OctaFX Broker Detailed Review

Is OctaFX Safe?

OctaFX is a relatively new broker, founded in Indonesia in 2011 and has been regulated by CySEC since 2018 (license 372/18). It was regulated by the FCA (the UK’s Financial Conduct Authority) from 2015 to 2017 (ref: 679306) but has allowed its regulatory status in the UK to lapse for unknown reasons. That OctaFX did not have major regulatory oversight for over a year is unusual for a large broker. This may be because OctaFX’s primary focus is the Asian market, but the exact reasons remain unclear.

OctaFX has been widely recognised by the industry, recently winning Best Forex Broker Asia 2018 (Global Banking and Finance Review) as well as Best FX Broker 2018 and Best Trading Conditions 2018 (European CEO Magazine).

Like all regulated brokers, OctaFX has segregated accounts (client funds and broker funds are kept in separate accounts in case of broker bankruptcy) and offers negative balance protection for all clients – so you can never lose more money that you have in your account.

OctaFX For Beginners

The educational material at OctaFX is focused on new traders. Unfortunately, for more experienced traders there is very little in the way of educational support. Customer support is competitive but where OctaFX really shines is in the analytical material available.

Educational Material

OctaFX’s education section is anchored by a collection of articles collectively called Forex Basics. Article topics range from explainers on ECN trading and Risk Management to Technical Analysis and Trading Strategies as well as more advanced concepts such as Pair Correlations and Fibonacci Retracements. These articles are detailed and well-written and offer valuable advice for new and intermediate traders – unfortunately, these topics aren’t available in video format.

There is a short Tutorial section covering the MetaTrader platforms, CopyTrading, Autochartist and CFDs and a Video Tutorial section focused on getting started with MetaTrader. Finally, there is a FAQ section and a useful glossary of Forex trading terms. The education section also has links to the Manuals for the different platforms OctaFX supports (MT4, MT5 and cTrader)

Analysis Material

OctaFX has an excellent Market Insights section which is updated frequently. Regular posts include a Daily Forecast, a Daily Review and Weekly Review. These posts frequently offer predictions of future market movements – but be cautious and do your own research before acting on any predictions.

The Market Insights section also has a daily video series, uploaded to the OctaFX YouTube channel, called Market in a Minute, which covers all the big news from the Forex markets for the preceding trading day. In addition to all these regular updates, there are irregular short pieces published in reaction to trading events with detailed technical insight.

OctaFX also hosts a Forex News section, with short briefings on all the major news stories affecting the Forex markets, this is updated over the weekend and the articles are well-written and concise. These briefings are offered without any suggestion of how the events will affect the markets.

Customer support

OctaFX customer support is open 24 hours a day, 5 days a week via live chat, phone (with local numbers for the UK, Hong Kong and Indonesia), email and WhatsApp.

Additionally, the Finance Department is open from 06:00 – 22:00 (EET) and the customer verification department is open from 08:00 – 17:00 (EET) for account setup and troubleshooting queries.

OctaFX Trading Conditions

OctaFX markets itself as a true ECN/STP broker and offers three different accounts depending on which platform you use.

Trading conditions – including spread, commission, leverage and margin call level – vary depending on which platform/account you decide to go with. All accounts are market execution in under 0.1 seconds and they all allow for hedging, scalping and EAs.  

Account types

OctaFX has three different account types (along with an unlimited demo account) depending on which platform you decide to use.

This is an unusual approach; if you are familiar with a specific platform and wish to continue using it, you are going to be restricted in your account choice. I firmly believe that platform preference should not arbitrarily affect trading conditions, which seems to be the case here.

Demo Account

OctaFX offer an excellent unlimited Demo Account option, available on MT4, MT5 and cTrader. It offers real market conditions and a chance to win real money in a monthly Champion Demo Contest.

MT4 (Micro) Account

With the MT4 (Micro) Account, you can choose either a floating spread, starting at 0.4 pips, or a fixed spread, at 2 pips, depending on your preference. This account requires a minimum deposit of 100 USD and no commission is charged on trades.

Leverage is fixed at 1:500 for Forex trading and the margin call/stop out is 25%/15%. Swaps are optional and CFDs and Cryptocurrencies can also be traded (though leverage will be much lower).

