THE Securities and Exchange Commission (SEC) has warned the public about AlgoSCALP, an automated trading system, which has been soliciting investments without license or approval from the regulator.

“AlgoSCALP, AlgoSCALP Trading, or AlgoSCALP Auto Trading claims that it is a fully automated trading system, and that the provider will place buy and sell orders for the investor, allowing the investor to trade the financial markets without needing to lift a finger,” the SEC said in an advisory.

“Further, it claims that it is a crypto-currency of the Algorand Blockchain that aims to be simultaneously scalable, secure and decentralized,” it added.

AlgoSCALP uses “scalping” or a trading style that specializes in profiting off of small price changes and making fast profit from reselling, the SEC said.

The corporate regulator said that the trading firm is enticing the public to invest with a minimum amount of P200, with an assurance of a daily profit range of 1% to 13% for 22 days. An investor can also earn through direct referral of “active trade.” In every active trade, an investor earns a 12% commission.

The commission declared the claims were “too good to be true,” with indications of a possible Ponzi scheme where returns to early investors are likely to be paid out from the investments of new investors and not out of the company’s profits similar to those already flagged as scams.

Based on the records of the SEC, AlgoSCALP is not registered and is not authorized to solicit, accept or take investments and placements from the public, nor to issue investment contracts and other forms of securities.

“Our database also shows that AlgoSCALP has no brokers, account managers, agents, and/or representatives that have appropriate registration and/or license to offer or sell such securities to the public,” the SEC said.

The trading firm is also not registered as a virtual asset service provider with the Bangko Sentral ng Pilipinas and does not have a corresponding certification of authority as a money service business.

The SEC reminded the public that unregistered or unauthorized platforms such as AlgoSCALP are risky and should be avoided.

“Therefore, the public is advised to not invest or stop investing in AlgoSCALP or in any other scheme being offered by it no matter how enticing, trendy, or catchy its slogans, proposition, or scheme is,” the SEC said. — Luisa Maria Jacinta C. Jocson