Octa Review 2024
Website: www.octafx.com
Min. Deposit: US$ 25
Leverage: 1:30 | 1:500
Trading Platforms: MT4, MT5, Octatrader
Regulation: CySEC, SVGFSA, FSCA
Headquarters: SVG, Cyprus
Founded: 2011
Regulatory Licenses:
- Octa Markets Cyprus Ltd - authorized by CySEC (Cyprus) registration no. 372/18
- Octa Markets Ltd. - authorized and regulated by the Mwali International Services Authority (MISA) license number HY00623410
- Orinoco Capital (Pty) Ltd. - authorized by the Financial Service Provider (FSP) license number 51913 from the Financial Sector Conduct Authority (FSCA) in South Africa.
Updated on February 28, 2024
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Our review method involves a comprehensive, in-depth analysis of forex brokers, assessing over 1000 brokers based on various parameters such as regulation, fees, platform options, and customer support. We aim to provide a balanced view, highlighting both the strengths and weaknesses of each broker to help traders make informed decisions.
Octa, formerly known as OctaFX, is a globally recognized broker offering online trading services since 2011. It provides commission-free access to financial markets, boasting over 42 million trading accounts from clients in 180 countries. Octa is a technologically advanced brokerage firm, offering platforms like Metatrader4 and MetaTrader5, catering to a wide array of investment needs. Operating under a European CySEC license, Octa offers different trading conditions based on the regulatory environment, emphasizing the importance of understanding the specific offerings based on the entity under which a trader falls.
What Type of Broker is Octa? ▲
Octa is an STP Forex Broker, known for its secure trading environment and high standards of regulation. It offers a broad range of investment opportunities, making it a comprehensive choice for the global trading community.
Pros
Easy account opening process
Good trading conditions and platform selection
A wide range of instrument types
Cons
Different conditions offered by the international brand and Cyprus entity
The Cyprus entity is more trusted, but the international offering has more comprehensive tools and conditions
Octa Review Summary in 10 Points ▲
Headquarters: Broker located in SVG and Cyprus
Regulation: CySEC, SVGFSA, FSCA
Platforms: MT4, MT5, Octatrader
Instruments: CFDs on Stocks, Commodities, Forex, Metals, Indices, and Energies, Cryptocurrencies
Demo Account: Available
Minimum deposit: $25
EUR/USD Spread: 0.6 pips
Base currencies: USD, EUR
Education: Available only through international entity
Customer Support: 24/7
Based on our expert findings and review, we consider Octa's proposal a good one, with low fees and very low deposit requirements for Forex trading. Octa could be a suitable choice for regular size traders, scalpers, and Forex traders. Our Overall Octa Ranking is 4.0 out of 5, based on our comprehensive testing and comparison to over 1000 brokers.
Throughout its operation, Octa has achieved significant growth and development, receiving numerous international awards. With over 70+ international industry awards in 180+ countries, Octa has been recognized as the ‘Most Reliable Broker Asia 2023’ by Global Forex Awards and the ‘Best Forex Broker 2023’ by AllForexRating.com.
Octa provides a safe trading environment and is not a scam. It is regulated by several authorities, including the FSCA, MISA, and CySEC, which ensures a diverse and secure regulatory framework. Our Ranked Octa Safety Score is 4.0 out of 5, acknowledging its long-standing service and reputation. We recommend signing up with the CySEC-regulated entity for enhanced safety, as conditions at different entities may vary.
Octa has transitioned from being a brand under the Octa Markets Incorporated company, registered in Saint-Vincent and the Grenadines, to establishing a legal entity in Cyprus and receiving a CySEC license. This move signifies compliance with European ESMA standards and assures traders of Octa's legitimacy and safety in forex operations.
European regulatory requirements ensure client protection through funds segregation and the application of negative balance protection. Octa is constantly overseen by authorities to maintain safety compliance, and traders are protected by the Investor Protection and Compensation Schemes in case the broker goes bankrupt.
Octa enforces strict security protocols, including 128-SSL encryption for online data protection. It adheres to international AML/KYC standards, ensuring client verification to prevent illicit activities. Withdrawals are restricted to the methods used for deposits to secure traders' funds. The verification process, though potentially inconvenient, is crucial for trader safety. Negative balance protection limits traders' risks to their deposited funds, automatically adjusting the account balance to zero in negative scenarios, thus protecting traders during volatile market conditions.
Leverage serves as a powerful tool that can amplify both potential profits and losses in trading. It is crucial to understand and wisely manage leverage to harness its benefits while mitigating risks. Octa offers various leverage options, tailored to different market instruments, enabling traders to maximize their trading potential responsibly. The available leverage levels include up to 1:500 for currency pairs, with occasional promotions boosting it to 1:1000. For commodities, leverage can reach up to 1:200, while indices are capped at 1:50. CFDs on stocks and cryptocurrencies offer leverage of up to 1:20 and 1:25, respectively.
