Exness Review
OctaFX Islamic Account
Overall, OctaFX offers an Islamic Account for Muslim traders. OctaFX is very competitive in terms of its trading fees and spreads. OctaFX offers two retail investor accounts as well as a demo and Islamic Account for Botswanan traders. OctaFX has a trust score of 67% out of 100.
- Louis Schoeman
Jump to:
OctaFX Overview
What is an Islamic Account?
How to Open an Islamic Account?
Pros and Cons
Final Verdict
FAQ
Overall Rating
- 4.6/5
Min Deposit
USD 25
Regulators
FCA UK
Trading Platform
MT5, MT4, OctaTrader
Crypto
Yes
Total Pairs
28
Islamic Account
Yes
Trading Fees
Low
Account Activation Time
24 Hours
OctaFX at a Glance
| 🏛 Headquartered | Saint Vincent and the Grenadines |
| 🌎 Global Offices | United Kingdom, Hong Kong, Indonesia, Cyprus, Malaysia, Thailand |
| 🏛 Local Market Regulators in Botswana | • Ministry of Finance and Economic Development (MFED) • Bank of Botswana (BoB) • Non-Bank Financial Institutions Regulatory Authority (NBFIRA) |
| 💳 Foreign Direct Investment in Botswana | 115.89 BWP Million in 2021 |
| 💰 Foreign Exchange Reserves in Botswana | 5270 USD Million in 2021 |
| ✔️ Local office in Gaborone? | No |
| 👨⚖️ Governor of SEC in Botswana | None, Moses Dinekere Pelaelo is the Governor of the Bank of Botswana |
| ✔️ Accepts Botswana Traders? | Yes |
| 📊 Year Founded | 2011 |
| 📞 Botswana Office Contact Number | None |
| 📱 Social Media Platforms | • Facebook • YouTube • Telegram |
| ⚖️ Regulation | CySEC, SVG FSA |
| 1️⃣ Tier-1 Licenses | None |
| 2️⃣ Tier-2 Licenses | • Cyprus Securities and Exchange Commission (CySEC) |
| 3️⃣ Tier-3 Licenses | • Financial Services Authority of Saint Vincent and the Grenadines |
| 🪪 License Number | • Cyprus – 372/18 • Saint Vincent and the Grenadines – 19776 |
| ⚖️ MFED, BoB, or NBFIRA Regulation | No |
| ✔️ Regional Restrictions | The United States |
| ☪️ Islamic Account | Yes |
| 💻 Demo Account | Yes |
| 🛍 Retail Investor Accounts | 2 |
| ✔️ PAMM Accounts | No |
| 💻 Liquidity Providers | Unknown |
| ✔️ Affiliate Program | Yes |
| 📱 Order Execution | Market |
| 📊 Starting spread | From 0.6 pips |
| 📉 Minimum Commission per Trade | None |
| 💰 Decimal Pricing | 5th decimal pricing after the comma |
| 📞 Margin Call | 25% |
| 🛑 Stop-Out | 15% |
| 📉 Minimum Trade Size | 0.01 lots |
| 📈 Maximum Trade Size | 500 lots |
| ✅ Crypto trading offered? | Yes |
| ✔️ Offers a BWP Account? | No |
| 📉 Dedicated Botswana Account Manager? | No |
| 📈 Maximum Leverage | 1:500 |
| 📊 Leverage Restrictions for Botswana? | No |
| 💳 Minimum Deposit (BWP) | 481 Botswanan Pula or an equivalent to $25 |
| ✔️ Botswana Pula Deposits Allowed? | No |
| 📊 Active Botswana Trader Stats | 250,000+ |
| 👥 Active Botswana-based OctaFX customers | Unknown |
| 🔁 Botswana Daily Forex Turnover | Unknown, Forex overall is $6.6 Trillion |
| 💰 Deposit and Withdrawal Options | • Debit Card • Credit Card • Bitcoin (BTC) • Ethereum (ETH) • Dogecoin (DOGE) • Litecoin (LTC) • Tether TRC-20 (USDTT) • Tether ERC-20 (USDTE) • Skrill • Neteller |
| 💻 Minimum Withdrawal Time | 30 minutes |
| ⏰ Maximum Estimated Withdrawal Time | 3 hours |
| 💳 Instant Deposits and Instant Withdrawals? | No |
| 🏛 Segregated Accounts with Botswana Banks? | No |
| 📱 Trading Platforms | • MetaTrader 4 • MetaTrader 5 • OctaFX App • CopyTrade App |
