OctaFX Nigeria Review 2021
OctaFX is our #4 ranked forex and CFD broker in Nigeria. The attractive spread on major currency pairs and availability of multiple trading platforms can be resourceful for the Nigerian traders. Check out our honest and detailed review of OctaFX Nigeria before opening your account.
OctaFX is an international forex broker that was incorporated in 2011 in St. Vincent and Grenadines. It is a straight through processing (STP) broker that is regulated by CySEC and offers tight spreads on currency pairs and CFDs.
OctaFX allows traders in Nigeria to trade currency pairs with fixed as well as variable spreads. They also accept local bank transfers from Nigeria but do not have a local office in Nigeria. The number of trading instruments is low which can be a drawback of choosing OctaFX.
Read our comprehensive review on OctaFX for traders in Nigeria. Check out every pros and cons that can possibly affect your trading experience at OctaFX in Nigeria.
OctaFX Nigeria Pros
- OctaFX is regulated by CySEC and can be considered safe for Nigerian traders.
- The spreads are comparatively lower than most of the forex brokers in Nigeria.
- OctaFX accepts local bank deposits and withdrawals.
- It offers fixed as well as variable spread account types.
- Negative balance protection is available for all account types.
- OctaFX offers the feature of copy trading for all traders.
- Free deposit and withdrawals.
OctaFX Nigeria Cons
- The number of trading instruments at OctaFX is low.
- OctaFX does not have a local office in Nigeria.
- It does not offer Naira (NGN) as a base currency.
- OctaFX is not regulated by any other Top-Tier regulatory authority except CySEC.
- It does not have a local Nigerian phone number for customer support.
- The minimum deposit is $100, which is higher than many of the forex brokers in Nigeria.
OctaFX Nigeria – A quick look
|👌 Our verdict on OctaFX||#4 Forex Broker in Nigeria|
|🏦 Broker Name||OctaFX Nigeria|
|💵 Typical EURUSD Spread||1 pips (with Micro MT4 Account)|
|📅 Year Founded||2011|
|💰 OctaFX Minimum Deposit||$100|
|⚙️ Maximum Leverage||1:500|
|⚖️ OctaFX Regulation||CySEC|
|🛍️ Trading Instruments||28 currency pairs, 19 CFDs on Indices, Cryptos, Metals, etc|
|📱 Trading Platforms||MT4 & MT5 for desktop, web & mobile|
Is OctaFX Safe?
OctaFX was launched in 2011 and is fairly popular among forex and CFD traders worldwide. It is not regulated by any top-tier regulatory authorities but the CySEC regulation makes it safe for traders in Nigeria.
OctaFX is regulated by the Cyprus Securities Exchange Commission (CySEC) with the name of Octa Markets Cyprus Ltd as an investment firm under license number 372/18.
CySEC is considered as a tier 2 regulatory authority that overlooks the activities of the broker and safeguards traders’ interests. In comparison with peers, the safety feature lacks with OctaFX as there are several other forex and CFD brokers in Nigeria that are regulated by multiple top-tier regulatory authorities.
OctaFX does not have a parent banking company, does not disclose financial statements, and is not listed on any stock exchange. We also couldn’t find details of the owners of OctaFX.
Although, traders in Nigeria can consider it safe due to CySEC regulation.
OctaFX offers fixed as well as variable spreads on currency pairs. We found the fees at OctaFX to be comparatively lower than most of the regulated forex and CFD brokers in Nigeria. To provide a complete perspective of all the fees involved in forex trades, we have broken it down into trading and non-trading fees.
Trading fees include all the costs incurred to the trader while executing the trade orders. OctaFX offers 3 types of accounts and the trading fees differ for each type of account.
- MT4 Micro Account: It is the commission-free account type that is mostly chosen by the traders at OctaFX. It is also the only account type that offers fixed spreads on selected currency pairs. The fixed spreads start from 2 pips per lot while the floating or variable spreads start from 0.4 pips per lot.
We checked the spreads with the Micro account taking EUR/USD as a benchmark and found it to be 2 pips per lot for the fixed spread account. The average typical spread for EUR/USD with the variable spread micro account type ranged between 0.7 to 1 pips per lot during peak trading hours.
- MT5 Pro Account: It is also a commission-free account type but only offers floating spreads on all the available instruments. We found the variable spreads with the pro account to be slightly higher than the Micro account type.
The average typical spread for EUR/USD with the pro account type ranged between 1 to 1.3 during the peak trading hours. Traders do not have to pay any swap fee with the MT5 pro account type but a three-day fee is charged for holding a position overnight.
We checked the spreads for EUR/USD with the ECN account and found it to be nearly similar to the pro account as it ranged between 0.9 to 1.2 pips per lot during peak trading hours. The swap fees are not charged with the ECN account but traders might have to pay weekly rollover fees.
Non Trading Fees
It is the fees that the traders have to pay without executing any trade orders. However, at OctaFX we didn’t find any non-trading fees incurred to traders. OctaFX does not charge any deposit/withdrawal fees, account opening fees, currency conversion fees, or any other hidden charges.
No inactivity fee is charged from the traders unlike many other regulated brokers in Nigeria. Although, if no trades are executed for 30 days and the account balance is 0, then the account is automatically closed. If any amount exists in any of the account types, it will never be closed.
Overall, we found OctaFX lucrative in terms of fees as their variable spreads are lower than most of the regulated brokers in Nigeria. The fixed spread is high but the low variable spread makes it fairly attractive to forex traders. Trading fees are low and non-trading fees are absent which makes it one of the least costly brokers in Nigeria.
