Here Are the 8 Pros and Cons

OctaFX Fact sheet

OctaFX is regulated by two regulatory authorities that supervise the legit business conduct of this broker. The CySEC and IBC (St Vincent and the Grenadines) allow traders to reach more clients in different regions.

If you are a trader in Europe, you are more likely to have access to the European site of OctaFX, where you can trade under the regulations of CySEC. However, if you are not located in a European country, you will be under IBC regulations that originate from Saint Vincent and the Grenadines. 

These regulators are considered to be not very strict. However, they still satisfy a significant level of security needs for many traders. These authorities ensure that every licensed broker is clear from any money laundering activity. 

OctaFX also withholds the FSCA licence that allows traders from South Africa to trade under the regulations of FSCA.

Policies that OctaFX follows

Additionally, the broker undertakes several security measures to safeguard the traders’ funds, such as negative balance protection and segregated accounts. 

Negative balance protection ensures that a trader’s market position does not drop below zero. If a trading position starts a massive meltdown, the position will be closed once it reaches zero to help the trader avoid excessive losses.

The broker keeps traders’ funds in segregated accounts. Therefore, even if the broker defaults, the traders’ money is not damaged and the trader can eventually get part or all of their money from bank accounts that are kept separate from the broker.

Also, segregated accounts ensure that the broker is not using the traders’ money for any arbitrage activity, or for any money laundering purpose.

In today’s world where information leaks are not something uncommon, OctaFX ensures the safety of users’ personal and banking information by using SSL technology with 128-bit encryption.

OctaFX has teamed up with several sporting organizations such as Bali Sports Foundation, Delhi Capitals - a cricket team based that plays in the Indian Premier League (IPL), and most importantly Southampton FC. From that, we conclude that OctaFX is safe for trading because there are top organizations around the world that trust this broker.

Whether you prefer trading currencies, stocks, indices, commodities, or cryptos, you can find your favorite financial security at OctaFX. Using floating spreads and variable leverage, a trader has access to many trading tools to make money.

Trading with OctaFX is done through CFD contracts, where you can trade on the price speculation of more than 50 financial instruments, trading with a minimum contract size of 0.01 lots to give an edge to traders at every level.

OctaFX offers you CFD trading, where you do not physically own the product, but you trade on the price difference at a future point. It is a faster way to implement trades and it is commonly used among all brokerage firms.

Trading regulations differ between regions, so the leverage may change depending on where you live. We will check all that out in more detail down below. 

Forex

There are 35 currency pairs including major currency pairs, crosses, and exotics. These give you more options to diversify your risks. The spread is variable and it changes according to changing market conditions.

Trading on the EUR/USD pair, you can enjoy the tightest spread range that starts from 0.4 pips, while most other major currencies start from 0.6 pips. You can also trade on margin using generous leverage from the broker of up to 1:500.

Trades on the Forex market are usually concerned with finding the minimum slippage time possible. It is the most liquid market, and your order can find its match in less than 0.1 seconds.

Indices

OctaFX broker gives you the opportunity to track top corporations' performance and stocks, and place your trades on top stock indices. There are 10 indices that you can trade and they include markets from the US, the UK, Australia, and other European markets. 

Leverage can be used while trading indices, and you can use up to 1:50 maximum leverage. Additionally, the spread is variable depending on the index itself and the activity of stocks. The lowest spread range is on the SPX500 index and it starts from 1.7 pips.

Commodities

Some traders prefer commodities because there are more products available, and relatively higher volatility. Commodities from different sectors can be traded, such as gold, silver, oil, natural gas, wheat, coffee beans, etc. Higher volatility may promise higher returns in a short period.

OctaFX broker offers you the most commonly traded commodities to ensure high liquidity and minimum slippage time. Commodity traders can use low spread ranges that differ between commodities, as each product operates under different market circumstances.

However, the minimum spread range can be found in crude oil with a 0.7 pips minimum. Additionally, leverage can be used with trading commodities, and it differs between the products. You can use moderate leverage up to 1:50 on oil and natural gas, and generous leverage up to 1:500 while trading gold or silver.

Cryptocurrencies

The cryptocurrency market became so popular and thriving that most every trader is engaged in trading one of the thousands of cryptos available today. There are 30 cryptocurrency pairs that you can trade, using tight spread ranges that are variable and start from 2.0 pips.

