The Malaysian Securities Commission, SC, has issued a warning against two popular Forex brokerages: HotForex and OANDA Malaysia Corporation.
October 20, 2020 | AtoZ Markets – The Securities Commission Malaysia (SC) has added three more companies to its blacklist, with two major world-renowned Forex brokers among the culprits: HotForex and OANDA Malaysia Corporation.
The third in their company was Torque Market Limited or Torque Trader, a lesser-known trading service provider who was also accused of misrepresenting information using the SC logo. A week earlier, the regulator added 13 more international and local brands to the list.
Why is Malaysia warning against HotForex & OANDA?
According to SC, these brokerage companies do not have the license and therefore not eligible to offer their services in Malaysia. In fact, the three brokers mentioned violated the 2007 Capital Markets and Services Act. If the court takes the side of the regulator, the people who promoted the services of these companies will face jail time and heavy fines.
The issued warning says that both HotForex and OANDA “are carrying out unlicensed activities in the capital market for securities trading”, HotForex also “operates the market without SC’s permission.”
Is HotForex and OANDA reliable?
It is worthy of note that both brokerage companies are regulated and hold multiple licenses from international regulatory bodies.
HotForex is authorized by the regulatory authorities in the UK, UAE, Cyprus and some other countries. OANDA is regulated by the CFTC in the US (one of the largest forex brokers in the country), FCA in the UK, ASIC in Australia, IIROC in Canada, MAS in Singapore, and FFAJ in Japan, all of which are well-known regulators.
While OANDA is headquartered in the United States, Hot Forex is based in Cyprus.
The Malaysian regulator previously flagged Binance, eToro, OctaFX, and FintechFX, saying they were not authorized to operate in the country.
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