Singapore authorities have announced that access to two overseas online trading platforms, Octa and XM, will be blocked starting June 20, 2025, due to violations of financial regulations. This decision was made following a joint statement from the police and the Monetary Authority of Singapore (MAS).

Reasons for the Ban

Both Octa and XM have been found to be offering financial services, including leveraged foreign exchange, commodities, indices, and equities trading, to customers in Singapore without the necessary capital markets services licenses. This is a breach of the Securities and Futures Act (SFA), which requires entities to hold a license to deal in capital markets products.

Investigations revealed that these platforms actively marketed their services to Singapore customers, despite being operated by entities incorporated overseas. Octa is managed by Octa Markets and Uni Fin Invest, which are purportedly based in the Union of Comoros and Mauritius, respectively. XM is operated by XM Global, which claims to be incorporated in Belize.

Regulatory Framework

The MAS and police emphasized that the prohibition on unlicensed entities extends to those operating outside Singapore if they solicit or advertise products targeted at Singapore residents. The information available on their websites has been classified as prohibited content under the Internet Code of Practice.

As a result, from June 20, residents in Singapore will be unable to access the websites of Octa and XM through local Internet Service Providers. Consumers with active accounts on these platforms will also be affected.

Consumer Advisory

The authorities have advised the public to engage only with licensed platforms listed in the MAS Financial Institutions Directory. They highlighted the risks associated with unregulated online trading platforms, particularly those based outside Singapore, which may pose a higher risk of fraud. Such platforms often lack credibility, offer limited recourse for consumers in disputes, and may require payments via credit or debit cards, increasing the risk of unauthorized transactions.

The MAS and police will continue to collaborate to block access to unlicensed overseas trading services to protect consumers.