OctaFX Review

Review

Founded in 2011, OctaFX is home to more than 6 million trading accounts. It continues to gain market share with its swap-free offering plus generous bonuses and incentives. OctaFX claims to help Forex traders earn more, and I reviewed this broker to calculate if the commission-free and swap-free MT5 trading environment delivers on this statement. Should you open a trading account with OctaFX today?

Summary

Headquarters

Saint Vincent and the Grenadines

Regulation

None

Established

2011

Execution Type

Market Maker

Minimum Deposit

$100

Maximum Retail Leverage

1:500

Trading Platform(s)

MT4, MT5, OctaFX Trading App

OctaFX developed a proprietary copy trading service, expanding into a sector that is gaining popularity, especially among younger traders. Its mobile trading and copy trading service apps remain highly popular, with over 10 million downloads.

OctaFX Main Features

Retail Loss Rate

Undisclosed

Regulation

No

Minimum Raw Spreads

Not applicable

Minimum Standard Spreads

0.6 pips

Minimum Commission for Forex

Commission-free

Commission for CFDs/DMA

Commission-free

Commission Rebates

Not applicable

Minimum Deposit

$100

Demo Account

Yes

Managed Account

Yes

Islamic Account

Yes

Inactivity Fee

No

Deposit Fee

No

Withdrawal Fee

Third-party

Funding Methods

3

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Regulation and Security

Trading with a regulated broker will limit the potential for fraud and malpractice. I always recommend traders to check for regulation and verify it with the regulator by checking the provided license with their database. OctaFX presents clients with no regulated entities.

OctaFX operates out of Saint Vincent and the Grenadines. The financial regulator, the Financial Services Authority (FSC), does not regulate Forex and cryptocurrency brokers, as outlined on their official website.

While OctaFX operates without a regulator, it remains a duly registered international business company (IBC) in Saint Vincent and the Grenadines with registration number 19776 IBC 2011. It does segregate client deposits from corporate funds and offers negative balance protection. OctaFX also has been catering to clients from over 100 countries for over a decade.

It would be nice to have an additional layer of protection. OctaFX could accomplish this via membership with the Honk Kong-based Financial Commission, the primary choice for the most trusted offshore brokers. Other options are third-party insurance to protect client deposits and regular audits published on its website.

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Fees

OctaFX presents traders with a competitively priced, commission-free pricing environment. The EUR/USD starts as low as 0.6 pips or $6 per 1 standard lot, with an average cost of 0.7 pips. It is the same as commission-based brokers offering raw spreads of 0 pips for a commission of $6. I rank OctaFX among the best-priced ones, and OctaFX delivers on its statement to help Forex traders earn more.

Here is a screenshot of OctaFX live quotes during the London-New York overlap session, the most liquid one, where traders usually get the lowest spreads.

OctaFX Live Forex Quotes

 

The average trading costs for the EUR/USD in the commission-free OctaFX Pro account:

Average Spread

Commission per Round Lot

Cost per 1 Standard Lot

0.6 pips

$0.00

$6.00

One of the most ignored trading costs is swap rates on leveraged overnight positions. Depending on the trading strategy, it may become the most significant fee per trade. I always recommend that traders check them before evaluating the total trading costs.

OctaFX takes it one step further and offers swap-free trading in its MT5 account. It makes a tremendous difference for leveraged traders keeping positions open overnight. Traders pay no financing fees, irrelevant of how long a trade remains open.

It makes OctaFX the first broker with such an offer. It is also a rare broker fully compliant with Shariah law for Islamic traders. I cannot stress enough the difference this makes, especially over time. It only applies to the MT5 account, while MT4 traders pay a minimal swap rate on leveraged overnight positions.

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

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

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

Below is a list of trading cost examples for buying and selling the EUR/USD, holding the trade for one night and seven nights, in the commission-free OctaFX MT5 account.

