Over the years, we have been introduced to the existence of Forex and CFD trading which eventually became so convenient that it could be managed at our fingertips. The mushrooming of Forex investment apps and websites led to an increasing number of trading entrants. However, despite their so-called learning convenience and considerable returns, some of these trading websites may be risky and suspicious for amateur traders.
Bank Negara Malaysia warns Malaysians of trading website OctaFX
Recently, many may have noticed the consistent promotion of the trading website and app OctaFX on social media platforms. This is especially notable with regards to its use of local celebrities for endorsement purposes, among them including local entrepreneurs Aliff Syukri and Wak Doyok. It has now apparently revealed by Bank Negara Malaysia that OctoFx was not approved nor legalized under Malaysian law, and has therefore now been put into its Financial Consumer Alert (FCA) List.
BNM released a statement on the matter on August 29 and took to explaining how the FCA list contains a registrar companies and websites which are neither authorised nor approved under the relevant laws and regulations administered by BNM. The list also included other entities such as Madinah Mining, BTC Pelaburan Malaysia, and Preferred Trust Investment Scheme.
This means that investments made through these companies or platforms are not protected by BNM, should anything untoward occur.
It was furthermore clarified that the list was meant to act as a guide for members of the public to verify whether an entity or individual was approved by BNM.
“Please take note that the list is not exhaustive and only serves as a guide to members of the public based on information and queries received by BNM,” it wrote.
Previously flagged by Securities Commission Malaysia
Apparently, this was not the first time this trading platform has come across as a suspicious entity in the face of Malaysian law. OctaFX was previously flagged by the Securities Commission Malaysia (SC) for a number of reasons, among which includes carrying out capital market activities of dealing in derivatives without a valid license.
The suspicious nature of this trading app has now been officially verified by the government. However, the app is still allowed to operate in the country, therefore members of the public could only act with due diligence while handling the app or best to steer clear of it.