OctaFX Broker Review
Table of contents
OctaFX is one of the many CySEC regulated brokers and with offices all around the world, they are well-established. They may have a lack of multi-regulation, but traders around the world still trust them as their broker of choice. Established in 2011, they have made their mark in the industry as a beginner-friendly platform. They offer ECN and STP execution, allowing for swift execution and tight spreads.
OctaFX offer traders three trading platforms, MetaTrader 4, MetaTrader 5 and cTrader. One of the many tools offered by them is AutoChartist, assisting with trading analysis.
They offer two account currency options, of which none are ZAR. Traders will be happy to know that hedging and scalping are allowed thus does not limit your way of trading.
You can find our comprehensive OctaFX broker review below.
Pros / Cons
- Bitcoin deposit option
- cTrader platform
- High leverage
- Limited Forex pairs
- No local offices
- No FSCA regulation
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OctaFX is a regulated Forex broker, featuring multiple regulatory licenses listed below.
- CySEC (Cyprus Securities and Exchange Commission): 372/18
- SVGFSA (Saint Vincent and the Grenadines Financial Service Authority): 19776
While OctaFX may not be regulated by any of the major international regulatory bodies such as the FCA or ASIC, they still responsibly structure their business.
One primary regulatory requirement of the major bodies is that client funds should be separate from business accounts. The separation is there to protect client deposits from being used in the case of the broker going into liquidation.
It’s worth noting that even though OctaFX may not have FCA or ASIC regulation, they still employ segregated accounts to keep client funds secure.
OctaFX also has a detailed, strict anti-money laundering policy. This policy highlights that while they may lack top-tier regulation, they’re putting in place structures required to gain further regulation sometime in the future.
OctaFX is an ECN Forex broker.
ECN stands for Electronic Communication Network and is the Forex broker business model in which clients’ orders are passed through to liquidity providers for execution.
Liquidity providers of OctaFX include some of the largest banks and financial institutions in the world, ensuring a deep book of bids and offers to aggregate their prices.
The bottom line to this is that OctaFX can offer clients some of the tightest spreads in the industry. They have zero commissions on MT4/MT5 accounts (STP) and highly competitive round turn commissions on cTrader accounts (True ECN).
As an ECN Forex broker, OctaFX has a policy of not requoting their clients.
It’s worth noting that anyone claiming to be an ECN, but requotes their clients’ orders, are running a dealing desk.
OctaFX runs an ECN trade execution model with no dealing desk. They pass on the full position to their liquidity providers, matching these positions against an aggregated list of bids and offers.
Because this particular business model sees ECN brokers make money by taking commissions off their liquidity providers per trade, this ensures that there is never a conflict of interest between trader and broker.
OctaFX would instead have their clients make money, so they trade more.
Forex Trading Education
The symbiotic relationship we just spoke about between OctaFX and their clients, is clearly shown by their Forex trading education resources.
OctaFX has split their education into the following three sections:
- Education: Forex basics, video tutorials and a handy Forex glossary featuring every Forex trading related term in the book.
- Analytics: Here, you’ll find all of the fundamental data, including a calendar, news and the interest rates of every major economy.
- Trader Tools: A range of calculators and MT4 plugins such as the highly popular AutoChartist tool, which makes spotting technical patterns a breeze.
Each of OctaFX’s Forex trading education courses and articles are accessible free of charge. Specific premium tools such as AutoChartist will require a live account to access. Overall, this makes them a beginner-friendly broker, alongside easy to use platforms.
OctaFX has a wide range of customer support options for both clients and prospects.
With some form of customer service available 24/5 Monday to Friday, you can be confident knowing that if you have a question or specific need, it won’t go unanswered.
For high priority support requests that require an immediate response, the fastest way to get in touch with OctaFX is through their website’s LiveChat feature.
If you’re looking for a more detailed response to a more severe support issue, then phone or email is the best available option.
- LiveChat: Available Monday – Friday, 24/5
- Email: Available Monday – Friday, 24/5
- Phone: Available Monday – Friday, 24/5
- Whatsapp (Text): Available Monday – Friday 24/5
- Telegram: Available Monday – Sunday 24/7
- Social Media: Available Monday – Sunday, 24/7
Deposits and Withdrawals
OctaFX has a range of deposit and withdrawal methods, each with varying execution times available. Their minimum deposit starts at only USD 50.
Their account funding options are seamless, with not a single deposit method featuring any sort of commissions or hidden charges. When it comes to funding your OctaFX account, what you see is what you get.
While on another OctaFX broker review, you may have found more account deposit/withdrawal methods, note that these vary by country. For South African Forex traders, the following funding methods are available:
- Credit/Debit Card: Both Visa and MasterCard options are available, and funds are typically available in your account immediately.
