In this Broker Review, ForexInfoBook team presents factual information about OctaFX broker, its regulations, trading conditions and advantages of trading with them.
Non Regulated Broker
OctaFX is registered in Saint Vincent and the Grenadines under license number 19776 IBC 2011 and is compliant with international financial regulatory standards.
OctaFX is no longer regulated by Financial Conduct Authority (FCA) with Reference number: 679306 – The current status on the FCA register is shown as “No longer authorised”. Traders should be aware of this fact even though many broker reviews still say OctaFX is a FCA regulated broker.
Safety of traders funds are assured by the broker – however, there is no stringent regulatory agencies like FCA or ASIC to oversee their operations. In case of broker insolvency or bankruptcy, there is no insurance or compensation guaranteed to the funds deposited for trading. This is one of the most severe drawback of this broker which offers one of the best retail Forex trading conditions in the industry.
Click here to read more about why FCA (UK) regulated brokers is the best choice for Forex traders
Click here to read more about why ASIC (Australia) regulated brokers is a very popular choice for Forex traders
Negative Balance Protection
OctaFX provides negative balance protection to all our clients. This ensures that client cannot lose more than their deposit. If at any point, the balance becomes negative due to Stop Out, OctaFX will compensate the amount and adjust the account balance to zero.
Low Spreads and Trading Cost
OctaFX offers low spread commission free accounts on MT4 & MT5. The typical spreads on MT4 is about 1 pip on major and on MT5 the typical spread is just 0.5 pips. The spreads are extremely low considering the fact that there are no additional fees like commission per trade.
OctaFX currently offers ECN accounts only on the CTrader platform on which the typical spreads are about 0.7 pips and commission of $3 per lot is charged on every transaction.
Leverage on Forex pairs is 1:500 on MT4 and CTrader accounts. The leverage on Forex pairs is 1:200 on MT5 accounts.
Click here to check live spreads offered by OctaFX on their various accounts.
Ease of Operations
- Non-Expiring demo accounts
- Simple account opening process
- OctaFX offers a bonus of 50% on deposits.
- Minimum deposits as low as $ 100
- OctaFX offers MT4, MT5 and CTrader platforms
- Wide range of payment options for deposits/withdrawals: credit cards, bank wire transfer and E-payments (Skrill, Neteller, PayTM) and BitCoin.
- OctaFX has a customer support department operating 24×5 via live chat, email and phone.
- OctaFX offers Islamic trading account, fully in line with Islam rules.
The trading conditions, low spreads, low trading costs and bonus programs are extremely attractive for Forex traders to choose OctaFX.
The major drawback with OctaFX is that they are not currently regulated by any major regulatory agencies like FCA or ASIC. Not being regulated is one of the reasons for such excellent trading conditions and offers. OctaFX is not suitable for trader’s who seek guarantee that their deposits are safe – It would always be good to trade with a broker whose operations are monitored by a stringent regulatory agency aimed at protecting the interest of the traders.
We recommend trading with OctaFX with only a small part of your trading capital. This way in the unlikely case of a major disaster, losing the capital would not hurt you too much.