Taking a 1 standard lot buy/sell position, in the EUR/USD at the average spread and holding it for one night will cost the following:

Minimum Spread

Commission per Round Lot

Swap Long

Swap Short

Total Trading

Costs

0.6 pips

 

$0.00

-$0.00

X

$6.00

0.6 pips

 

$0.00

X

-$0.00

$6.00

Taking a 1 standard lot buy/sell position, in the EUR/USD at the average spread and holding it for seven nights will cost the following:

Minimum Spread

Commission per Round Lot

Swap Long

Swap Short

Total Trading

Costs

0.6 pips

 

$0.00

-$0.00

X

$6.00

0.6 pips

 

$0.00

X

-$0.00

$6.00

I like the cost savings at OctaFX for traders who keep leveraged positions open for multiple trading days. The cost savings for a 1 standard lot EUR/USD position can amount to $60+. OctaFX has recently improved its pricing environment, and I rank the overall trading costs among the best industry-wide, and there is no inactivity fee or currency conversion cost.

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What Can I Trade

OctaFX maintains 35 currency pairs, five cryptocurrency pairs, five commodities and ten index CFDs. Since OctaFX has a limited selection of trading instruments, I find it ideal for focused trading strategies that rely on fewer but high-liquid assets.

Asset List and Leverage Overview

Currency Pairs

35

Cryptocurrency Pairs

5

Commodities and Metals

5

Index CFDs

10

Equity CFDs

0

Bonds

0

ETFs

0

Options, Futures, and Synthetics

0

Maximum Retail Leverage

1:500

Maximum Pro Leverage

1:500

OctaFX Leverage

The maximum leverage at OctaFX is 1:500 for Forex traders and 1:25 for cryptocurrency traders. It is excellent for scalpers and traders who require highly leveraged trading accounts. I also want to note the absence of swap rates and the presence of negative balance protection again, combining for an unrivaled offer.

OctaFX Trading Hours (GMT +1 Server Time)

Asset Class

From

To

Cryptocurrencies

Monday 00:00

Friday 23:59

Forex

Monday 00:00

Friday 23:59

Commodities

Monday 00:00

Friday 23:59

European Index CFDs

Monday 09:00

Friday 17:30

US Index CFDs

Monday 15:30

Friday 22:00

Please note that equity markets open and close each trading and are not operational continuously like Forex and cryptocurrencies.

I recommend the following step for MT4/MT5 traders to access trading hours:

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

2. Scroll down until you see Sessions.

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Account Types

OctaFX offers traders one MT4 and one MT5 trading account. The minimum deposit for both is $100, and the maximum leverage is 1:500. The account base currencies are the euro and the US dollar. The two differences between the two are 1) MT5 remains swap-free while MT4 traders must pay a financing fee for leveraged trading, and 2) MT4 does not have index CFDs.

I highly recommend the MT5 trading account, as the cost savings from the absence of swap rates makes a notable difference in profitability. OctaFX classifies the MT4 trading account for the Habitual Trader and MT5 for the Smart Trader.

OctaFX Demo Account

Traders may open MT4/MT5 demo accounts at OctaFX, and there is no time limit on active accounts. The MT4 demo account will expire after eight days with no trading activity and the MT5 demo account after 30 days. The flexibility of MT4/MT5 allows traders to select their deposits and leverage, creating more realistic demo results. They are ideal for algorithmic traders to test EAs and fix bugs.

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Trading Platforms

OctaFX offers traders the out-of-the-box MT4/MT5 trading platforms and upgrades the trading experience with the Autochartist Pro plugin. MT4 remains the market leader for algorithmic trading and is the most versatile trading platform with 25,000 custom indicators, plugins, and EAs. Both come with an integrated copy trading service.

MT4/MT5 trading platforms exist as a desktop client, supporting all features, a lightweight web-based trading portal for manual traders, and a mobile app.

A proprietary mobile trading platform is also available, allowing traders to manage their OctaFX portfolios. It has more than 10 million downloads from Android-based devices. The success of the proprietary OctaFX copy trading service resulted in the launch of a dedicated mobile app.

