OCTAFX Review 2023

Trust

This section will cover how the different entities of OctaFX are 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. (OctaFX) is registered in Saint Lucia under business reg. number 2023-00092. OctaFX activity is supervised by the authorities of Saint Lucia.
• 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, OctaFX clients in the European Union benefit from the oversight of the Cyprus Securities and Exchange Commission (CySEC). CySEC requires that clients have negative balance protection, which means they cannot lose more than their deposit.

In addition, when trading with a broker authorized by CySEC, client funds are protected by the Investor Compensation Fund (ICF). ICF protects client accounts for up to €20,000 if a firm becomes insolvent. A trader working with a broker entity regulated offshore would not necessarily have these benefits.

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

Regulatory requirements are subject to change. We gathered the data listed above in June 2023.

Stability and Transparency

In our tests for the Trust category, we also cover factors relating to stability and financial strength. Here, we focus on how long the broker has been in business, what is the company size, and how transparent the broker overall.

Launched in 2011, OctaFX has a substantial operating history. According to the company’s LinkedIn page, 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 corporate registration number with the Saint Lucia authorities at the bottom of each page. However, there is room for improvement in terms of being clear about the unregulated status of the offshore entity.

Trading costs such as spreads are clearly explained on the Spreads and Conditions page. To read the fine print, traders can find the Customer 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, I rate OctaFX as having a mixed level of transparency.

Fees

Trading Fees

I tested the spreads at OctaFX across different assets using the MetaTrader 5 platform at 8:00 a.m. GMT and 4:00 p.m. GMT on 19 June 2023.

Measuring spreads at different times of the day allows for greater perspective: 8:00 a.m. GMT is the London open when there is high liquidity in the forex market. 4:00 p.m. 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?

I rated fees at OctaFX as competitive for the following reasons:

• I experienced highly competitive spreads in forex, gold, and shares. Indices were closer to the industry average.
• Unlike most CFD brokers, OctaFX does not charge swap fees.
• OctaFX does not charge commissions on CFDs on shares (or any other instrument).
• OctaFX does not charge any inactivity or account maintenance fees.

Platforms and Tools

MetaTrader 5 Desktop

In the hands-on testing process, I used MetaTrader 5 for desktops, which includes advanced functions such as copy trading and automated trading.

MetaTrader 5 is available in 52 languages, from Arabic to Vietnamese. The platform provides popular features such as

• Alerts. This feature updates traders when an instrument reaches a specific price level.
• Watchlists. Traders can create 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. This feature enables traders to operate faster and is especially useful for short-term traders.
• Trading from the Chart. MT5 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. Traders use market orders to buy or sell an instrument at the best current price.
• Limit Order. Traders use limit orders to buy or sell an instrument at a specified price or better.
• Stop Loss Order. Traders use stop-loss orders to buy or sell an instrument when its price reaches a specified level.
• Stop Limit Order. Traders can manage risk more precisely with stop limit orders, which combine the features of a stop-loss with those of a limit order.
• Trailing Stop Order. Traders use trailing stop-loss orders as a stop-loss order at a defined percentage or dollar amount away from an instrument’s current market price. This order type allows traders to secure profits when they are in a winning trade while not having to exit the position.

Charting features are robust. MetaTrader 5 offers:

• 38 Technical Indicators. These include classic trend indicators, volume indicators, and oscillators.
• 44 Analytical Objects. These include lines, channels, Gann, and Fibonacci tools.
• 21 Time Frames. Traders can choose from nine time frames, from one minute to one month.
• 3 Chart Types. Traders can use 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 5 allow users to copy other traders’ activity in real time.
• Automated Trading. MetaTrader 5 allows users to develop, test, and apply Expert Advisors (EAs). EAs are programs that monitor and trade markets using algorithms.

The MetaTrader 5 desktop platform is one of the most feature-rich and popular trading platforms. However, it may present a steep learning curve for beginners.

MetaTrader 5 Web

The MetaTrader 5 Web Platform (Web Trader) is a slightly stripped-down version of the desktop platform. It allows you to trade without any additional software, only an internet connection is required. The Web Platform allows 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 and automated trading are only available on the MT5 desktop platform.

MetaTrader 5 Mobile App

OctaFX offers the MetaTrader 5 mobile app for mobile trading, which is available for Android and iOS. The app offers popular features such as alerts, 1-click trading, and trading from the chart.

The MetaTrader 5 mobile app also provides many order types, including pending and stop orders. However, trailing stop-loss orders are only available from the desktop. To change the language of the MT5 app, you must change the language for your entire phone. As with the desktop and web platforms, the interface is not highly intuitive, but the MT5 app offers an above-average range of features.

MetaTrader 4 vs. MetaTrader 5

OctaFX offers both MetaTrader 4 and MetaTrader 5. MT5 provides a greater number of technical indicators, timeframes, and graphical objects. It also has additional features such as an economic calendar. The table below highlights the main differences.

*The multi-threaded strategy tester in MT5 allows traders to backtest a trading strategy on multiple financial instruments simultaneously.

OctaTrader Platform

The web-based OctaTrader platform is well-designed and intuitive. Popular features such as 1-click trading, alerts, and watchlists are available. Traders can access all basic order types (market, limit, stop loss) via the platform.

Robust charting is provided by TradingView, featuring 11 time frames, 11 chart types, and over 100 technical indicators. Various drawing tools, from trend lines to Fibonacci retracements, are also available.

