OctaFX Nigeria Review 2020
OctaFX is a popular forex & CFD broker that is regulated with CySEC. Their trading fees is low compared to other brokers, and they offer local deposit & withdrawal methods at zero commissions.
OctaFX is a forex and CFD broker that was incorporated in 2011. The broker offers trading services in more than 100 countries throughout the world including in Nigeria.
OctaFX is incorporated in the Caribbean island of Saint Vincent and the Grenadines. They are regulated by CySEC which is a tier 2 regulatory authority in the jurisdiction of Cyprus. Apart from CySEC, OctaFX is not regulated by any other Top tier regulatory authorities like FCA, FSCA, etc.
OctaFX offers low number of trading instruments compared to other brokers. Other than card, and wallet for funding & withdrawals, OctaFX also accepts local deposit and withdrawal through local GT banks for the traders in Nigeria at zero fees.
We have reviewed OctaFX based on 11 factors to allow traders in Nigeria to choose the most suitable forex and CFD broker out of all the available brokers in Nigeria. Here’s our detailed OctaFX Nigeria review.
OctaFX Nigeria – A quick look
|Our verdict||#3 Forex Broker in Nigeria|
|Broker Name||OctaFX Nigeria|
|Lowest EURUSD Spread||0.6 pips (with MT4 Account)|
|OctaFX Nigeria Minimum Deposit||$100|
|Trading Instruments||28 Currency Pairs, 10+ CFDs on Cryptos, Indices, Metals & Energies|
|Trading Platforms||MT4, MT5 & cTrader|
Is OctaFX Nigeria Safe?
OctaFX is regulated by only one regulatory authority which forces us to give them a lower safety rating compared to other brokers available in Nigeria.
The regulatory authorities overlook the activities of brokers and safeguard the traders and investors by implementing regulations. If a broker is regulated by multiple top-tier regulatory authorities in multiple jurisdictions, it is considered safer.
OctaFX is regulated by following regulators:
- CySEC: OctaFX is only regulated by CySEC with license number #372/18 since 10th December 2018. The CySEC or Cyprus Securities and Exchange Commission is a financial regulator of Cyprus. Cyprus is a member of the European Union and hence CySEC complies with the European MiFID financial regulations. It is a tier 2 regulatory authority which makes it fairly safe for the traders in Nigeria.
OctaFX was launched in 2011 and has never faced severe market turmoil or withdrawal issues for clients. Also, the negative balance protection is an advantage for the traders in Nigeria.
OctaFX has partnered with an English football club named Southampton FC in 2015 which slightly improves the trust factor. Although, the broker does not have a parent banking firm and is not listed on any of the stock exchanges.
Overall, we give OctaFX slightly lower safety ratings than the other forex and CFD brokers in Nigeria.
OctaFX Nigeria Fees
The fees charged for trading and non-trading activities are an important aspect for the selection of a broker. We have covered 4 types of fees for OctaFX for forex as well as CFD trading.
- Low Spread – It is the difference between the ask price and the bid price for forex and CFD instruments. A higher spread means higher earnings for the broker while lesser returns will be granted for the traders.
OctaFX offers fixed as well as variable spread account types. The MT4 micro account type offers a fixed spread on 14 currency pairs but the account currency needs to be USD for the same.
The MT5 pro and the cTrader ECN account type have variable floating spread that keeps changing according to the market conditions.
We took EUR/USD as a benchmark to check the average spreads on the MetaTrader and cTrader account types on 24th November 2020. We found that the spreads on the MT4 fixed account type were marginally lower than most of the competitors of OctaFX in Nigeria.
The fixed spread for EUR/USD with the MetaTrader 4 micro account was 2 pips. The average spread for the EUR/USD currency pair for the MetaTrader 5 pro and cTrader ECN account type was nearly 1.2 pips during peak trading hours.
Below link on their website shows the Live spread for Gold/USD with their various account types:
- Average Commissions with cTrader Account – The commission is the extra fee that is charged by the brokers to execute trade orders. OctaFX does not charge any commission for the MT4 micro and MT5 pro account types.
But traders have to pay a fixed commission for the cTrader ECN account. The commission for the EUR/USD with the cTrader ECN account was 3 USD per Standard lot.
- Zero Deposit and Withdrawal Fees – OctaFX does not charge any deposit or withdrawal charges from traders in Nigeria for any of the methods. We checked the deposit and withdrawal fees using multiple sources in Nigeria and found that some of the banks or payment gateway can charge fees for the transactions but OctaFX does not charge anything for the same.
OctaFX allows deposits and withdrawals from the local banks in Nigeria without any hidden charges. The minimum deposit/withdrawal limits are different for each method.
- No Inactivity Charges – Most of the brokers in Nigeria charge inactivity fees in case if no trades are executed for 3 or 6 months.
OctaFX does not charge any inactivity fees in any case. The account remains active as long as the account balance is more than 0. If the account balance is 0 for more than 30 days, the account is closed automatically. The same inactivity policy is applicable on all the 3 types of accounts available at OctaFX.
Overall, after comparing each component of fees at OctaFX with other Forex and CFD brokers in Nigeria, we can say that OctaFX charges moderately lower fees.
The fixed spreads are slightly higher for MT4 micro account but due to no involvement of commission, inactivity fees, deposit/withdrawal fees, and no hidden charges. It can be concluded that the fees at OctaFX are slightly lower than the majority of the competitors in Nigeria.
