OctaFX Review

Review

OctaFX has been in operation since 2011, and caters to clients from over 100 countries. This market maker primarily focuses on new Forex traders from emerging markets. By its own account, it serves over 1.5 million trading accounts and has executed more than 288.0 million trades. Bonuses fulfill a significant role at OctaFX, which has paid out nearly 3.0 million in incentives. The absence of swap rates on overnight leveraged positions stands out, but a weekly rollover cost applies. That begs the question whether actual trading takes place or if orders are processed in-house in a simulated environment. The lack of oversight from any financial regulator adds another red flag but explains the absence of swap rates. The broker was awarded 28 industry awards and is positively rated in TrustPilot; however, traders should understand that neither is a reliable metric of a trustworthy brokerage.

Regulation and Security

OctaFX has a strange ownership structure split between Arlear Inc. OU, a company registered in Estonia, and Octa Markets Inc., registered in St. Vincent and the Grenadines. The former owns and operates the website, while the latter is responsible for the brokerage division. No financial authority has oversight, but a proper company registration does appear to be in place. None of the usual documents, regarding financial strength and trade execution, are provided.

Client deposits remain segregated, and AML regulations have been followed, per claims by OctaFX. Negative balance protection is displayed, but several red flags suggest that no actual trading takes place. Traders remain unprotected in the event of malpractice, though no official claims exist against this brokerage. Withdrawal delays have circulated, which warrant a cautious approach. The absence of regulatory oversight does not necessitate wrongdoing, intent to commit fraud, scam trades, or otherwise engage in malpractice, but it does place OctaFX in a gray area. No other measures exist to guarantee a secure trading environment.

It is important to note that OctaFX used to be authorized in the UK by the Financial Conduct Authority. Octa Markets Cyprus LTD caters to EEA traders, in a modified capacity, under the oversight of the Cyprus Securities and Exchange Commission (CySEC). It does not, however, extend to the central brokerage, as they are two independent companies.

The ownership structure, in small print, is relegated to the bottom of the website.

Client deposits remain segregated, without mention of the custodian bank.

OctaFX is registered, as a company, in St. Vincent and the Grenadines.

The Financial Services Authority (SVGFSA), the country's financial regulators, does not have oversight over this broker. For all intents and purposes, OctaFX is an unregulated entity.

Fees

A combination of spreads, commissions, and fees exist. OctaFX, being a market maker, additionally profits directly from losses by its traders. Uncertainty over actual trade execution remains. While OctaFX claims to charge no swap rates, the MT4 pricing structure does list them. Islamic accounts are also charged, which negates them. The lowest typical spread is 0.9 pips. The MT5 account substitutes swap rates with a fixed trading fee per lot, which is deducted every three days; the mark-up at 0.5 pips is more competitive. Continuing the unusual cost structure is a weekly rollover fee plus a commission in the ECN account, for an increased spread to 0.7 pips. It confirms the lack of understanding by the management team and adds to a series of missteps by this brokerage. Third-party deposit and withdrawal fees exist, other costs were not uncovered.

MT4/MT5 traders can easily access swap rates from their platform by following these steps:

1. Right-click on the desired symbol in the Market Watch window and select Symbols.

2. Select the desired currency and then click on Properties located on the right side.

3. Scroll down until you see Swap Long and Swap Short.

The MT4 account carries a swap rate, despite claims of no charge. Islamic accounts are equally charged.

Instead of swap rates, the MT5 account carries a trading fee, which is deducted every three days.

Higher spreads, commissions, and a weekly rollover exist in the ECN account.

What Can I Trade

The provided asset selection is among the poorest across today’s brokerage industry. Merely 28 currency pairs are available, together with four commodities, ten index CFDs, and three cryptocurrencies. Only the MT5 account offers all assets; the other two feature a reduced total. Proper cross-asset diversification is not possible, and the overall choice is disappointing and wholly inadequate for any trader.

OctaFX maintains a remarkably limited choice of assets.

Account Types

OctaFX maintains three ill-structured account types, as evident in the conditions and marketing. Despite being the most popular choice in the retail sector, with extensive third-party support infrastructure, only a micro account is available on MT4. A minimum deposit of $100 and maximum leverage of 1:500 come with elevated trading expenses. For the same conditions, but notably fewer assets, traders will find a more competitive trading environment in the ECN account. Usually, ECN accounts are ideal for high-frequency traders and scalpers. Raw spreads and a commission-structure create a typical advantage. OctaFX does provide marginally lower mark-ups for a fee, which remains more competitive than that of the MT4 type, rendering it useless.

Confirming the confused approach at OctaFX is the preference of MT5, the failed successor platform of MT4 (which OctaFX acknowledges as a popular choice among traders). The MT5 lacks backward compatibility to MT4, rendering upgraded features useless. In the past, a number of brokers have attempted to market the MT5 as a cross-asset solution, though generally with limited success. Labeling it a pro account for experienced traders adds to the absence of understanding in the product offering. A $500 minimum deposit is required, and spreads are the lowest identified. None of the advertised minimum spreads reflect the typical average spread. The MT5 account, per data from OctaFX, carries a more competitive price structure than the ECN version. Despite claims that the Islamic account is 100% Shariah-compliant, the MT4 account registers applicable swap rates.

Three poorly structured account types leave traders without proper choice.

The MT4 account levies charges on Islamic accounts, negating claims of Shariah compliance.

Trading Platforms

Traders may choose between the retail favorite MT4 trading platform, its failed successor MT5, or the ECN alternative, cTrader. All fully support automated trading solutions, where MT4 has an edge. Countless third-party Fintech companies and professional traders have developed plugins and automated trading solutions on the MT4 infrastructure which are necessary to unlock the full functionality and transform it into a competitive platform.