OctaFX Trading Platform
OctaFX offers the most popular MetaTrader 4 and MetaTrader 5 trading platform for web, desktop, android, and iOS devices. Each trading platform at OctaFX is bound with a specific account type and cannot be changed.
A majority of the forex and CFD brokers in Nigeria offer MT4 and MT5 trading platforms. What makes OctaFX attractive in terms of trading platforms is the availability of the cTrader platform. It provides advanced charting and analysis tools and various additional features over MT4 and MT5 trading platforms.
OctaFX Customer Support
The customer support staff at OctaFX is user-friendly and very helpful. We tried to connect with them through a live chat window at their official website and the customer support email id.
We found the live chat to be very helpful as all our queries were resolved within 10-15 seconds. We asked different questions at three different times of the day and received a relevant and helpful reply within no time.
The email support is also helpful for the traders but it generally takes 1-4 hours to receive a reply through email. Traders can raise their query at OctaFX through their customer support email address [email protected]
OctaFX does not have a local Nigerian phone number for customer support which is a major drawback for Nigerian traders.
OctaFX Account Types
OctaFX allows traders to choose between two different account types and each account type supports a different trading platform. All the features offered by OctaFX are similar in both the account types including spread, and leverage.
The only major difference lies in the trading platform and the maximum volumes that can be traded. With the MT5 account, a maximum of 500 lots can be traded while with the MT4 account type, a maximum of 200 lots can be traded.
Both the account types require a minimum deposit of 100$ and cannot be opened with NGN as the base currency. The MT5 account allows trading with 6 additional CFDs on indices apart from 4 available with the MT4 account type.
Both the available account types allows trading on standard lots and the minimum volume that can be traded is 0.01 lots. Traders only have USD and EUR as options for base currency at OctaFX. Each account type can also be converted into an Islamic or swap-free account.
OctaFX also offers a free-of-cost demo account for potential traders to gain experience, learn the basics, and test strategies with virtual currency before making actual trades.
All the account types available at OctaFX are ideal for different types of traders. However, we didn’t find enough major differences in the account types offered at OctaFX. The minimum deposit is high and micro-lots are not available on any account type. This might be a concern for new traders. The unavailability of a Naira (NGN) trading account is a drawback for Nigerian traders.
OctaFX Trading Instruments
OctaFX offers a lower number of trading instruments than most of the regulated forex and CFD brokers in Nigeria. The total number of available currency pairs at OctaFX is 35 while a total of 22 CFDs are available. The fixed spread feature is only available on 14 currency pairs which further limits the number of available instruments at OctaFX.
Apart from 35 currency pairs, traders can trade through CFDs on 4 metals, 3 energies, 10 indices, and 5 cryptocurrencies.
Compared to a majority of regulated brokers in Nigeria, OctaFX offers trading on lesser trading instruments.
Withdrawals and Deposits
The number of methods for deposits and withdrawals is limited but OctaFX does not charge any additional charges for any of the available methods. The availability of local Nigerian GT bank transfers is a major advantage for Nigerian traders.
OctaFX accepts deposits and withdrawals through local banks, Visa Card, Neteller, Skrill, and Bitcoin. The transactions through all the payment gateways are fast and convenient. The minimum deposit at OctaFX for the Nigerian traders is NGN 36,000 while the minimum withdrawable amount is 5$.
Most of the regulated forex and CFD brokers in Nigeria provide more methods for deposits and withdrawals but only a few allow local bank transfer. For the traders in Nigeria, OctaFX can be a legitimate choice due to the availability of local bank transfers.
The bonus offerings at OctaFX have always been a key factor in the marketing and promotion of the broker. OctaFX offers a variety of bonuses to its clients through various contests, lucky draws, and promotions.
OctaFX has an ongoing 16 cars contest, 8 gold contests, and various giveaways in which the winner is decided through lucky draws. They also offer a 50% deposit bonus to the new clients in Nigeria, which is fully withdrawable.
OctaFX also organizes an international demo contest each month in which it allows clients from all over the world to compete through virtual currency in forex trades. The winners are rewarded at the end of each month. It also has a referral program in which clients are rewarded for each successful referral.
OctaFX claims to have paid more than 28 million USD through various bonus programs. Compared to all the regulated brokers in Nigeria, we found OctaFX to be very attractive in terms of rewards and bonuses.
Do we Recommend OctaFX?
Yes, we do recommend OctaFX to Nigerian traders due to low spreads, lesser fees, availability of multiple trading platforms, and local GT bank deposits.
The lesser number of trading instruments can be a drawback as it limits the options to trade. OctaFX is not regulated by top-tier regulators but due to CySEC regulatory license, it can be considered safe for traders in Nigeria.
Frequently asked questions: OctaFX Nigeria
Does OctaFX serve clients from Nigeria?
OctaFX provides forex and CFD trading services in Nigeria at attractive spreads. It does not have a local office in Nigeria but accepts deposits and withdrawals through local GT banks in Nigeria making it convenient for Nigerian clients.
Is it safe to trade forex at OctaFX?
Yes. OctaFX is not regulated by any top-tier regulatory authority but the CySEC regulation makes it safe for traders in Nigeria. It is a cost-efficient broker offering quality service to Nigerian clients.
What is the minimum deposit at OctaFX in Nigeria?
The initial minimum deposit requirement at OctaFX is 100$ to start forex and CFD trading. It does not provide NGN based account and the deposits made in Naira are automatically converted to the base currency of the account at prevailing rates.