OctaFX Review 2020 - Verified Customer Reviews

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4.2
User Rating
4.8
(30)
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OctaFX Review

Updated November 26, 2020
4.2
Score breakdown
Pricing: 4
Regulation: 5
Popularity: 3
User Rating: 4.8 (30)

OctaFX overall score rank: 7 out of 35

OctaFX Forex broker review

Risk Warning: CFDs are complex financial instruments that carry a high risk due to leverage trading. 45.45% of retail investor accounts lose money when trading CFDs with this provider. You should always consider whether or not you can afford the high risk of completely losing your funds.

KEY TAKEAWAYS

  • OctaFX Copytrading App
  • Fast and free withdrawals
  • Regulated in the EU
  • 50% bonus on each deposit

Regulations and Money Protection

5.0  


Entity Name Octa Markets Incorporated (SVG) Octa Markets Cyprus Ltd (EU)
Licence & Regulation Cyprus CySEC Licence
Client Money Protection ✔️ - segregated client money
Deposit Compensation Scheme ✔️
up to €20,000
Negative Balance Protection ✔️ ✔️

Entity/Regulation

  • International customers: Octa Markets Incorporated (trading as OctaFX) will be the counterparty for International customers. This entity is registered in the Saint Vincent & the Grenadines as an International Business Company and regulated by the nation island Financial Services Authority (FSA) under license number 19776IBC2011.

  • European customers: Octa Markets Cyprus Ltd, with address at Strovolou 47, KYROS TOWER, 5th Floor, Nicosia, is registered as a Cypriot Investment Firm (CIF) under number 359992 and is regulated by the Cyprus Securities and Exchange Commission (CySEC) under license number 372/18.

Client Money Protection

  • OctaFX complies with the highest safety standards for client's funds. For this reason, OctaFX client's funds are kept in top-tier international banks, fully segregated from the company’s funds.

  • OctaFX also complies with the client money handling rules and employs strict policies and procedures regarding the maintenance and operation of these accounts. OctaFX holds client's money separately to the company funds and does not use these funds for any operational expenses or purposes.

Deposit Compensation Scheme

Octa Markets Cyprus Ltd is a member of the Investor Compensation Fund (ICF), an investor compensation fund for CIF clients and its functions are regulated by the directive DI87-07 of the CySEC. If Octa Markets Cyprus Ltd is unable to meet its obligations, clients might be entitled to compensation (up to the value of €20,000) per claim, irrespective of the number of accounts held, currency and place of offering of the investment service (within Europe).

Negative Balance Protection

For accounts opened via any entity of the OctaFX Group, there is a default Negative Balance Protection mechanism in place, for the sake of no negative balance. With NBP, OctaFX customers are protected from any losses bigger than their original investments, in cases of extreme market volatility.

Accounts, Instruments and Platforms

Accounts Instruments Platforms Social trading Maximum Leverage
✔️Micro
✔️Pro
✔️ECN
❌PAMM
✔️Islamic Accounts
✔️Forex
✔️Indices
❌Stocks
❌Futures
❌ETFs
❌Bonds
✔️Commodities
✔️Cryptos
✔️MT 4
✔️MT 5
✔️cTrader
❌Myfxbook
❌ZuluTrade
✔️OctaFX Copytrading
30:1 Europe

500:1 Rest of World

Account types and currencies

  • OctaFX offers three types of trading accounts; Micro, Pro and ECN. OctaFX also offers swap-free accounts for traders of Islamic belief.

  • OctaFX allows for social trading, including copy trading, via the OctaFX Copytrading account.

  • OctaFX does not offer any PAMM accounts alternatives for money managers.

  • OctaFX maximum leverage is 30:1 for accounts opened within Europe and up to 500:1 for accounts opened in other countries around the world.

  • Currently, OctaFX trading accounts are only available in USD and EUR.

Financial instruments

Trading with OctaFX can be done via the MetaTrader 4, Metatrader 5 and cTrader available on desktop terminal and mobile versions. OctaFX offers a limited selection of just 45 assets to trade, including Forex, indices, commodities and cryptocurrencies.

  • FX market - 28 currency pairs (including Minor and Exotic crosses).

  • Indices - 10 world indices, including UK 100, GER 30 and NIKKEI 225.

  • Commodities - 4 commodities CFDs available for trading; 2 metals (Gold and Silver) and 2 energies including UK Oil and US Oil.

  • Cryptocurrencies - 3 CFDs crosses for trading, including BTC/USD and ETH/USD.

Pricing

4.0  


Pricing/
Account
Micro/MT4 Pro/MT5 ECN/cTrader
Spread EUR/USD floating from 0.4 pip
fixed from 2.0 pip
from 0.3 pip from 0.4 pip
Commissions (1 lot) from 6 USD
Minimum Deposit from 5 USD from 5 USD from 5 USD

Spreads

OctaFX offers in total 3 different trading account types. A special note here. For traders opening an account with OctaFX Cyprus there's only 2 account types accessible; MT5 and cTrader. Due to strict European regulations, the maximum leverage on both accounts is 30:1 and the minimum deposit is 100 EUR. For traders opening an account via Octa Markets Incorporated website, the maximum leverage is 500:1 and the minimum deposit is 100 USD, or equivalent, for the MT4 and cTrader accounts and 500 USD, or equivalent, for the MT5 account.

With an MT4 account, the spread for the EUR/USD starts at 0.4 pip, with a typical spread of 1.1 pip with the commissions built into the spread. For the MT5 account the starting spread for the EUR/USD is 0.3 pip with a typical spread of 0.9 pip, also including commissions.

For the cTrader account the spread for the EUR/USD is slightly better. Spread starts at 0.4 pip, with an average of 0.7 pip. But, for the lower spreads, there’s a price to pay, a commission. The standard lot commission for 1 lot (100,000 units) with the cTrader account is 6 USD  (3 USD per side, per lot). This commission is in line with other brokers.

