OctaFX Malaysia review – 5 things you should know about octafxmy.net

OctaFX Malaysia review – 5 things you should know about octafxmy.net

Rating: 4.8

Recommended broker

Visit OctaFX Malaysia

OctaFX is one of the most well-established forex and CFDs brokers in the world, known for its good trading conditions. In 2021 alone, the OctaFX has added to its impressive list of awards with distinctions such as “Best ECN Broker” from World Finance, “Best Forex Broker India” from Global Business Review Magazine, “Best Trading Conditions Asia” from World Business Outlook and “Decade of Excellence in Forex Asia” from Global Banking and Finance Review.

OctaFX is also taking its best practices to emerging markets in Asia and Africa. The focus of this review is the services that OctaFX offers in one of them – Malaysia.

OCTAFX MALAYSIA REGULATION AND SAFETY OF FUNDS

The main company behind the OctaFX brand is Octa Markets Cyprus Ltd. It is based in Cyprus and is licensed by the Cyprus Securities and Exchange Commission (CySEC), a respected regulator that oversees the activities of many brokerage firms operating in the European Union. Registration in this jurisdiction, however, means that the OctaFX must comply with all of the The European Securities and Markets Authority (ESMA) requirements, which can be quite restrictive, especially with respect to leverage and bonuses. Therefore, OctaFX, like other large brokers, registers offshore divisions in order to be able to compete effectively in the African and Asian markets where the same restrictions do not apply.

In Malaysia, as well as in other emerging markets such as Nigeria, OctaFX operates through Octa Markets Incorporated, a company based in Saint Vincent and the Grenadines (SVG).

Тhe Financial Services Authority (FSA) of St. Vincent and the Grenadines does not license or regulate international brokerage firms. Because of this, registration in SVG is often a red flag that you may be dealing with scammers.

In this case, however, it is not, because the reputation of OctaFX is sufficient assurance that it is a legitimate broker. Although it is not regulated, OctaFX Malaysia offers its clients many of the same protections and guarantees that clients of EU brokerages receive. This includes negative balance protection and keeping client funds into segregated bank accounts, separated from the company’s operating funds.

However, it should be borne in mind that clients of the Cyprus branch of the OctaFX also have some additional guarantees unlike those using the offshore company. In the EU, as well in the UK, brokers must also participate in guarantee schemes that cover a certain amount of the trader’s investment if the broker becomes insolvent.  These guarantees amount to up to 20 000 EUR in the EU and 85 000 GBP in the UK.

The OctaFX Malaysia website has multilingual support – it is available in Bengali, Chinese, English, Hindi, Indonesian, Malay, Portuguese, Spanish, Thai, German and Vietnamese.

Setting up an account with OctaFX Malaysia is an easy and straightforward process. You can even use your Facebook, Google or Apple account.

OCTAFX MALAYSIA TRADING SOFTWARE

OctaFX Malaysia offers clients the two most popular platforms in the industry – MetaTrader 4 (MT4) and MetaTrader 5 (MT5). The software is available for Windows and Mac operating systems, as well as Android and iOS mobile devices. Both platforms also have web-based versions and support almost all languages in which the website is available, except German and Vietnamese.

Here’s how the OctaFX’s MT4 platform looks like:

For well more than a decade MT4 has been the undisputed leader among trading software. A major reason for the platform’s leadership position is the ability to design and implement automated trading scripts, known as Expert Advisor bots, as well as the options to backtest trading strategies.

Only recently has the newer MT5 managed to overtake MT4 in the number of active users, but MT4 remains the leader in trading volume. MT5 does have some perks, not available with MT4 such as the Market Depth option, which features the volume of bids and offers for a financial security at different prices, as well as a built-in economic calendar. MT5 also has more technical indicators, graphic objects and time frames available.

OctaFX Malaysia has a well-developed social trading system that allows you to copy the trades of traders of your choice, as well as becoming “Master” trader yourself to be copied by others.

On the OctaFX Malaysia website you can also find very useful and convenient calculators for trading and profits:

OCTAFX MALAYSIA TRADING CONDITIONS

OctaFX Malaysia offers two types of accounts. The first one is “Habitual trader”, which is more oriented to beginner traders and uses the MT4 platform. The second type is “Smart trader”, which can take advantage of a greater number of features of the MT5 software.