| 💻 Tradable Assets | • Forex • Index CFDs • Commodities • Cryptocurrencies • Energies • Precious Metals |
| ✔️ Offers USD/BWP currency pair? | No |
| 📊 USD/BWP Average Spread | N/A |
| ✅ Offers Botswana Stocks and CFDs | No |
| 💻 Languages supported on the Website | English, Malaysian, Hindi, Bangla, Thai, Spanish, German, Vietnamese, Portuguese, Arabic, Chinese (Simplified) |
| ☎️ Customer Support Languages | Multilingual |
| 👥 Copy Trading Support | Yes |
| ⏰ Customer Service Hours | 24/7 |
| 📞 Botswana-based customer support? | Yes |
| 💸 Bonuses and Promotions for Botswanans? | Yes |
| 📚 Education for Botswanan beginner traders | Yes |
| 📱 Proprietary trading software | Yes |
| 🤝 Most Successful Trader in Botswana | Unknown |
| ✔️ Is OctaFX a safe broker for Botswana Traders? | Yes |
| 🎖 Rating for OctaFX Botswana | 7/10 |
| 🥇 Trust score for OctaFX Botswana | 67% |
| 👉 Open Account | 👉 Open Account |
OctaFX Overview
Overall, OctaFX is considered high-risk, with an overall Trust Score of 67 out of 100. OctaFX is licensed by zero Tier-1 Regulators (high trust), one Tier-2 Regulator (average trust), and one Tier-3 Regulator (low trust). OctaFX offers two different retail trading accounts: a MetaTrader 4 Account and a MetaTrader 5 Account.
OctaFX was founded in 2011 in Cyprus and is a well-regulated broker with CySEC and SVG monitoring. They provide ECN execution, which scalpers favor for its rapidity. Additionally, the broker provides copy trading services and an approachable minimum deposit.
OctaFX operates as an ECN broker, which enables them to provide improved trading conditions, which is crucial for individuals who engage in day trading and use scalping tactics. The broker provides helpful trading tools, instructional materials, and a timely customer service staff to assist you as required. OctaFX is a multi-award-winning broker offering Forex, Commodities, Cryptocurrency, Stocks, Shares, Indices, Metals, Energies, and CFD trading worldwide.
You may trade on all your devices using an intuitive platform. In addition, the broker offers a vast array of high-quality trading tools, which may be indispensable for market analysis and making informed judgments.
In addition to industry staples such as an Economic Calendar and Profit and Trading Calculators, OctaFX provides a tool for account monitoring and an AutoChartist.
Account Monitoring enables traders to watch the accounts of other OctaFX traders and sort them by Balance, Profit, Trades, and Account Type.
This tool lets you go into the account’s past to see how its owner has handled its success. All account holders remain anonymous since numbers solely represent their accounts. In addition, OctaFX supports AutoChartist, the leading supplier of trading signals in the industry.
AutoChartist offers traders automatic notifications for starting and finishing trades, a volatility analysis tool that enables traders to optimise take-profit and stop-loss settings, and integrated market reports.
AutoChartist is accessible on both MT4 and MT5 and needs a minimum account balance of USD 500.
The instructional content at OctaFX and its alternate website is of high quality, although it is primarily geared toward beginner traders; experienced traders have limited access to educational resources.
Customer service is competitive, but research and market analysis are where OctaFX excels.