Rollover Rates

The accounts on MT5 and cTrader are swap free, according to the broker’s website. Which of course adds up to cheaper pricing and lower trading costs. But there’s a catch. There is a 3 days fee applied on the MT5 account to positions opened for more than 3 days. This fee is charged every third rollover, that is, every third night at 00.00 (EET/EEST). For the cTrader ECN accounts, a weekly rollover fee is charged. The weekend fee is applied for keeping a position open from Friday to Monday on cTrader ECN account.

OctaFX swap rates, as of 10-09-2020, for 1 lot EUR/USD (100,000 units) stands at an average rate of -1.77 for holding overnight a long 1 lot contract and at -1.60 for holding overnight a short 1 lot contract, per day. We consider these swap rates to be slighty lower compared with the rollover rates offered by top Forex brokers.

Deposits/Withdrawals and Other Fees

  • Deposit fees - Trading accounts can be opened in only 2 different currencies and maintained via 5 different funding methods, including cards, bank wires and e-payments such as Perfect Money, Bitcoin and Mastercard for international clients and bank wire, Visa and Skrill for EU customers. Deposits are available almost instantly. OctaFX does not charge any fees for deposits.

  • Withdrawals fees - Same policy applies for withdrawals (processing times vary from instant to 4 hours). OctaFX does not charge clients any fees for withdrawals. Moreover, deposit and withdrawal fees applied by third parties (Skrill or Neteller, for example) are also covered by OctaFX. However, some fees may be applied in certain cases. For more information, please visit the Octa Markets Incorporated (SVG) deposit and withdrawals dedicated page and the Octa Markets Cyprus Ltd (EU) deposit and withdrawals.

  • Inactivity fee - OctaFX does not charge an inactivity fee or any account maintenance fees.

Popularity

3.0 


Forex Education Deposit Options Deposit/Withdrawals Fees Non expiring demo account Customer Support
Webinars
Forex Articles
Video Tutorials
Fundamental & Technical Analysis
Market Insights
Cards
Bank Wire
E-payments
Cryptocurrencies
❌ - 30 days Multi language
24/5 Support
Live Chat

Although the implementation of their quick and free withdrawals policy is most welcomed, the popularity of OctaFX is rather neutral with traders. Despite the broker's efforts, offering no commissions on deposits and withdrawals, Negative Balance Protection and funds security, there are still quite a few points to improve.

By claiming to have the lowest spreads in the industry and no requotes, OctaFX expects to attract new customers, still, the claimed low spreads, compared to other market players, are not that low. They are actually within average or even slightly higher than their competitors.

Then, adding to the neutral popularity score, deposits and withdrawals processors. Although withdrawals are attractively processed commission-free, the lack of more payment and withdrawal options (5 in total) including cards and bank wires, get some negative points with traders that prefer more ways to fund their accounts, such as Neteller and PayPal.

  • Trading accounts - The OctaFX ECN/cTrader account is a popular choice with traders looking to save on trading costs, with a lower spread and a competitive commission of $6.00 per lot traded. Extra points for OctaFX policy of no fees on deposits or withdrawals.

  • Forex education - OctaFX also gets extra popularity points for their good range of Forex education materials, available through the Education tab. OctaFx clients can enroll on webinars, brush up their knowledge with Forex articles, watch and learn with video tutorials, read and make informed decisions with OctaFX fundamental & technical analysis reports and use their trading calculators.

Funding Methods Bank Wire, Bitcoin, FasaPay, Neteller, Perfect Money, Skrill (Moneybookers)
Support Languages Chinese, English, German, Hindi, Indonesian, Portuguese, Spanish, Thai, Vietnamese, Urdu


  • Minimum deposit - Opening a trading account with OctaFX it's easy and can be done via the website. The minimum deposit requirement is 5 USD for accounts opened via Octa Markets Incorporated and 50 EUR for accounts opened via Octa Markets Cyprus Ltd.

  • Customer support - OctaFX multi language customer support service is available 24 hours, 5 days a week, in 10 languages. OctaFX support is available via phone call, email, contact form and also live chat, available directly from their website.

Broker Profile

OctaFX is the commercial arm of Octa Markets Incorporated. The company was registered in 2011 in Saint Vincent & the Grenadines with license number 19776IBC2011, as an International Business Company. OctaFX has developed a variety of options to make your Forex trading even more convenient. They offer live ECN trading accounts as well as micro-accounts. They advertise a combination of low spreads, real-time market execution and true ECN offset. 

To increase its trust score, as the island nation has yet to implement a robust framework for Forex regulations, including enforcement of compliance standards, the broker has applied for a license with an European tier-1 regulator. In 2018 Octa Markets Cyprus Ltd, company registration number 359992 and address in Strovolou 47, Kyros Tower, 5th Floor, Nicosia 2018, Cyprus, received its CySEC license.

Octa Markets Cyprus Ltd is authorized and regulated by the Cyprus Securities and Exchange Commission and provides trading services and Contracts for Difference (CFDs) on assets including Forex, indices, metals and energies. These services are not available to clients in the USA, Canada, Belgium or outside the European jurisdiction.

Overall, on our OctaFX review, the broker scores 4.2 out of 5 as the company still has a couple of very important points to improve. OctaFX available instruments, pricing and the limited payment and withdrawals options are in need to be reviewed and updated to match other competitors. Still, despite these negative factors, the broker seems to be quite popular with Asian traders looking for Islamic accounts and an attractive copy trading service.

Data supplied in partnership with CashBackForex - Forex Rebates places OctaFX on the top 10 brokers for popularity with traders opening an account in 2020.


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