Singapore is taking a firm stand against unlicensed online trading platforms. Starting June 20, 2025, the country will block access to two overseas trading platforms, Octa and XM, that have been operating without proper authorization.
Why Are Octa and XM Being Blocked?
Both Octa and XM offered financial trading services such as leveraged foreign exchange, commodities, indices, and equities to Singapore residents. However, neither platform holds the necessary capital markets services licence under Singapore’s Securities and Futures Act (SFA).
- Octa is run by companies based in the Union of Comoros and Mauritius.
- XM is operated by an entity registered in Belize.
Despite their overseas locations, both platforms actively marketed and solicited Singapore residents. This is against Singapore law, which requires any company offering capital markets products to Singapore residents to be licensed by the Monetary Authority of Singapore (MAS).
Their websites also contained content prohibited under Singapore’s Internet Code of Practice, further justifying the block.
What Does the Block Mean for Singapore Residents?
From June 20, 2025, Internet Service Providers in Singapore will block access to Octa and XM websites. This means:
- Singapore users will not be able to visit these platforms.
- Account holders will lose access to their trading accounts through local ISPs.
- The move aims to protect consumers from potential fraud, financial losses, and unauthorized card transactions often linked to unregulated platforms.
What Should Investors Do?
The MAS and Singapore Police Force (SPF) advise the public to:
- Only trade on platforms licensed by MAS.
- Check the MAS Financial Institutions Directory to verify licensing status.
- Be cautious of overseas platforms that target Singapore residents without proper authorization.
Singapore authorities will continue to monitor and block other unlicensed trading platforms targeting local users.
Summary Table
| Aspect | Octa | XM |
| Operating Entities | Octa Markets Ltd (Comoros), Uni Fin Invest (Mauritius) | XM Global Limited (Belize) |
| Licence Status | No capital markets services licence | No capital markets services licence |
| Services Offered | Leveraged forex, commodities, indices, equities | Leveraged forex, commodities, indices, equities |
| Access Block Date | June 20, 2025 | June 20, 2025 |
Key Takeaways
- Singapore enforces strict licensing rules for trading platforms.
- Unlicensed platforms targeting Singapore residents face access blocks.
- Consumers should verify platform licences before trading.
- Blocking unlicensed platforms reduces risks of fraud and unauthorized transactions.
FAQs
Q: Why are Octa and XM being blocked?
- They operated without the required licences under Singapore law.
Q: When will the block start?
- June 20, 2025.
Q: Can Singapore residents still access their accounts?
- No, access through local ISPs will be blocked.
Q: What should investors do?
- Use only MAS-licensed platforms and verify licences.
Q: Do these rules apply to overseas companies?
- Yes, if they target Singapore residents or have a significant user base in Singapore.
This action shows Singapore’s commitment to protecting investors by strictly regulating online trading platforms. It reminds investors to stay vigilant and trade only on authorized platforms.
