The name OctaFX has recently emerged on the Bank Negara Malaysia (BNM) Financial Consumer Alert List and the Securities Commission (SC) Investor Alert List. This inclusion has sparked discussions among traders in Malaysia, who now seek clarity on the consequences of this development.
The uncertainty surrounding brokerage licences in the country further adds to the urgency of understanding the implications of trading with OctaFX. Join us as we investigate OctaFX and the overall landscape of Forex investing in Malaysia, aiming to shed light on the legitimacy of this broker.
Unveiling OctaFX: A Leading International Forex Broker
OctaFX, established in 2011, stands as a prominent international Forex broker, catering to a global clientele spanning 180 countries. Primarily focused on providing access to financial markets and trading services, OctaFX extends its support to traders with a plethora of educational and analytical resources. Its clients benefit from valuable educational tutorials, engaging webinars, insightful articles, support for copy trades, and a suite of analytical tools to enhance their trading experience.
[MALAY] Tutorial – Strategi beli dan pegang | OctaFX
OctaFX received two prestigious awards in 2022: the ‘Best Forex Broker Malaysia 2022’ by Global Banking and Finance Review and ‘Best Global Broker Asia 2022’ by International Business Magazine.
Examining The Licensing Of International Brokers In Malaysia
Both Bank Negara Malaysia and the Securities Commission aim to increase awareness of entities operating without their licenses or regulations. However, being on the alert lists does not necessarily mean these brokers are a scam or perilous for investors. Some international brokers, like OctaFX, are licensed by reputable bodies such as FSCA in South Africa and CySEC in Cyprus, dispelling concerns about their legitimacy.
The question arises as to why these global brokers, including OctaFX, do not seek licenses from BNM or the SC. The answer lies in the absence of licensed Forex brokers in Malaysia. There are no online brokers authorised to deal in derivatives, although this is a regulated activity, which falls under the purview of the SC.
Obtaining a license here is an arduous process with stringent requirements, which discourages brokers from pursuing it. Additionally, international brokers with more attractive conditions pose stiff competition, further deterring the acquisition of local licenses. Possible rejections from the Securities Commission might also contribute to the scarcity of licensed brokers.
Consequently, Malaysian traders and investors miss out on a tremendously popular investment avenue utilised in 180+ countries worldwide. Nevertheless, they continue using platforms like OctaFX – and it’s not illegal for international companies to provide services to Malaysian clients.
OctaFX Engagement With Celebrities In Malaysia: A Closer Look
Similar to numerous other Forex brokers, OctaFX Malaysia once collaborated with local influencers in Malaysia to promote its services. However, after Forex OctaFX found its way into the alert lists, it took the decision to discontinue working with prominent figures such as Fizo Omar, Wak Doyok, and Aliff Syukri, who were previously associated with its promotional activities. Presently, the broker has not onboarded any new influencers, leaving uncertainty about whether OctaFX is legally barred from engaging them.
