobile apps.

While these platforms allow Filipinos to create user accounts for investing and trading, it's important to note that they offer unregistered investment products. In the Philippines, securities and investment products must be registered with the SEC before being offered to the public. This involves a thorough application process, providing detailed information about the securities, and the issuing entity, and obtaining necessary licenses.

Neither eToro nor XM are registered as corporations in the Philippines, and they lack the required licenses to sell or offer securities within the country. As a result, the SEC advises the public to exercise caution when dealing with these unregistered online investment platforms and their representatives.

The Commission emphasizes its previous advisory warning against dealing with non-registered foreign entities and corporations. Additionally, individuals acting as salespersons, brokers, dealers, promoters, influencers, or endorsers of eToro or XM within the Philippines, whether online or offline, may face criminal liability under the Securities Regulation Code (SRC). Penalties include fines of up to Five Million Pesos (approximately USD $88,500) or imprisonment for up to 21 years, or both, as stipulated in Section 73 of the SRC.

Conclusion

In light of these concerns, investors are urged to be vigilant and to verify the registration and legitimacy of any investment platform before engaging with it. If you want to know more information about the reliability of certain brokers, you can open our website. Or you can download the WikiFX APP to find the most trusted broker for yourself.