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Client Reports Loss Due to Unexpected Trade Amid Escalating Regulatory Concerns Around OctaFX

2024-07-09 BrokersView

revealing OctaFX's risks

In late June, a trader submitted a complaint against forex broker OctaFX, alleging that an unexpected trade in his trading account caused his loss to reach $14,826.

 

client complaint against OctaFX

 

What problems has the trader reported with OctaFX?

 

The trader from South Africa opened a trade with OctaFX on the morning of June 21 and was subsequently stopped out with a loss of $8,536. However, when he checked his trades, he realized that there was a trade that had been executed but he had not opened or added to a pending trade, which led to a further loss of $6,290.


client provides evidence about unexpected trade at OctaFX

 

He believed that OctaFX opened the trade without his knowledge. “But because of that mysteriously trade that was opened by OctaFX I lost all my money of 14826.00 USD I do have all the evidence, ” the OctaFX client stated.

 

The client then reported the problem to OctaFX and requested an investigation and resumption of trades, after contacting the broker he provided his personal information as requested, but the lost money has still not been refunded to his account. The client also mentioned that OctaFX's trading system was down twice that day.

 

Abnormal trades with OctaFX reported by other traders

 

As stated by the client "It is the same example I read on other forums where trades also with OctaFX get closed or executed without one's knowledge," some OctaFX clients found themselves caught up in trade execution anomalies, where trades appear to be opened or closed unexpectedly, and as a result, they have suffered losses.


traders report unexpected trades with OctaFX

 

In addition to this, some traders have reported problems with OctaFX restricting clients from profiting and denial of withdrawals.


trader reports denial of withdrawal at OctaFX

trader reports profit restriction at OctaFX

 

OctaFX warned by multiple regulatory agencies

 

OctaFX is regulated by the Cyprus Securities and Exchange Commission (CySEC) and the Financial Sector Conduct Authority (FSCA). However, the broker has been warned by regulators outside of the EEA, including the Securities Commission Malaysia (SC), Bank Negara Malaysia (BNM), Spain's Comisión Nacional del Mercado de Valores (CNMV), and the Philippines Securities and Exchange Commission.


OctaFX hit with warnings from four regulators

 

The warnings indicate that OctaFX is not authorized to provide financial services in these jurisdictions and poses a significant risk to local investors.

 

Philipines and India crack down on OctaFX

 

OctaFX has also been the subject of some negative news in the first half of this year. In March, the National Telecommunications Commission (NTC) of the Philippines ordered to block the website of OctaFX to protect investors as requested by the Philippines SEC.


the Philippines blocks OctaFX

 

In April, the Enforcement Directorate (ED) conducted a search and seizure operation at OctaFX’s offices in India for conducting illegal online forex trading. 

 

India raids OctaFX's offices

 

Bottomline

 

Given that OctaFX has received multiple warnings and has been combated by the Philippines and India for misconduct, BrokersView advises traders to be extremely cautious when approaching the broker, and the client complaint may be a wake-up call.

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