Numerous concerns and issues have been raised over OctaFX’s existence. Let’s examine all the issues surrounding OctaFX to determine whether it is safe to invest in OctaFX or not.
What is OctaFX?
Since 2018, OctaFX, a 2011-founded Metatrader forex broker, has been subject to CySEC (Cyprus) regulation. Clients from South Africa are governed by the FSCA through Orinoco Capital Pty. Additionally, the broker has a license from the FSA (St. Vincent and the Grenadines) for clients outside of South Africa and the EU.
The MT4 and MT5 trading platforms are provided by OctaFX. Both have PC, smartphone, and WebTrader versions as standard. Additionally, Octa FX has its own exclusive social copy trading platform. Forex, commodities, indices, and cryptocurrencies are examples of trading instruments.
What is Cryptocurrency?
A digital type of money known as cryptocurrency has no tangible counterparts, such as coins or bills, and only exists electronically. Electronic tools like cell phones, PCs, or specialist Bitcoin ATMs are frequently used in cryptocurrency transactions. Even though Bitcoin and Ether are well-known examples, many other virtual currencies are on the market, and more are constantly being created. These cryptocurrencies offer distinctive features and applications in the fields of technology and finance, operate on decentralized networks, and are defined by their digital nature.
Leverage on OctaFx Live accounts is capped at 500:1 and requires a $20 minimum deposit. Various local bank transfers, VISA, Bitcoin, Neteller, Skrill, UnionPay, and Neteller are accepted as withdrawal and deposit methods.
The 11-part Forex Basic Course, archived YouTube webinars, articles, platform tutorials, and a sizable FAQ section are all included in the OctaFX trading education program. Weekly statistics and daily updates on both technical and fundamental topics are produced internally for market research. The MetaTrader Autochartist plugin offers automated technical analysis.
Less than 230 tradeable instruments are available from OctaFX. Saxo Bank, IG, and CMC Markets, the market leaders, each provide over 10,000 tradeable instruments.
Trading cryptocurrency at OctaFX is only possible through CFDs; trading the underlying asset directly (such as purchasing Bitcoin) is not an option. Notably, neither U.K. residents nor retail traders from any broker’s U.K. firm are permitted to trade cryptocurrency CFDs.
The items that OctaFX clients can choose from are listed in the table below.
In the past, OctaFX had trouble with price, but it has made significant progress in this area and is currently overtaking the most affordable MetaTrader brokers.
Account types: The commissions or fees you pay to OctaFX will depend on the type of account you choose and the OctaFX organization that is in charge of regulating your account. International clients are served via OctaFX’s offshore entity in Saint Vincent and The Grenadines (SVG), while European clients will choose the broker’s EU entity. The SVG entity offers accounts for both MT4 and MT5, however, the EU promotes only MT5, making just one account available.
Depending on which of OctaFX’s organizations is in charge of regulating your account, different spread prices apply. For the EUR/USD pair, for instance, its EU entity performs somewhat better with an average spread of 0.5 pips as opposed to 0.9 pips for the SVG entity. It’s important to note that because OctaFX does not provide a date range for its average spread statistics, the results don’t have the same significance as spreads that do. Overall, OctaFX has improved its pricing and seems to stay up with the least expensive MetaTrader brokers, although we were unable to draw any precise comparisons due to the lack of a date range for its average spread claim.
Mobile Trading Apps
Even though OctaFX has its own social copy trading program (the OctaFX Copytrading app), it still lags behind market leaders like IG and Saxo Bank. Read our guide to the Best Forex Trading Apps for our top recommendations for trading apps.
Overview of apps: The iOS and Android versions of the MetaTrader 4 (MT4) and MetaTrader 5 (MT5) apps are both available for download from the Apple App Store and Google Play store, respectively, because OctaFX is a MetaTrader-only broker. Due to geolocational constraints, I encountered on Google Play, I was unable to download or test OctaFX’s proprietary OctaFX Copytrading app for social copy trading.
Depending on your place of residence and your preferred payment method, OctaFX’s minimum deposits can change. When funding with Visa or MasterCard, they might be as little as $25 (USD), as much as 50 euros (EUR) when using Skrill or Neteller, and as much as 500,000 Indian rupees (INR). It’s vital to remember that the OctaFX company you select for opening your trading account will also affect the minimum deposits and trading fees.
