OctaFX is a technology-based forex brokerage company that has been operating since 2011. It offers the industry-leading MetaTrader 4 and MetaTrader 5 platforms, as well as a wide range of investment opportunities.
OctaFX is an STP (straight-through-processing) broker, which means that it passes on its clients’ orders directly to the market without any intervention. This ensures that clients get the best possible prices for their trades.
OctaFX is regulated by the Cyprus Securities and Exchange Commission (CySEC), which is a reputable financial regulator. However, OctaFX also has an international entity that is not regulated by CySEC. Traders should be aware of this and check the terms and conditions carefully before opening an account.
Pros of OctaFX:
- Easy account opening
- Good trading conditions
- Wide range of investment opportunities
- STP broker
Cons of OctaFX:
- Different conditions for international and Cyprus entities
- International entity is not regulated by CySEC
Overall, OctaFX is a good choice for traders who are looking for a reliable and well-regulated broker with a wide range of investment opportunities. However, traders should be aware of the different conditions for international and Cyprus entities.
- Fast account opening and free Demo account
- No commission deposits and withdrawal options
- Great trading tools
- Forex and CFDs offered
- MT5 and MT4 platforms offered
- Phone support not available 24/7
- International trading offered by SVG
OctaFX Review and Ranking
Overview
OctaFX is a forex and CFD broker that was founded in 2011. It is regulated by the Cyprus Securities and Exchange Commission (CySEC) and the Financial Sector Conduct Authority (FSCA). OctaFX offers a wide range of trading instruments, including over 70 forex pairs, CFDs on indices, commodities, and cryptocurrencies.
Advantages
- Low deposit requirements (starting from $5)
- Competitive spreads
- Negative balance protection
- Wide range of trading instruments
- User-friendly trading platforms (MetaTrader 4 and 5)
- Excellent customer support
Disadvantages
- Only regulated in two jurisdictions
- Limited selection of trading platforms
- No support for trading in stocks and ETFs
Recommendation
OctaFX is a good choice for traders of all experience levels, especially those who are looking for a broker with low deposit requirements and competitive spreads. However, traders should be aware that OctaFX is only regulated in two jurisdictions and does not offer support for trading in stocks and ETFs.
Is OctaFX Safe?
Yes, OctaFX is a safe and reputable forex and CFD broker. It is regulated by the Cyprus Securities and Exchange Commission (CySEC), which is a Tier 1 regulator. OctaFX has been in operation since 2011 and has a good track record of providing reliable and secure trading services.
OctaFX Safety Score
OctaFX has a safety score of 8 out of 10. This is based on the following factors:
- Regulation by a Tier 1 regulator
- Good track record of reliability and security
- Transparent and fair trading practices
- Strong customer support
Recommendation
If you are considering trading with OctaFX, I recommend that you sign up with the CySEC-regulated entity. This is because the CySEC is a more stringent regulator than the SVG Financial Services Authority.
- CySEC regulated broker
- Global coverage and years of operation
- Wide range of Countries covered
- Negative Balance Protection applied
- International operation via SVG
Is OctaFX Legit?
Yes, OctaFX is a legitimate forex and CFD broker. It is regulated by the Cyprus Securities and Exchange Commission (CySEC), which is a Tier 1 regulator. This means that OctaFX is subject to strict regulatory oversight and must comply with high standards of business conduct.
OctaFX was previously registered in Saint Vincent and the Grenadines, which is an offshore jurisdiction. However, in 2017, OctaFX established a legal entity in Cyprus and obtained a license from CySEC. This move demonstrated OctaFX’s commitment to transparency and regulation.
Client Protection
CySEC regulation provides a number of protections for OctaFX’s clients, including:
- Fund segregation: OctaFX is required to segregate client funds from its own operating funds. This means that client funds are protected even if OctaFX becomes insolvent.
- Negative balance protection: OctaFX cannot allow clients to lose more money than they have deposited in their accounts. This means that clients are protected from unlimited losses.
- Investor Protection and Compensation Scheme (ICPS): If OctaFX becomes insolvent, clients may be compensated by the ICPS. The ICPS is a government-backed scheme that compensates investors up to EUR 20,000 per client.
