OctaFX has confirmed that it got licensed by the Cyprus Commodities and Exchange Commission (CySEC). This license will allow the broker to operate an EU-based subsidiary and work with EU residents. According to the regulator’s register, OctaFX will be operating in Europe under the domain www.octafx.eu. OctaFX is currently owned and operated by Octa Markets...
- What is OctaFX?
- Safe or a scam?
- Market Instruments
- Deposits and Withdrawals
- Trading Platforms
- Customer Support
What is OctaFX?
OctaFX is a technology based brokerage company that operates since 2011 and offers industry leading platforms such as MetaTrader5 and cTrader with numerous investment opportunities and great capabilities.
At the beginning of its establishment OctaFX walked a path from an offshore brand located in SVG and further on operated in the UK, however since 2017 closed its entity and moved to Cyprus.
So, together with the European CySEC license broker operates also a global offering from its entity, therefore check on carefully under which regulation you will fall as it may propose different trading conditions.
|Forex and CFDs offered||Phone support not available 24/7|
|Great trading tools||No Forex education|
|MT5 and cTrader platforms offered|
|Fast account opening and free Demo account|
|No commission deposits and withdrawal options|
What Type of Broker is OctaFX?
OctaFX is an STP Forex Broker also with high standards of secure trading environment, as of the regulation it imposes. The offering to the clients is wide and even comprehensive since proposes the same if not more investment opportunities to the world trading community.
10 Points Summary
|Headquarters||Broker located in SVG and Cyprus|
|Regulation and License||CySEC, FSA SVG|
|Instruments||CFDs on Commodities, Forex, Metals, Indices and Energies|
|Trading Fees||Low Forex fees. Spread only or ECN Account with commission|
|Base currencies||USD, EUR|
|Education||Available only through international entity|
OctaFX already quite known and operates for a while despite a fact that received its European license just recently. So for the years it operates, OctaFX participates to various exhibitions and received numerous international awards along with the huge number of active traders registered at the company. That all in all confirm its status and reputable position in the industry, which we will also be able to see in detail further in our OctaFX Review.
Is OctaFX safe or a scam?
The main issue and topic of our OctaFX Review among others if its safe trading environment, which is checked as first due to its regulatory obligation and license under which the broker operated. OctaFX launched since 2011 walked a path with various operation licenses including SVG registration, operating the UK branch, yet suspended this entity back in 2017 and target Cyprus as its next destination of operation.
Pros Cons CySEC regulated international broker Previously operated only offshore entity Global coverage and years of operation Negative Balance Protection applied
|CySEC regulated international broker||Previously operated only offshore entity|
|Global coverage and years of operation|
|Negative Balance Protection applied|
Is OctaFX legit?
So, the main gap for these years of operation was the fact that OctaFX was a brand of the Octa Markets Incorporated company that is registered, regulated and governed by the Law of Saint-Vincent and the Grenadines. Which is offshore heaven for its tax-management as well as relative ease to establish a company. Now, since OctaFX established its legal entity in Cyprus and respectively got a license from the local CySEC, which also impose regulation according to European ESMA standards.
Therefore, now we can state that OctaFX and its Octa Markets Cyprus Ltd entity shows us a clear state of the compliance to the necessary operation standards.
Since the regulation demands strict follow of Forex business operations management, it is considered safe to open an account either with Cyprus or international OctaFX entity.
How are you protected?
The set of regulatory requirements enables protection to the clients and including – funds segregation, application of negative balance protection while the broker is constantly overseen by the authority in terms of its safety compliance. In addition, there is a security of the traders’ accounts applied by the Investor Protection and Compensation Schemes in case the broker goes bankrupt.
As for the leverage as a known instrument that increases the initial capital you trading with and can be a very useful tool to magnify potential gains is offered by the OctaFX broker as well. However, along with its great capabilities, leverage increases risks together with its benefits, so you should always learn how to use tools smartly.
The risk level is defined also by the leverage level you use since higher leverage dramatically increases your high risk to lose money as well.
For this reason, world authorities and regulators restrict leverage to use to specify, safer levels for retail traders. Therefore, OctaFX Cyprus entity together with its operations established under ESMA rules offers lower leverage levels as defined by the regulator. This means that European traders or those clients that are registered with OctaFX European entity will fall under ESMA regulation that recently limited Leverage.
Yet, if you still prefer to use high leverage international entity of OctaFX still allows so.
- European traders leverage is maximum 1:30 for major currency pairs, 1:10 for Commodities
- International traders can still use leverage until 1:500
Another important note within OctaFX Review is a range of account types through which you will access trading. Eventually, the broker offers two account types that also define trading conditions and the platform that is used for trading itself.