Over 50 various payment methods, including Visa, Neteller, Fasapay, and Bitcoin, are available with OctaFX, in addition to a wide range of regional bank transfers. Depending on where you live, certain payment options might not be available.
Let’s look at the red flags for investing in OctaFX
- Customers are not provided with any regulatory protection when they use the broker’s unregulated offshore firm in Saint Vincent and the Grenadines (SVG) to conduct business.
- Although OctaFX claims to provide affordable trading prices, its displayed spreads are associated with a small number of just over 220 tradeable symbols and lack accompanying period ranges.
- When it comes to things like education, OctaFX finds it difficult to compete with the top multi-asset brokers.
- The OctaFX platform is no longer compatible with cTrader.
An increase in fraud: OctaFX warns Nigerian clients to be wary of con artists. Let’s examine this ironic circumstance.
Despite being a con artist themselves, OctaFX cautions its clients in Nigeria to be on the lookout for scammers. What an irony. Is it not?
OctaFX has noticed an increase in the number of fraudulent activities that illegally attempt to utilize the brand to swindle Nigerians, primarily through WhatsApp channels.
The multinational Forex broker OctaFX notes an increase in fraudulent activity in Nigeria and warns its clients to be on the lookout for con artists seeking to deceive them by improperly utilizing the OctaFX name.
On WhatsApp, the biggest increase in fraud activity has been noted. By impersonating as OctaFX staff, fraudsters exploit the platform to set up channels and trick customers into sending money to their personal accounts. These schemes typically include delivering ‘investment packages’ that promise to increase a person’s investment by two times. But the money never comes back.
Scammers exploit OctaFX’s name, logo, and reputational traits in their interactions to try to persuade consumers to transfer money. The broker is actively pursuing legal action against forgers, counterfeiters, and con artists in addition to reporting trademark infringement. However, as scammers establish new accounts virtually every day, blocking them could take some time.
OctaFX cautions clients to be wary of scam artists and to take into account the following security recommendations.
- When interacting with groups on Facebook, WhatsApp, and Telegram that purport to be affiliated with OctaFX, exercise caution. The broker only has an official Telegram channel and social media accounts; no WhatsApp groups or channels exist.
- No one will ever receive a call from an OctaFX representative inviting them to try the company’s services, guaranteeing profits, or providing personal trading advice. You can reach OctaFX’s customer support team by using the company’s website instead of any shared customer service numbers.
- The outcomes of Forex trading depend on the trader, and OctaFX never guarantees a profit.
- At the same time, the broker aims to educate its traders to help them minimize their risks and develop a more balanced and thorough approach to trading through training.
Examining the comments made about OctaFX
What WikiFX says about OctaFX is – “This broker does not currently have a valid regulation, according to verification. Please be mindful of the danger!
Within the last three months, WikiFX has received 12 complaints about this broker. Please be mindful of the danger and potential cons!”
WikiFX mentions that OctaFX does not have a valid regulation and is basically a con artist.
A dig deeper into what people have to say about OctaFX
People call OctaFX a shady broker which was highly unreliable. One of the customers mentions that his account manager consistently gave him erroneous instructions and was quite impatient with him. He undoubtedly suffered some losses.
Another client of OctaFX says that the OCTAFX platform is awful. What he further mentions that he discovered that the website is inaccessible, contains some Chinese characters, and has received numerous complaints from victims on wiki fx.
One of the customers complaints about the irresponsible team of OctaFX and further refrains his friends and colleagues from using it. He says- “I put $10,000 into my trading account on March 24, 2023, but I still can’t trade because it hasn’t appeared in my account yet. I’ve been writing to customer care every day for 25 days following the transaction, but I haven’t received a response. They always state that their Finance team is contacting the agent to verify the funds and that the issue would be rectified as soon as feasible. I believe they are completely swindling their consumers out of their money. I’ll definitely advise my friends to stop using Octafx going forward.”
There are some other customers as shown below who are disappointed with the services provided by OctaFX
Furthermore to this, some of the platforms like Sitejabber do not recommend users to invest in OctaFX due to its low rating and irresponsible service team.
