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Home » reviews » OctaFx

OctaFX Forex Broker Review

We found Forex Broker OctaFX most interesting feature to be that they have no swaps. Other features include MT4 and MT5 trading platforms and commission-free spreads from 0.8 pips. See our review on the OctaFX.

Written by Justin Grossbard

Edited by

Fact Checked by

Updated: 18/09/2023

What Changed?

Each month we update average spreads data published by the brokers the retail brokers lose %

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review about octafx

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octafx key features
🗺️ Regulation CySEC (EU only)
📊 Trading Platforms MT4, MT5, OctaTrader
💰 Minimum Deposit $50
🎮 Demo Account Yes
🛍️ Instruments Offered CFDs (Forex, Indices, Metals, Energies)
💳 Funding Methods Visa, Mastercard, Skrill, Neteller, Crypto

What we say about OctaFX

We think OctaFX is a very mediocre option for currency and CFD trading due to the lack of account options, expensive trading spreads and rather average customer support. The main appeal of this broker will be if you want unlimited swap-free trading. This feature is certainly a unique offering given most brokers limit the swap-free period, replace the swap fee with an administration fee or require you to prove your Islamic faith.

Aside from no swaps, there isn’t that much distinctive about OctaFX. The broker only offers a spread-only account with spreads from 0.6 pips, if you are hoping for RAW spreads then you will need to look at other brokers. To trade you can choose between MetaTrader 4 and MetaTrader 5 trading platforms, both platforms are excellent options but many brokers in the market offer these options.

We always recommend you trade with an appropriately regulated broker, with this in mind OctaFX is an option if you are based in the European Union where they are regulated by CySEC. If you are outside this region, we can’t fully recommend OctaFX as you will be trading with their subsidiary based in Saint Lucia where they only need to register as a company.

In this OctaFX review, we’re going to take a deep dive into the pros and cons of using OctaFX as a broker. Let’s dive in.

Visit OctaFX

Pros and Cons of OctaFX

Pros
  • Educational webinars
  • 100% Swap-free trading
  • Easy account opening
Cons
  • Regulated by just one government regulator.
  • Poor spreads
  • Only 38 currency pairs

Who Are OctaFX

OctaFX (Octa Markets Inc.) is an FX and CFD broker with its headquarters in Saint Lucia, a small island nation in the Caribbean. The company was founded in 2011 with their headquarters initially in St. Vincent and the Grenadines but moved to Saint Lucia in 2022 or 20203. In addition to Saint Lucia, OctaFX also has offices in Cyprus (where they are regulated by CySEC) as well as in Spain and Malaysia.

The broker uses a no-dealing desk trading model which means they send your trades directly to the liquidity providers who will be the counterparty for your order. This trading model is commonly called straight-through-processing (STP) or electronic communication networks (ECN) and is used by many brokers that don’t use a market maker execution model. An STP or ECN execution model is thought to offer the lowest spreads on the market (depending on the liquidity providers being used) since the broker earns more through higher trading volumes rather than the spread cost. You will also find this model has the advantage of no requests and very few rejections since market rather than instant execution is being used.

We asked OctaFX who their liquidity providers are and while we don’t have a complete list they advised LMAX Global, Swissquote, Saxobank and Euronext FX are some of them.

OctaFX claims to have 21 million clients across 180 countries signed up since its foundation.

Visit OctaFX

Trading Spreads with OctaFX

Through our in-house spread scanning software, we were able to get an idea of how OctaFX spreads compare to other brokers. To do this, we take the average spreads brokers publish on their website and compare them with the spreads OctaFX public on their own website. We update this each month.

As can be seen in the module below, we found OctaFX spreads to be largely average for major FX pairs, and disappointing for cross-pairs. With this in mind, we think it is safe to say OCtaFX does not live up to its claim of having the lowest spreads in the market.

For both of the account types offered by OctaFX, spreads are floating and start from a minimum of 0.8 pips and have an average of 0.9 pips for the EUR/USD currency pair. This means that the trading spreads will get either tighter or wider, depending on market volatility, time of day, and other factors.