OctaTrader can be used in the following languages: English, Hindi, Urdu, Spanish, Arabic, Malay, Indonesian, Malay, Chinese, Portuguese, Thai, Deutsch, Bengali, Vietnamese, and Turkish.

Copy Trading

OctaFX copy trading enables clients to automatically copy experienced traders, and piggyback on their expertise in the markets. Traders can browse and select the ‘Master Traders’ they want to follow by looking at statistics such as:

• Percentage gains (this can be viewed across different time periods, from two weeks to six months).
• The number of copiers.
• Maximum Unrealised Loss (the largest unrealized loss the Master Trader held within all their open orders at one point in time).
• Maximum Drawdown Duration⁠ (the largest timespan the Master Trader’s ‘floating profit’ was negative).

By pressing ‘set up copying’, the orders of the Master Trader will be copied automatically. Traders have complete control over the process and can stop copying anytime. OctaFX clients with an MT4 account can also elect to become Master Traders. They can then trade as usual and earn additional income whenever others choose to copy them.

Tradable Instruments

CFDs (Contracts for Differences) are financial derivative products that allow traders to speculate in various markets without owning the underlying assets. I rated the range of tradable instruments at OctaFX as slightly better than average. Here are the major categories of tradable assets available at OctaFX:

• 35 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.
• 5 Commodities. Commodities are raw products, such as gold and oil.
• 150 Global Stock CFDs. OctaFX offers trading in stock CFDs from exchanges ranging from the NASDAQ to the Australian stock exchange. A stock is a security that represents partial ownership of a corporation.
• 10 Indices. Available instruments range from French to Japanese stock indices. An index is a basket of trading instruments that are used to gauge a market sector, stocks within an exchange, or the economy of a country.
• 30 Cryptocurrency CFDs. Cryptocurrencies, such as Bitcoin, are digital currencies that are secured by cryptography.

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

OctaFX Maximum Leverage by Asset Class

Available leverage differs according to the asset class, with the most leverage available with CFDs on forex and the least with CFDs on shares.

The figures below reflect the available leverage at the offshore entity of OctaFX.

Customer Support

OctaFX’s customer support is available in 28 languages, including English, Hindi, Urdu, Spanish, Arabic, Malay, Indonesian, Malay, Chinese, Portuguese, Thai, Deutsch, Bengali, Vietnamese, and Turkish.

OctaFX Customer Support Test

Over a week-long testing period, I probed customer support with dozens of inquiries, ranging from available tools to fees and questions relating to the security of client accounts. I was surprised at how fast the responses were, and the agents went the extra mile to provide the information I sought.

Deposits & Withdrawals

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

Deposits

Withdrawals

Account Types and Terms

Account Application

To open an account at the Octa Markets Inc. entity, follow the next steps:

1. Press the button “Create an account” on the website’s homepage.
2. Enter your email and create a password.
3. After confirming their email, enter your name, country of residence, and phone number.
4. Provide information about your trading experience.

Account Types

OctaFX offers two main account types: OctaFX MT4 which is geared towards beginners and OctaFX MT5 which caters to more advanced traders.

Account Types Comparison

Demo Accounts

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. OctaFX offers demo accounts for MetaTrader 4 and MetaTrader 5.

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 have gotten up to speed on a demo account, they can easily switch to a live version.

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.

The maximum leverage at the global entity of OctaFX is 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.

Order Execution

OctaFX is an STP/ECN broker. Client orders received by OctaFX are offset at banks and liquidity providers. NDD (No Dealing Desk) brokers such as OctaFX act as intermediaries between the trader and the real market and receive a defined and transparent commission for it.

Supported Countries

OctaFX takes clients from the majority of countries globally. However, clients are not accepted from American Samoa, Belarus, Cyprus, Guam, Kazakhstan, Northern Mariana Islands, Puerto Rico, Russia, Ukraine, United States Virgin Islands, United States, United States Minor Outlying Islands, and the Marshall Islands.

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.

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 Autochartist plugin for MetaTrader provides real-time trading signals to your terminal, shows chart patterns and trends online, and allows you to receive daily Market Reports via email.

Education

The education section on the OctaFX website is well thought out, clearly presented, and made for different levels of traders – beginners, intermediate, and experienced. 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 tutorial videos, which cover getting started with MetaTrader, using your personal account area, and how to copy trade.

The Bottom Line

One thing that stood out to me about this broker during my review was the ease of use. The OctaTrader platform is intuitive, well designed, and has popular features like alerts and 1-click trading. There are no swap fees, inactivity fees, or fees for deposits and withdrawals. Two account types cater to traders with different levels of experience. Simple and straightforward.

Spreads are competitive, especially in forex and shares. OctaFX has also gone above and beyond with its education materials which include live webinars and carefully crafted courses. Customer service is highly responsive, with one drawback being that there is no phone support. OctaFX also made a significant step forward since my last review by adding 150 CFDs on shares from 16 global stock exchanges.

This broker has many qualities suited to beginners but can also cater to experienced traders with the advanced features of MetaTrader. The global entity is unregulated, and this means clients benefit from fewer account protections. However, OctaFX states that it provides clients with segregated accounts and negative balance protection. A welcome addition would be third-party account insurance (such as a policy from Lloyds of London), as seen at some other popular offshore brokers. Overall, I rate OctaFX as an innovative broker with a client-centric focus.

FAQ