OctaFX is a high-tech-based STP Forex broker that was launched in 2011. Industry-dominated trade platforms like MT4 (MetaTrader 4), MT5 (MetaTrader 5), and cTrader are offered many investment opportunities.
OctaFX has also achieved the “Best Forex Broker 2019” award.
OctaFX – Background Information and Regulation
Since its establishment, OctaFX has covered a long journey from an overseas company situated in SVG and functioned further in the United Kingdom. However, since 2017, its entity has been closed and shifted to Cyprus.
So, along with the European CySec license, the dealers run a comprehensive service from its entity, so monitor closely under which regulation it falls since it might offer distinct trading conditions.
What Kind of Dealer is OctaFX?
Concerning the regulation it imposes, OctaFX is an STP Forex dealer providing excellent standards of a safe trading atmosphere. It offers its users a comprehensive range of offerings since it allows for the same, if not more, investment opportunities to the trading community over the globe.
Awards and Honours
OctaFX is well-known and has operated for a while, even though it recently received its European license (CySec). OctaFX has participated in many competitions since its operation and won many international honors, and active traders registered at the organization.
This authenticates its rank and respected status in the industry, which we will see comprehensively in our OctaFX review.
Is OctaFX Secure or Fraud?
The prime matter and topic of this OctaFX review between others is whether it’s a secure trading platform, which is verified firstly because of its regulatory duties and license under which the dealer is being operated.
Established in 2011, OctaFX has come a long way with multiple operation licenses like SVG registration and running the UK branch. However, it was suspended in 2017 and shifted to Cyprus for operation.
Is OctaFX Legal?
So, the median gap for these operation years was that OctaFX was the brand of an organization called Octa Markets, which is regulated, registered, and governed by Saint Vincent and Grenadines Law. This location is an overseas paradise for its tax management and relative convenience for establishing a firm.
Since OctaFX formed its legitimate entity in Cyprus and received a license from CySec, it enforces regulations following European ESMA standards. Therefore, we can say that OctaFX and its Octa Markets Cyprus entity indicate a transparent compliance state with the essential operation standards.
Opening an account with either international or Cyprus OctaFX entities is secure.
How are you protected?
The set of regulatory conditions provides security to the users, such as harmful balance security applications, funds separation, etc., while the authority continuously monitors the dealer regarding its protection compliance.
Moreover, it also provides security to the user’s account, implemented by the Investor Protection and Compensation Scheme, if the user goes bankrupt.
Leverages
The OctaFX broker offers leverages that raise the initial capital you’re trading with and can be a very beneficial instrument for potential magnifying profits. But, with its brilliant abilities, Leverage also increases risks and benefits. Therefore, you must acquire knowledge about the practical usage of these instruments.
Risk Levels
The leverage levels directly and proportionally define the risk levels because the higher the Leverage, the greater the risk of losing money. Due to this reason, the use of LevLeverages has been restricted by world authorities and regulators to specify certain levels for retail investors.
Hence, the OctaFX Cyprus entity offered low-level Leverage, and its companies were developed under the rules of ESMA. It implies that European traders or those registered with the OctaFX European body will come under ESMA regulation that recently restricted Leverage. Even if you still want to use high Leverage, the OctaFX international entity enables you to do so.
- Maximum Leverage for European traders is 1:30 for key currency pairs and 1:10 for commodities.
- The maximum Leverage for international traders is 1:500.
Trading Accounts
Another significant area in our OctaFX review is a variety of account types by which you can access trading. The dealer offered two types of accounts that describe the trading requirement and the platform employed for trading itself.
Trade Account Types
As stated by the dealer, MetaTrader 5 supports every trading style and social trading and is offered to conservative traders, which is suitable for most traders. While cTrader will be more appropriate for progressive and experienced traders, it provides detailed trading requirements with a commission-based fee structure.
Moreover, it also allows the option to apply for the demo account and use its unlimited resources to polish techniques or acquire knowledge about platforms and OctaFX requirements.
The Micro accounts and MT4 platform also include ECN and PRO, which depend on the platforms. It is suggested for beginners and enables trading of the micro lot with floating spreads or fixed spreads starting from 0.4 and 2 pips.
Trading Tools
What can be traded with OctaFX? The market range offers the most demanded tools depending on the CFD trading model. It provides opportunities to invest in the price fluctuations on the Forex currency pairs, Stocks, Indices, and Precious Metals.
Fees and Commissions
Another noticeable feature of OctaFX is its pricing technique or the fee you are required to pay for using its services of OctaFX. Octa Markets offers two options based on the account type and platform you select.
While slightly distinct conditions might be offered by an international brand that you may review from the website.
Our Findings on CFD Fees
Every platform has a different pricing technique. MetaTrader 5 offers trading spreads starting from 0.2 pips for EUR/USD, one of the best offerings of industry standards.
cTrader gives you access to the raw spreads from EUR/USD 0 pip and requires a commission of 3 dollars per lot.
Check the following comparison table on the official site for a standard OctaFX spread and compare dealers to other CFD dealers with CFD commission, fees, or inactivity fees, if applicable.