Pros Cons Fast digital account opening None Single Account for MetaTrader5 or cTrader platforms Demo Account offered Option between trading fee models
|Fast digital account opening||None|
|Single Account for MetaTrader5 or cTrader platforms|
|Demo Account offered|
|Option between trading fee models|
Types of Accounts
As the broker defines by itself the MT5 account offered for a conservative trader as it is suitable for the majority of investors also supporting all trading styles and social trading as well. While cTrader will be more suitable for progressive traders or professionals as offers comprehensive trading conditions with commission based fee structure.
Besides, there is an option to submit for a Demo practice account and use its unlimited sources to polish strategy or get to know platforms and OctaFX conditions better.
Yet, the international proposal includes also ECN and PRO account based on the platforms, besides Micro Account on MetaTrader4 platform is offered too. It is recommended for novice traders and allows micro lot trading with floating spreads starting at 0.4 pips or fixed spread at 2 pips.
So what you can trade with OctaFX? The market range offers you the most demanded instrument while base on the CFD trading model and offering you an opportunity to speculate on the price movement on Forex currency pairs, Metals, Energies and Indices.
Another good point at OctaFX is its pricing strategy or a fee which you will need to pay for the usage of the OctaFX trading service. There are two options according to the account type you choose and the platform you use, offered by the Octa Markets.
While an international brand may offer slightly different conditions, which you may check from the site better.
Pros Cons Low Forex fees Inactivity fee Options between spread only or commission fee basis 0$ Withdrawal fee Micro Lot trading available
|Low Forex fees||Inactivity fee|
|Options between spread only or commission fee basis|
|0$ Withdrawal fee|
|Micro Lot trading available|
Our find on CFD fees
So fee strategy is different according to the platforms while MT5 offers you spread only basis with a minimum spread of EUR USD 0.2 pips, which is a very good offering compared to industry standards.
And cTrader brings you access to raw spread from 0 pip for EUR USD pair plus the commission charge of 3$ pet lot.
Also, see below the comparison table with a typical OctaFX Spread and compare brokers to other CFD Brokers with CFD fees, commission or inactivity fee if applicable.
Trading Fees of OctaFX vs Similar Brokers
Asset/ Pair OctaFX Fees AvaTrade Fees eToro Fees EUR USD 0.5 pips 1.3 pips 3 pips Crude Oil WTI 2 pips 3 pips 5 pips Gold 20 40 45 Inactivity Fee Yes Yes Yes Fee ranking Low Average High
Trading Fees of OctaFX vs Similar Brokers
|Asset/ Pair||OctaFX Fees||AvaTrade Fees||eToro Fees|
|EUR USD||0.5 pips||1.3 pips||3 pips|
|Crude Oil WTI||2 pips||3 pips||5 pips|
Here is a snapshot of OctaFX fees
Also, always consider overnight charge or swap in case you’re holding the position longer than a day. It is always defined by the instrument you trade and may be visible either through a website or platform while trading. See the example on the snap above.
Deposits and Withdrawals
Being able to access your funds at any time with ease and convenience is another point with a regulated broker and our OctaFX Review. So together with its strict money management rules, you may fund your account by deposit through a bank account with no complication.
Pros Cons No deposit fees Limited deposit and withdrawal option for European clients Withdrawals free of charge No Credit card supported for Cyprus entity Wide range of payment methods supported by an international entity
|No deposit fees||Limited deposit and withdrawal option for European clients|
|Withdrawals free of charge||No Credit card supported for Cyprus entity|
|Wide range of payment methods supported by an international entity|
Deposit fees and Options
As a licensed broker that obliges to safety measures, OctaFX Cyprus offers only Bank Wire Transfer for its European clients. While international entity includes also Credit Cards, e-wallets and other methods which you may check with customer service before any transfer is done.
- Bank Wire Transfer
What is also great, there is no charges for deposits so you won’t pay any commission, however always define it with your payment provider or Bank itself as an international rule vary from jurisdiction to another.
Minimum deposit requirement
By the OctaFX policy, the minimum deposit set to a EUR100 allowing you to open any account type from the two offered by the broker.
Money withdrawal is the same smooth process, while OctaFX also covers fees so you may access your moany at any time and receive it relatively quickly. Usually, OctaFX confirms withdrawals within 1-2 business days, but allow extra days for you Bank to process the transaction.
Here are the steps to withdraw money from OctaFX
By a simple follow of instructions, you may access your account and submit a withdrawal. And of course, you may always count on a great help center which is remaining at your assistance.
How do you withdraw money from account?