OctaFX has an inexplicable preference for MT5, which lacks backward compatibility to its predecessor, rendering it a failed upgrade. It is advertised as the next best trading platform, but since its release in June 2010, it has disappointed and failed to gain traction. OctaFX fails to acknowledge this reality; it continues to repeat marketing tactics in place for more than a decade, without success.

cTrader provides the best choice for traders at OctaFX, confirming the previously noted advantages of the ECN account. Regrettably, only 30 assets are available, continuing the established management errors. The Autochartist plugin, available only to OctaFX Silver members and above, enhances the MT4/MT5 trading platforms; no public details are available as to how to obtain this status. Not granting access to this important plugin to all traders adds to the list of mistakes and errors on the part of this brokerage.

OctaFX Copytrading supports social trading. It follows established services where traders follow providers, referred to as Master Traders, by this broker. Performance statistics are available, and traders can allocate the desired amount to dedicate to copying others. The trader remains in complete control and can adjust positions as they desire. This service is available on mobile devices, an attempt by OctaFX to capitalize on an uptick in trading by millennials on the go.

MT4 is available but is mistakenly marketed as a minimalistic platform.

OctaFX has a preference for the failed successor platform, MT5.

cTrader grants the best choice, but only 30 assets are available.

The Autochartist plugin enhances the MT4/MT5 platforms, but requires at least Silver status.

Social trading is enabled, but the limited asset choice remains a disadvantage.

Unique Features

There are no unique features at OctaFX. This broker provides the minimum required to operate as a brokerage yet fails to execute correctly across the board. It is worth noting that, until 2016, OctaFX was a significantly different, better company. It had expanded globally and operated with oversight under the UK’s FCA, a Tier-1 authority. The highlight was the sponsorship of a Premier League team for the 2015/2016 season. In 2015, it additionally sponsored the Indonesian Rip Curl Cup and supported the Bali Sports Foundation. 

Since 2016, this broker embarked on a severe path of regression. While the precise reasons are unclear, it coincides with regulatory changes. It also appears that a change of essential management took place, as OctaFX became a different operation. The current trajectory suggests an ongoing reduction in market share, even though it may attract new traders who, unfortunately, may lack the knowledge or background to uncover what is actually an unacceptable trading environment.

Before its rapid demise as a respectable brokerage, OctaFX reached its peak with a Premier League team sponsorship.

Research and Education

The Trader’s Tools section is where OctaFX publishes surprisingly comprehensive research and useful tools for day-to-day trading. It consists of eleven sub-categories, and the homepage features a refreshingly clean design. Aside from the economic calendar, profit and trading calculators, the interest rate and national holidays tabs offer a nice touch for a quick overview. Market insights, Forex news, and technical analysis are where research is published. It is updated multiple times per day and consists of written content and charts. The overall quality and presentation offers genuine value for new traders seeking fresh trading ideas.

The homepage of the Trader's Tools category allows for swift navigation to desired topics.

Research, published under three sub-categories consists of written content and charts.

Education is diminished to essential content with a marketing bias and requires a significant overhaul. The tutorials and video tutorials provide a guide to use the products and services of OctaFX. A glossary and various trading manuals add little value, and the overall educational sector remains notably behind that of competitors. Where OctaFX surprised with research, it maintains the course of disappointment with education, which does not resemble a properly thought-through service.

Education at OctaFX disappoints; it consists of essential articles with a marketing bias.

Customer Support

Customer support is available 24/5, easily accessible via live chat or through messaging applications WhatsApp and Telegram. Alternatively, traders may use the webform to submit queries. The FAQ and tutorial sections attempt to answer the most common questions, limiting the need for customer support, which is usually not required at well-managed brokerages. Given the numerous red flags at OctaFX, swift access to a representative is a welcome change.

Customer Service is available 24/5.

Bonuses and Promotions

Bonuses and promotions are essential to the business model of OctaFX. It explains the popularity of this broker with new traders from emerging markets, with a focus on Southeast Asia. The withdrawable 50% bonus on each deposit adds a tremendous boost to trader portfolios and considerably enhances the potential of long-term traders. Terms and conditions apply and must be understood to avoid confusion, as bonuses are restricted for some traders.

A status program exists to inspire more deposits and trading. It consists of four tiers and unlocks additional improvements to conditions. Two popular demo contests, the four-week MT4, and the one-week ECN, both feature withdrawable cash prizes. Caution is warranted as they do promote irresponsible trading behavior, which can spill over to live trading accounts.

A 50% withdrawable bonus on each deposit represents a key driver for OctaFX.

Traders can achieve improved trading conditions through a four-tier program.

The four-week MT4 demo contest awards withdrawable cash prizes.

The one-week ECN demo contest grants smaller awards.

Opening an Account

New account applications are processed online. OctaFX merely requests a name, e-mail, and password to complete the first step. Alternatively, traders may use their Facebook or Google account. This broker states compliance with AML regulations, which means verification is necessary; a copy of the trader’s ID and one proof of residency document generally satisfies this requirement. OctaFX remains unregulated, and caution is advised when submitting personal documents.

Deposits and Withdrawals

Despite their assertion on the website that they “accept all the most popular payment methods,” OctaFX lists only Perfect Money and Bitcoin as deposit and withdrawal methods. The absence of choice adds to numerous red flags. The minimum transaction limits are $5 and 0.00096 BTC, while fees are non-existent. Execution times range from instant to three hours. The FAQ section that covers deposit and withdrawals redirects to the same two options. Before proceeding, traders should consider the absence of verified methods as well as the rationale behind it.

Only two unverified deposit and withdrawal methods are listed.

General Information