Unregulated Broker that Steals from its Clients
In this OctaFx review 2020, Iíll throw light on how this shady broker is scamming people and running an illegal operation. I have discussed every aspect of this company in detail, to make sure that you can make an informed decision without any hesitation. I hope my review will help you in understanding the reality of this broker:
OctaFX has customers from many countries but it is still difficult to find good OctaFX review India and OctaFX review Canada. This is why we decided to put forward the honest truth.
OctaFx is operating from Saint Vincent and the Grenadines region. Their address is Suite no. 305 of the Griffith Corporate Centre in the Beachmont Kingstown region. I randomly searched for the details of the address on the internet and the results are shocking.
Not all of the companies may be operating from the same address only. I have tried to incorporate the screenshot of the few brokers located at the same address as that of the company.
It is not possible that all of the companies are operating from the same address. It seems as though the broker provides a virtual address to deceive traders.
Saint Vincent and the Grenadines is a weak region in terms of the regulation of forex brokers. It is clear from the long list of companies operating from the same address. Another major shock is that all of these companies claim that they have completed the verification process with the same regional authority. There is no chance of multiple forex brokers to have approved registration from the same address. It is well-known to brokers that the offshore locations are perfect for tax evasion, and illegal activities. My OctaFx review advises traders to stay from the brokers operating from such offshore regions.
OctaFX Does Not Have Regulation!
After dismay from the so claimed ďregistered addressĒ of OctaFx, it is mandatory to check their regulation status. OctaFx is not a publicly registered broker.
The broker mentions that it is under the governing laws of Saint Vincent and the Grenadines region. There is no other supervisory authority which is overseeing their activities. There is no evidence of the regulation of the broker by the Financial Service Authority of Saint Vincent and the Grenadines. Hereís a screenshot to explain it better:
Next in the line is their fake claim about their regulation by the reputed Cyprus Securities and Exchange Commission (CySEC). A detailed look at the website of the regulation authority clarifies that the authorized domain of the regulated company is www.octafx.eu but the promoted domain is www.octafx.com. In addition to this, the owner of the domain www.octafx.eu is Octa Markets Cyprus Limited.
The European Securities and Markets Authority (ESMA) imposed a ban on the promotional bonus by this firm. OctaFx claims to work under the regulation of the Cyprus Securities and Exchange Commission (CySEC) which works under the ESMA guidelines. The broker thus is not eligible to provide promotional bonuses to traders. In a complete contradiction to this, OctaFx flaunts the 50% bonus offer on its website.
The non-adherence to the ESMA guidelines clarifies that there is no association of the broker with the Cyprus Securities and Exchange Commission. The broker trapped itself in the cobweb of fake claims by offering the 50% bonus to traders. Professional traders can check the websites of any of the CySEC regulated brokers that they never offer any sort of promotional bonus to traders.
The Arlear Incorporation OU is responsible for the operations of the website of the OctaFx. I understand the improper screenshot of their ownership details but this is how they have presented them on their website. There are no results for Arlear Corporation on the internet.
OctaFx also mentions in its terms and conditions that it is operating through a single website only. Please refer to the screenshot of the same.
The straight conclusion from all of the contradicting and limited data is that the company tries its best to fool traders using false claims. The claim of regulation by the Financial Service Authority of Saint Vincent and the Grenadines has no proof in its support. Their address of the SVG region is a duplicate address and many companies have the exact same address. Their second claim that they have an association with the reputed Cyprus Securities and Exchange Commission (CySEC) is untrue. The address and the ownership details of the firm associated with the registered broker are different from the address of OctaFx. My OctaFx review suggests traders to stay away from their shady and fraud operations.
Third-Party Payment Processor
Octa Global Technologies LP is responsible for processing the payments of the trading accounts of OctaFx. A screenshot of the details of the payment processing is below.
As discussed earlier, there are issues related to their regulation and registration. And apart from that, their parent company isnít responsible for any financial transactations. It is strange that a different company, which belongs to the Republic of Ireland. oversees the payments. There is no link between this company and the region of Saint Vincent and the Grenadines. All these conditions add to the gripe of traders.
Online Presence of OctaFx
Their website is full of animations. It looks like it is a kidsí website. The website is highly colorful with no links to professionally created content. While writing my OctaFx review, I realized that they have kept their website quality low, which is a significant red flag. The images on the website are of average quality. The web page is very long and the journey of the visitor on the website is not pleasant.