Standard Account Spreads
octafx logo spread
0.90 1.20 2.10 1.00 1.10
ic markets spreads logo
0.62 0.77 1.27 0.83 0.74
fp markets spreads logo
1.10 1.30 1.30 1.30 1.30
avatrade spreads logo
0.90 1.10 1.50 1.50 1.00
saxo markets spreads logo new
1.20 0.90 1.50 1.80 1.80
forex.com spreads logo
1.20 1.40 1.50 1.60 1.50
oanda spreads logo
1.10 1.20 1.40 1.50 1.20
axitrader spreads logo
1.20 1.30 1.20 1.30 1.10
swissquote spreads logo
1.70 1.60 1.70 2.00 1.60

Avg. spreads are taken from each broker's website and updated monthly. Last update on 01/09/2023

OctaFX only have a spread-only account meaning no commissions are charged in addition to the spread.

While the above module takes the spreads from the brokers website, we at CompareForexBrokers have done our own testing using 20 MT4 brokers to find out their average spreads. You can read about our findings in our Standard Spreads test results.

Our Verdict on OctaFX Spreads

A wider spread means you are paying more every time you open a trade. Our spread module indicates that with OctaFX, you are paying more than their competitors so it may be better to consider trading with other brokers.

Visit OctaFX

Account Types on Offer

OctaFX offers two types of trading accounts with both being the same except one is with the MetaTrader 4 (MT4) trading platform and the other is with the MetaTrader 5 trading platform (MT5). Apart from each platform having different features, the main difference to note is that MT4 account is not available if you are in mainland Europe (since the MT4 trading platform isn’t offered in the EU) while the MT5 accounts come with the additional benefit of being able to trade individual stock CFDs.

Both accounts offer most features found in a standard account with similar types of brokers. This means no commission costs in addition to the spread with these spreads starting from 0.8 pips for the EUR/USD currency pair.

You will also find trading available with micro lots, mini lots and standard lots with the spread being variable or floating. We should also mention you shouldn’t get requotes or rejections since market execution rather than instant execution is used.

When it comes to account currency, if you join the OctaFX European subsidiary, you will be using Euros. All other clients will be using USD as the account currency so if you are in the UK and prefer GBP as your account currency, you are not able to choose this.

There is one very interesting feature with both these accounts and it’s not something we have exactly seen before. OctaFX has no swaps – yes you read that right, none, zip, zero, zilch. This means you can hold your position overnight (after New York markets close) for as long as you wish without needing to concern yourself with any rolling feels.

What does this mean for you?

If you are of the Islamic faith meaning you comply with Sharia law then this account is one of the best options on the market.  Many brokers offer a swap-free account and while we are not experts in sharia law, we suspect they may not be truly sharia compliant. This is because the swap has been replaced with a periodic administration fee meaning you receive a charge every certain number of days you hold your position open. We suspect this administration fee could still be a type of riba.

One other thing we should note is that in the case of OctaFX, we are assuming the spreads haven’t been widened. If they have, then this would be akin to an administration fee however it is difficult to prove if OctaFX is doing this. We can only trust they are not since spreads are generally decent.

If you are not of Islamic faith, having no swaps can work for or even against you. The thing to remember is that swaps can either be a source of income or an expense depending on how markets open. Profiting off swaps is a legit trading strategy but this won’t be possible with OctaFX. If this doesn’t concern you and you assume swaps costs are going to be unfavourable, then this account will encourage you to trade mid-term and long-term.

octafx trading accounts

Islamic Accounts

Since the broker has no swaps for all trading accounts as a default, there is no need to have a special Islamic swap-free trading account.

Demo Account

OctaFX demo accounts are available with MT4 and MT5 and have no time restriction on the trial period. With this in mind, the demo accounts are effectively a practice account. You can use all features including all the trading products available for trade and Expert Advisors for automation.

To make the demo account interesting, OctaFX has a demo contest for which you win prizes. Each month up to $1000 in real prize money is available with $500 for the winner, $300 for the runner-up and $100 for third place. You can use any possible trading strategy and even EAs should you wish.

Our Verdict On OctaFX Trading Accounts

At the end of the day, we can’t say if swap-free trading is better or worse than swap-included trading. You need to decide what kind of a trader you are. What we can say, is that this account is an excellent choice for trading that complies with sharia law.

Minimum Deposits and Funding Methods

OctaFX is extremely limited in terms of payment method options to fund a trading account. We were quite disappointed, to say the least.

We tried to go through the process of opening and funding an account as an Australian resident (where we are located).

