OctaFX UK Review
Octa FX UK offers its clients a choice 2 basic account types on the most popular forex trading platform MT4. Both account types offer fast market execution leverage up to 1:500, and floating spreads. Micro tradeable lots are available solely on Micro accounts, while ECN ones offer more instruments to trade in.
Swap-free (Islamic) accounts are also provided by this broker.
The Company. Security of Funds
Company Country Regulation
OctaFX UK Limited UK No longer authorized by FCA
Octa FX UK is the UK unit of offshore brokerage Octa FX. It is an award-winning forex broker that offers trading in 28 currency pairs and precious metals under attractive trading conditions on the popular MT4. Until recently, it was authorised to provide financial services by the UK’s Financial Conduct Authority (FCA), one of the most reliable regulators worldwide.
Apart from the numerous strict requirements to licensed entities, the financial regulation in the UK also involves a compensation scheme. All FCA-licensed companies are under the umbrella of the Financial Services Compensation Scheme (FSCS) and in the event of insolvency, there is a maximum compensation cover of £50,000 per person.
However, Octa FX UK lost its FCA authorization in 2017. The reasons for this are not clear:
Minimum Initial Deposit
The minimum initial deposit for Octa FX UK clients is just $5, a symbolically low amount.
Average Spreads & Commissions
This broker provides commission-free trading and tight variable spreads. Octa FX UK cites as typical a spread of 0.6 pips for the EUR/USD pair, which is a really good offer while most brokers offer spreads within the range of 1.0 – 1.5 pips.
For further information and comparison, you may look up real-time spreads of 15 leading brokers at topforexbrokers.com.
The maximum leverage level provided by this broker is high, reaching 1:500. In fact, many forex brokers offer leverage 1:500 and even higher, however that is probably about to change in UK, as FCA has proposed leverage to be capped to 1:50 (Like it is in the US).
Regulators impose restrictions on leverage in order to protect traders from the risks associated with trading on margin, which may lead to losses exceeding initial investments.
Unlike its sister company Octa FX, which offers MetaTrader 4 (MT4), MetaTrader 5 (MT5) and cTrader, its UK unit supports solely the MT4, available as PC version and mobile apps.
MetaTrader 4 continues to be the preferred choice of most traders and brokers, despite the fact that its developer MetaQuotes threatened to stop issuing updates to it. The platform is equipped with a number of technical analysis indicators, advanced charting package, Expert Advisors (EA) and extensive back-testing environment. Here is a list of more forex brokers offering MT4 platform. It comes in desktop and mobile versions.
Currently Octa FX Forex offers up to 50% bonus on each deposit.
Methods of Payment
Clients of Octa FX UK may choose from a wide range of payment methods: bank wire transfer, credit card, Skrill, and Netteller.
Octa FX UK is the UK branch of OctaFX group, which, however, is no longer licensed by FCA. The broker offers trade in currency pairs and spot metals on the industry’s standard MT4 under competitive trading conditions.
OctaFX UK Review Conclusion
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