Trading in foreign currency in the Philippines is illegal and violators can face administrative fines, the Securities and Exchange Commission said in an advisory to the public.
?The public is hereby advised to STOP engaging in foreign exchange trading and to STOP investing in foreign-registered investment platforms of commodity futures, contracts for difference, indices, binary options and the like,? the SEC said.
?Persons and entities acting as brokers, salesmen or agents of these securities have NO LICENSE to engage or deal in any manner with these securities and should therefore be AVOIDED or IGNORED,? the corporate regulator added.
The SEC pointed out that these forex, commodity futures contracts and other similar derivatives are highly volatile and high risk.
Trades in these securities are mostly leveraged or traded in margins such that the value of the trades could be illusory, deceptive or bloated, the SEC said.
The SEC has received reports that some investors had reportedly incurred losses that were greater than their initial investments.
?Therefore, it could be said that these investment activities are not for the inexperienced investors and those who have limited financial resources,? the SEC said.
The SEC also urged the investing public to report entities and/or persons operating foreign exchange trading platforms and those acting as brokers, salesmen or agents of these operators to the Enforcement and Investor Protection Department at telephone numbers 8187650 and 8186337.