When trying to determine if we could add funds to our account via a simple bank transfer, the customer support person in the live chat couldn’t even verify that a bank transfer was an option.

octafx live chat about funding

When questioned further, the same customer support person couldn’t verify if we’d be able to deposit via a credit card and advised us that we could probably use cryptocurrency to deposit. Definitely odd so understandably we were less than impressed.

In researching the deposit options further, we came to the conclusion that both bank transfers and credit cards were entirely off the table for Australian traders trying to get funds into their accounts. And more than likely a no-go for wherever in the world you may be located.

It is a similar story for credit card deposits which seemed only to be available for certain countries, VISA for example appears only available for clients in the EU – very odd.

Apart from that, OctaFX offers you the ability to deposit and withdraw using e-wallet services such as Neteller and Skrill. And, as the customer service operator pushed me towards, there is always the option to transfer in some cryptocurrency such as Bitcoin or USDT.

It is also worth pointing out that while there is no cost to make a deposit (or withdrawal), there is usually a minimum amount you need to deposit. The minimum deposit if using NETELLER, Skill, Visa or MasterCard is 50 Euros while it is 0.00037000 BTC if using bitcoin.

octafx funding methods

Our Verdict On Funding With OctaFX

All in all, OctaFX does have a good range of funding options but it does seem they are lacking in funding options you would expect to see such as BankTransfer and VISA.

Visit OctaFX

Trading Platforms

OctaFX allows you to trade on one of three different trading platforms. They are MetaTrader 4 (MT4), MetaTrader 5 (MT5), and OctaTrader, an in-house white-label program.

Each of these platforms runs on Windows, iOS, and Android, so no matter which device you trade from, you’re free to use the platform you like the best.

MetaTrader 4

The most popular of the three platforms is MT4, which is the industry standard workhorse that more or less every retail broker offers.

The MT4 platform comes with ultra-intuitive charting options and all the most common technical indicators. It’s very simple to enter buy and sell orders, as well as set stop-losses, you can even use Expert Advisors (EAs) for automated trading.

MetaTrader 5

Stepping up to MT5, which is the updated version of MT4, but not as popular as its predecessor.

The big changes in MT5 are an increase in the charting options, such as timeframes and lesser-known technical indicators.

MT5 also allows you to trade individual stock CFDs, so if you want exposure to individual stocks, you’ll probably choose to use the MT5 platform.

OctaFX Platform

The OctaFX platform is essentially a white-label licensed version of MT5. That is, it’s MT5 with the OctaFX logo on it, if branding consistency is important for you, feel free to use it. The main advantage of this platform is easier sign up along with less hassle when making deposits and withdrawals.

Copy Trading With OctaFX

There was one slightly different trading platform, which is the Octa CopyTrading software. This allows CFD and Forex traders to either copy other traders’ trading signals or let you broadcast your own trading signals to other traders on the social trading platform.

Copy trading is a cool concept, but we urge you to be very cautious in who you copy, do your due diligence into the skills and trading strategy of anyone you’re looking to follow.

 

octafx trading platforms

 

Our Verdict On Trading Platforms With OctaFX

For us, we found the trading platforms offered by OctaFX to be sufficient. As long as a broker has MT4 and MT5 it should be more than enough for the majority of retail traders.

If you’re a more advanced trader, and you want more sophisticated tools, you may consider Pepperstone, Vantage, or IC Markets with a broader range of platforms.

Visit OctaFX

CFD Trading Products on Offer

OctaFX offers a reasonably small range of trading instruments, compared to other brokers.

The lack of options isn’t the worst thing, as OctaFX provides most major trading instruments, and fewer options can help you focus and not be distracted.

There is a total of 35 currency pairs to trade for most traders across the globe, but only 28 pairs are available if you live in the European Union. While 35 pairs mean OctaFX offers all the popular pairs to trade with, less popular pairs can be more volatile which means more opportunity to profit from this volatility. We think a good broker should have at least 60 currency pairs to trade with and you will find this with brokers such as Pepperstone (62 pairs), IC Markets (63 pairs), OANDA (70 pairs) and IG (100 pairs).

If you’d like to trade stock market indices, you can pick from one of ten of the major global indices. These include the SP500, Nasdaq, French CAC40, and Australian SPI 200.

If you’d like to trade individual stocks, you’ll have the option of trading 150 different stock CFDs, as long as you use MT5. These individual stock CFDs are of major global companies, such as Amazon, Meta, and Coca-Cola.