OctaFX Copy Trading Review

I like that OctaFX invested in developing a proprietary copy trading service, which it also launched as a mobile app. Traders may follow signal providers, which OctaFX refers to a Master Traders. One of the best features is the flexibility regarding commissions.

OctaFX allows revenue share, where copiers only pay a fee on profitable trades or fixed revenue per lot, where a trading charge applies irrelevant to the outcome. Copiers may use the filter to evaluate the Master Traders most suitable based on the commission structure.

A ranking system is also in place, evaluating the trading history of the Master Trader with OctaFX. In-depth details on the trading strategy and performance of each Master Trader are equally available. Copiers have the option to evaluate each trade individually, and I like the range of trading metrics OctaFX provides, allowing copiers to make better choices when selecting which Master Traders to follow.

Copiers must fund their copy trading account before following Master Traders. They may opt for a direct deposit or transfer from their trading account. OctaFX displays a recommended amount to allocate to each Master Trader. Copiers may copy trades in full or proportionally to their trading balance versus the Master Trader. I recommend the former, as it will result in superior trading results, as it adjusts positions based on portfolio size and leverage.

A risk management tool is also available, called the drawdown percentage (DDP). Copiers may adjust it to their liking. Should the Master Trader face losses, the DDP will close the copiers position. Copiers can also manually close open positions and retain complete control over their portfolios.

Overview of Trading Platforms

MT4

Yes

MT5

Yes

cTrader

No

Proprietary/Alternative Platform

Yes

Automated Trading

Yes

Social Trading / Copy Trading

Yes

MT4/MT5 Add-Ons

Yes

Guaranteed Stop Loss

No

Negative Balance Protection

Yes

Unique Feature One

Swap-free trading in MT5

Unique Feature Two

Proprietary copy trading service

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Unique Features

I find the swap-free trading structure the best unique feature at OctaFX. Another fact of note is trading incentives, with more than $6,000,000 in payouts to date. OctaFX also offers traders the Autochartist plugin for MT4/MT5.

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Research and Education

The Market Information section at OctaFX provides traders with twelve categories of well-presented content. It includes technical trading signals, Forex news, and market insights. The OctaFX blog complements the research category, and traders have a wealth of quality, market-oriented information. Together with services provided by Autochartist, OctaFX maintains a highly competitive research section.

Beginner traders get the most educational value from webinars, which OctaFX also publishes on its YouTube channel. I can also recommend the 19 well-thought-through articles, which introduce new traders to financial markets. The combination of written content, charts, and videos creates a valuable product. Platform tutorials are equally available, guiding beginners through the initial steps.

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Customer Support

OctaFX offers 24/7 customer support, primarily via live chat, with fast response times. Email support is also available, and the FAQ section answers many of the most common questions. I only found a phone number missing from the overall support offer.

OctaFX Customer Support

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Bonuses and Promotions

OctaFX offers a 50% bonus on each deposit, and a four-tier status program rewarding active traders. It also maintains a Trade & Win promotion, where each lot counts as a prize lot, redeemable for prizes. OctaFX also has a refer-a-friend program. Demo contests for real money exist as well. Terms and conditions apply, and I recommend traders read and understand them before participating.

OctaFX 50% Deposit Bonus

OctaFX Trade & Win Promotion

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Opening an Account

Traders can open an OctaFX account in less than 15 seconds. Traders must submit their name, email and select their password. They may also use their Google, Facebook, or Apple accounts to sign-up. Account verification is mandatory, and most traders will complete it after sending a copy of their ID and one proof of residency document.

Minimum Deposit

The minimum deposit at OctaFX is $100, higher than many brokers but within a reasonable range.

Payment Methods

OctaFX offers bank wires, credit/debit cards, and cryptocurrencies.

Accepted Countries

OctaFX caters to most international traders, including India, Pakistan, Malaysia, Nigeria, Singapore, and Indonesia.