You may find common cryptos like Bitcoin and Ethereum which are the most popular crypto coins. Also, you may find less traded cryptos like DOGE and Shiba Inu, then trade using the benefit from any market buzz which can cause the prices to fluctuate sharply.

Leverage can be used in combination with crypto trading. Moderate leverage up to 1:25 is applicable. However, trading from different locations might see different limitations on the amount of leverage you have access to.

OctaFX offers two different types of accounts, and they differ according to the trading platform, maximum contract size, and tradable assets. Additionally, the swap payment is different in each account.

Beginners are usually recommended to use the MT4, while MT5 is recommended for those who already have hands-on experience in trading.

However, they share the same minimum deposit requirement which is 50 units of the account currency. So let’s check in detail which account suits you better.

OctaFX MT4

Trading in this account is recommended for habitual traders or those who want to start trading the easy way. Users of this account enjoy limited access to the main financial instruments that are common and easy to trade.

The financial assets provided include 35 currency pairs, 5 commodities, 4 indices, and 30 cryptocurrencies. However, the offered maximum leverage changes between the assets, starting from 1:25 for trading cryptos to 1:500 for trading in the Forex market.

The contract size allowed here is 0.01 lots at least with a 200-lot maximum, Such a small contract size is very helpful for newbies.

Trading cost using the OctaFX MT4 account is based on the spread, which is floating and it starts from 0.6 pips in the Forex market. If you are trading using this account you might be subject to swap interest, which is charged or paid if you leave any currency trading position open overnight. 

This account only allows using MetaTrader 4, which is one of the most commonly used trading platforms. It is simple to trade with MT4 as it comes with main indicators and chart options.

OctaFX MT5

This type of account is recommended for experienced traders, those who already have years of trading and are willing to expand their trading portfolio. Users of this account may enjoy access to a wider selection of assets, and they can take higher risks by trading with a larger contact size.

Traders on this type of account can trade using 35 currency pairs, 3 energy products, gold, silver, 10 indices, and 30 cryptocurrencies. Trading these financial instruments can be done using variable leverage that ranges from 1:25 and 1:500.

MetaTrader 5 is the only platform available on this account, which is a more developed version of MT4, it offers a wider range of technical indicators, chart options, and products.

Traders from different locations may give different access to leverage. For example, traders in the EU are under CySEC jurisdiction and have more limited leverage than those outside the EU. On the other hand, traders from other countries enjoy a larger degree of freedom in using leverage up to 1:500.

Similar to the MT4 account type, the MT5 OctaFX type of account's minimum deposit requirement is $25, while the spread is the only form of trading cost. The spread is floating and the minimum spread ranges can be found in the Forex market starting from 0.6 on the EUR/USD pair. Additionally, this account is swap-free, which means that if you leave an open trading position in the Forex market overnight, you are not going to be charged or paid any swap interest. 

Islamic account

The Islamic account, the swap-free account is not offered separately, you can change any type of account into a swap-free account.

When you register your account for the first time, you can switch on the option of the Islamic account, and you will be able to trade according to Sharia law where you will not be charged or paid any interest payment.

However, note that there is a fixed handling fee for keeping the market position open overnight, and it is calculated this way; pip price * swap value of the currency pair.

If you have an account already and you want to switch it to an Islamic account, then you need to contact the support team, make a request to switch your account to an Islamic account, and within a few days, your request will be approved.

Demo account

OctaFX allows traders to practice as much as they want in demo trading, and one user can open as many demo accounts as they want, there are no limits in this regard.

Once your account is verified, log in to your account, and from the personal area click on “open demo account”, then select the trading platform that you want.

In your demo account, you can test your trading strategies, implement different market orders, and get familiar with the indicators and charts before you start trading with real money.

At any point, you can refill your demo account, where the website will provide you with virtual money that you can use for mock trading. However, there is an expiration date for the demo account.

Your OctaFX demo trading account expires after a certain period of inactivity. Depending on the trading platform you have chosen for the demo account, you have different expiration dates. 8 days for MT4, and 30 days for MT5, therefore if you do not log in within this period, your demo account will be terminated.

Getting started on OctaFX - Main steps 

The registration process with OctaFX is straightforward and similar to registering with any other website. But, to make sure you do not miss any detail that might be crucial to getting your account verified, we will go through the steps to set up your account, and what you can expect to see.

