Octafxgroup Review – Should you Sign Up with Them?

Octafxgroup Review

When you finally embark upon the journey of finding a good and quality online broker for your trading needs, you discover how big of a challenge it can be. Within a few minutes, you will discover that there are thousands and thousands of companies that you can find and their numbers have gone up exponentially in the last decade or so. Cryptocurrencies have certainly contributed to this rise and with greater activity, it is absolutely natural. However, it is also essential to remember that this has also given criminal activity in the financial markets a boost and scam brokers have become rampant. This Octafxgroup review indicates how these frauds operate.

The existence of scam and shady operators in the financial markets is not a new concept, but this does not mean that identifying them is that straightforward. Yes, there was a time when you could do so because these websites usually had some glaring issues that made it obvious. But, they have gotten better and smarter over the years and now, their websites are just as well-designed as that of legitimate companies. Nonetheless, this does not mean that are authentic. Their story does fall apart upon closer inspection.

As long as you are willing to inspect closely, you will have no trouble in finding a good and quality online broker for trading in any financial market. There are some areas where you can make compromises, but not on authenticity because this will expose you to scams and other security risks that you want to avoid. This also applies to the Octafxgroup brokerage that you will discover as one of the options when you begin your search. The name of the brokerage is quite similar to that of OctaFX, one of the most renowned companies in the market.

Should you sign up with Octafxgroup? It might be tempting to do so, but you should always inspect closely before making a decision. Let’s get started:

Licensing and regulation

Signing up with an online broker without taking a look at their license, or their regulatory status is a mistake and one you should avoid at all costs. A licensed and regulated brokerage can offer you protections when it comes to keeping your personal data and your money safe and they also provide high quality services. The same cannot be expected from unlicensed and unregulated companies. So, where does Octafxgroup fit?

Considering the name of the broker, many people assume that Octafxgroup is connected to OctaFX, but this is certainly not the case. The latter is indeed a regulated and licensed company that is well-known in the markets for its exemplary services. As for Octafxgroup, it claims to be based in Canada, since it has given an address on its website.

The problem is that in order to be based in Canada, Octafxgroup needs to have a license from the IIROC (Investment Industry Regulatory Organization of Canada), which regulates forex brokers in the country. But, if you check their registers, you will not find the company mentioned. This means that it does not have a license and is either not based in Canada, or is lying about it.

Furthermore, it becomes apparent that Octafxgroup is usually a popular scam tactic called cloning in which these fraudulent companies try to pass themselves off as legitimate ones by deliberately choosing to resemble authentic and popular platforms. Of course this means that you cannot trust the broker.

Trading bonuses

The fact that Octafxgroup is offering trading bonuses to its clients is reason enough for you to doubt the legitimacy of the company. This is because trading bonuses have been banned in most of the jurisdictions around the world as they come with strings attached that are not considered fair to the traders. Scam brokers, on the other hand, do offer trading bonuses to people in order to attract them to their platform. Therefore, you should not fall for this tactic.

If you check out the policy associated with the trading bonuses that Octafxgroup is offering, it will become apparent why they have been banned in the first place. As per the policy, traders are required to fulfill a minimum trading volume requirement before they are permitted to make a withdrawal of profits generated via the bonus. The problem is that there is no way for anyone to physically distinguish the profits they make from their own deposits and that of the bonus. Essentially, it translates to no withdrawals until you achieve the volume requirement.

When you check out this requirement at Octafxgroup, you will discover that it has deliberately been set so high that it is difficult, or downright impossible to achieve. Thus, it fulfills the broker’s purpose i.e. enables them to keep your money without you being able to do anything.

Minimum deposit

Checking the minimum deposit you are required to make with a broker is also a good idea to know how much you need to invest to get started. The fact that Octafxgroup requires you to deposit a minimum of EUR 1,000 is a shock because this is four times than the average amount that most brokers ask for. As a matter of fact, most platforms are now offering people the chance to open a micro account for as low as $10, which makes this excessive.

Spreads and leverage

You should never forget to take the trading conditions of the online broker into account because these are connected to your bottom line. The fact that the spreads charged by Octafxgroup are 3 pips for the EUR/USD pair is a major concern because this is three times the normal level. This means that they do not offer competitive trading conditions and your trading costs will be high. The excessive leverage of 1:200 might seem attractive, but you should remember that it comes with a lot of risk as well, which does not make it favorable at all.

Conclusion

When you discover the problems with Octafxgroup, it is a given that you should avoid signing up with this brokerage.