OctaFx Review 2021
OctaFX is a Forex and CFD broker founded in 2011 offering less than 50 tradable instruments in 4 different classes including 28 currency pairs. Regulated by offshore entities and only 1 tier-2 jurisdiction which is considering the biggest drawbacks of OctaFX. Although OctaFX does not provide any proprietary trading platform it offers multiple third-party trading platforms including MetaTrader 4 & 5 and cTrader. OctaFX broker is not listed on our 2021 recommended broker list.
Top Key Points for OctaFX in 2021
Founded in 2011, OctaFX is regulated in 1 tier-2 jurisdiction, making it a highly risky broker for trading forex and CFDs.
Regulated in 1 tier-2 jurisdiction (CySEC), and additional offshore entities like SVG making high-risk broker (low risk).
Offering multiple platforms MetaTrader suite & cTrader, Features copy trading service
Professional educational materials for free
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Is OctaFX safe or a scam?
OctaFX broker was established in 2011 serving 1.5 million customers worldwide, at the beginning, it was operating under offshore entities like Saint Vincent and the Gradients (SVG). Most scam brokers are regulated by this type of jurisdiction due to extremely low regulatory requirements required to get a legal license. Although latter set foot in Europe in 2017 through CySEC regulation. (CySEC is a tier-2 regulatory jurisdiction). However, its acceptance has increased somewhat due to being regulated by CySEC, compared to other trusted forex brokers OctaFX still lags far behind in terms of regulation as it is not regulated by any top tier jurisdiction, where other trusted brokers licensed and authorized by multiple top-tier regulatory jurisdictions like XM, IG Broker. This is a major drawback for OctaFX. It’s not publicly traded and does not operate a bank. Clients’ money is kept in segregated funds and offers negative balance protection.
- Founded in 2011, 6.6M accounts opened worldwide
- Regulated by CySEC (Cyprus Securities and Exchange Commission)
- No commission deposits and withdrawal options
- Negative balance protection
- Lack of regulation in major jurisdictions
- Deposit and withdrawal option is limited for European clients
The company’s legal and correspondence address is Suite 305, Griffith Corporate Centre, Beachmont, Kingstown, St. Vincent and the Grenadines. There are some regulatory information:
- Octa Markets Inc. (OctaFX) was registered in 2011 in St. Vincent and the Grenadines under licence number 19776 IBC 2011.
- CySEC regulated (license Number: 372/18
OctaFX broker features three different types of trading accounts. These are OctaFX MT4, OctaFX MT5, and OctaFX cTrader. Tradeable instruments and other features available to you depend on your account types. OctaFX offering both floating spread and commission-based accounts. The swap fee only applies in the cTrader platform while weekend rollover.
For more details on Forex account types comparison. Click here.back to menu ↑ back to menu ↑
Trading Instrument at OctaFX
Tradeable instruments available to you depending on your account types, they offer a total of 32 currency pairs, gold and silver, three energy, ten indices, three cryptocurrency pairs, and currently 50 tradeable instruments. However mt4 account support 47, for mt5 41, and for cTrader, there are only 30 tradeable instruments available. Where other highly trusted brokers are offering more than 10 thousand trading instruments. This is a huge drawback for OctaFX broker compare to trusted forex brokers like XM or IG markets. Which can only meet the needs of a basic trader but not the needs of medium and advanced traders.
|Cryptocurrency (CFD)||Yes (except UK)|
|Stocks and Shares||0|
Cryptocurrency trading is available in form of CFDs. (You cannot buy the underlying asset). And remember cryptocurrency is not available in UK entity nor to UK residence.back to menu ↑ back to menu ↑
Commissions and Fees
Fees: In forex trading fees are generally of two types. Trading fee and Non-Trading fee.
- A trading fee is charged every time when you open a position. Training fees include spreads, commission fees, swaps, and currency conversion fees.
- Non-trading fees include deposit and withdrawal fees, and inactivity fees.
