OctaFX is the name you must have seen in YouTube commercials so often. The platform is a multi-asset CFD broker headquartered in St. Vincent and the Grenadines. According to the company website, over 10 million trading accounts have been opened with OctaFX across more than 180 countries. But, like every other trading app, there are certain risks with OctaFX too. For some reason, it's also banned in the United States. With that said, let's start discussing the pros and cons of OctaFX.
With a 50% deposit bonus, referral programs, and over 350 educational materials, OctaFX has many benefits to offer to FX traders. Some of the main advantages of OctaFX include:
OctaFX offers some of the lowest spreads in the trading market. The starting spread for most major currency pairs is as low as 0.2 pips, which is attractive to traders who want to make profits in short-term trades.
The platform currently offers about a dozen payment methods, including electronic wallets (Neteller, Skrill), credit cards (Visa, MasterCard), and bank transfers. This makes it easy for traders worldwide to deposit and withdraw funds without any hassle or delays.
OctaFX is regulated by both the Financial Services Authority (FSA) in St. Vincent and the Grenadines and the Cyprus Securities and Exchange Commission (CySEC). The trading platform is also accessible in the United Kingdom. If you are a newbie in FX trading, you can be sure that your funds are safe at OctaFX.
Setting up an account on OctaFX is super easy and convenient, as you can start trading with a low balance. Even if you are starting out, you can easily get into the world of online trading without risking a large sum of money (if that’s your concern).
The company does well when it comes to providing research materials for traders. OctaFX offers a variety of trading platforms, from MT4 and MT5 to their own OctaTrader platform, as well as webinars, daily market analysis, and other helpful resources. Furthermore, they have numerous Video tutorials to help you succeed in the FX trading industry before you get on board.
There are always some uncertainties looming around any platform for online trading. You need to consider the following disadvantages of OctaFX before signing up:
OctaFX is based in St. Vincent and the Grenadines, which does not have a developed regulatory framework for FX brokers. This clearly indicates if something goes wrong, you won’t be able to file a complaint with any local regulatory body and get your investments recovered.
The platform is currently banned in the United States due to strict regulations imposed on US-based traders. Therefore, US residents cannot use OctaFX as their trading platform of choice.
The company only offers customer support via live chat, which is inconvenient for some traders. Although the response time is usually quick and reliable, you may have to wait a few hours for a response during peak trading periods.
According to Forex brokers, the trading platform scores just 69 out of 99 overall, which is lower than the industry average of 79. This could indicate that some traders are having issues with OctaFX.
OctaFX has a limited selection of assets compared to other brokers – you only have access to major currency pairs, indices, and commodities. So if you're looking for something more exotic like ETFs, stocks, or options, this might not be your best platform.
Conclusion
OctaFX is a popular and well-regarded forex broker that offers competitive spreads and a range of useful features for traders. Now, the company has also expanded its roots in many countries. However, there are always certain risks associated with the platform, including high leverage and limited asset selection. Ultimately, it will be down to you as an individual trader to decide whether OctaFX is right for your needs.
Yes, OctaFX is regulated by both the Financial Services Authority (FSA) in St. Vincent and the Grenadines. But, there is no way you can complain against the company in your local authority in case something goes wrong.
No, unfortunately, OctaFX is not available to US-based traders due to regulatory restrictions.
OctaFX accepts eWallets such as Neteller or Skrill, credit cards like Visa or MasterCard, as well as bank transfers.
OctaFX offers different account types for traders, including Micro, Pro, and ECN accounts.