Sitejabber is an AI-enabled platform that allows businesses and buyers to interact through online reviews. Sitejabber was founded in 2007 in San Francisco, California, and has been described as “the Yelp for websites and online businesses”
Trustpilot has got some negative reviews from people and some of them are showcased below:
One of the customers mentions that OctaFX intentionally deleted his profile without any reason.
What further he mentions is OCTAFX being such a big brand caught him off guard. OCTAFX allegedly unfairly accuses him of bad trading when he trades profitably. first said he had violated XNGUSD; at other times, XRBUSD. For instance, OCTAFX finds a justification to trade against their restrictions for each profitable trade. All they want is for their clients to lose money. He is hoping that OCTAFX will change and give him back his $5327 profit.
Some other reviews are:
One of the customers said that OctaFX is actually robbing one of the customer‘s accounts:
What further he wrote is: on April 14, 2023, he made a significant profit, so Octafx arbitrarily blocked his account 20859738 with a balance of 181,386.84 dollars. He complained, but it appears Octafx lacks good faith and uses the excuse that an article in the consumer agreement annulled profits and also stole his deposit. This case was handled by a lawyer, and he paid the cyber team to post all of his evidence on social media across the nation so that traders would know Octafx is a dealer, not aI’ll post this to all social media until Octafx refunds his entire cash.
One of the Customers named Gary Cheung came across various loopholes in OctaFX while trading with them. He mentions that he is been trading on Octafx for over a year. On April 12, he made a deposit of Rs. 400000 ($2610), however, they have only contributed $320.75, or Rs. 23000. He repeatedly urged this matter to provide support. They frequently claim that the financial team is striving to find a quick solution to this issue. He contacted them numerous times for support, but they haven’t been able to fix his problem, so he has to finally come here.
After careful consideration and expert advice, he called Privycript Ltd to assist in resolving this problem. He offered that he has attached a screenshot of his bank transaction and the money which was credited to his account with his Octafx account number, which is…… 8458**2. He needed that his problem to be fixed right away, and the Privycript staff delivered. To determine the extent of the issue, check for additional OctaFx issues that have been reported. During trading sessions, OctaFx withholds your funds and locks your trading accounts. and prevented withdrawal. Countless gaps.
Some other reviews are given by people :
Does the hype of OctaFX legit or not?
OctaFX’s affiliate marketing platform, which enables influencers to earn a commission for each referral, has helped it have one of the most effective marketing campaigns in Africa.
If a forex broker commits financial fraud, they cannot be reported to any financial regulatory authority in a country where they are not regulated because they are only regulated in Cyprus.
Since OctaFX ads are directed at forex beginners, many people would start trading forex for the first time with OctaFX as their broker if their marketing was successful.
The free instructional materials offered by OctaFX are intended to help you become a successful forex trader, but in my opinion, learning forex from a broker is the worst option because the contents will be biased toward getting every learner to become a customer.
It is marketed as a low-risk option because you can replicate an expert trader and don’t need to understand forex. Copy trading is not as easy as they make it out to be. You cannot become a successful forex trader by copy trading. The transformation from a novice to a successful trader often takes at least a year for most people, and you must learn about forex from successful traders.
There’s no denying that many of the influencers advertising OctaFX have either no experience trading forex or are most likely unsuccessful traders.
We have witnessed investment platforms marketed by social media influencers defraud Nigerians of their hard-earned money over the last two to three years. That is sufficient evidence to show that a celebrity’s endorsement does not confer legitimacy on any company or individual.
Numerous complaints about OctaFX have been made on social media and on other websites that provide reviews of forex brokers. These complaints mostly concern things like the inability to withdraw money and, in some extreme circumstances, the manipulation of market prices.
Whether or not the allegations are accurate, money is still a scarce resource, therefore any attempts to make it seem very simple should be avoided. Recall that if anything seems too good to be true, it probably is.
Crypto Coin Scams
Many different types of cryptocurrency fraud exist. Scammers want your cryptocurrency and will do anything to obtain it, just like they would with the money in your bank account. Knowing when and how to be targeted, as well as what to do if you think a cryptocurrency and communications associated with it are fraudulent, can help you secure your Bitcoin investments.