Trading Cost: OctaFX offering both floating spread and commission-based accounts types, OctaFX MT4 and MT5 platform based on floating spread, and cTrader platform is based on commissions. OctaFX has a huge lack of tradable instruments and safety issues but Its pricing is average compared to industry leaders. Often not the cheapest option but not the premium option either. Also, there is no rebate program available for active traders. The chart below list of trading cost of an MT4 account:
|Minimum Initial Deposit||$25|
|EUR/USD Spread||0.7 pips|
|Commission on Islamic Accounts||No|
|Withdrawal Fees||No (in a few methods)|
There is no rebate program available for active traders. Usually, most major forex brokers provide rebates on traders’ spread which helps to decrease trading costs.back to menu ↑ back to menu ↑
OctaFX Review: Inactivity fees
OctaFX doesn’t charge any inactivity fees.back to menu ↑ back to menu ↑
Deposit and withdrawal fees
In case of making a deposit and withdrawal, the broker does not charge any commission, However, the payment gateway can charge a commission fee.
Please note: It is not necessary to verify your account before depositing, but it is mandatory to verify your account before withdrawing funds, so make sure your account is 100% verified before depositing funds, because OctaFX is not a highly trusted broker so anything can go wrong.
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Trading Platforms and Tools
Trading Platforms: OctaFX doesn’t feature any proprietary trading platform for desktop PC but it does offer multiple third-party trading platforms including MetaTrader 4 (MT4) and MetaTrader 5 (MT5). cTrader. Please note: different platforms come with different features and tradeable instruments.
- OctaFX MetaTrader 4
- OctaFX MetaTrader 5
- OctaFX cTrader
MetaTrader 4: OctaFX Metatrader 4 features floating spread based trading with no commission and no swap. Spread starts from 0.6 pips at EUR/USD pair. Metatrader 4 platform gives access to 28 currency pairs, 2 energies, 4 indices, gold and silver, and the 5 cryptocurrencies. MetaTrader 4 is the legendary forex and CFD trading platform recognized by all levels of traders. It’s accessible from all kinds of devices. The desktop version of MetaTrader 4 gives you control over everything including all advanced types of orders, open positions, use stop loss or take profits, pending orders, or even control expert advisor, test your different trading strategies. Metatrader 4 has 30 built-in indicators and thousands of free and paid additional indicators.
MetaTrader 5: OctaFX Metatrader 5 features floating spread-based trading with no commission and no swap. Spread starts from 0.6 pips at EUR/USD pair. Metatrader 5 platform gives access to 28 currency pairs, 2 energies, 10 indices, gold and silver, and the 5 cryptocurrencies. Features are the same except MetaTrader 4 support 4 indices and MetaTrader 5 support 10 indices.
cTrader: cTrader platform features flirting spread and commission-based trading, where spread starts at 0.8 pips. cTrader gives you access to only 28 currency pairs and gold and silver nothing else. There is also a weekend rollover fee applied. Cryptocurrency trading and copy trading are not allowed with cTrader.
Copy Trading: Social trading or copy becoming more and more popular these days because of ease of use. OctaFX features an in-house copy trading system that helps traders to copy other pro traders (Masters) for a certain profit share. You can monitor and control your investment of copy trading directly from your mobile app in real-time.
OctaFX offers a range of research tools from a combination of in-house and third parties resources including an Economic Calendar, Market insights, Forex news, Interest rates, Holiday calendar.back to menu ↑ back to menu ↑
OctaFX provides Intermediate-level educational materials for free, resources like forex beginner courses articles, webinars in 5 different languages (English, Hindi, Urdu, Malay, and Indonesian), glossary, Basic Video tutorials, and some FAQs. Its also have a youtube channel with weekly webinars and many other trading-related tutorials but we expect more, brokers like XM provides tons of content every single day.back to menu ↑ back to menu ↑
OctaFX Review: Conclusion
Although the OctaFX broker’s trading cost is low, it has a huge lack in terms of safety measures and tradable instruments.
Unfortunately from our experience and as we discussed above, we are not recommending you this broker. Because in our opinion traders funds safety matters most. We always recommend you to trade with a highly trusted broker authorized by top-tier jurisdictions. Like XM or IG. (Most trusted brokers with the best pricing and wide range of the tradable instrument)
- 10 Years of Market Experience
- 50 tradeable instruments
- Demo accounts, swap-free accounts
- 24/7 support
- License and regulation is very poor (high risk)
- Less tradeable instruments (only 50)