OctaFX Trading Account Types
The account opening process at OctaFX is simple and user friendly as the users only need to enter basic details and provide contact and address proofs. On a working day, the KYC and account opening process can be completed within 24-48 hours.
OctaFX Live Accounts
OctaFX offers 3 different account types which are differentiated on the basis of the trading platform, spreads, instruments offered, minimum deposit, and maximum leverage.
1) MetaTrader 4 Micro Account – This account type at OctaFX is ideal for beginners or those who do not trade with higher volumes. The account is based upon the MT4 trading platform that offers a convenient and user-friendly experience.
The MT4 Micro account offers 28 currency pairs and 9 CFDs on metals, indices, and cryptocurrencies. It is also the only account type that offers a fixed spread on forex currency pairs. However, only 14 currency pairs and no CFDs are available for the Nigerian traders with the fixed spread. The account currency has to be in USD to avail the fixed spreads on currency pairs.
2) MetaTrader 5 Pro Account – The pro account uses the MT5 trading platform that is customizable and convenient for experienced traders. This account type gives access to the highest number of trading instruments at OctaFX with 28 currency pairs and 19 CFDs.
The MT5 Pro account has the lowest average spread at OctaFX that is variable and depends upon the market conditions of the concerned instrument. The minimum deposit in the pro account is higher than any other account type.
3) cTrader ECN Account – The ECN account is available on the cTrader trading platform that offers advanced trading charts and analysis reports along with various useful features. The account is ideal for experienced traders as the maximum available leverage is higher.
The ECN account at OctaFX allows traders to choose from 28 currency pairs and CFDs on gold and silver. The spreads are variable for each instrument and the traders also have to pay a small commission on trades of each lot.
OctaFX Demo Account
OctaFX also offers a demo trading account in which beginners or lesser experienced traders can trade with virtual currencies to gain experience and learn the basics of forex and CFD trading.
OctaFX is an attractive choice for traders in Nigeria on the basis of account types offered. The availability of Metatrader as well as cTrader trading platform and demo account makes it a good choice for traders in Nigeria.
Instruments available at OctaFX Nigeria
OctaFX offers a limited number of trading instruments, which are much lesser than most of the brokers available in Nigeria.
The availability of instruments depends upon the account type chosen by the trader. The table below describes the exactly available offerings at OctaFX as of 24th November 2020.
Account Type MetaTrader 4 Micro MetaTrader 5 Pro cTrader ECN
Currency Pair 14 for fixed spread, 28 for floating spread 28 28
CFDs on Metals 2 4 2
CFDs on Indices 4 10 0
CFDs on Energy 0 2 0
CFDs on Cryptocurrency 3 3 0
OctaFX Research & Education
OctaFX has decent offerings in terms of research and analysis and can be further improved to assist the traders. They offer regular market updates by posting a one-minute video daily on its YouTube channel named ‘OctaFX Forex Broker’.
OctaFX also conducts webinars for educational and promotional activities for forex and CFD trading.
Traders can find the research and analysis content under the trader’s tool section for any of the trading platforms. This section includes economic calendar, market insights, market trends, possible price movements, daily analysis, and news that can affect the forex and CFD market. The ‘autochartist’ tool provides valuable technical analysis and introduces productive trading opportunities 3 times in a day.
OctaFX also has an educational section on its official website that contains articles and videos for educating the traders. Although, the content is limited and has room for improvement.
Overall, the research and education content provided by OctaFX is useful for many traders but in comparison with its competitors in Nigeria, we give them an average rating.
OctaFX offers an impressive feature of copy trading in which any individual trader or copier can copy the trades of any other trader or master.
A copier has to choose the deposit percentage and the amount to invest for the particular master. No commission is charged for copy trading by OctaFX but the master commission has to be paid to the master, that is also determined individually by the master. Any trader can set up the master account using the MT4 micro trading account.
Copier can start or stop copying the master at any time
OctaFX Nigeria Customer Support
The customer support for the Nigerian clients at OctaFX is impressive as they provide 24*5 live chat and email support.
- Very good Live Chat – The live chat support is available 24 hours a day on 5 weekdays. We tried contacting them through live chat at 6 different times and the response was fast, insightful, and friendly. The chat support is also available on WhatsApp and Telegram with similar services.
- Quick Email Support – The email support is also a useful and helpful method to connect with customer service executives at OctaFX. We sent different queries through email at [email protected] 3 times and received a helpful solution within 1-4 hours on a weekday.
- No Local Phone Number – The drawback is that OctaFX do not have a local Nigerian phone number for customer support. Although, clients can always request a call back via the live chat.
Overall, the customer service offering is supportive and user-friendly but a local Nigerian phone number can be provided to further improve the customer support.
Do We Recommend OctaFX Nigeria?
Yes, we do recommend OctaFX for the forex and CFD traders in Nigeria. Nevertheless, there are multiple aspects that can be improved by them to offer much better service.
OctaFX offers trading on major currency pairs at slightly lower trading fees and zero non-trading fees. The availability of MetaTrader and cTrader trading platform with different account types is an advantage for different types of traders.
Free deposit and withdrawals from the local banks in Nigeria is a plus point for Nigerian clients as the majority of the brokers in Nigeria do not offer this service. Plus, they have very good customer support.
But, the number of trading instruments is lower than most of the competitors which is a downside for OctaFX. The broker also lacks the safety ratings, as it is only regulated by CySEC and does not have a parent bank or public listing on any stock exchange.
Overall, OctaFX can be chosen if you are looking to trade FX & CFDs.