- Theft and con artists can obtain your cryptocurrency in a number of methods or con you into handing it to them.
- Scams involving cryptocurrencies frequently try to obtain sensitive data, including security codes, or con unwary individuals into sending money to a hacked digital wallet.
- Giveaways, love scams, phishing, extortion emails, phony company warnings, blackmail, rug pulls, initial coin offers (ICOs), non-fungible tokens (NFTs), and fraudulent mining software or networks are a few types of fraud.
- Poorly written white papers, overzealous marketing, and guarantees that you’ll make a lot of money rapidly are all indicators of cryptocurrency fraud.
- If you think you may have fallen victim to a crypto scam, you can get in touch with your cryptocurrency exchange and a number of government regulatory organizations.
Cryptocurrency Scams Types
Scams involving cryptocurrencies typically fall into one of two categories:
- Actions were taken with the intention of gaining access to a target’s digital wallet or authentication information. This means that con artists strive to obtain data that will grant them access to a digital wallet or other kinds of confidential data, including security codes. This can occasionally even mean having access to actual hardware.
- Directly sending cryptocurrency to a con artist via impersonation, false business or investment opportunities, or other nefarious tactics.
Forex trading, or foreign exchange trading, is the buying and selling of currencies in the global market. It can be a legitimate and profitable form of investment, but unfortunately, it is also a popular target for scams. In this article, we will discuss the reality of forex trading scams, how they work, and what you can do to protect yourself
Tips for identifying Forex trading scams
- Any investment offer that guarantees returns with little to no risk should be avoided.
- Never risk losing money by investing it.
- Any investment option that asks you to deposit a lot of money right away should raise some red flags.
- Before making an investment, research the firm and its management team.
- Look into the registration and regulatory status of the business.
- Examine the reputation of the business by reading online reviews and endorsements.
- Avoid using high-pressure sales techniques.
Forex Broker Scams- How to identify a Forex broker scam
- If your broker ignores your messages, this could be a sign that they are not acting in your best interests.
- Make sure there are no complaints, do your homework, read the small print on the paperwork, and make sure you aren’t getting conned by a dodgy broker.
- Before attempting a withdrawal, start a micro account with a modest amount and place transactions for a month.
- Your broker may be churning if you notice buy-and-sell trades for securities that don’t meet your goals.
- Review all of your documentation and consider your course of action before taking more serious action if you are stuck with a terrible broker.
Brokers occasionally make mistakes, despite the fact that traders may blame them for their losses. Before opening an account, a trader must be diligent and thoroughly investigate potential brokers. If the research supports the broker, a small deposit should be made, followed by a few trades, and then a withdrawal. If all goes smoothly, a bigger deposit could be made.
But if you’re already in a sticky situation, you should check to see if the broker is engaging in illegal activity (like churning), make an effort to get your questions answered, and if that doesn’t work, report the person to the SEC, FINRA, or another regulatory agency that can take enforcement action against them.
Wrapping Up with on How to Avoid CryptoCoin Scams
You can take a number of measures to prevent getting conned. You shouldn’t click on any links, call any numbers, get in touch with them in any way, or pay them money if you see any of the warning flags. Additionally:
- Never divulge your private Bitcoin keys in response to inquiries. No one requires those keys to do a lawful cryptocurrency transaction; they only control your access to your cryptocurrency and wallet.
- Don’t believe claims that you’ll earn a lot of money.
- Investment managers who contact you and promise to increase your money quickly should be ignored.
- Celebrities should be disregarded because they won’t approach people about purchasing cryptocurrencies.
- If you’re utilizing an online dating service or app, meet your love interests in person before you give them money.
- Never respond to texts or emails from well-known or obscure businesses claiming that your account has been frozen or that they are concerned.
- If a government, law enforcement agency, or utility business sends you an email, text message, or social media message informing you that your accounts or assets have been frozen and that you must give money or cryptocurrency, contact the organization and disregard the communication.
- Pay little attention to job postings for crypto miners or cash-to-crypto converters.
- Be skeptical of claims that they have explicit material of you that they want to publish until you provide cryptocurrency and report it.
- Refuse “free” money or cryptocurrency.