Leverage
OctaFX offers leverage to its clients. Leverage is a tool that can amplify both profits and losses. For this reason, it is important to use leverage wisely.
Risk Level
The risk level of trading is increased by the amount of leverage used. Higher leverage means that even small price movements can have a large impact on your trading account.
Leverage for European Traders
OctaFX’s European entity offers lower leverage levels in compliance with ESMA regulations. This means that European traders are limited to using a maximum leverage of 1:30 for major currency pairs and 1:10 for commodities.
Leverage for International Traders
OctaFX’s international entity offers higher leverage levels, up to 1:500. However, it is important to note that using high leverage can be very risky, and is only suitable for experienced traders.
Account types
OctaFX offers two main account types:
- MT5 account: This account type is suitable for the majority of investors and supports all trading styles, including social trading. It is available to both European and international traders.
- ECN and PRO accounts: These account types are based on the MetaTrader 5 platform and offer lower spreads and faster order execution than the MT5 account. They are recommended for experienced traders.
- Micro Account: This account type is available on the MetaTrader 4 platform and allows micro lot trading with floating spreads starting at 0.4 pips or fixed spread at 2 pips. It is recommended for novice traders.
European traders are limited to using the MT5 account, while international traders can choose from all three account types.
Here is a table that summarizes the key features of each account type:
| Account Type | Platform | Spreads | Order Execution | Recommended For |
|---|---|---|---|---|
| MT5 | MetaTrader 5 | Floating spreads start from 0.6 pips | Standard | Most traders |
| ECN | MetaTrader 5 | Raw ECN spreads start from 0 pips | Market | Experienced traders |
| PRO | MetaTrader 5 | Raw ECN spreads start from 0 pips + commission | Market | Experienced traders |
| Micro | MetaTrader 4 | Floating spreads start from 0.4 pips or fixed spread at 2 pips | Standard | Novice traders |
- Fast digital account opening
- Single Account for MetaTrader5 or MT4 platforms
- Demo Account offered
- Option between trading fee models
- Conditions may vary based on entity
Trading Instruments
OctaFX offers a wide range of trading instruments, including:
- Forex currency pairs
- Metals (gold and silver)
- Energies (crude oil and natural gas)
- Indices (stock market indices)
- Cryptocurrencies
Fees
OctaFX charges two types of fees:
- Trading fees: These fees are charged on each trade that you make. Trading fees vary depending on the account type you choose and the instrument you trade.
- Non-trading fees: These fees are not related to trading, but may still be charged by OctaFX. Non-trading fees include deposit fees, withdrawal fees, and inactivity fees.
Fees Comparison
Here is a table that compares OctaFX’s fees to those of two other brokers:
| Fee | OctaFX | AvaTrade | eToro |
|---|---|---|---|
| Deposit fee | No | No | No |
| Withdrawal fee | No | Yes | Yes |
| Inactivity fee | Yes | Yes | Yes |
| Trading fees | Low | Average | High |
OctaFX Spreads
OctaFX offers competitive spreads on all of its trading instruments. The minimum spread on EUR/USD is 0.7 pips, which is very good compared to industry standards.
OctaFX Spreads vs. Other Brokers
Here is a table that compares OctaFX’s spreads to those of two other brokers:
| Asset/Pair | OctaFX Spread | AvaTrade Spread | eToro Spread |
|---|---|---|---|
| EUR/USD | 0.7 pips | 1.3 pips | 3 pips |
| Crude Oil WTI | 2 pips | 3 pips | 5 pips |
| Gold | 20 | 40 | 45 |
As you can see, OctaFX offers tighter spreads on all three assets than AvaTrade and eToro.
OctaFX Overnight Fees
OctaFX is a swap-free broker, which means that it does not charge overnight fees on its trading accounts. This is a big advantage for traders who use mid-term and long-term strategies.
OctaFX Deposits and Withdrawals
OctaFX offers a variety of deposit and withdrawal methods, including bank wire transfer, credit cards, and e-wallets. The minimum deposit is $25, which is one of the lowest in the industry.