Risk Level
Utilizing higher leverage amplifies the risk of substantial losses, which is why regulatory bodies worldwide impose restrictions to safeguard retail traders. Octa's Cyprus operations, adhering to ESMA regulations, offer reduced leverage levels. European clients are subject to a maximum leverage of 1:30 for major currency pairs and 1:10 for commodities. However, Octa's international entity provides the option of using leverage up to 1:500 for traders outside the European jurisdiction.
Octa presents two distinct account types, each designed to cater to different trading needs and preferences. The Cyprus entity provides an MT5 account, ideal for the conservative trader, supporting diverse trading styles and social trading. The international offering includes ECN and PRO accounts, alongside a Micro Account on the MetaTrader4 platform. This is recommended for beginners, allowing micro lot trading with floating spreads starting at 0.4 pips or a fixed spread at 2 pips.
How to trade on Octa Demo account?
Octa offers the opportunity to open a Demo account, providing a risk-free environment to refine strategies and familiarize oneself with the trading platforms and conditions. Opening a Demo account is straightforward and can be done quickly by simply submitting a request on the website.
Octa's trading portfolio encompasses a wide array of market instruments, catering to traders' diverse interests. The offerings include Forex currency pairs, Metals, Energies, Indices, and an expanding range of Cryptocurrencies. Popular trading assets include major currency pairs like EURUSD and GBPUSD, indices such as NAS100 and US30, cryptocurrencies including Bitcoin and Ethereum, as well as metals and CFDs on stocks from 16 stock exchanges. The instrument score for Octa is rated at 4.5 out of 5, reflecting a robust selection of Currency Pairs and CFDs, although the available range varies by entity.
Octa is distinguished by its no-commission policy, with all costs integrated into the spreads. This approach ensures that traders retain their profits without incurring additional charges. The fee structure is considered competitive, with an overall rating of 4.5 out of 5, based on a comprehensive analysis of over 1000 brokers. While most deposits and withdrawals are free, it is advisable to review the terms to avoid unexpected fees. Octa's fee policy underscores its commitment to transparency and affordability in trading.
OctaFX offers competitive spreads across its MetaTrader 4 and MetaTrader 5 platforms, providing a spread-only basis with a minimum spread for EUR/USD at 0.6 pips. This rate is highly competitive within the industry. During promotional periods, spreads can decrease by up to 15%, offering even more value to traders.
To illustrate the value OctaFX provides, we've compared its typical spreads to those of other CFD brokers, taking into account fees, commissions, and any applicable inactivity fees. Our findings position OctaFX's spreads as some of the lowest in the industry for Forex and Commodities trading, earning it a 4.5 out of 5 score.
OctaFX ensures easy and convenient access to funds, adhering to strict money management rules. This broker enables account funding through bank transfers without complications, scoring a 4.5 out of 5 for its funding methods. The minimum deposit requirement is one of the lowest in the industry, starting at $25, though it's advisable to check specific instrument conditions for adequate margin coverage.
Pros
No charges for deposits
Multiple funding options for international clients
Cons
Limited deposit methods for European clients due to regulatory adherence
Regarding withdrawals, OctaFX processes requests within 1-2 business days and covers any applicable fees, ensuring quick access to funds. The primary withdrawal method is bank wire, with the same terms applying across all account types.
OctaFX stands out with its offering of the MetaTrader 4 and MetaTrader 5 platforms, catering to a wide range of trading preferences. Both platforms begin with spreads from 0.6 pips. MT4 supports 76 assets, while MT5 expands the offering to 273 assets. OctaFX also provides trading capabilities on mobile devices and desktops, with each platform offering unique advantages. The broker scores a 4.0 out of 5 for its platform availability.
Pros
Access to both MT4 and MT5 platforms
No additional platform options, focusing on quality over quantity
Cons
Limited to MetaTrader platforms, offering no proprietary alternatives
OctaFX provides 24-hour live support in multiple languages, including Bengali, Chinese, English, and more, through live chat, email, and phone. Our testing found the support team to be responsive and professional, earning a 4.0 out of 5 score.
Pros
Quality customer support with live chat
Fast response
Cons
24/7 support is not available for European clients
OctaFX has developed an advanced educational program, utilizing research and professional trading psychology evaluation. The broker's focus on education has resulted in two 'Best Education Broker 2023' awards. OctaFX provides comprehensive education and analysis, including quality videos and regular seminars, scoring a 3.5 out of 5.
Pros
Comprehensive education and training tools
Regularly updated materials and seminars
Cons
Lack of a Trading Academy for European clients
OctaFX offers a flexible trading environment with competitive conditions, platforms, and a wide range of instruments. The broker is regulated by CySEC, ensuring a high level of protection for traders. OctaFX is recommended for beginners, Forex traders, those who prefer MetaTrader platforms, and various trading strategies including algorithmic and social trading. Overall, OctaFX scores a 4.2 out of 5, making it a solid choice for traders seeking low spreads and a diverse range of trading platforms.