OctaFX Account Opening

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General Information

Company Information

  • Broker's Name : OctaFX
  • Headquarters : Saint Vincent and the Grenadines
  • Regulation : FSA

Account Information

  • Type of Broker : ECN/STP
  • U.S. Clients Allowed :
  • Minimum Deposit : $50
  • Maximum Leverage : 1:500
  • Commissions / Spreads : Both
  • Account 1 : Micro
  • Account 2 : Pro
  • Account 3 : ECN
  • Demo Account :
  • Islamic Account :
  • Segregated Account :
  • Managed Accounts :
  • Deposit Options :
  • Withdrawal Options :

Instruments Traded

  • ETFs :
  • CFDs :
  • Commodities :
  • Metals :
  • Stocks :
  • Oil :
  • Gold :
  • Binary Options :
  • Indices :

Trading Platforms

  • Type of Platform : MetaTrader 4, MetaTrader 5
    • Platform Languages :
      • English
      • Chinese
      • Bahasa
      • Other
    • OS Compatibility :
      • Mobile
      • Web
      • iPhone
      • iPad
  • Trading Signals :
  • Charting Package :
  • Market Analysis :
  • Chart Trading :
  • Automated Trading :
  • Scalping :
  • Hedging :
  • Mobile Alerts :
  • E-mail Alerts :
  • Trailing Stops :
  • Guaranteed Stop Loss :
  • Guaranteed Limit Orders :
  • Guaranteed Execution :
  • One-click Execution :
  • OCO Orders :
  • Interest on Margin :
  • Web-based Trading :
  • Mobile Trading :

Customer Support

    • Website Languages :
      • English
      • Bahasa
      • Thai
      • Malay
      • Portuguese
      • Chinese
      • German
      • Arabic
      • Spanish
      • Other
  • Support Hours : 24/7
  • E-mail Support :
  • SMS Support :
  • Chat :

Pros and Cons

Advantages

  • Well-regulated globally, with the Bank of Ireland as the primary regulator

  • Low minimum deposit and in-depth educational tools

  • Wide asset choice across seven sectors

  • Superior mobile trading platform

  • High maximum leverage

Disadvantages

  • Unregulated

  • Low asset selection

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Deposits and Withdrawals

Traders conduct all financial transactions from the secure back office, and OctaFX does not charge deposit or withdrawal fees. Third-party costs may apply, and I recommend traders check with their preferred provider. I like that OctaFX offers several cryptocurrencies but am missing other third-party payment processors. OctaFX processes withdrawal requests between one and three hours.

OctaFX Deposits

OctaFX Withdrawals

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OctaFX vs Comparisons

Eightcap vs OctaFX

Exness vs. OctaFX

OctaFX vs XM

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FAQs

Is OctaFX trusted?

With more than a decade of experience and 6.6 million trading accounts from over 100 countries, traders should be able to have trust in OctaFX.

Is OctaFX legal?

OctaFX is a duly registered international business company (IBC) in Saint Vincent and the Grenadines and operates legally.

Is OctaFX legal in India?

OctaFX does not have a license in India, but it is not a requirement, making accepting Indian traders legal for OctaFX.

Can I withdraw money from OctaFX?

OctaFX offers bank wires, credit/debit cards, and several cryptocurrencies as withdrawal methods. It processes requests between one hour and three hours, making it one of the best in this category.

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Bottom Line

I like the trading environment at OctaFX in the MT5 trading account as it remains swap-free. The cost savings from the overall pricing environment alone make OctaFX a broker to consider. I also like the proprietary copy trading service. Beginner traders will benefit from well-thought-out research and educational services. The generous bonuses and promotions complement the excellent core trading services, explaining why OctaFX has attracted deposits from more than 6 million customers.

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User Reviews

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1 User Reviews
Ilya Romanov

Nice review. Nice broker. Many accounts and easy platforms. I never heard of demo contests but it sounds good to me.

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