Key Insights
- Singapore will block access to Octa and XM trading platforms starting June 20, 2025, for offering unlicensed services in breach of the Securities and Futures Act.
- Authorities found both platforms targeting Singapore users without holding a local capital markets services licence, despite operating from offshore jurisdictions.
- SPF and MAS warn the public against using unregulated brokers, citing risks of fraud, financial loss, and limited legal recourse.
SINGAPORE (MarketsXplora) — Singaporean authorities will block access to the websites of two foreign online trading platforms—Octa and XM—from June 20, citing breaches of the country’s Securities and Futures Act (SFA).
In a joint statement, the Singapore Police Force (SPF) and the Monetary Authority of Singapore (MAS) announced that both platforms were found to be offering and marketing leveraged forex trading, commodities, indices, and equities to Singaporean residents without the necessary capital markets services licence.
Investigations revealed that Octa operates through Octa Markets Ltd and Uni Fin Invest, entities incorporated in the Union of Comoros and Mauritius, while XM is operated by XM Global Limited, which is incorporated in Belize. None of these entities hold a capital markets services licence in Singapore.
Are Octa and XM Safe? Why Singapore Says No
Under Section 82 of the SFA, any entity dealing in capital markets products such as securities or leveraged foreign exchange trading must be licensed locally. The requirement applies even to foreign-based firms, if their services are advertised to or used by Singapore residents.
According to authorities, the websites of Octa and XM contain prohibited content under Singapore’s Internet Code of Practice, and access will be blocked by Internet Access Service Providers across the country.
“Consumers with active accounts with Octa and XM will not be able to access their websites through Internet Access Service Providers based in Singapore,” the joint release stated.
Authorities emphasized that most unregulated platforms operate from overseas jurisdictions, posing significant risks of fraud and unauthorised card transactions, and making it difficult for users to pursue legal claims in case of disputes or financial loss.
The MAS and SPF strongly advised the public to trade only on platforms listed in the MAS Financial Institutions Directory, which includes only those with valid licences and subject to local regulatory oversight.
Brokers Push Back, Citing Global Presence
In response to the move, both platforms issued statements defending their operations.
XM, which says it serves clients in over 190 countries, told MarketsXplora that it does not actively target Singaporeans, and its website contains no content specifically directed at Singapore residents. The company also claimed to have no servers or physical presence in Singapore and emphasized its history of cooperating with global regulators.
Octa, for its part, stated that it is aware of the regulatory requirements and is taking steps to establish a compliant presence in jurisdictions where it operates. The company noted that it is in active communication with regulators, legal advisors, and relevant parties and highlighted its adherence to international standards for client fund protection and anti-fraud policies.
Octa said it is prioritising the security of Singaporean clients’ funds and maintaining its financial responsibilities during this period.
Read also: India’s SEBI Fines Former OctaFX Unit Over Unauthorised Forex Operations
Singapore’s Allure and the Risk to Traders
Singapore, though small, remains an attractive market for retail trading, thanks to its well-capitalised investor base and strong regulatory framework. According to Investment Trends, the number of active online traders in the country dropped slightly to 248,000 in September 2024 from 264,000 the previous year. However, 73,000 potential investors continue to express interest in Contracts for Differences (CFDs) trading.
The city-state’s appeal has led legitimate players like Forex.com, owned by StoneX, to launch CFD services from its new Singapore base. Social trading platform eToro has also obtained a local license, further underscoring the importance of regulatory compliance in one of Asia’s most lucrative retail markets.