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

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.

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.

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.

BrokersView has received a reply from OctaFX regarding the above complaint:

We are truly sorry to hear about the financial loss the trader experienced. We are devoted to ensuring a secure and fair trading environment for all our clients, and would like to comment on this.

Upon reviewing this case, we found that the client had two pending orders that resulted in losses of -$8,536.00 and -$6,290.00. Since the client mentioned that she did not open these orders, we immediately forwarded her inquiry to our KYC team to investigate it as a potential hack. After verification, the KYC team found no signs of unauthorized access, and the user's account was successfully reactivated. We take such cases seriously, so it was also double-checked by the Trade Compliance department. The team thoroughly examined the user's account and found no issues that would affect the pending orders. According to our server data, the trader placed a pending Buy order and this order was automatically executed when the Ask price reached the corresponding level.

As a trusted broker with over a decade history and thousands of clients all over the globe, we want to emphasize that we have no interest in causing any platform issues that could lead to this situation. Additionally, we would like to address the reference to technical difficulties. Unfortunately, there was no evidence of such issues provided by the client, nor is there any possibility of them affecting the placement and execution of pending orders. Even if we consider potential connection issues, these would not impact the pending orders set by the client.

Furthermore, Octa never restricts withdrawals or profits for traders. In case of any issues, our team is always ready to assist traders. Most payments are completed within 1–3 hours, depending on the payment method chosen by the client. While delays might occur, often due to external factors like payment provider working hours or working flow specifics, our team diligently addresses each case and keeps the client updated on the progress.

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.

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

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.

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.

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

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.