OCTAFX Review 2022

Trust

This section will cover how the different entities of OctaFX are registered/regulated and how this impacts you as a trader. We rate regulators on a scale of 1 to 3, with 1 reflecting the highest level of trust.

• Octa Markets Inc. is registered with the St. Vincent & the Grenadines Financial Services Authority (FSA), registration number: 19776 IBC 2011. We rate registration with the FSA as equivalent to being unregulated.
• Octa Markets Cyprus Ltd. is authorized and regulated by the Cyprus Securities and Exchange Commission (CySEC) with license number 372/18. We rate CySEC as a Tier-1 regulator.

Why is it important to know where your broker subsidiary (entity) is regulated?

Different regulators provide different levels of protection. For example, clients with a broker regulated by CySEC can benefit from a compensation fund in the event of broker insolvency. Offshore brokers usually offer higher leverage levels, but few account protections are typically guaranteed.

The table below breaks down the protections and benefits by entity, regulator, and region.

Regulatory requirements are subject to change. We gathered the data listed above in July 2022.

Stability and Transparency

In our tests for the Trust category, we also cover factors relating to stability and transparency. Here, we focus on how long the broker has been in business, the size of the company, and how transparent they are in terms of readily available information.

Launched in 2011, OctaFX has a substantial operating history of over a decade. According to the company’s LinkedIn page, the Saint Vincent and Grenadines-based broker has over 51-200 employees, reflecting a medium-sized brokerage firm.

The EU entity of OctaFX clearly states its regulatory status in the website’s footer. The offshore entity also references its registration number with the St. Vincent & the Grenadines authorities at the bottom of each page.

Trading costs such as spreads are clearly explained on the Spreads and Conditions page. Traders can find the Client Agreement in the footer of the website. The About Us page does a good job of sharing the company’s mission and history through a series of milestones over the years. Overall, we rate OctaFX as having a fair level of transparency.

Fees

Trading Fees

We tested the spreads at OctaFX across different asset classes using a standard account and the MetaTrader 4 platform. The test was done at 8 AM GMT and 4 PM GMT on June 30th, 2022. We made our tests at two different times to allow greater perspective. 8 AM GMT is the London open when there is high liquidity in the forex market and tighter spreads in currency pairs. 3 PM GMT is during the New York trading session.

Swap Fees

OctaFX does not currently charge swap fees (the charge for holding leveraged positions overnight).

Non-Trading Fees

OctaFX does not charge an inactivity or account maintenance fee.

Are Fees at OctaFX Competitive?

We experienced competitive spreads in forex and some commodities such as gold. Spreads were closer to average in CFDs on indices. OctaFX helps keep costs low with no swap fees and no inactivity fees. Overall we rate the fees at OctaFX as competitive.

Platforms and Tools

MetaTrader 4 Desktop

OctaFX offers MetaTrader 4 and MetaTrader 5 for desktop, which includes advanced functions such as copy trading and automated trading.

MetaTrader 4 is available in 39 languages, from Arabic to Vietnamese. The platform provides popular features such as:

• Alerts. This feature allows traders to be updated when an instrument reaches a specific price level. Alerts can be delivered via audio, email, or push notification to a mobile device.
• Watchlists. Traders can set up a list of their favorite instruments and follow live quotes in a market watch panel.
• One-click trading. This feature allows traders to execute orders with a single click and no secondary confirmation. Placing a trade with a single click saves time and is especially useful for short-term traders.
• Trading from the chart. MT4 also allows users the convenience of trading directly from the chart.

MetaTrader also delivers when it comes to the range of available order types. The platform offers the following order types:

• Market Order. This is an order to buy or sell an instrument at the current best available price.
• Limit Order. This is an order to buy or sell an instrument at a specified price or better.
• Stop Loss Order. This is an order to buy or sell an instrument that is triggered when the market price reaches a specified level.
• Trailing Stop Order. This is a stop-loss order that can be set at a defined percentage or dollar amount away from an instrument’s current market price. It is used to secure profits when you are in a winning trade while not having to exit the position.

Charting features are robust. MetaTrader 4 offers:

• 30 technical indicators. These include classic trend indicators, volume indicators, and oscillators.
• 23 analytical objects. These include lines, channels, Gann, and Fibonacci tools.
• 9 time frames Each instrument can be displayed in nine time frames, from one minute to one month.
• 3 chart types. Traders can choose between Bar Charts, Japanese Candlestick Charts, and Line Charts.

MetaTrader is also popular due to its copy trading and automated trading features.

• Trading Signals. Signals in MetaTrader 4 allow users to copy the activity of other traders in real-time automatically.
• Automated trading. MetaTrader 4 allows users to develop, test, and apply Expert Advisors (EAs). EAs are programs that monitor and trade markets using algorithms. They find opportunities according to set parameters and then either create a notification or automatically open a trade.

The MetaTrader 4 desktop platform is one of the world’s most feature-rich and popular trading platforms. It does not have the most beautiful interface and requires some time and effort to learn, but that is typical of advanced platforms.

MetaTrader 4 Web

The MetaTrader Web Platform (Web Trader) is a slightly stripped-down version of the desktop platform. It allows you to trade without additional software; only an internet connection is required. The Web Platform enables users to trade directly from any browser and operating system.

Popular features include:

• One-click trading.
• Trading from the chart.
• Watchlists with real-time quotes.
• Trade History.
• Advanced charting with 30 indicators for technical analysis.

Copy-trading and automated trading are also only available on the MT4 desktop platform.