Deposits and Withdrawals
Another critical point with a regulated dealer and our OctaFX Review is the ease of accessing your funds anytime. Therefore, along with its rigid money management rules, you might fund your account through deposits via a bank account without any complication.
Deposit Fees and Methods:
As a regulated dealer obliged to protective measures, just Bank Wire Transfer is offered by OctaFX Cyprus to its European users. Simultaneously, the international entity allows Skrill, NETELLER, MasterCard, and Bitcoin (BTC), which you can review through client service before any transaction.
Bank Wire Transfer – Another great feature is that it does not charge for deposits. Therefore, you will not pay any commission. However, define it with your bank or the payment supplier since rules differ from jurisdiction to jurisdiction.
Minimum Deposit Required to Open an FX Trading Account
According to the policy of OctaFX, the minimum deposit required is $50, enabling you to open either of the two types of accounts offered by the dealer.
Withdrawing Your Money from OctaFX
Withdrawing money is simple and easy, while OctaFX also covers fees, so you might access your amount and receive it quickly. Typically, withdrawals are processed by it within one or two business days. However, your bank can take extra days to process the transaction.
OctaFX Trading Platforms
Finally, what we admire the most in the OctaFX platform is its offerings. You can either opt for the industry-dominating software, i.e., MT4 and MT5, along with its updated version and all its advantages and copy trading features, or use the latest and robust abilities of the cTrader platform.
The selection of a platform is totally up to you and puzzling since every platform has different pricing and trading strategies. MetaTrader 5 is user-friendly software suitable for everyone, allowing the copy trading feature.
On the other hand, cTrader is much more advanced, allowing ECN Direct Market Access, which might be a better option for experienced traders. Moreover, if you’re opening an account with OctaFX’s international entity, there is a choice of using MT4 and operating by an account with the micro lot trading option.
Accessibility of Different Platforms
Web-Trading Platforms – MT5 and cTrader have multiple versions and can be accessed through the web without needing installation. MetaTrader 5 has many advantages and robust abilities, while cTrader’s Webtrader also possesses a good look and composition.
Desktop Platforms – Experienced traders prefer the desktop version since it offers many tools and customization abilities. Therefore, both platforms can be downloaded and are compatible with iOS and Windows.
Automated Trading – OctaFX also offers automated trading abilities and benefits novice and experienced traders. EAs are at your service for your auto-trades. You can create your EAs or follow a particular technique accessible by the community or the marketplace.
Design and Look – MT5 and cTrader have transparent designs; though cTrader is more challenging to comprehend since it is full of various tools, it can be easily navigated and customized.
Mobile App – Both platforms provide mobile applications that are convenient and easy to navigate. These offer a wide variety of tools. The mobile app of MetaTrader 5 provides multiple charting abilities, customization, and complete account management.
Trader Support
OctaFX provides client support services in different languages 24/7 via real-time chat, phone, and email. Therefore, AvaTrade delivers one of the best support services with reliable answers and a broad range of free lines worldwide.
Education and Analyses
OctaFX Cyprus firm offers no learning material, webinars, or analytical research, which is not valuable for novice traders.
Octa FX’s international firm offers Education and Analysis and demo platforms that enable you to test the platform and experiment with your strategies. Therefore, if you’re a beginner, you might be able to see the competition and take part in the course using other resources.
However, this can be ignored since OctaFX provides several other advantages.
Research & Development
Besides its superior offering, every user can enjoy brilliant research and trading instruments accessed through the platforms. With user-friendly widgets, like transparent charting, calculator, etc., it also provides a built-in News feed and other necessary trading elements for a better experience.
To Trade or Not to Trade with OctaFX
Generally, the OctaFX Review presents that OctaFX is a top-quality dealer with excellent offerings and provides flexibility regarding platforms, conditions, and tools.
Though we had certain doubts before due to its operation just through the overseas firm, now the trust level is correct since it is governed by European CySEC compliant with the MiFID directive. Hence, it means the operation complies with the necessary security level.
It also gives a high-tech approach to various tools and manual, social, or algorithmic trading platforms. It is a brilliant benefit that industry-leading MT5 and robust cTrader platforms are offered by OctaFX, which experienced traders consider significantly.
However, review each OctaFX firm’s proposals since the Cyprus and international brands provide slightly distinct trading conditions.
The international firm of OctaFX possesses more specific tools and conditions, education, research staff, and MetaTrader 4 availability.
FAQ:
Is OctaFX reliable?
OctaFX is a Forex dealer with an excellent standing in the financial markets because of its exceptional service and offerings that fulfill the distinct demands of a broad range of retail investors.
Is OctaFX regulated?
One of the strictest regulations in the industry, the British FCA (also called the Financial Conduct Authority), regulates OctaFX. It was registered in 2011 in Saint Vincent and Grenadines, and its license number is 19776 IBC, an international financial regulatory standard compliant.
What is the minimum deposit for OctaFX?
The minimum deposit for OctaFX is 5 dollars. To make a deposit, log in to your account. OctaFX allows you to start trading with at least 5 dollars, though the initial deposit can be higher. According to the risk-management technique, the more significant the funds, the fewer risks you expose yourself to in a specific trade.