1. Login to your account. Select on Withdraw Funds’ at the menu tab
2. Fill in the form and enter the desired withdraw amount
3. Choose the withdrawal method
4. Complete the necessary form requirements
Lastly and what we like the most is the OctaFX platform offering, while you may select either industry leading software also its newer version MetaTrader5 with all benefits included and not restricted, also with copy trading option. Or to use advanced and very powerful capabilities of cTrader platform.
The choice between the platform is always your and they are indeed very different, also bringing different price model and more suitable trading strategy. MetaTrader5 is good for everyone and more trader friendly software, also copy trading available through it.
While cTrader platform is more sophisticated technology also the one that offering ECN Direct Market Access which might be a better option for professionals. Besides, if you open an account with the international brand of OctaFX there is an option to use MetaTrader4 and operate through an account with micro lot trading option.
Scores & Availability of different platforms
Pros Cons Option between MetaTrader5 and cTrader No education or video support for European entity, but available through international site User friendly design Price alerts and push notifications Fee Report Supporting various languages Web, Mobile and Desktop versions MT4 offered only by international entity
|Option between MetaTrader5 and cTrader||No education or video support for European entity, but available through international site|
|User friendly design|
|Price alerts and push notifications|
|Supporting various languages|
|Web, Mobile and Desktop versions|
|MT4 offered only by international entity|
Web Trading Platform
Both platforms supporting various versions that you may access either just by the load through your browser without any installation which is very useful. MetaTrader will bring you all the benefits and powerful capabilities it offers, while cTrader webtrader is also featuring great design and look.
However, advanced traders would prefer the desktop version as it feature much more customization capabilities and tools to use. So here both platforms also available for download and suitable for any operating system either iOS or Windows.
Look and Feel
Both platforms are with clear look and feel, indeed cTrader is more complex to understand as it is packed with advanced tools yet the design is easy to navigate and customize.
OctaFX Automated Trading capabilities are also useful for either beginning or professional trading through the use of popular EAs. You may either create your own once or follow a specified strategy available through the community or in the market place.
Mobile Trading Platform
The mobile app is also offered for both platforms, while apps are simple to use and offer a wide range of tools at the same time. MT5 mobile offers various charting capabilities also customization which is fantastic for mobile trading along with full management of your account.
Also, OctaFX customer support provides its clients with 24-hour live support available through live chat, email and phone support in various languages. Eventually, AvaTrade offers some of the greatest quality support with fast and reliable answers and a huge range of free of charge lines all around the world.
Pros Cons Quality customer support with live chat Support not available 24/7 Fast response
|Quality customer support with live chat||Support not available 24/7|
Unfortunately, there is no education center or any learning materials about the trading process offered by Cyprus entity, either OctaFX does not provide webinars or analytical research which is not so good for complete beginners.
However, OctaFX provides Education and Analysis through its international brand along with unlimited demo platforms allowing to practice strategies and test the offered systems. So if you’re beginning trader maybe you can see competition or participate to the course using other sources.
Yet, we can forgive this missing point to OctaFX as there are truly many benefits on the trading conditions they provide.
Pros Cons Free Unlimited Demo account available No education videos, webinars or learning materials provided by the Cyprus entity. All education and analysis tools included in the International offering Wide range of trading tools Trading ideas and social trading options Economic Indicators and News Feed
|Free Unlimited Demo account available||No education videos, webinars or learning materials provided by the Cyprus entity. All education and analysis tools included in the International offering|
|Wide range of trading tools|
|Trading ideas and social trading options|
|Economic Indicators and News Feed|
In addition to its some of the good quality trading offerings among industry, all clients can enjoy absolutely stunning research tools and trading tools that are accessible directly through the platforms. Along with other user-friendly tools including calculator, fantastic and clear charting with built-in News Feed and other essential trading data for your better trading.
Overall, OctaFX Review shows us a broker with a quality trading strategy which offers also flexibility in terms of conditions, platforms and instruments it proposes.
While before we had some concerns due to its operation only through offshore entity now the trust is on a certain good level as OctaFX is regulated by the European CySEC aligned with MiFID directive. Therefore means its operation aligned to the necessary protection level through its either entity.
Read more about OctaFX license through our News by the link.
What we also admit is high-tech access to a range of the instrument and multiple platforms either for manual, algorithmic or social trading. It is definitely a great advantage that OctaFX offers both industry popular MetaTrader platform and powerful cTrader which is highly regarded by the professional traders.
Nevertheless, make sure to check the proposal of the particular OctaFX entity as an international brand and a Cyprus one offers slightly different conditions. While obviously, OctaFX international proposal features more comprehensive tools and conditions along with education and research materials also MT4 availability.
Yet, it is always great to hear your personal opinion about OctaFX. So you may share your experience or thoughts or discuss them below or ask us for additional information.
- March 03, 2019 at 04:29 PM Read more