Traders should get exact information about the services of the broker without any distraction from unwanted elements. This interface does not reflect any professionalism on the part of OctaFx. The broker fails to increase the reach of its website to a wider audience. The basics of location, ownership, trading services are not accessible. The broker fails to keep the website updated with real-time data. Without any doubt, the broker loses hundreds of good expectant customers due to the bad website only.
OctaFx Social Media Presence
The Facebook account of OctaFx publishes a post about the wallpapers offered by them. It is strange but true that the place of services is given to the wallpapers. The wallpaper is full of cosmic illustrations. My OctaFx review respects the creativity but there is no link between the broker and the cosmos.
The same problem exists with the Twitter account as well. The last post on their twitter account was in April. Another concern is that there are fewer followers of the twitter account as compared to any other company. It raises many eyebrows as efficient brokers have a good list of followers and connections on social media.
The online presence of OctaFx seems like the website and the social media accounts were made only for the sake of them. There is no care given to the abandoned accounts. There is no dedicated team responsible for their online response management. An experienced team in handling the website and the online accounts is a mandate for brokers. There is so much competition in the market and traders have lots of options to decide from. The internet has a lot to offer to visitors. The quality content is the first responsibility of any website. OctaFx fails to match the expectations of traders.
Limited Customer Support
OctaFx fails to provide round the clock customer support to its clients. There is no facility of 24*7 customer support and dedicated phone numbers for regional linguistic support provided to traders.
There is no email-id so the traders can contact the company. Some serious issues require the person to share information through email but there is no such provision.
An organized and well-equipped technical support is the measure of quality care for the customers. Any company cannot serve in the respective industry without giving serious attention to customer care. OctaFx fails to provide good and reliable customer support to traders on email, phone, and Skype. There is no outline for the process to reach the technical support team according to the type of issue faced by the broker. It is a case of neglect in which the company tries to save its cost and efforts in helping traders. Traders should not let the negligence of the broker take a toll on the invested money.
Regulated brokers establish a committed customer support team. It has various verticals of non-technical and technical support to traders. The quick responding team is the key to break the barriers between the broker and traders. OctaFx does not realize the importance of the high-end customer support and traders are left to linger on with their grievances.
I realize why OctaFx hasnít put in much effort in providing customer support. They donít care about their clients. They only want you to invst as much as you can so they can steal from you. Itís either that, or maybe their organization is so faulty that they donít want to hear the complaints of their various customers. In any case, OctaFx isnít doing a good job in this field.
OctaFx and its Terrible Trading Conditions
Unlike other regulated brokers, OctaFx does not have many trading instruments. It is not beneficial to traders as they donít get many options to choose from. Whatever may be the condition of the market, traders have to deal with the same assets only.
Strange Leverage Conditions
The leverage ratio provided in the accounts of the OctaFx is on a pro-rata basis to the invested amount. The leverage ratio starts as high as 1:500. It is against the high invested amount of $5000. Other regulated brokers have a competitive leverage ratio of 1:100. The leverage ratio provided by the broker is not competitive. The minimum leverage ratio is 1:33 against the amount of $200,000. Following is the detailed chart about the leverage ratio of OctaFx.
The high leverage ratio cannot provide profits to traders. The leverage ratios in the trading accounts of the regulated brokers are competitive, but thatís not the case here. It allows a fair chance for traders to deal with the volatility of the forex industry. The non-provision of essential levels of the leverage ratio is a major disadvantage to traders.
OctaFx Offers Terrible Spreads
The spreads of the trading accounts are enormously high. In particular cases, the spreads reach as high as 56 pips. The spreads of regulated brokers start with as low as 0 pips for the popular pair of EUR/USD. The live trading accounts of OctaFx suffer overnight changes in the spread. The high performing assets of the trading accounts suffer changes in the spreads as well. This is the cheap policy of the broker which aims to steal as much as possible from the trader.
No PAMM Accounts
There is no provision of PAMM Accounts for traders of OctaFx. The PAMM or Percentage Allocation Management Module accounts are the best tools for professional traders. It is the advanced form of trading apart from the traditional methods in which an investor provides capital and another trader completes the trade execution.