MT5 (Pro) Account

The MT5 (Pro) Account only offers a floating spread, starting at 0.2 pips, and requires a minimum deposit of 500 USD. No commission is charged on this account either but leverage for Forex trading is fixed at 1:200 and the margin call/stop out is set at 45%/30%.

There are no swaps on this account and overnight commissions are charged after 3 days. As with the MT4 account, both CFD and Cryptocurrencies can also be traded.

cTrader (ECN) Account

The cTrader (ECN) Account also only offers a floating spread, but this starts at 0 pips. A commission is charged on trades and a minimum deposit of 100 USD is required.

Leverage is fixed at 1:500 for currencies and 1:200 for metals – cryptocurrencies and CFDs are unavailable with this account. Margin call/stop out is set at 25%/15% and overnight commissions are only charged over weekends.

Spreads and Commissions

The spreads on the different account types vary by account type. Commission on the cTrader account is charged at 0.03 USD per 0.01 Lot.

Deposits and withdrawal fees

OctaFX only accepts deposits in EUR or USD. It charges no deposit or withdrawal fees but, unusually, only accepts deposits and withdrawals via the following methods:

• Bitcoin: Minimum deposit is 0.00096 BTC and the minimum withdrawal is 5 USD
• Neteller: Minimum deposit is 50 USD and the minimum withdrawal is 5 USD
• Skrill: Minimum deposit if 50 USD and the minimum withdrawal is 5 USD

OctaFX also offers a deposit bonus scheme (up to 50% of your deposit) though withdrawing the bonus is conditional on trading activity, using the following formula.

OctaFX Trading Platforms

As mentioned above, OctaFX offers MT4, MT5 and cTrader – though platform choice is tied to account type and, as such, will greatly affect trading conditions.

Trading Tools

Alongside industry standards such as an Economic Calendar, Profit and Trading Calculators, OctaFX also offer an Account Monitoring tool whereby you can monitor any other OctaFX traders account and sort by Balance, Gain, Trades and Account Type. This tool also allows you to dig into the history of an account so you can learn how the account holder has managed their success. Accounts are only represented by numbers so all holders remain anonymous.

OctaFX also offers a copytrading function free for all accounts, allowing beginners to copy experienced, successful traders for a small fee per traded lot. This function is also available through the mobile app.

OctaFX also supports Autochartist, the industry standard trading signals provider. Autochartist provides traders with automated alerts for opening and closing trades, a volatility analysis tool which allows you to better optimise take-profit and stop-loss levels and integrated market reports. Autochartist is available on MT4/5 (but not on cTrader) and requires a minimum balance of 500 USD in your OctaFX account.

Mobile Trading Apps

All the platforms offered by OctaFX are also available on mobile devices and tablets. In additions, OctaFX offers its own OctaFX Trading App (only for Android) which gives you access to all your OctaFX accounts (including your Demo Account) and comes with Market Insights fully integrated.

OctaFX in their own words

Evaluation Method

We value transparency and openness in the way we review the partners. To bring transparency to the forefront, we have published our review process that includes a detailed breakdown of the FXTM offering. Central to that process is the evaluation of the reliability of the broker, the platform offering of the broker and the trading conditions offered to clients, which are summarised in this review. Each one of these is graded, and an overall score is calculated and assigned to the broker.

OctaFX Risk Statement

Forex margin trading involves substantial risks. Forex margin trading exposes participants to risks including, but not limited to, changes in political conditions, economic factors, acts of nature and other factors, all of which may substantially affect the price or availability of one or more foreign currencies.

Speculative trading is a challenging prospect, even to those with market experience and an understanding of the risks involved. Only funds that a person would allocate to high-risk investments (i.e., funds that if lost would not affect the person’s standard of living or financial well-being) should be used in trading.

In cases where a Client has used only conservative forms of investment in the past, forex trading might not be appropriate for the Client. A Client must understand that a total loss of all funds deposited can occur, should the market go against the Client’s position(s).

Overview

On the surface, OctaFX is a very good STP/ECN broker with varied account options, platforms and trading conditions. Unfortunately, because these account options, platforms and trading conditions are all tightly linked, new customers may feel arbitrarily restricted. This coupled with an odd regulation history, an underwhelming educational section and limited deposit/withdrawal methods make it a difficult broker to recommend – especially for new traders. That said, OctaFX has an excellent analytical section and the trading tools on offer are world class.