Minimum Deposit: $100
Maximum Leverage: 1:500
My Score: 5.4
Hello guys! I am going to introduce you to OctaFX today. OctaFX is a brand of the Octa Markets Incorporated Company that is founded in 2011.
According to the information I received from the website of the broker, Octa Markets Incorporated (OctaFX) is based in Suite 305, Griffith Corporate Centre, Beachmont, Kingstown, St. Vincent and the Grenadines.
The broker’s website, octafx.com, has approximately 300,000 visitors per month. The visitors are from Pakistan, Malaysia, and India mainly.
In this OctaFX review, you can find the answers to the following questions: Is OctaFX scam or not? What are the account types offered by the broker? How good are the trading conditions such as spreads, minimum deposit and leverage? Is OctaFX regulated?
Let’s start with the regulation section, which is the most critical issue in the Forex industry.
Regulation of OctaFX
I have said the regulation is the most critical issue because unfortunately, forex fraud and scams are common in the industry.
The broker was authorized and regulated by the UK’s Financial Conduct Authority (FCA) until recently. The FCA is one of the most reputable regulators worldwide.
That is, FCA requires some strict rules that agents must adhere to in order to obtain the license. For instance, the brokers must hold at least £730,000 tangible assets to proof their financial stability.
In addition, they have to keep client funds must be held in segregated accounts separate from the company’s operational funds.
Except the numerous strict requirements for licensed entities, the financial regulator in the UK also provides a compensation scheme.
The Financial Services Compensation Scheme (FSCS) provides a maximum compensation cover of £50,000 per person in the event of insolvency.
However, OctaFX lost its FCA license in 2017. We can say that the broker is an unregulated forex broker.
Account Types and Spreads
There are three account types offered by OctaFX. These are Micro, Pro, and ECN account types.
The Micro account is suitable for novice trade and small investments. There is no commission, there are two spread options such as floating starting from 0.4 pips and fixed starting from 2 pips. The minimum deposit is 100 USD for this account type.
The Pro account is recommended for experienced traders who want to trade with lowest spreads and less trading costs. The spreads are floating and starting from 0.2 pips. There is no commission and the minimum deposit is 500 USD.
The last account type is ECN and it is recommended for progressive traders who want more transparency in pricing. The spreads are floating, starting at 0 pips but there is the commission. The minimum deposit for this account type is 100 USD.
The maximum leverage for Micro account is 1:500, for Pro account 1:200, and for ECN account is 1:500.
There are also swap-free (Islamic account) and demo account.
There are three trading platforms include the most popular trading platform MetaTrader 4 and its new version MetaTrader 5.
In addition to them, there is also cTrader which one of the most advanced forex chart-rich and customizable platforms.
MetaTrader 4 is still the most popular because it has excellent features. It includes charting tools, market indicators, scripts and EAs, advanced risk management, real-time market execution and more.
MetaTrader 5, or MT5, is a next-gen multi-asset trading platform that will replace MT4 in the very near future. Its back-testing functions are not only faster than those of MT4, but it also allows simultaneous multi-pair testing.
MetaTrader 5 (MT5), offering more than MT4 does, also includes features and trading functionalities that are better than many other online trading platforms available today.
cTrader is a comprehensive and robust trading platform, designed especially for Forex and CFD trading.
All trading platforms are available as a web application that is compatible with Windows, Linux, and macOS. All of them can also be accessed from a smartphone or tablet, regardless of whether it runs iOS or Android.
As a client of OctaFX you can trade on 28 currency pairs + 4 metals + 2 energies + 10 indices + 3 cryptocurrencies.
With OctaFX offering CFDs along with other instruments, you can profit from the 10 most popular indices, including Dow Jones, NASDAQ, Nikkei and Eurostoxx 50.
Cryptocurrencies are also available on the MetaTrader 4 and MetaTrader 5 platforms. OctaFX supports trading in Bitcoin, Ethereum and Litecoin.
There are also commodities such as metals including gold, silver, platinum and copper, as well as crude oil, natural gas and other resources.
You can fund your account via bank wire transfer, credit/debit cards, bitcoin, and Neteller. I think the deposit and withdrawal options are quite limited.
The broker claims that it charges no commission and use best exchange rates on both deposits and withdrawals.
There should be more methods, this is another big disadvantage for this broker.
Octa FX is a Forex and CFD broker who is no longer licensed by FCA. It offers various trading platforms include MT4&5 and trading instruments.
The trading conditions are competitive but there is no choice of trading platforms. You must use only one of them.
If you didn’t want to trade with this broker you can check my top forex brokers list and find a better one. Of course, you will find better ones.