CySEC Issue: Spanish CNMV Follows FinTelegram And Warns Against OctaFX Offshore Scheme!

FinTelegram review of OctaFX broker scheme
Spread financial intelligence

In February 2022, we published our initial review of the OctaFX broker scheme. CySEC regulates Octa Markets Cyprus Ltd with license number 372/18. Like many other CySEC-regulated brokers, OctaFX runs an offshore scheme via Octa Markets Incorporated, registered in St. Vincent & The Grenadines. The offshore scheme deploys different domains to solicit clients in EEA and other regulatory regimes. On 13 March 2023, the Spanish CNMV warned against this OctaFX offshore broker scheme.

Similarweb statistics for OctaFX website https://es.octafx.com (March 2023)

Dominating Offshore Business

While less than 5,000 people visited the CySEC-regulated OctaFX (OctaFX.eu) website in the last 28 days before March 13, 2023, offshore OctaFX (OctaFX.com) had more than 2.7 million visitors.

More than 78,000 people visited the Spanish website connected with the subdomain https://es.octafx.com during this period—most of them from Mexico, but also people from Spain. The CNMV evidently noticed this. (Source: Similarweb).

The OctaMarkets.net website has recorded more than 6.8 million visitors in the last 28 days. Through this website, potential clients are redirected to OctaFX.com. Offshore is the scheme’s dominating business!

Key data

Trading namesOctaFX
Octa Markets
Domainswww.octafx.com (offshore)
www.octamarkets.net (offshore)
https://es.octafx.com (offshore)
https://www.octafxmy.net (offshore)
https://octaindia.net (offshore)
www.octafx.eu (regulated)
Legal entitiesOcta Markets Incorporated (SVG)
Octa Markets Cyprus Ltd (Cyprus)
JurisdictionsSt. Vincent & The Grenadines
RegulatorCySEC for www.octafx.eu and subdomains
CySEC license 372/18
Leverage1:500 (offshore) and 1:30 (regulated)
Proper KYCno for offshore
yes for regulated
Investor protection
& Ombudsman
no for offshore
yes for regulated
Related individualsAnton Logvinovskyi, Pavel Prozorov
Georgios Xydas, Georgios Pantzis
Trustpilot 4.4-Star rating with “Excellent” trust level
Compliance warningRed
The OctaFX broker scheme
The OctaFX broker scheme

Short Narrative

OctaFX started as an offshore broker in 2011 and later obtained a CySEC license in 2018 to address EEA residents.

While the CySEC-regulated broker Octa Markets Cyprus Ltd does not offer its services to residents of Belgium, we have been able to register with the offshore scheme as a Belgian resident. The offshore entity of OctaFX has no authorization to solicit and onboard EEA residents, but it does so.

Compliance Check

OctaFX allows pre-KYC deposits. After confirming the email, we would have been able to make unlimited deposits via crypto. At this time, OctaFX has not asked us to upload documents to verify our ID or address.

On the other hand, when onboarding at the CySEC-regulated OctaFX broker, all of these checks, as well as the risk assessment and financial literacy check, are done properly.

The offshore OctaFX offers leverage of 1:500, whereas ESMA only allows a maximum of 1:30.

The Spanish financial watchdog CNMV warned against the OctaFX offshore broker scheme. Thus we assign the OctaFX scheme a “Read Compliance” rating.

Preliminary conclusion

Our reviews show that OctaFX‘s offshore broker activities violate the regulatory rules in EEA regimes. On LinkedIn, OctaFX also presents itself as an offshore broker. The CySEC-regulated broker is of secondary importance. Traders are happy with the offshore OctaFX. On Trustpilot, the offshore broker maintains a 4.4-star rating with an Excellent trust level from more than 4,000 reviews. This is also impressive.

While OctaFX’s performance on social media is impressive, and its clients seem to be happy with the broker, its conduct does not seem to comply with ESMA and CySEC regulations.

There is no investor protection at offshore OctaFX and no right to assistance from the Financial Ombudsman in Cyprus. This massively increases the risk for investors.

Share information

We would like to know more about OctaFX and its operators. If you have any information or experience, please share it with us via our whistleblower system, Whistle42.

Leave a Reply

Your email address will not be published. Required fields are marked *