Octotrade – Can You Trust Them?
Stop! It’s a Scam! Your money is not safe if you are trading with this unregulated, off-shore broker.
Octotrade - DO NOT TRADE WITH THIS PROVIDER
2.5/10
$100
Minimum Depositupdated 2023
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.
Try these regulated brokers if you want to start trading cryptocurrencies
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.
Website URL: https://octotrade.co
Founded: 2023
Regulations: Lack of Regulation
Languages: English, Arabic, German, French
Deposit Methods: Credit Card
Minimum Deposit: Not Mentioned
Free Demo Account: Unavailable
Number of Assets: Unspecified
Types of Assets: Stocks, ETFs, Funds, Options, Forex, CFDs, Cryptocurrencies
Trading Accounts and Conditions
Octotrade has not given any details about their trading accounts or even their trading conditions. The only information we are given is about the broker’s spreads, where Octotrade states that their spreads for the EURUSD starts from 2 pips. For the GBPUSD the spreads start from 3 pips, and for the USDJPY the spreads start from 0.4 pips.
There is no other information provided.
Octotrade – Advantages
There are no advantages to trading with Octotrade.
Octotrade – Disadvantages
Here is the entire list of disadvantages that tell us that Octotrade is a scammer:
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Lies about Regulation
Octotrade claims to be regulated in Canada. The broker states that their Company number is M22071598, and their company name is OCTO FINANCE INC LTD. The broker claims that they are regulated by the Canadian authority called Financial Transactions and Reports Analysis Centre of Canada. The broker also substantiates this claim by giving us a Canadian address and telephone number.
All of these claims are lies. Here is how we know. The Financial Transactions and Reports Analysis Centre of Canada does not oversee forex brokers. The Canadian financial regulator is the IIROC – the Investment Industry Regulatory Organization of Canada.
The fact that this broker has lied about their regulation status clearly tells us that they are operating illegally in this country. And since they have not mentioned any other form of regulation, we can safely conclude that Octotrade is an unregulated scammer.
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.
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.
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Warning Issued by AMF
We are not the only ones to have noticed that Octotrade is operating illegally. The AMF (Autorité des Marchés Financiérs), the financial regulator of the Canadian province of Quebec has issued a warning against this broker.
In that warning, the AMF states that this broker is operating in Canada without proper authorization and that trading with them would be dangerous.
When a respected authority such as the AMF issues a warning against a broker, it is best to pay heed to that warning.
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No Legal Documents
Another issue that tells us that Octotrade is a scammer is the complete lack of legal documents. Legal documents are basically the contract between the trader and the broker. These documents consist of the Terms of Service, the Privacy Policy, the KYC, AML and so on.
If a trader signs up with a broker that does not disclose their legal terms, then that trader is leaving themselves open to being scammed. And if that trader is scammed, then there is no help that any financial authority can give that person; they chose to do business with a broker that had no contract in place.
This is the reason why it is so important to read through all the legal documents before signing up with a new broker.
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Issues with Trading Platform
There are two only offerings a broker has: their trading platform and the trading conditions that go with that platform. Therefore, real brokers ensure that their trading platform is world-class and their trading conditions are competitive. So, when we review a new broker, we check their trading platform and their trading conditions to see if they are advantageous or not.
Let us first address the issue of Octotrade’s trading platform.
After we registered for an account with this broker, we found out that their claims of offering their clients a world-class trading platform were lies. What this broker really offers their clients is a non-functional trading platform in which the charts displayed have been imported from TradingView.com.
When a broker lies about their trading platform, it is a clear red flag that tells us that we are dealing with a scammer.
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Issues with Trading Conditions
As we have mentioned in the previous point, the trading platform and the trading conditions are what any broker has to offer their clients. What differentiates one broker from another is the quality of their trading platform and the competitiveness of their trading conditions.
We have already established that Octotrade has nothing to offer in the form of a trading platform. Now, let us look at what this broker offers for their trading conditions.
First, we have almost no information on their trading conditions. We do not know what the minimum deposit amount is. We are not told about the leverages, commissions, order execution methods and so on. We are given spreads that are so high that even if this broker were legitimate, we would still advise against trading with them. A starting spread of 2 pips for the EURUSD is just too expensive, especially since we do not know what Octotrade’s commissions and fees are.
Just to give you an idea, the market average for spreads ranges from 0.5 pips to 1.5 pips.
When a broker withholds most of the information related to their trading conditions, it is another red flag. In Octotrade’s case, we know that there are no trading conditions because this broker does not even have a proper trading platform to speak of.
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Single Payment Option
The only way that you can make payments with Octotrade is via a credit card. While this is not as dangerous as cryptocurrencies, when a broker offers only a single payment method, it is another sign that they cannot be trusted.
Regulated brokers offer their clients a wide range of payment options. This way their customers can choose the payment method that is most convenient to them. A single payment option limits the clients and also raises questions about the broker’s openness and honesty.
Conclusion
Octotrade is a scammer and no trader should trust this broker.
Octotrade
Pros
- None
Cons
- Lies About Regulation
- Warning Issued by AMF
- No Legal Documents
- Issues with Trading Platform
- Issues with Trading Conditions
Do not trade with unregulated brokers that will steal your funds - try these regulated brokers:
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.
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.
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