Have you chanced upon the OctaFX website and wondering whether this broker is a scam or legit? Would you like an OctaFX review that will answer any queries or doubts you might have about trading with OctaFX? Then this OctaFX review is for you.
OctaFX is one of the most popular FX brokerage sites online because it offers cTrader and MetaTrader 4 and 5 accounts. The firm has been in operations since 2011 and offers financial instruments such as cryptocurrencies, metals, Contracts for Difference (CFD), and currency pairs for trade. Its trading platforms have a desktop, web (Mac and Windows), and Mobile (iOS and Android) versions.
Also, they have an OctaFX trading app. This brokerage firm has won multiple trading awards including a 2019 best mobile app and best FX broker award. OctaFX has systems in place that have been vouched as reliable and convenient bringing in many customers in the close to 100 countries that they operate in.
Looking into independent OctaFX reviews, you will notice that there seems to be trouble in paradise. Many traders have lost their money to OctaFX. If you have and would like to get your money back, book a free consultation with us, and let us help you to recover your wealth back.
Multiple negative OctaFX reviews
Savvy traders always study online reviews before depositing their cash with any forex broker. Performing a thorough internet search can reveal frauds quite easily. A staggering amount of negative reviews is a sure sign that something is amiss. A trader that has excess negative reviews could be either unreliable or not viable for trade.
However, how do you sort out the truly good and the bad online when depositing large amounts of capital? It is a well-known fact that some traders post negative reviews on a broker, due to their own trading mistakes and failed strategies. Is the high amount of negative reviews on OctaFX a work of detractors looking for the downfall of an award-winning business?
Rookie traders often make losses because their psychology gets in the way of good trading strategies. Such traders will, therefore, post reviews that blame their broker, claiming that the broker turned a winning trade against them.
The type of broker reviews that you should pay close attention to are those that point to broker greed or carelessness. Greedy brokers will for instance twist the process to rack up commissions at the cost of the trader. Some will move a quoted rate to trigger a stop order while others will veil their trickery using gimmicks such as juicy bonuses that cannot be withdrawn.
There are brokers also that make it difficult for you to withdraw your winnings. While a reputable broker will not hold on to your winnings and trading capital, an unscrupulous dealer makes withdrawals impossible.
OctaFX scam complaints
Their game plan is to get hold of your money, by ensuring that their deposit process is flawless and easy. When you want to withdraw your cash, they will play games with you, use stalling tactics, and frustrate you to the point that you will let them keep a part of your money. OctaFX has been accused massively of such malpractices. Some of the accusations levied against OctaFX include:
- Luring trader to sign up for deposit bonuses of up to 50%. The catch however is that to release the said bonus you would need to trade a massive number of lots that will cost a newbie all their earnings in the race for the bonus.
- Some traders have accused OctaFX of closing their trades without permission and when in the negative causing losses. OctaFX however has responded saying that they were acting within the stipulated rules in their agreements that ensure that accounts do not go in the red.
- Another group of traders on OctaFX has made claims this brokerage firm withholds cash when they make withdrawal requests. Some claim that their accounts have then been closed without any further notice and that all that they have received is their capital minus their profits.
- Some traders have also noted that OctaFX’s spreads are too high at some hours of trading, higher than the stipulated figures on their website. These spreads tend to increase dramatically especially on some pairs that give more profit.
Is OctaFX regulated?
When trading in FX you are advised to deal with licensed traders only because they have a regulator to answer to should they perform any trading malpractices. OctaFX seems to have a well-hidden regulatory problem, which we will reveal for your safety.
This business was launched in Cyprus in 2011 and has since then expanded and grown to the powerhouse it is. They have offices in 47 Strovolos Avenue, Nicosia, Cyprus, and Beachmont, Kingstown, Saint Vincent, and Grenadine.
Compared to other major brokers, OctaFX has a very light physical presence despite offering its services to a large number of countries worldwide. The firm has a Cyprus Securities and Exchange Commission (CySEC) license issued to Octa Markets Cyprus Ltd. This license however only covers its operations on www.octafx.eu. Its CySEClicense number #372/18 allows OctaFX trader’s to trade with the firm with a level of European regulatory oversight.
On www.octafx.com, you will find a St. Vincent and the Grenadines license that does not offer any regulatory oversight or restrictions from any European regulators. As mentioned in our ProfitiX review, an SVG forex license is very easy to access for forex brokers that flock to the tax haven for its tax benefits, lack of regulatory oversight, and robust privacy laws. These benefits for the FX brokerage firm leaves the trader highly exposed to rogue FX trading practices.
To cement its hold in the UK and achieve a high level of trust with traders, OctaFX in 2017 received the prestigious Financial Conduct Authority (FCA) regulatory license. This new development should have helped the firm to expand its reach globally and break into higher grounds. The business would have had to enforce better business practices and move its operations to a London office.
They would also have a higher cost of business operations and responsibilities. OctaFX decided to suspend its UK FCA license and in late 2019, paused the development of its UK subsidiary. The firm blamed its decision on the uncertainty surrounding Brexit. OctaFX is therefore an offshore entity.
Our OctaFX review conclusion
CySEC and FCA do not govern your trading account and its operations. If you deposit your money with OctaFX, you are taking a huge risk because this firm only has an SVG forex license that does not offer you any trading protection.
It, therefore, does not come as a surprise that many OctaFX reviews reveal broker malpractices such as withheld cash deposits or manipulated trading positions. If you have lost your money to OctaFX, get in touch with us. We will help you recover your hard-earned cash from this rogue dealer.