MetaTrader 4 Mobile App and OctaFX Trader App

For mobile trading, OctaFX offers the MetaTrader 4/5 mobile apps and the OctaFX Trading app via Android and iOS. The OctaFX Trading app has a modern, user-friendly interface and offers 1-click trading. The app allows users to manage their OctaFX personal profile, make fast deposits, and access real and demo accounts.

The MetaTrader 4 app offers popular features such as alerts, 1-click trading, and trading from the chart. A broad range of order types, including pending and stop-orders, are available via the MT4 app. However, trailing stop-loss orders are only available from the desktop. To change the language of the MT4 app, you must change the language for your entire phone. As with desktop and web, the interface is not the most intuitive, but the MT4 app offers an above-average range of features.

Order Execution

OctaFX is an ECN (electronic communications network) broker. ECN brokers give clients direct access to other participants and use prices from different liquidity providers.

Tradable Instruments

CFDs (Contract for Differences) are financial derivative products that allow traders to speculate in various markets without owning the underlying assets. Tradable instruments at OctaFX include the following assets:

• 38 CFDs on currency pairs. A currency pair combines two different currencies, with the value of one currency quoted against the other. For example, EUR/USD, which reflects the value of the euro measured in dollars.
• 10 index CFDs. An index is a basket of trading instruments used to gauge a market sector, stocks within an exchange, or a country’s economy.
• 5 CFDs on commodities. Commodities are raw products, such as gold, oil, and metals.
• 30 CFDs on cryptocurrencies. Cryptocurrencies, such as Bitcoin, are digital currencies secured by cryptography.

In the tables below, you can see a selection highlighting the variety of instruments available at OctaFX:

Customer Support

We tested customer support with various questions, ranging from swaps to how orders are executed. Responses were swift, with emails typically answered within one business day and live chat responding in less than one minute. The quality of responses was generally good, with agents delivering satisfactory answers.

Deposits & Withdrawals

In the tables below, we break down the fees and processing times for each deposit and withdrawal method.

Deposits

Withdrawals

Note: available deposit and withdrawal methods vary based on where you reside. For example, Visa and FasaPay are available for deposit/withdrawals in Indonesia but not India.

Account Types and Terms

Account Application

To open an individual account at the Octa Markets Inc, prospective clients must answer the following questions.

• Country.
• City.
• Street Address.
• Phone Number.
• Birthday.
• Whether you have traded forex before.
• Platform (OctaFX MT4 or MT5).
• Account type (real or demo).
• Currency (USD or EUR).
• Leverage (1:1 to 1:500).
• Fixed rate. (On or off. Fixed rate is a feature that allows you to transfer your local currency into your trading USD-account and from it under a fixed rate without conversion expenses.)

Demo Accounts

OctaFX offers demo accounts for MetaTrader 4 and MetaTrader 5. Demo accounts are especially important for beginners as they allow them to practice their strategies and get comfortable with the trading platform without risking real money.

The demo account features live quotes and simulates live market conditions in assets such as forex and CFDs on commodities, indices, and stocks. Once users are up to speed on a demo account, they can easily switch over to a live account.

Islamic Accounts

OctaFX offers a swap-free Islamic account that adheres to the principles of Sharia law.

Leverage

One of the reasons that traders are attracted to the forex and CFD markets is the high degree of available leverage. Leverage is the use of borrowed funds to increase the size of your trading positions beyond what would be possible using only the cash in your account.

Octa Markets Inc. offers clients leverage of up to 1:500. This means that with an account of $1,000, you can control up to $500,000 worth of positions in the market. Leverage is often described as a ‘double-edged sword’ as it can hurt you as much as it helps you. Traders must remember that it can amplify both their profits and their losses.

Research

Daily and weekly forecasts in the Market Insights section preview the key economic data ahead and highlight the major market movers. The reports cover significant support and resistance levels and technical signals from indicators such as MACD and Parabolic SAR. The research section also includes specific trading ideas, target prices, and key price levels to watch.

An account monitoring tool allows users to select a live account and view its performance, charts, profits, orders, and history, with the idea that you can learn from successful traders. Clients can also add their own accounts to monitoring so that others can follow their trading.

The OctaFX website features a robust economic calendar, including the time, date, country, actual figure, forecast figure, previous figure, and anticipated market impact of a given economic release.

The AutoChartist plugin for MetaTrader is available to clients with $1,000 or more in their accounts. The service provides automated trading signals and a volatility analysis tool for optimizing the placement of stop-loss orders. AutoChartist can also identify emerging and completed chart patterns.

Education

The education section on the OctaFX website is well thought out, clearly presented, and made for beginners, intermediate and experienced traders. Webinars play an important role and take place daily. Material includes live trading sessions, workshops, and trading strategy-themed presentations.

In article format, OctaFX provides dozens of detailed guides on subjects ranging from how to use moving averages to setting up the Autochartist Metatrader plugin. An 11-lesson course on forex basics is available in video format and makes a good primer for new traders. OctaFX also provides platform tutorials videos, which cover getting started with MetaTrader, using your personal account area, and how to copy trade.

The Bottom Line

OctaFX has over a decade of experience and has built a substantial global presence. They performed well in multiple categories, including fees, deposit/withdrawals, research, and education.

Traders can benefit from low trading costs, with tight spreads in fx, no inactivity fees, no swap fees, and no deposit/withdrawal fees. OctaFX provides tailored account types for beginners and experienced traders and has above-average original research and educational offerings.

The offshore entity of OctaFX is registered in St. Vincent and the Grenadines but is unregulated, and the EU entity is regulated by the Cyprus Securities and Exchange Commission (CySEC). At both entities client funds are segregated, and OctaFX provides negative balance protection. Overall, we rate OctaFX as an innovative broker with a client-centric focus.

FAQ