OctaFX Review For A Pure, Low-Cost ECN Trading Experience
OctaFX is one of those Forex brokers that have an excellent reputation in the financial markets due to their unique service offering, which caters to the different requirements of a wide variety of retail traders. OctaFX has kept it simple for traders to enter the markets using the best trading conditions, which is one of the primary reasons why OctaFX has grown from strength to strength since its launch in 2011. OctaFX seems to be highly committed to ensuring an excellent result in customer satisfaction and client retention. We have personally witnessed the company’s relentless pursuit towards addressing customer complaints through numerous online forums, and it is commendable that a broker is dedicated to enhancing its reputation among existing clients. In this day and age where most brokers are only concerned about making a profit through unethical means, OctaFX proves to be highly proactive in eradicating consumer complaints by actively working with their clients and ironing out issues through amicable means.
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Trading instruments, or securities, are the various market types you can trade. Examples include CFDs, stocks, currencies, metals, and commodity futures.
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Platform for trading Forex, analysing financial markets and using expert advisors.
OctaFX has its customers in over 100 different countries and is primarily registered in Saint Vincent and the Grenadines, an island in the Caribbean. Normally, we would be apprehensive about companies situated in a tax haven; however, it seems that OctaFX regulation is also carried out by the FCA. It is strange that the OctaFX website fails to mention its FCA regulated status, even though the FCA website explicitly indicates the active regulatory status of the company. Nevertheless, US traders are barred from opening an account with the broker due to the existing CFTC and NFA guidelines.
What Makes OctaFX Trading Accounts Special?
OctaFX offers an ECN account for as low as $5 initial deposit and is one of the very few brokers to do so. $5 qualifies for either an MT4 Micro account or the cTrader ECN account. MT4 and cTrader are the two primary OctaFX platforms, and the broker has covered a majority of the traders by offering two of the most popular platforms in the currency market. Although MT4 is the more popular among the two trading programs, cTrader offers advanced trading features that suit a particular group of retail and institutional traders. cTrader platforms are also better matched for the ECN platform, which essentially lowers the OctaFX spreads to 0 pips with a small commission per trade. The third type of account, the MT4 ECN account, comes with a slightly higher initial deposit, but it is still manageable at $50, which is significantly less than other brokers that require at least $1000, or even $5000 to open an ECN account. However, credits where credits are due, the maximum OctaFX leverage is 1:500, which is immensely high for trading the currency markets with a small amount. The higher leverage is especially risky to trade in the cTrader platform, as the minimum position size is 1K. Investing the entire $5 can substantially induce a margin call if the price moves against a position by around 45 pips, and it is usually common to see wild swings in prices for volatile currency pairs such as the GBP/USD and the EUR/JPY. Even small 10 pips losses can have devastating effects on an account, and the huge amount of leverage is not suitable for all traders. The OctaFX spreads are highly competitive for all three different account types, and the commissions are also on the lower side. The Micro account has a relatively lower number of tradable assets, which includes 12 currency pairs, gold, and silver, while the MT4 ECN and cTrader ECN accounts have access to 30 and 50 instruments respectively. The cTrader account is also free from SWAP, which can further reduce the cost of trading for overnight trades. Be careful about weekly rollovers, as the broker charges a fee for trades that are carried over the weekend.
How Can I Deposit & Withdraw Money? Do I Get An OctaFX Bonus?
OctaFX supports multiple payment options and also offers a local currency deposit option for traders in 100 different countries. The $5 minimum deposit option is only available through credit cards or local bank transfers, while a minimum deposit of $50 is required for online payment processors such as Skrill and Neteller. The initial deposit is also eligible for an OctaFX bonus of up to 50%, but there are an enormous set of terms and conditions that make it non-feasible to accept a deposit bonus. While a 50% bonus can increase the equity of an account, it is not advisable for traders who expect to make a withdrawal well before meeting the bonus terms and conditions. Both the MT4 and cTrader platforms are available for iOS and Android devices, and can be downloaded from the respective iTunes and Google Play stores. The broker offers a personalized OctaFX mobile trading platform that connects to the OctaFX servers through a seamless channel, and traders can manage their accounts through a mobile device from anywhere in the world.
OctaFX has an award-winning customer support channel, and it is their unwavering devotion towards their clients that has earned an excellent reputation for the company. OctaFX is a relatively popular Forex broker, and it is partly due to their brand image and a remarkable penetration among smaller retail traders. During their initial years, OctaFX was not regulated and suffered from several brokerage-related issues, which had earned them criticism from several quarters. But the broker was quick to own up to its mistakes and started providing a good service that is synonymous with the leading mainstream FX companies in the present day financial markets. OctaFX is certainly worth a shot, as traders can take advantage of an ECN account using a small deposit, but as a trader, you should be careful about using the high leverage offered by the company. OctaFX is also prompt with its payments, and FCA regulation apparently goes a long way into ensuring that all client funds are kept safe and secure to offer complete peace of mind to the trader.