You can also trade 2 metals – gold and silver which is probably sufficient for most newbie traders.

OctaFX also offers the chance to trade energy products, such as Texas Crude, Brent Crude and Natural Gas.

Lastly, you can trade 30 different cryptocurrency CFDs on the OctaFX platform. These include all the most common cryptocurrencies, but looking at the live quotes, they were wide, we’re not sure we’d ever want to trade crypto on this platform.

 

octafx trading products

Our Verdict On Trading Products With OctaFX

All up, with OctaFX, you have access to most of the major trading instruments. It’s not the worst offering, but it’s surely not extensive.

Leverage

OctaFX offers anywhere from 10:1 leverage, all the way up to an eyewatering 500:1.

The difference in leverage depends on the product trading, and where you’re located on the globe, due to which regulatory guidelines apply to your account.

If you are in the European Union, your maximum leverage is capped due to regulatory requirements from CySEC, which is probably a good thing because too much leverage can destroy your capital almost instantly.

This means as a trader in the EU, you can get 30:1 leverage on currency pairs. For metals and energies, you can trade with 10:1 leverage, and for stock indices, you’ll be able to have 20:1 leverage. Crypto and individual stocks are a no-go, as they’re not offered for EU traders.

If you’re a Forex trader outside of the EU, things start to get wild.

Leverage on currency pairs is 500:1, which in our belief is too much, even for the most experienced and advanced traders.

Metals trading comes with 200:1 leverage, energy products with 100:1 and 50:1 for indices.

Individual stocks are a little more subdued with 20:1 leverage, and crypto a little higher with 25:1.

octafx leverage

Our Verdict on Leverage With OctaFX

All up, there is plenty of leverage on offer with OctaFX, but in reality, this is due to the fact that the company isn’t highly regulated by multiple government bodies like other brokers. This is in effect a safety issue.

Broker Trust and Safety

This is probably the most important segment of our review of OctaFX.

When you give your funds to a brokerage, you’re putting a lot of trust into that company with regard to a number of factors. Namely, how they’ll take care of your funds, how honest and transparent they’ll be with markets, spreads, and trading orders, and whether they’ll pay out your funds and profits when you go to withdraw.

Getting straight to the point, OctaFX isn’t strong in the safety department. The broker is regulated by Cyprus’ CySEC (Cyprus Securities and Exchange Commission) which means they can offer trading services to all clients in the EU. CySEC must comply with the same requirement set by ESMA (the financial body for the EU) that all financial regulators within the EU borders must follow. The standards set by ESMA are quite high, not dissimilar to those set by the FCA in the UK and ASIC in Australia.

OctaFX is also registered as a company in Saint Lucia with the trading name OctaMarkets. All clients outside the EU will join OctaMarkets.

Saint Lucia allows companies to self-regulate themselves as long as they comply with the country’s laws. This means clients with OctaMarkets don’t have any form of regulatory protection so you can only trust OctaFX operations meet the standards you would hope. As this subsidiary is not regulated, OctaMarkets can be called an offshore broker.

What we can tell you is that OctaFX does have segregated accounts which is the minimum you would expect to see from a broker as you don’t want them to be able to access your funds. They also claim to have highly skilled security engineers and technical specialists to ensure your data is safe.

One other side note is that OctaFX used to be located in St Vincent and the Grenadines. In late 2022 or early 2023, they moved to Saint Lucia – this was around the same time, Saint Vincent announced a tightening of their supervision of foreign companies. While we have no idea the reason OctaFX moved to Saint Lucia, we thought the timing of moving to a country with more relaxed supervisory practices was interesting.

octafx regulation

Our Verdict on Brokers Trust With OctaFX

So, OctaFX really only has one watchdog, and that’s CySec.

On the plus side, the company has been around since 2011 and seems to have plenty of positive reviews across the internet. Trustpilot gives them a rating of 4.5 out of 5 stars from 6255 reviews.

But, it must be said that depositing funds and holding your capital with OctaFX is definitely a higher risk than trading with other, more regulated brokers.

A side note, with something that we’ll discuss later, is that the customer support person wasn’t able to communicate major details regarding the regulatory processes of OctaFX.

This one is definitely you should beware of, we wouldn’t want to keep major amounts of funds in OctaFX.

