Introduction to OctaFX
Over the past few decades, forex trading has become a highly lucrative market and a true global phenomenon. It is finding a huge number of takers across the world and is being driven by technological advancements, smartphones, tablets, and social media activities. OctaFX is one of the leading providers of Contracts for difference (CFDs) and Forex services to traders all over the world. The company has built a strong reputation as a Forex broker with the unique service it offers which caters to the various requirements of thousands of retail traders.
However, it is not uncommon to find fraud and scams in the Forex industry. Thus, it is important to only trade with brokers you can trust as this will save you both time, money and any headache. The last thing any trader wants is to get caught out in a scam. This is why we have done a careful review of this forex broker. This review will cover every important details about OctaFX, its history, features, pricing and fees, as well as its major advantages and disadvantages.
History of OctaFX
OctaFX was established in 2011 and is formally registered in the southern Caribbean nation, Saint Vincent and the Grenadines by the International Business Companies act with license of number 19776 IBC 2011. The company expanded further in 2012 and started operations from Jakarta, Indonesia due to its primary focus on Asian markets, although it provides trading services to its customer base spread over 100 countries in the world. Its London office was later announced and established in 2015.
OctaFX is a regulated and authorized broker under CySEC as well as under the UK’s Financial Conduct Authority (FCA), a very strict regulatory body for financial markets and financial services firms. The forex broker is also regulated under the Financial Services Authority (FSA) in the Caribbean. Since its inception, OctaFX has won more than twenty different awards. One of the most notable ones is the Most Reliable Broker award from FX Empire in 2014. The 2015 Best STP Broker award granted to the company by Forex Report, is also worth a mention.
OctaFX is one of the Forex brokers that provides a professional environment for quality and easy trading. It is often seen as a more attractive broker by active traders because of its tight spreads, faster execution times, and impressive customer support. The company offers three types of trading accounts including the Micro account which is suitable for new or inexperienced traders. The account allows you to make a starting deposit of only $50. More experienced or advanced traders can opt for the OctaFX’s Pro or ECN account which has the best spreads and liquidity.
As far as trade types is concerned, OctaFX provides you with CFDs and spot market trading. The assets covered by the company include market indices, cryptocurrencies, currency pairs, stocks, precious metals, and commodities.
OctaFX Supported Platforms
OctaFX allows you to trade from your laptop, desktop, and mobile devices. The company supports its trading services by using the latest technology suite from MetaQuotes Software Corporation. It offers both the MetaTrader4 (MT4) and MetaTrader5 (MT5) trading platforms which are among the industry’s leading FX platforms.
All OctaFX’s trading platforms are well equipped with different technology tools that makes it easy for traders to analyze the market and make better decisions. The MT4 platform is one of the most popular trading platforms in the forex and CFD trading space. It comes with robust features and technical indicators that enhances trading for all users. It also allows for automated trading with its built-in Expert Advisors (EAs). Despite its sophistication, the MT4 is highly customizable and very easy to use.
The MT5 has some similarity to the MT4 platform, and is often seen as an upgraded version. It is specifically designed to allow traders access to stocks, futures, and CFDs. It is also has a very customizable interface, with additional features such as stop limit orders, market depth, and an economic calendar.
OctaFX also offers the more recent “CTrader”, the premier platform equipped with more advanced tools for ECN traders. It can be used for trading raw spreads, and offers server trailing stops, advanced charting, one-click trading, and Level II quotes. CTrader uses 128-bit SSL protection routines to encrypt your trading sessions as well as personal information, giving you peace of mind regarding security of data.
OctaFX also has Copytrading features. This feature allows you to copy leading forex traders without the need to put in lots of hours to build your own strategy. OctaFX provides you with detailed information about each Master’s performance, helping you decide who to copy. You can choose from an unlimited list of Masters and diversify your own portfolio to earn as much as you can. You also have the flexibility of changing your selected Masters or removing them altogether. The company also makes Copytrading is simple and straightforward as there are no special skills or complicated software required. Everything can be done directly from their website or through the mobile app.
Pros and Cons
While OctaFX is an award winning forex broker, it has its own drawbacks and disadvantages. We have summarized below the pros and cons of the forex broker.
Customer Service: OctaFX has an impressive customer service which is available 24 hours of every business day. They can be contacted through Email, live chat or toll-free lines.
Spreads and Execution: The forex broker provides very tight spreads and faster executions compared to other brokers.
Low Minimum Deposits: This is one of the major advantages of OctaFX, especially for inexperienced or new traders. It allows a minimum deposit of only $50, with the minimum initial deposit being just $5.
Education: Starting out as a new trader can be difficult but OctaFX makes it less daunting with its exhaustive Educative materials.
Supports MT4, MT5, and CTrader: OctaFX uses the finest trading platforms such as MT4, MT5, and CTrader to accommodate the needs of all traders.
No support for US Traders: OctaFx does not have a US operating license, thus it cannot accept trades from the United States.
Limited Payment Options: Compared to other forex brokers, this is a drawback of OctaFX.
Choice of Trading Platform: OctaFX does not allow traders to select their preferred trading platforms, with each account type restricted to a specific platform.
You will only find a few other brokers that allow a minimum initial deposit of $5. With a $5 deposit, you can create one of the three account types, including MT4 Micro account, MT5 Pro account, or the CTrader ECN account. Deposits and withdrawals can be made via a variety of options for ease and convenience of traders. Some of the deposit options include credit and debit cards, Skrill, Neteller, bank transfers, and local payment methods for counties such as Indonesia, Bangladesh, Malaysia, India, Thailand, South Africa, Argentina, and Brazil. However, you can only make the minimum $5 deposit through credit cards and local bank transfers, and you’ll need a minimum of $50 to deposit through payment processors such as Neteller and Skrill. Withdrawals can be made with the same options as deposits.
The company offers several bonuses and packages and you can earn a fully withdrawable bonus for initial deposits on MT4 Micro, MT5 Pro, and CTrader ECN accounts. However, there are certain terms and conditions governing their bonuses and promotions.
There are also commissions and fees associated with each account type. The MT4 Micro account has the highest spreads with just 37 tradeable instruments available for traders, and while its EUR/USD spread is 1.1 pips, the MT5 Pro account has its spread at 0.9 pips and provides traders with a full range of trading instruments.
The CTrader ECN account is, in comparison, a bit limited with its range of products with just two metals and 28 forex pairs, with a spread of about 0.9 pips. You should, however, try to avoid weekly rollovers as OctaFX charges a fee if you carry a trade over the weekend.
After carefully reviewing OctaFX, its operations and the services it offers to traders, it can be said that they are one of the best forex brokers in the industry. Not only do they make customer satisfaction their top priority, they also ensure that their clients get the best out of their trading experience with easy to use, accessible, and highly customizable platforms, tools, and educational materials to help newbies and novices get their feet sorted out quickly. It comes as little surprise that OctaFX is a favorite of thousands of traders as there have mostly been positive reviews about the broker. The staggering number of awards it has won is also a testament to the good progress the company has made since its establishment in 2011.
The company is also one of the few brokers that reveal its trading volume data to the public. It has an interestingly low minimum deposit amount and offers numerous bonuses and promotions you may not get from other brokers. OctaFX also allows you to create a free demo account if you want to test things out first before investing your funds. While the broker has its downsides, its advantages outweigh its disadvantages. In terms of reliability, trust, and efficiency, OctaFX is right up there among the best forex brokers.