If you’re familiar with trading and investing platforms in Singapore, you’d know that stock brokers and CFD brokers need to be licensed by the Monetary Authority of Singapore (MAS) to operate here.
This licensing ensures that brokers are following the rules and regulations set out by the regulatory authorities here. You can also sleep more peacefully knowing that there are measures in place to protect investors and their capital – not from investment and trading losses, but from fraudulent and unauthorised activities.
In early June, the Singapore Police Force (SPF) and MAS announced that two unregulated trading platforms – Octa and XM – would be blocked as of 20 June 2025. They were in breach of Singapore’s Securities and Futures Act 2001 (SFA), having offered and marketed their services to customers in Singapore without licences. As a note, while these two trading platforms are not MAS-licenced, it only means there is a greater risk of fraud as the credibility of their operations cannot be easily verified, but it does not automatically mean they are fraudulent companies.
While sudden blocks like this is one reason why you should always trade and invest through an MAS-licensed broker, there could be.
Read Also: Guide To MAS-Licenced CFD Brokers In Singapore
Licensing From The Monetary Authority of Singapore (MAS) = More Credibility
One of the biggest things that back up financial services providers of any kind is credibility. Credibility in terms of providing good service but also in terms of their overall trustworthiness.
It’s crucial that, if you’re in Singapore and you’re trading and investing, that the service you opt for has the required licensing from the MAS.
Broker-dealers operating in the city state must have policies, procedures, and controls in place to help protect investors’ interests.
One of the key covenants of those policies is segregating customers’ monies and assets from their own assets. This separation ensures that customers’ capital is protected in the event of any broker failure, as holdings will be held with a separate custodian.
Read Also: 5 Things To Understand About Using A Custodian Account When Buying Stocks
Understanding The Securities And Futures Act 2001 (SFA)
All brokers who are licensed by the MAS in Singapore must adhere to the Securities and Futures Act 2001 (SFA).
This means that they need to have a Capital Markets Services (CMS) license from the MAS and having this is a prerequisite to being able to deal in capital market products, product financing and custodial services.
Under this umbrella are actually some important rules of conduct for brokers. The act aims to promote fair and transparent dealing as well as place investor protection high up the priority list.
With unlicensed brokers, such as Octa and XM, investors can’t be sure whether these platforms are adhering to the SFA given they lack any sort of licensing from the MAS. Of course, it does not mean they are definitely fraudulent or bad brokers, and just means that the credibility of their operations are not easily verified.
Always Do Your Due Diligence…With Brokers Too
When trading and investing, we have to navigate market risks. But, we do not have to carry significant third-party risks if we trade with an MAS-licenced broker.
Given that you are placing your money in the care of the brokers that you use, you should be vigilant about verifying whether the broker is licensed by the MAS to operate in Singapore.
How do we check this? It’s relatively straightforward. Anyone can consult the Financial Institutions Directory (FID) on the MAS website to find out if their broker has a Capital Markets licence.
The directory will list all financial institutions that are regulated by the MAS and the specific activities that they’ve been authorised to conduct. By searching the FID for the broker’s name (or licence number), individuals will be able to confirm whether the broker is licensed or not.
Overall, it’s crucial for investors to use an MAS-licensed broker in Singapore. Otherwise, they may find their funds stranded in an unauthorised entity, such as Octa or XM, with little recourse if access to their platforms is shut off.
Read Also: Singapore Online Stock Brokerage Account Fees Comparison (2025 Edition)