Customer Service and Support

If you want to find out something regarding an OctaFX account, or something goes wrong with your trading platform and you urgently need to speak with customer care, you’re left with one option: Head to the website and speak to someone on live chat.

Many other brokers will offer email, or phone options, which can often be more useful if you need to know something complex, or you have an urgent problem.

For OctaFX, it really is just the live chat, where initially you’ll chat with a chatbot, and you’ll then often be directed to a customer service operator. Nothing unusual there as many brokers are doing this now still if you have a big trade position, and some error happens with the platform, you may have to wait on live chat while the markets rapidly moving against you and you’re losing money fast. This is extra frustrating because they don’t have a call number or even email to contact,

But, even for simple questions, we didn’t find the customer service options impressive.

Multiple times, we asked questions regarding things such as deposit options and broker regulations, and we were met with a long pause, followed by less than sufficient answers.

The customer service reps themselves seemed to not be trained to handle very basic questions, so we imagine if you have a complex inquiry, you’re going to be pulling your hair out.

For the record, their live chat team is mostly based in St Lucia or Cyprus and is 24/7.

 

octafx live chat about regulation

Our Verdict On OctaFX Customer Service

We think it is odd that OctaFX does not have an email or phone contact and we thought their live chat could be more knowledgeable. All up, this wasn’t good, and we’d like to see OctaFX greatly improve in this department.

Education and Research

OctaFX has quite an extensive research and education section on the company’s website.
There’s an economic calendar and regular news updates, which could be useful if you need to keep up to date with the latest fundamentals.

In terms of education, there are platform tutorial videos and a basic forex trading course, which would probably be okay for absolute newbie traders.

Uniquely, the company hosts regular webinars, with topics such as Fibonacci analysis, trading psychology, and even broadcasts where you can watch one of the company’s traders for an entire trading session.

Some of these educational webinars could be useful, but overall, we’d say it’s only really suitable for absolute newbies.

If you want advanced trading education, look elsewhere.

Visit OctaFX

How to open an account with OctaFX

We went through the process of opening an account, to see if there are any roadblocks or headaches that you may run into.

First we needed to signup, by entering our email and desired password.

Next, we needed to verify that the email was real, by entering a code that OctaFX had sent via email.

Once our email was verified, we had to input our name, date of birth and various personal details.

Next, we had to choose what type of account we were looking to open.

After that, we were at the stage where we could deposit our initial capital.

As we’d opened the account as an Australian, we were disappointed to see that there weren’t really any high-quality deposit methods. There was no bank transfer or credit card deposit option.

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After that, we were able to get a copy of OctaFX’s in-house trading platform running. It’s pretty simple to use, just select the currency pair you want to trade and click on the orders tab.

 

octafx in-house trading platform chart

How to Sign Up for an OctaFX Demo Account

We also went through the process of setting up an OctaFX demo account, it was again quite easy and painless.

We were able to choose whether we wanted an OctaTrader, MT4 or MT5 account, and the initial demo-money amount for the demo account. We chose MetaTrader4 with $5000 of capital to start.

In just another couple of clicks, our demo account was open, and we could now have access to the trading platforms.

We tested the OctaFX trading platform again but with the demo account login. It worked smoothly.

Charting was easy to use, and we were able to start trading in no time at all.

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OctaFX isn’t the only broker we have tested for opening an account, read about our account opening experience with other brokers.

 

Visit OctaFX

Our Overall Verdict On OctaFX

Overall we thought OctaFX lacked in many areas.

  1. When it comes to spreads (costs) you can find brokers with tighter spreads for Standard accounts.
  2. OctaFX lacks a RAW spread account option which is popular with scalpers and high-volume traders
  3. Lacks in range of products to trade especially currency pairs which is a paltry 38 pairs
  4. Live chat customer service could be more knowledgeable
  5. Does not have regulatory protection if you are outside the EU

The main feature OctaFX offers of note is the absence of swaps. For this reason, OctaFX is one of the better choices if you require a sharia-compliant Islamic trading account.

Visit OctaFX

About the author: Justin Grossbard

Justin Grossbard is the co-founder of CompareForexBrokers and since 2014 with the role of Strategic Head Of Research. He is a member of the AICD and holds a Master's and Bachelor's Degree in Commerce. He previously worked with the banking sector, including ANZ and is a contributor to Finance Magnates, Kiplinger and Forbes. He has also published a book on alternative investments which is available on Amazon.

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