- Bitcoin: Bitcoin deposits are simple and available worldwide. Keep in mind that while OctaFX doesn’t charge a fee, a Bitcoin network fee will apply.
- Skrill: OctaFX allows clients to use the online transfer service Skrill, focusing on low-cost, international money transfers. Perfect for South African Forex traders.
- Neteller: This is another online transfer service, used to transfer money to and from merchants such as OctaFX.
- EFT: South Africans can enjoy local deposits via all major banks.
- Bank Wire Transfer: The option is also available to do a wire transfer if you wish to go this route.
OctaFX also has a 50% deposit bonus for all clients to increase their trading margin. This bonus can only be withdrawable once it has been traded a certain number of lots.
Due to anti-money laundering regulations, the method you use to fund your account must also be used for withdrawals.
OctaFX trading accounts must be denominated in USD or EUR only. Unfortunately for South African Forex traders looking to trade in ZAR, this is not possible.
One of the best aspects of this OctaFX broker review is the fact that negative balance protection is available to all clients.
OctaFX is a broker that focuses on risk management. While as an ECN broker, aren’t able to guarantee fills, they ensure their clients can never lose more than their initial deposit.
OctaFX offers demo accounts on MT4, MT5 and cTrader. Just be aware that logins vary between MetaTrader demo accounts and cTrader demo accounts.
OctaFX is famous for their long-standing demo contests where prospective clients can share in a monthly $1000 prize fund of real money. Simply sign up for a demo account using the link within our OctaFX broker review to be eligible.
The leverage for South African Forex traders at OctaFX varies depending on your account type and asset that you’re trading.
- Forex: 1:500
- Commodities: 1:200
- Indices: 1:50
- Crypto: 1:2
Keep in mind that during times of expected market turbulence such as in the run-up to significant elections of referendum votes, OctaFX will warn clients via email before implementing any temporary adjustments to margin requirements.
Spreads and Lot Sizes
OctaFX MT4 and MT5 accounts offer a minimal volume of 0.01 lots and 1:500 leverage across all Forex currency pairs.
As an ECN Forex broker who source their prices from several top-tier liquidity providers, their spreads are variable, with the following average spreads under normal trading conditions.
Average ECN Account Spreads on Majors
- EUR/USD: 0.7
- GBP/USD: 0.8
- USD/JPY: 0.7
- AUD/USD: 0.9
OctaFX offers three account types, each running on different trading platforms and featuring a range of trading conditions to suit different types of traders.
OctaFX also has one of the industry’s best Islamic accounts. Islamic accounts are 100% Shariah-compliant, meaning there are no interest payments or charges on positions held overnight.
To be eligible for an Islamic account with OctaFX, you must be of the Muslim faith and check the “swap-free” checkbox when opening an account.
One of the disappointing aspects found in this OctaFX review has been the lack of flexibility around trading platforms and account types.
The trading platform is dependent on which account type you choose to open, limiting your choice significantly if you’re after a particular account function, but don’t want that specific platform.
The three trading platforms available to OctaFX clients are as follows:
- MetaTrader 4: MT4 is the industry standard trading platform for retail Forex traders. The MT4 trading platform is the trusted solution offering a range of trading and analytical tools to implement most trading strategies.
- MetaTrader 5: MT5 is the next generation trading platform from MetaQuotes. It goes above and beyond the features of MT4, increasing the number of timeframes and tools, while allowing traders the ability to both net or hedge positions.
- cTrader: cTrader is a robust and comprehensive trading platform, designed for more experienced Forex traders. cTrader boasts a sophisticated back end, level 2 pricing, rapid order execution and order types such as OCO orders.
Each of these trading platforms are available across desktop, mobile and web-trader apps.
OctaFX also has a proprietary trading and copy-trading apps which are worth a look if you want to learn more about where your trading signals originate.
IB Affiliate Program
Affiliate marketers from South Africa have the opportunity to join the OctaFX Affiliate Program and market a genuinely global Forex broker to their friends or client list.
The OctaFX affiliate program offers tailor-made solutions for top affiliates, boasting high payouts with no limits on earnings.
There are two affiliate paths to market OctaFX:
- Refer a Friend: For traders who have one or several friends to refer to OctaFX.
- Affiliate Program: For Forex gurus, strategy providers, webmasters and local representatives.
To become an affiliate for OctaFX, you must get in touch with their marketing department and discuss potential terms of your partnership.
OctaFX Review Summary
After reading our complete OctaFX review, we’ve hopefully helped make your decision on choosing a Forex broker in South Africa a little easier.
Being a well-established broker regulated by CySec, South African Forex traders can trust that OctaFX is transparently run and are a solid choice for both novice and expert traders alike.
We value your feedback. Leave a comment below this review.