The financial instruments that both accounts can trade are almost the same – 35 currency pairs, gold, silver, 3 energy CFDs, 5 cryptocurrencies. A Habitual trader account can trade with 4 indices, and a Smart trader account can trade with 10.

Aside from the software, the biggest difference between the two account types is that no swap fees are charged for the Smart Trader. The MT4 account allows an Islamic option where the swap is replaced with equivalent fees.

The MT4 account also allows a higher maximum order volume – 500 lots compared to 200 lots with the MT4 account.

Both accounts have a recommended minimum deposit of 100 USD, but the minimum deposit possible  through the available payment methods is 25 USD. This makes OctaFX Malaysia one of the brokerages with a really low minimum deposit.

One of the main reasons established brokers set up offshore companies is to be able to circumvent the strict leverage requirements imposed in regulated markets. OctaFX Malaysia offers leverage of up to 1:500 for most currency pairs, 1:200 for gold and silver, 1:50 for indices and energy CFDs, and 1:25 for cryptocurrencies.

By comparison, the ESMA limits leverage to 1:30 for major currency pairs, 1:20 for non-major currency pairs, gold and major indices, and 1:20 for cryptocurrencies. The same restrictions currently apply in the UK and Australia. In the US, the limits are slightly higher, with a maximum leverage for currency pairs of 1:50.

Higher leverage opens up the possibility for more significant gains, but carries a corresponding increased risk of losses. In the case of OctaFX Malaysia , this risk is somewhat mitigated by the presence of negative balance protection, but you should still approach leveraged trading with a clear awareness of risks.

One of OctaFX Malaysia’s competitive advantages is the tight spread. Using the EUR/USD currency pair as a benchmark, the average spread is 0.7 pips. The spread levels listed on the website match with those that can be seen on the trading platform.

Given the lack of additional fees and the ability to trade without swap payments, the trading terms of the OctaFX Malaysia look very favourable.

OCTAFX MALAYSIA BONUSES AND PROMOTIONS

In addition to high leverage, offshore registration allows OctaFX Malaysia to circumvent another restriction imposed by leading regulators – brokers must not offer bonuses and promotions.

OctaFX Malaysia offers an optional deposit bonus of 50%, but at limited time events it can go up to 100%. These bonuses can significantly increase the possible trading volume. Bonuses are even withdrawable, but there are quite high requirements for that. To withdraw a 200 USD bonus, for example, you need to trade a volume of 100 lots, or 10 000 000 currency units.

For every lot traded, you get bonus points that can be exchanged for various prizes ranging from t-shirts to mobile devices and laptops.

OctaFX Malaysia also has a Status Program that allows you to “rank up” your account for fees starting at 5 USD. Upgrading your account gives you access to additional perks, including a customized system for automated alerts to open and close trades, called Autochartist.

OCTAFX MALAYSIA  DEPOSIT/WITHDRAW METHODS AND FEES

OctaFX Malaysia offers multiple payment methods, with a clear focus on cryptocurrencies. For depositing and withdrawing funds can be used MasterCard, e-wallets PerfectMoney, Skrill  and Neteller, as well as cryptocurrencies Bitcoin, Ethereum, Litecoin, Tether and even Dogecoin.

There are no withdrawal fees, and the only deposit method for which a fee is charged is PerfectMoney. This fee is 0.5%. A minimum of 25 USD can be deposited with PerfectMoney, while the other e-wallets and cards have a minimum amount of 50 USD.

The minimum deposit with Bitcoin is 0.00037, which at the time of writing this review equates to just over 20 USD.  There is no maximum withdrawal amount, but there is a minimum of 5 USD or close equivalent in cryptocurrency.

BOTTOM LINE

OctaFX Malaysia combines many of the advantages of a regulated broker with the opportunities of highly leveraged trading. The low spreads and the absence of fees makes trading conditions with this broker one of the most competitive in the world.

If any negatives can be pointed out, it is that OctaFX Malaysia only offers two account types and the number of financial instruments that can be traded are fewer than can be found with some other brokers.


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