In March 2023, we published our latest update on the Octa (previously OctaFX) broker scheme and reported a CNMV warning. CySEC regulates Octa Markets Cyprus Ltd with license number 372/18. Like many other CySEC-regulated brokers, Octa runs an offshore scheme via Octa Markets Incorporated. The offshore scheme deploys different domains to solicit clients over regulatory regimes. Octa showed impressive growth over the last 12 months.
Dominating Offshore Business
In the last 28 days before February 5, 2024, more than 3.2 million people visited the OctaFX website (OctaFX.com). In March 2023, it was 2.7 million. That is impressive growth. The Octamarkets.net website was visited by more than 2.9 million people in the 28 days prior to February 5, 2024.
Most visitors come from India, Indonesia, and Nigeria. In India, OctaFX was included in the Alert List by the responsible regulator.
Read more Octa reports here on FinTelegram.
In comparison, the website of CySEC-regulated OctaFX mutation (OctaFX.eu) is visited by less than 5,000 people per month, according to Similarweb statistics. From our understanding, OctaFX holds the CySEC license for marketing reasons.
More than 124,000 people visited the Spanish-speaking website connected with the subdomain https://es.octafx.com in the last 28 days before Feb 5, 2014 —most of them from Mexico, but also people from Spain despite the CNMV in March 2023 (Source: Similarweb).
OctaFX Key data
| Trading names | Octa OctaFX Octa Markets |
| Domains | www.octafx.com (offshore) www.octamarkets.net (offshore) https://es.octafx.com (offshore) https://hi.octafx.com (offshore) https://www.octafxmy.net (offshore) https://octaindia.net (offshore) https://www.octaeu.com (regulated) www.octafx.eu (regulated) and more … |
| Legal entities | Octa Markets Incorporated (SVG) Octa Markets Cyprus Ltd (Cyprus) |
| Jurisdictions | St. Lucia St. Vincent & The Grenadines Cyprus |
| Regulator | CySEC for www.octafx.eu and subdomains CySEC license 372/18 |
| Leverage | 1:500 (offshore) and 1:30 (regulated) |
| Proper KYC | no for offshore yes for regulated |
| Investor protection & Ombudsman | no for offshore yes for regulated |
| Related individuals | Anton Logvinovskyi, Pavel Prozorov Georgios Xydas, Georgios Pantzis |
| Warnings | CNMV, FCA, RBI (India) |
| Trustpilot | 4.5-Star rating with “Excellent” trust level |
| Compliance warning | Red |
Short Narrative
Octa, a/k/a OctaFX, started as an offshore broker in 2011 and later obtained a CySEC license in 2018 to address EEA residents.
With more than 6 million monthly visitors to its various websites, Octa is one of the largest offshore online brokers in the world. In comparison, the offshore broker BDSwiss looks like a dwarf with just under 200,000 monthly visitors. BDSwiss used to be CySEC-regulated but has since surrendered its license after numerous regulatory violations and penalties.
Compliance Check
Like the old brand OctaFX, the new Octa allows pre-KYC deposits. During our last review on February 6, 2024, we were able to register via Google as a resident of an EU country without any problems and make deposits via cryptocurrencies with a volume of $20,000 per day. Â At this time, OctaFX has not asked us to upload documents to verify our ID or address. For other payment methods, including bank wire and credit/debit cards (they call it “locked payment methods”), we would have needed a KYC verification.
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.
Early 2023, the Indian regulator RBI included OctsFX in its warning list. In March 2023, the Spanish financial watchdog CNMV warned against the OctaFX offshore broker scheme. However, the offshore broker continues to serve markets in which it does not have regulatory permission. Thus, we maintain the “Red Compliance” rating for the new Octa.
It should also be duly noted at this point that Octa is obviously doing an excellent job with customers. On Trustpilot, Octa receives a 4.5-star rating with an excellent trust level from over 6,000 reviews. This is remarkable and impressive. If Octa were now to ensure a proper regulatory framework, Octa could obviously be a great broker. Maybe!
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We would like to know more about Octa and its operators. If you have any information or experience, please share it with us via our whistleblower system, Whistle42.
