Octagon Trade – Is it Safe to Trade With Them?

Website URL: https://www.octagontrade.com/

Founded: Not mentioned on the website

Regulations: Unregulated

Languages: English, German, Spanish, and Italian

Deposit Methods: Credit/Debit card, PayTrust88, DragonPay, and Deposit by Phone

Minimum Deposit:  $200

Free Demo Account: Yes

Number of Assets: N/A

Types of Assets: Cryptocurrencies, Commodities, Forex, and Indices

Trading Accounts and Conditions 

The details for opening trading accounts are not indicated on the broker’s website. In order to register with this broker, you only need to go to their sign-up page where you’ll be asked to enter your name, email address, phone number, and password. You’ll also be asked to accept their Terms and Conditions and confirm that you’re over 18 years of age. After this, the trading platform will be made available for you and you can start trading using their demo account.

Their method of opening an account may be easy, but it is unsecure. Most legit brokers will ask you to provide several information, as well as supporting documents (i.e. passport, government issued ID, utility bills, etc.), in order to prove your identity. Identity verification ensures a real person is behind the trading process and prevents that person from performing a process without authorization. It also prevents people from creating fake identities and committing fraud. Seeing that this broker isn’t concerned about identity verification and security checks makes us suspect that they’re only after your money and making profits from it.

Moreover, as we checked the trading platform offered by this broker, we found that the spreads are at 0.6 pips. This level is tight enough to make a trade and gives an advantage to traders. However, the leverage level is at 1:400 which is too high. High leverage can only mean two things – big profit or big loss. As a trader, it is very important that you incorporate risk management in your trading strategy. This is because the market is highly volatile and winning is not always a guarantee. Keeping it safe and protecting your funds by managing your risks will ensure that your capital investment can go a long way.

With this, we can say that Octagon trade doesn’t offer a safe environment for trading because of the lack of identity verification process for opening accounts and their unsafe trading conditions.

Octagon Trade   – Advantages

After carefully investigating what this broker is all about, we can say that they offer no advantage to traders. Your money is at risk if you choose them as your broker.

Octagon Trade   – Disadvantages 

Below are some of the reasons why you’ll be at a great disadvantage if you choose to trade with them.

• Anonymous and unregulated broker

Octagon Trade failed to provide any details about their license or regulation. They also didn’t mention anything about their parent company, company address, contact number, and email address. No legit broker will leave these information undisclosed. Hence, we can safely say that this broker is totally anonymous and isn’t regulated by any regulating authority. They exist only to swindle from inexperienced traders.

If you want to avoid being scammed by unlicensed brokers, the best way to go is by choosing brokers that are regulated by agencies like the FCA in the UK or CySEC in Cyprus. These regulators have the strictest set of requirements brokers need to adhere to. Their purpose is to watch over how brokers conduct their services and prevent transactions that are unauthorized or illegal.

Furthermore, if you choose licensed brokers under the jurisdictions of the UK or the EU, you’re ensured to receive compensation in case the broker decides to shut their website down or declare bankruptcy. For example, UK’s FCA regulated brokers are obliged to participate in the Financial Services Compensation Scheme (FSCS) wherein a financial compensation of up to £85, 000 is given to the investors.

Plus500

$100

Minimum Deposit

Start Trading

Read Review

82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money

Plus500 is a FTSE 250 listed brokerage providing online trading services in CFDs, across 2,000+ securities and multiple asset classes.

 

AvaTrade

$100

Minimum Deposit

Start Trading

Read Review

The company was created as a combined effort of financial professionals and experts in web-commerce with the goal of perfecting the online experience for retail traders.

• Unreliable trading software

Octagon Trade offers a web-based trading platform with a free demo account. The software, though, is very basic. What you can see are just the currency pairs, price fluctuation charts for a specific currency pair, and a button for buy and sell.

A trading platform is an essential tool in order to make successful trades in the market. This is why platforms that are poorly made are not wise to use. Instead, you should choose trading platforms that are trusted by a majority of traders worldwide – the MetaTrader 4 and MetaTrader 5.

Both platforms have excellent tools and instruments for trading. They also come with a free demo account where traders can practice without the fear of losing their investments. Some of the sophisticated features they have include an auto trading option, a financial calendar, an app market, and indicators that help traders make correct predictions on the direction of the exchange rates. Having a safe and excellent trading environment will improve the chances of making a profit even if you are inexperienced.

So, just to recapitulate, to protect your investment and gain more profit in trading, choose a UK or EU regulated broker that offers MetaTrader 4 or MetaTrader 5 trading platforms.

• Incomplete information on deposit/withdrawal methods and fees

Upon checking, the payment methods offered by this broker are Credit/Debit card, PayTrust88, DragonPay, or Deposit by Phone. While the other options may seem unsuspicious, depositing by phone sounds fishy. By choosing this option, you’ll be asked to give information regarding your credit card and your CW. We all know that this is such a big red flag because once they get this information, they can use your credit card for any type of transaction.

Apart from the methods of payment, no other information are stated on the website when it comes to the methods of withdrawal, the minimum withdrawal amount, and the fees you’ll incur. By not stating these information, our suspicions only raised that this broker is a potential scammer.

Conclusion

Octagon Trade is an anonymous and unlicensed broker that doesn’t offer any type of advantage to traders. Their insecure sign up process, fishy payment methods, and lack of transparency are sure signs that this broker is a scammer and only want to rip off investors who are inexperienced. We strongly advise that you stay away from this broker to avoid losing your money. Finally, only choose brokers that are licensed and regulated by renowned authorities such as the FCA of the UK or CySEC of Cyprus.

Octagon Trade

2.5

User Experience

3.3/10

Payment Options

2.5/10

Security

2.4/10

Support

2.1/10

Reputation

2.3/10

Pros

• None

Cons

• Unregulated and unlicensed broker
• Unreliable trading software
• Incomplete information on deposit/withdrawal methods and fees