KARACHI – Unlicensed online trading platforms continue to mushroom in Pakistan as they offer high-risk investments without regulatory approval in Pakistan. These platforms put investors at risk of fraud and financial loss.
To save people, Securities and Exchange Commission of Pakistan SECP referred issue to authorities for action and advises masses to only use licensed platforms and verify their legitimacy through the official portal.
SECP also issued urgent warning to public about growing use of unlicensed online trading and investment platforms, specifically highlighting the platform Quotex. These platforms lure investors with promises of quick profits through high-risk financial products like forex, securities, commodities, options, and other speculative instruments, all of which lack regulatory approval in Pakistan.
In a statement released on Wednesday, SECP emphasized that these platforms typically operate offshore and are not authorized by Pakistani regulators, putting investors at significant risk. The dangers include fraud, misappropriation of funds, and the total loss of investments, with no legal protection or recourse available for those affected.
SECP specifically named Quotex as an unauthorized entity and confirmed that the matter has been referred to the Federal Investigation Agency (FIA), the Pakistan Telecommunication Authority (PTA), and Google for immediate action, which may include a ban on access to Quotex within Pakistan.
SECP strongly advises the public to avoid opening accounts, depositing funds, or sharing personal or financial information with Quotex or similar unlicensed platforms. It also warned against investment schemes promoted via social media, WhatsApp groups, or influencer marketing, as these often operate without proper regulation and may be deceptive.
To protect themselves, the SECP urged individuals to verify the regulatory status of any investment platform before engaging by visiting the SECP website at www.secp.gov.pk, which provides a list of authorized brokers and licensed investment advisors.
Scam alert issued about fraudulent investment scheme in Pakistan