Step 1: Register your name & email

The first step is to click on “Open Account” that you can find at the top of the page. You will need to provide your full name and email address then create a new password.

Alternatively, you can sign up using one of your social media accounts like Facebook, Google, or Apple ID.

You will receive an email with a verification link, you might receive it in your inbox or your spam folder. Click on the verification URL sent to you, and you will be redirected to the broker’s website again to continue the registration process.

Step 2: Provide your details

In this section, you will be asked questions about your identity and your location, such as date of birth, country of residence, complete address, and your contact number.

Make sure you provide correct information if you want your account to be successfully verified, you will need to provide supporting documents that verify the information that you insert here.

You will be asked if you have any trading experience, this will help the broker understand you and your expectations. Based on your experience, the broker may suggest some trading instruments or give you some tips.

Step 3: Choose your platform

As you already know, OctaFX has two types of accounts that you can choose from, and these accounts differ in terms of the trading platform, access to financial instruments, and the maximum contract size that you can use.

It is important to consider your trading experience in choosing the platform, the OctaFX MT4 is recommended for new traders, the interface is simple and the trading choices are limited. 

But if you already have experience in trading you can choose the OctaFX MT5 account type, where you can enjoy access to a wider range of financial products, and a higher contract size. 

Additionally, you need to select the currency of your account whether USD or EUR. Choose the leverage that you are comfortable with, you can choose between 1:1, 1:5, 1:15, 1:25, 1:30, 1:50, 1:100, 1:200, or 1:500. Note that you can change the leverage at any point.

Finally, choose the type of account you are interested in, you can start with the demo account to start practicing, and once you are ready you can switch it to a real trading account. 

Otherwise, you can directly start with a real trading account, where you can directly start trading using real money. You can also switch the real trading account to a demo account at any time, from your personal area once your account is verified.

Step 4: Verify your details

The last step before you start depositing money and start trading is to verify your information.

Once your account is created you need to log in to your personal area, and verify your information using a copy of one of the following ID proof documents; passport, ID card, driving license, or any other ID issued by the government. In some instances, you might be asked to provide additional documents like a residence permit.

This is an ordinary step and there is nothing to worry about. The broker asks for this information to guarantee that the website is clear of any financial fraud and that you are not blacklisted by any financial authority. 

Ideally, the verification process takes from a few minutes to 24 hours, so you can expect to have your account ready on the same day you open it.

Step 5: Deposit & trade

You will be notified once your account is verified and ready. You can find the deposit option at the top of the toolbar, then select the payment method you want to use.

Deposits are instant, with the exception of deposits made using cryptocurrencies that can take up to 30 minutes. You will be notified when your funds arrive. Afterward, from the trading platform, you can choose the financial instrument and place the buy/sell market, and limit orders according to your predictions. 

There are various fees that you will experience while trading with OctaFX, these charges can be a huge reason for decreasing your returns from trading. If the broker imposes a lot of commissions, you will end up paying more than what you have earned from each trading session.

There are no fees charged on deposits or withdrawals by the broker. However, some intermediary financial companies charge handling fees or commissions when you want to transfer from a crypto wallet to your personal bank account, and it is something that you need to be aware of.

OctaFX's trading costs are concentrated around the spread, where the broker adds a markup on the market spread, and it is incorporated in every market or limit order that you place. Let’s take a deeper look at the commissions and fees of OctaFX.

Trading fees

OctaFX doesn’t charge its clients with commissions or any other hidden fees other than a 0.6 pip spread markup. You should be expecting to see higher live trading spreads due to the fact that you will experience spread markups plus market spreads.

It’s recommended that you trade highly liquid assets like major currency pairs, the most popular cryptocurrencies, indices, and commodities to avoid slippage and paying high spreads. Slippage usually occurs in low liquidity markets and it simply means that you get a different price when your trade gets executed. 

The OctaFX floating spread starts from 0.6 pips in trading currencies, while in other financial markets it is usually higher.

Currency exchange

OctaFX does not charge any currency conversion fees from its end. However, your bank or intermediary financial institution might do so. To limit fees on currency conversions, it’s recommended that you open a trading account in the currency that you use the most. 

