Is forex trading illegal in the philippines

Is forex trading illegal in the philippines

02/11/ · November 2, pm. 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 18/01/ · Forex trading in the Philippines is not illegal. SEC, however, released this advisory to give caution that there are unauthorized entities who serve as forex brokers, salesmen or agents. This is of course on top of the evident risks involved in trading blogger.comted Reading Time: 7 mins FOREIGN EXCHANGE TRADING IS ILLEGAL IN THE PHILIPPINES 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

Forex Trading In The Philippines — What Is LEGAL, What Is NOT – Forex Club Asia

Updated: Nov 7, There have been a lot of news about forex trading being illegal here in the Philippines. In this article, I dug deeply on is forex trading illegal in the philippines advisories and laws regarding this. Last Friday I saw this from a friend's timeline with the headline "Forex Trading is Illegal in PH":.

I will not give the link to the website so that it will not be glorified further, is forex trading illegal in the philippines. I considered this sites that has a lot of ads like this as tabloids that will do anything to clicks. But then something happened, two of the newspaper websites here in the Philippines had started reporting about it:. Both had said on their first paragraph that SEC had announced that Forex Trading and similar activities are illegal.

Unfortunately all three website did not share any link where the advisory can be found. To understand some of the items that I will discuss in this article, I want to share some common terminology:. Trader - Is an individual who engages in the buying and selling of financial assets in any financial market, either for himself or on behalf of another person or institution. Investor - Any person who commits capital with the expectation of financial returns.

Broker - An individual or firm that charges a fee or commission for executing buy and sell orders submitted by an investor. Portfolio Manager- A portfolio manager is responsible for investing a fund's assets, implementing its investment strategy and managing the day-to-day portfolio trading.

Securities - is a fungible, negotiable financial instrument that represents some type of financial value, usually in the form of a stock, bond, or option. Source: www. The advisory is a reiteration of SEC to the public to stop investing in foreign-registered investment platform. This is understandable, there has been a lot of scam about financial trading since the rise of cryptocurreny and free seminars. One of the famous company here in the Philippines that provide Forex Education Learn to Trade was raided by the NBI for trading investors is forex trading illegal in the philippines without license.

The worst part is that they are not actually investing the money that they got. I believe that this is one of the main reason why SEC has to reiterate the advisories that they have already issued.

SEC in their statement has generalized the whole Forex Industry. But you can see at the bottom of their advisory is which part of the Forex Industry they are concerned about:. People who are executing other people's trade or trading other people's money.

Both are called brokers based on RA. This need license from SEC. Salesmen or agents. This got me thinking as a retail trader that invest my own money, what law am I breaking? So I have check again the three advisories that where given. The main concern of this advisory is this:.

These Forex Educator takes advantage of people by selling the trader lifestyle, is forex trading illegal in the philippines. How easy it is to make money on Forex Trading.

At the end of the seminar they will either sell you a course, a broker to use in trading, a trading system or entice you to invest on them. This is how they make money. SEC is correct in adding this in the advisory:. Trading is not as simple as what these free seminars are saying.

You cannot learn profitable knowledge and skills in investing with just hours worth of seminar. Specially if the seminar is not teaching you to trade, but instead selling you a lifestyle change, is forex trading illegal in the philippines.

To end the advisory, SEC did not say it is illegal to trade Forex but instead they discourage the public in doing it.

They encourage the public to gather evidence against investment taking activities. This advisory discussed a trading robot that promised unrealistic profits. Aside from having a trading robot, they also act as a broker for binary options and CFDs. In the advisory, it discussed how Blazing Traders had defraud investors in Europe and Australia. Like the previous advisory, SEC discourages the public is forex trading illegal in the philippines trade on their own. In the advisory, It was never mentioned that people who have traded in their platform are punishable by law.

Instead the company itself and people who are helping the company are the ones who are punishable by law. This advisory clearly identifies Forex Trading, specially CFDs, as a Commodities Futures Contract.

According to the amendments of SRC, This is what I believe is the part that retail traders like me are breaking even if I'm investing my own money. In this types of law, it is important to understand what it is trying to prevent and SEC is clear on this advisory.

As shown here, the main reason for the law is because of forex trading corporations trades using investors money. Most of them are unlicensed and have poor risk management. Worst, they can be like Learn to Trade and does not invest the money is forex trading illegal in the philippines all. Another interesting part of the advisory is the mention of Onapal v. Court of Appeals. This is the supreme court decision that I use when someone ask me if profits from trading are taxable.

The reason why profits from trading is not taxable is because it is deemed as speculative and has close resemblance to gambling. Like our online gambling lawthis is enforced strictly on the brokers instead of the clients or traders.

In this advisory, it is clear that the act of trading forex is illegal. It is considered as a commodity futures. Commodity also includes a wide range of securities like Binary Options, CFD and actual commodities like gold and oil. Like what happened in the Online Gambling Law where the main target was the operators instead of the players, the main target of the advisories are the brokers and operators that entice the is forex trading illegal in the philippines to have forex transactions with them.

If you are a retail trader who trades his personal money, is forex trading illegal in the philippines, you don't have worry that NBI will come knocking at your doors and arresting you. But if you have accepted someone's money and traded on his behalf, a person can take a legal action against you. The worst that can happen to you if you are still trading your personal account is like what happened to bitcoin traders this year where their account are forced closed by the bank and they cannot open a new savings account.

This is in accordance to BSP Circular Any accordance in regulation about forex trading will come from BSP. As for now, BSPs stand on Forex is for you to be cautious about it.

Unfortunately the broker i am using is not licensed here in the Philippines. There are no broker that offers forex and CFD that has a license here in the Philippines. The licenses available for the brokers are IFSCFCACySEC and ASIC. My current broker has all of these licenses.

I will not be adding any more funds at the moment on my account and will transfer my money on a separate bank account and just leave the minimum maintaining balance on the bank account that I have that is linked on my trading account. I will still continue on trading and pay taxes on the profits that I get from them.

I will remove from my website and stop offering my course on forex trading. I will leave my coaching services there as most of my clients are outside Philippines. Forex trading is illegal according to SRC. But upon deeper inspection of the advisories given by SEC we can see that the main reasons for these are the complexities of trading the market and the over simplification of third parties in order to profit from people who are interested in trading the market.

I wish that instead of restricting Filipinos in trading the market, the government will increase its effort in educating the public. Not just advisories. An educated public will be enough to see through the different types of investing scam that has been rampant here in the Philippines.

I hope that by sharing to you the relevant advisories and laws regarding Forex Trading it will help you decide on your own what will be your next step. This site was designed with the. All Posts Trade Idea Trading Psychology Trading Lessons Opinions.

Is Forex Trading Illegal in the Philippines? Yes but

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Forex trading is illegal in PH ? SEC | Bilyonaryo Business News

Forex Trading in the Philippines is Illegal due to the increasing number of individuals being scammed by their Broker or by other people who pretend to be a mentor, salesmen, agents, or an account manager 02/11/ · November 2, pm. 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 As far as I know, forex trading is illegal in the Philippines because of the frauds and heavy losses by retail traders