SEC Moves Against XM Group: What Filipino Traders Need To Know

The order covers XM’s online trading activities in forex, crypto, stocks, and other derivatives offered to Filipino residents without a locally issued license. According to media reports, the scheme was heavily promoted in the country using celebrity endorsements – including Manny Pacquiao – and Forex Coach Jonathan Lou, along with local payment channels to attract investors.

What exactly did the SEC do?

Under the cease-and-desist order (CDO), the SEC is:

Directing XM-related entities to halt the promotion, sale, or offering of their investment and trading products to Filipinos
Moving to freeze assets held in local banks under the entities named in the order, to prevent further transfers while the investigation is ongoing
Warning the public about the risks of dealing with unregistered platforms that operate outside Philippine regulations

The move does not automatically mean all clients lose their funds, but it clearly signals that regulators see serious compliance concerns and want to limit additional exposure while they review the case.

Why is XM under fire?

Based on the SEC’s public statements and press coverage, regulators are focusing on three main points:

Lack of proper local registration
- XM has foreign licenses, but has allegedly been offering and marketing to Filipinos without the required Philippine registration.
Aggressive promotion to the mass market
- The investment program was marketed using high-profile endorsers like Manny Pacquiao, plus well known local personalities such as Jonathan Lou, referral programs, and easy sign up funnels targeted at everyday Filipinos and small business owners.
Use of local payment channels
- The scheme made it easy to fund accounts through local banks and payment partners, which can make it appear to be a fully locally sanctioned investment product even if the company is registered offshore.

From the SEC’s perspective, this combination exposes ordinary Filipinos to high-risk products with very little local investor protection.

Mixed reactions from Filipino traders

The decision quickly triggered debate in trading communities and social media.

Some traders welcome the SEC move, saying it is about time regulators act against unregistered platforms heavily marketing to the public. They argue that clear rules help clean up the industry and protect new traders who do not fully understand leverage, margin, and counterparty risk.
Others are more critical. A common sentiment is:
“Pera namin ’yan, kami dapat masusunod kung saan namin gustong mag-trade.”
They believe adults should have the freedom to choose offshore brokers as long as they understand the risks, and that government should focus on education rather than outright restrictions.
Many are simply worried and confused – especially those who joined because they trusted the familiar faces fronting the campaign. Some admit they never really checked regulatory status and assumed that the presence of big names like Pacquiao, plus local deposit options, meant everything was fully compliant.

This mix of views shows the real tension in the Philippine market:
people want global access and high-tech platforms, but also expect strong protections when something goes wrong.

What does this mean if you are (or were) an XM client?

Without giving legal advice, a few practical reminders:

Follow official sources
- Check updates from the SEC and from XM’s official channels, not just screenshots in group chats.
Expect tighter checks and possible delays
- Withdrawals or transfers may face additional scrutiny while banks and regulators coordinate.
Keep your records
- Download account statements, transaction histories, and email correspondence. These can be important if there are future claims or clarifications.

If you are affected, it is wise to consult a lawyer or qualified professional for specific guidance. Each case is different, especially when offshore entities and cross-border payments are involved.

Bigger picture: lessons for Filipino traders

Whatever your opinion about XM, this case highlights several important lessons:

Regulation is not just a logo on a website
- Many brokers show foreign licenses, but not all licenses give you protection in the Philippines. Always ask: “If something goes wrong, saan ako puwedeng lumapit?”
Celebrity doesn’t equal safety
- Even when politicians, celebrities, or influencers are involved, that does not guarantee a product is low-risk, compliant, or suitable for you.
“My money, my choice” also means “my responsibility”
- Choosing to trade with unregistered or offshore entities means accepting:
  - weaker local recourse
  - potential issues with withdrawals and disputes
  - policy changes that may be outside PH regulatory reach
Education before leverage
- High leverage and complex products require more than just basic platform skills. Traders need to understand:
  - market risk
  - counterparty and regulatory risk
  - how their broker actually makes money.

Where 8Con fits into the conversation

At 8Con Academy, we are not here to promote or attack any specific broker. Our role is to help Filipino traders:

Understand the risks behind forex, CFD and crypto trading
Ask better questions about regulation, fund safety, and marketing claims
Learn structured ways to trade, instead of relying purely on hype, signals, or personalities

Whether you choose a local or offshore broker, the minimum due diligence should include:

verifying regulatory status and where the company is truly based
understanding where your money is held and under whose name
reading the full terms on bonuses, APMs and withdrawal rules
knowing clearly who you are trading against and how they manage risk.

The XM case – and the involvement of high-profile endorsers like Manny Pacquiao and Jonathan Lou – is a strong reminder:
branding can attract deposits, but it cannot replace real regulation, proper risk management, and solid trading education.

Disclaimer:
This article is for information and education only. It does not provide investment advice, legal advice, or a recommendation to use or avoid any particular broker or platform. Always do your own research and consult qualified professionals before making financial decisions.