WikiFX report: Online trading platform Samtrade FX under probe by police, MAS; 3 arrested

Samtrade FX, an overseas online trading platform, is being investigated for suspected irregular trading activities carried out over its system.

Three men, aged between 31 and 36, were arrested last Tuesday and Wednesday (Dec 28 and 29) in connection with the joint investigation, which started last Tuesday, said the Singapore Police Force and Monetary Authority of Singapore (MAS) on Monday.

Samtrade FX Limited, which runs the trading platform, and its related entities are not licensed by MAS and have been on MAS' Investor Alert List since July 2021.

The potential offences that Samtrade FX and its related entities are being investigated for fall under local securities laws, which prohibit any person from carrying on a business in any regulated activity without a capital markets services licence.

In a joint statement, the police and MAS advised the public to exercise caution when dealing with financial products and services and to deal only with people regulated by MAS.

Members of the public can verify if an entity has a valid licence by checking MAS' Financial Institutions Directory.

They can also check MAS' Investor Alert List, which is a list of unregulated persons and entities who, based on information received by MAS, may have been wrongly perceived as being licensed or authorised by MAS.

MAS' regulatory framework seeks to ensure that only competent and professional people may provide regulated financial services.

If members of the public choose to deal with unregulated entities or people, they will forgo the protection of MAS' regulations, the police and MAS said in their statement.

Before committing to an investment, members of the public should always ask as many questions as needed to fully understand the investment opportunity, and be wary if the company is unable to answer or avoids answering any questions.

They should also check the company, its owners, directors and management members to assess if the investment opportunity is genuine.

Lastly, those looking to invest should confirm the company's and representatives' credentials by using resources such as the Financial Institutions Directory, Register of Representatives and Investor Alert List on MAS' website.