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OctaFX Review 2021 – Is It a Good Broker?


Founded in 2011, OctaFX has amassed more than 6 million users all over the world. With its swap-free offering and attractive incentives and bonuses, it keeps gaining more and more market share. OctaFX claims to assist Forex traders make more money. We looked into this broker to see if the commission-free and swap-free MT5 trading environment lives up to its boasts.

So, at the end of this review, you should be able to clearly answer this question: Should you open an OctaFX trading account right now?

Summary

OctaFX is considered a higher than average risk. It is not a publicly-traded company and is not regulated by top-tier authorities.  OctaFX offers a smooth registration process, quick deposit and withdrawal processes, a comfortable layout, mobile trading, Islamic accounts, attractive bonuses, and overall good user experience. However, it’s not available for US-based users, it lacks some assets and currency pairs, and it has low trust since it’s not regulated by any top-tier authorities.

Best Alternative to OctaFX is eToro

  • #1 Copy Trading Platform
  • Regulated by Top Tier Regulations
  • Safe & Secure
  • 0% Commission on Stocks*

Read full eToro review

Disclaimer: CFDs are complex instruments that come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. Make sure you understand how CFDs work and if you can afford to take the high risk of losing your money.

*on selected US stocks

Overview

Broker OctaFX
Founded 2011
Headquarters St. Vincent and the Grenadines
Minimum Deposit $25
Inactivity Fees $0
Forex Yes
CFDs Yes
Cryptocurrencies Yes
Copy Trading/Social Trading Yes
Forex Pairs 28
Regulation CySEC
Mobile App Yes
Customer Support live chat, phone, email, regular mail, WhatsApp, and Telegram
US-Accepted No
Our Score 3.5/5

OctaFX: Pros and Cons

While OctaFX has some pretty impressive features, it also has some major disadvantages that you want to be aware of if you’re considering trading with it.

Pros Cons
Account Opening Not Available in the USA
Hedging and scalping available Limited Instruments Available
All account types offer Shariah-compliant options Not regulated by top-tier authorities

OctaFX Compared

In order to put things into perspective and for you to understand the broker’s features better, we set a brief comparison between OctaFX and its major competitors in the industry.

Broker OctaFX FXTM EXNESS
Founded 2011 2011 2008
Minimum Deposit $25 $50 $10
Inactivity Fee No $5 per month No
US Accepted No No No

Account Types

OctaFX provides traders with two trading accounts: one MT4 and one MT5. Both have a maximum leverage of 1:500. The US dollar and the Euro are the account’s basic currencies. The first of the two key differences between them is that MT5 traders don’t have to pay a finance fee for leveraged trading, whereas MT4 traders do. The second difference is that  MT4 doesn’t have index CFDs.

With OctaFX, users can open MT4 or MT5 demo accounts with no time limits.  The MT4 demo account expires after 8 days of inactivity, while the MT5 demo account will expire after 30 days of inactivity. 

The flexibility of MT4 and MT5 accounts allows traders to choose their deposit amount and leverage, resulting in more realistic demo experience. They’re perfect for testing EAs and fixing bugs for algorithmic traders.

Commissions and Fees

The commissions and costs charged by OctaFX vary based on which of the 3 account types you choose (MT4 Micro, MT5 Pro, cTrader ECN.) Overall, OctaFX finds it difficult to compete with the lowest-cost MetaTrader brokers when it comes to pricing.

The MT4 Micro account has the lowest spreads, with only 39 tradable instruments, the USD/EUR spread is 0.7 pips. On the other hand, the MT5 Pro account has a collection of 45 tradable instruments with a bit higher spreads (at 1.1 pips.)

The OctaFX cTrader ECN account has a smaller product selection than its other account types, with 28 forex pairs and 2 metals available.

The MT5 Pro account is great as it has a price similar to the cTrader ECN account with almost double the tradable instruments.

Minimum Deposit

OctaFX’s minimum deposit ranges from $25 when funding with Mastercard/Visa or €50 when using Neteller/Skrill, depending on the chosen payment method, to as much as 500,000 NR.  Any applicable minimums are determined by your country of residence and the OctaFX entity with whom you open a trading account.

OctaFX offers more than 50 payment methods, including Visa, Fasapay, Neteller, bitcoin, and a wide range of local bank transfers. Note that some of which may not be available in your country.

Offerings

OctaFX has a limited number of tradable instruments. Many industry leaders, for example, have more than 10,000 tradable instruments.

OctaFX offers forex trading, CFD trading, 52 trading symbols, 28 forex pairs, cryptocurrency (CFD), and social trading. On the other hand, it doesn’t offer cryptocurrency (physical) US stock trading (non CFD), or Int’l stock trading (non CFD).

CFDs allow you to trade cryptocurrency, but you can’t trade the underlying asset directly (like buying Bitcoin). Note that crypto CFDs aren’t available to retail traders from any broker’s UK residents, nor to UK entities.

Leverage

For Forex traders, the maximum leverage is 1:500, while for cryptocurrency traders, it is 1:25. It’s ideal for scalpers and traders that need high leverages in their trading accounts.

Spreads

OctaFX has floating spreads that fluctuate with market conditions. The one good thing about a floating spread over a fixed spread is that a floating spread is smaller than average most of the time. However, it can widen at market open, during important news releases, during rollover, or during periods of extreme volatility.

Platforms and Tools

OctaFX is mainly a MetaTrader broker that offers MetaQuotes Software Corporation’s range of platforms, including MT4 and MT5. There’s also the cTrader, which includes the cAlgo platform. 

MT5 Desktop

Visit OctaFX

OctaFX provides a web interface for copy trading that connects to its MT4 platform. However, OctaFX’s copy trading experience lacks a sense of community, which is a feature shared by all of the most popular copy trading brokers.

Between August and October this year, 630 of the 3340 systems featured on OctaFX’s copy trading platform were profitable, accounting for around 18 percent of all strategies. All in all, the layout is good, though there can be more performance statistics included.

The MT4 and MT5 trading platforms come in three forms: a full-featured desktop client, a lightweight web trading interface for manual users, and a mobile app.

MT4 Web-Platform

OctaFX Copy Trading

OctaFX’s investment in establishing a proprietary copy trading service, which it also introduced as a…



Read More : OctaFX Review 2021 – Is It a Good Broker?

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