It is a popular method of trading as the investor only provides capital to the trader. There is no worry of keeping a check on the trading market as the expert trader takes care of the same. The results of the PAMM accounts are far better than the results of the standard live trading accounts. There is less risk involved as the investor gets a percentage of profit in the smallest profit as well. OctaFx fails to understand the importance of PAMM accounts.
Itís a greedy enterprise that doesnít want to see its clients succeed. It only wants to empty their wallets.
Live Trading Accounts with Limited Services
The company provides 3 types of live trading accounts to traders.
The first account is a Micro account. There is no facility of the MT5 and cTrader on this account. The leverage ratio is as high as 1:500.
The second account of OctaFx is the Pro account. Here too, you donít get the trusted MT4 platform, which is the best for forex trading. It requires a high minimum initial deposit of $500. The minimum initial deposit requirement is 10 times higher than the MT5 trading accounts of the regulated brokers.
The third account is the ECN trading account. There is no option of the Meta Trader platform for the ECN account and the leverage is as high as 1:500.
OctaFx Withdrawal Fee
OctaFx claims that it takes only 3 days to process the withdrawal requests. This is not true. The broker takes more than 7 days to credit the money into the account of the trader. Along with this, there are some conditions without which the broker doesnít entertain any withdrawal request of traders. These conditions require the availability of proper margin, all necessary information, and the proper clarity on the payment channel. The list of guidelines is in the snapshot below.
OctaFx takes the sole discretion to charge any amount of fee from the trading account of the investor. Any charge deduction by the broker should be clear to traders. There are no details about the withdrawal fee related to the amount of the withdrawal. It is not an appreciable step as all of the regulated brokers provide a clear list of the payment partners to the company along with the amount and the fee details for the channels of payment.
OctaFx creates its supremacy in releasing the funds of the trader. Unlike regulated brokers, the funds of traders depend on the mercy of the broker. The broker accepts or rejects the withdrawal requests at its sole discretion only.
High Fee for Holding Position
OctaFx charges a three-day fee for opening the position for more than 3 nights. It is an enormous amount as compared to the charges of regulated brokers. The provision of keeping the open position is already in the best trading accounts of the regulated brokers. To my disappointment, traders of OctaFx have to pay a definite fee for the same purpose. The screenshot supporting the high fee is as below.
Missing List of Payment Partners
OctaFx fails to provide a detailed list of the payment partners associated with them. Regulated brokers always mention a clear outline for the payment modes accepted by them. It contains the list of the payment modes and the fee associated with them. In addition to this, the minimum withdrawal and deposit amounts are also mentioned. Regulated brokers understand that the safety of investor funds is only in segregated accounts. They also mention the banking partner associated with each region. But OctaFx doesnít mention any of these details. Thatís a cause of concern because you might deposit your funds but never get them back because their accepted payment method isnít available to you. OctaFx has tried many shady tactics to deceive traders, thatís why they are a dangerous business.
Cancellation of Account
I have found many OctaFx complaints where they suspended their clientsí accounts for no reason.. The broker cancels the trading account of traders when they request any significant withdrawals. The snapshot of the sole will of the broker is as below.
The broker is not working under any secure and regulated area. OctaFx again enjoys its sole-discretion in suspending the trading accounts of traders. Opening and closing of trading accounts are not under the will of a trader. It is under the will of the broker. The money involved in the trading account lapses automatically with the suspension of the trading account.
In other words, they can suspend your account anytime and steal your funds without facing any problems. They can get away with stealing from you. OctaFx is a thief disguised as a forex broker.
No Educational Resource
OctaFx fails to provide educational support to its traders. There is no provision of good educational materials like video tutorials, and written documents like the detailed but simple e-books which makes a trader aware of the trading terms and the appropriate trading processes.
A new trader needs to understand the market before doing business. The demo account simulates the conditions but there is no guide available in the demo account. Thus there is a strong need for a simple and elaborative education corner. A mention of the basics is not sufficient to meet the needs of all traders.
The fake claims of the services and registration together with the limited services and customer support do not make it an ideal broker. Instead, they are eye-openers for anyone looking for a forex broker.
You should keep a distance from such unregulated and malicious brokers. They are unreliable and shady. I hope my OctaFx review will help you in staying safe. Donít bother working with them, there are plenty of options in the market, choose from those.