OctaFX Funding Methods
The following table shows the deposit and withdrawal methods available for OctaFX clients:
| Region | Deposit Methods | Withdrawal Methods |
|---|---|---|
| Europe | Bank wire transfer | Bank wire transfer |
| International | Bank wire transfer, credit cards, e-wallets | Bank wire transfer, credit cards, e-wallets |
Deposit Fees and Options
OctaFX Cyprus offers only bank wire transfer for deposits and withdrawals due to licensing requirements. The international entity offers a wider range of payment methods, including credit cards and e-wallets. Deposits are free of charge, but you may be charged by your payment provider or bank. The minimum deposit is $25, but it may vary depending on your region and payment method.
OctaFX Minimum Deposit vs. Other Brokers
| OctaFX | Most Other Brokers |
|---|---|
| $25 | $500 |
OctaFX Money Withdrawal
OctaFX withdrawals are made via bank wire transfer and are processed within 1-2 business days. OctaFX covers all fees, so you can receive your money quickly and easily.
How to Withdraw Money from OctaFX
- Log in to your OctaFX account.
- Click on the “Withdraw Funds” button in the menu tab.
- Fill in the withdrawal form, including the desired withdrawal amount and withdrawal method.
- Complete the necessary form requirements.
- Confirm the withdrawal details and submit the form.
OctaFX will process your withdrawal request as soon as possible. Once your withdrawal has been processed, you should receive your funds within 1-2 business days.
OctaFX Trading Platforms
OctaFX offers two trading platforms: MetaTrader 4 (MT4) and MetaTrader 5 (MT5). Both platforms are popular and widely used by traders around the world.
- MT4 is a well-established platform that is known for its user-friendly interface and wide range of features.
- MT5 is a newer platform that offers additional features and functionality, such as a built-in economic calendar and the ability to trade multiple assets on a single platform.
OctaFX also offers a proprietary mobile trading app for both iOS and Android devices. This app allows traders to access their accounts and trade on the go.
OctaFX Trading Platform Scores and Availability
OctaFX’s trading platform offering is ranked as “Good” with an overall rating of 8 out of 10. This rating is based on the following factors:
- Platform availability: OctaFX offers both MT4 and MT5, which are two of the most popular trading platforms in the world.
- Platform features: OctaFX’s trading platforms offer a wide range of features and functionality, including technical analysis tools, charting tools, and order management tools.
- Mobile trading app: OctaFX offers a proprietary mobile trading app for iOS and Android devices.
OctaFX Trading Platforms vs. IC Markets and eToro Trading Platforms
The following table compares OctaFX’s trading platforms to those of IC Markets and eToro:
| Platform | OctaFX | IC Markets | eToro |
|---|---|---|---|
| MT4 | Yes | Yes | No |
| MT5 | Yes | Yes | Yes |
| Proprietary platform | Yes | Yes | Yes |
| Mobile trading app | Yes | Yes | Yes |
OctaFX Customer Service
OctaFX offers 24/7 customer support via live chat, email, and phone in various languages. The customer support team is responsive and professional.
OctaFX Customer Support Score
OctaFX’s customer support is ranked as “Good” with an overall rating of 8 out of 10. This rating is based on the following factors:
Availability: OctaFX offers 24/7 customer support through multiple channels.
Responsiveness: OctaFX’s customer support team is responsive to inquiries.
Professionalism: OctaFX’s customer support team is professional and knowledgeable.
Education
OctaFX provides educational resources and analysis to its clients through its international brand. This includes unlimited demo platforms, quality videos, YouTube channels in various languages, and regularly held seminars. OctaFX’s educational resources are ranked as “Good” with an overall rating of 7 out of 10. However, OctaFX does not provide education or a Trading Academy to its European clients.
Research
OctaFX uses an interdisciplinary approach to research. The company’s data science team synthesizes its findings with the expertise of third-party professionals, independent institutions, and data labs to produce comprehensive and distilled data analysis. OctaFX also has a subscriber-only-based connection to the most reliable news agencies in the world, which allows it to gather and analyze real-time information on market events, law adoptions, economic agreements, and civil unrest. This information is then put into the context of foreign exchange trading and communicated to clients through the company’s blog, news segments, social media channels, email updates, and expert articles.
