The Securities and Exchange Commission (SEC) has cautioned the public against using online trading platforms Exness Global Ltd. and HF Markets (HFM), alleging that the firms are illegally soliciting investments from local investors.

In separate advisories, the regulator said both Exness Global and HFM operate platforms that allow users to trade unregistered investment products without having the required corporate registration in the Philippines.

The companies lack the necessary licenses to sell or offer securities as mandated under the Securities Regulation Code, according to the SEC.

Exness Global provides users with access to financial markets including foreign exchange, cryptocurrencies, stocks, and commodities, primarily through contracts for difference, or CFDs.

Similarly, the SEC identified HFM as a provider of CFD trading for currencies, bonds, metals, and indices.

HFM, which markets itself as a provider of multi-asset solutions with high standards for innovation and education, promotes its services as a “seamless trading experience.”

Both firms have launched aggressive promotional campaigns across social media and mobile applications to attract Filipino investors.

The SEC noted that while the platforms are accessible via dedicated websites for Philippine clients and available for download on Google Play and the Apple App Store, they are not authorized to operate within the country’s borders.

The regulator noted that although these entities may be registered as brokers or dealers in other jurisdictions, they must still comply with domestic laws to offer services locally.

Under Philippine law, any security or investment product must be registered with the SEC before it can be offered to the public. This process requires a formal application detailing the issuance price, the intended use of proceeds, and the specific nature of the securities.

Furthermore, the SEC stated that such securities must be issued by a corporation or licensed dealer registered in the Philippines.

The issuer is also required to hold a secondary license specifically for the purpose of selling or offering securities to the public. The commission warned that individuals acting as agents, brokers, or recruiters for these unauthorized platforms may face criminal prosecution and stiff penalties.

The SEC continues to monitor the activities of offshore trading platforms as part of a broader crackdown on unlicensed financial services targeting the local market.