OctaFX offers EUR and USD as account base currencies to its clients. Keep in mind that the minimum amount required to open an account with this broker is 50 Euros or 50 US dollars depending on your account currency.

Swap interest

Swap or rollover interest is only charged for one type of account. Traders with OctaFX MT4 accounts are subject to overnight swaps if a Forex market position is left active until the next day.

A trader may pay or receive the swap if they are trading in currencies and the market position rolls over the next day, and it is calculated from the difference between the interest rates of the traded currencies. 

However, if a trader requests to switch their OctaFX MT4 account to an Islamic account, which is a swap-free account, then they are not subject to any swap payment/charge, rather, they have a different type of fee, called the handling fees.

OctaFX broker makes it easy for traders to calculate the swap, there is a trading calculator where the trader only needs to insert the amount they are trading and other details, and they will have an idea about the expected swap fees.

Additionally, the MT4 terminal will show the swap fees for rolling over a specific currency pair, from the navigation panel under the chart, the trader can see the position details including the swap fee.

Comparing OctaFX fees to other brokers

In order to better understand where OctaFX is positioned in terms of fees, let’s compare the broker against top brokerage service providers.

OctaFX fees compared to Interactive Brokers fees

*Inactivity fee was eliminated by IB in 2021, it used to be $20/m

OctaFX fees compared to eToro fees

OctaFX fees compared to IG fees

OctaFX broker trading platforms are based on the trading account, there are only two trading platforms; MetaTrader 4 and MetaTrader 5. Based on the type of account the trader chooses, they can use one of these two versions of the MetaTrader.

MetaTrader is one of the most popular trading platforms, and using it definitely adds to the legitimacy of this broker. The MetaTrader of OctaFX can either be downloaded or installed as native software, or it can be directly used from the website as a Webtrader.

Additionally, a trader can use MT4 or MT5 on the PC, or on any Android or iOS device, you only need to download the app from the proper store. Then you can sign in using your account details, and enjoy a similar experience to that on the PC.

OctaFX trading broker offers an interactive mobile application. The app is available for iOS and Android devices. The OctaFX mobile app enables you to open and close market trades, check price charts and calculate the expected returns.

You can read market insights that are available using the app, and you can conduct any deposit/withdrawal using several payment methods that are used worldwide.

Additionally, the mobile app for OctaFX comes with game features, where you can play exclusive games and accumulate points, which you can later trade for rewards or cash bonuses.

OctaFX broker’s website is a great source to learn about Forex trading and trading in other financial markets. There are several tools and materials that suit new traders and experienced ones as well.

The tools include a profit calculator where you can accurately calculate your returns after deducting the spread or other fees, an economic calendar, and a trading terms glossary.

The webinar section includes live lessons from Forex instructors, with specific dates and times for the live webinars which you can attend despite your trading level. However, if you are into reading, you can find numerous articles about the basics of trading, and advanced trading techniques and analysis.

Offering outstanding customer support is vitally important for any organization that provides services to a large pool of customers. OctaFX understands this simple truth and provides clients with a professional and friendly team of customer service specialists. 

There are various ways you can reach customer support. We found the live chat function the most convenient. First, we were greeted by a chatbot that provided us with answers to FAQs. Later we asked a few trading-related questions to customer support agents and received swift and professional responses. What’s more, you can send the broker an email, call or request a phone call. 

Additionally, the OctaFX broker's customer support team can help you through different social media platforms, where the broker has a lot of followers. Their Facebook page, for example, has more than 500,000 followers and they conduct Q&A seminars and informative posts with significant interactions with their followers.

OctaFX is a legit broker that is regulated and licensed by different authorities. The broker holds medium-authority licenses which means that you need to trade with caution. These licenses do not include any compensation scheme, and if the broker goes bankrupt, there are no guarantees for you to get your money back.

Throughout this OctaFX broker review, we discovered the variety of financial instruments that you can trade with a reasonable spread in each security. The limited trading options and platforms can be a good choice for new traders, and it makes the website simple to navigate and trade.

Additionally, there are a few promotional programs that attract many traders. These promotions include deposit bonuses and trading contests. Also, there are no commissions on deposits and withdrawals, which attracts many investors to trade at a low cost.

Finally, there are several payment methods that you can use to deposit funds or withdraw money from your account, most of them rely on crypto wallets and e-wallets, which eliminate most of the transaction fees to easily start trading.