What exactly is an Islamic Account for Traders?
An Islamic, or swap-free, trading account is allowed by Islamic Sharia law. An Islamic Account follows the Islamic principle where interest does not apply to open positions held for longer than a trading day after the trading day has concluded.
CFD and Forex brokers who serve Middle Eastern clients off Islamic Account conversions. CFD and Forex Brokers offer this option to clients from other jurisdictions who are of the Islamic faith.
Certain features align with the Sharia law, which prohibits the accrual of interest on funds deposited into the account.
The other important feature of an Islamic Account is the immediate settlement of transactions. Direct payment requires the transfer of currencies from one account to the other right after the transaction has been completed and paid for in full.
Two critical elements of Islamic law relate specifically to trading accounts. These elements are:
➡️ Riba, and
➡️ Gharar
Riba is the prohibition of generating money from money, which in this case specifically refers to an interest, which is not allowed according to Sharia law. This interest is unjust and exploitive gains on trade or business.
What is an Islamic Account, and why is it important for Muslim traders?
An Islamic Account, also known as a swap-free account, is a financial trading account that adheres to Islamic finance principles, specifically Sharia law. It is designed to cater to Muslim traders who wish to participate in online trading while complying with the prohibition of earning or paying interest (riba) as outlined in Islamic finance.
What are the key features of OctaFX’s Islamic Account, and how does it work in practice?
OctaFX’s Islamic Account is a swap-free trading account that operates in compliance with Islamic finance principles. It does not involve overnight swap or interest rates, which are prohibited by Sharia law. Instead of earning or paying interest, Islamic Account holders may be subject to a fixed administrative fee or commission on positions held overnight.
Why is interest discouraged or prohibited by Sharia law?
Because of the restrictions and certain prohibitions placed on Muslim traders when considering the intricate details involved with trading activities, the following are affected greatly:
➡️ Overnight rollovers – which involve the incurrence or receiving of swap points on positions that are held open for longer after the trading day has concluded at the New York close at 5 PM EST which is prohibited by the Sharia law.
➡️ Margin deposits and interest – which involves the accrual of interest on funds that are deposited into the trading account, which is prohibited.
➡️ Loans – when followers of the Sharia law have funds transferred by either a bank or other financial institution and it involves interest terms, this is prohibited by the Sharia law as per the key element, Riba.
➡️ Margin trading – stocks that are traded on margin result in the trader being liable for paying interest, which amounts to Riba, as money is borrowed from the broker to buy or sell such equities, which is prohibited by Sharia law.
➡️ Short sales – which affects mostly shares and involves borrowing and subsequent sale of an asset, which is prohibited.
➡️ Forward sales – which affects forward contracts as well as the trading of futures contracts which involves the buying and selling of contracts at a future date according to a price agreed upon on the day of entering such a contract.
Why does Sharia law prohibit the payment or receipt of interest (riba), and what are the underlying principles behind this prohibition?
Sharia law, which governs various aspects of Muslim life, prohibits interest (riba) primarily due to its perceived exploitation and unjust nature. The prohibition is rooted in Islamic ethics and principles, such as fairness, social justice, and the avoidance of harm. Riba is viewed as a form of financial exploitation because it allows individuals or institutions to profit from the mere lending of money, without engaging in productive or risk-sharing activities. This can lead to wealth accumulation for lenders at the expense of borrowers, potentially perpetuating economic inequality.
How does the prohibition of interest impact Islamic finance and banking practices?
The prohibition of interest in Islamic finance and banking practices leads to the development of alternative financial mechanisms that align with Sharia principles. Islamic finance relies on profit-sharing, risk-sharing, and asset-backed transactions to provide financial services without the involvement of interest.
What are the steps involved in opening an OctaFX Islamic Account?
Step 1: Press the Open Account Button.
The Open Account button is located at the top right of the OctaFX webpage. A registration form can also be found via the signup page link.
Step 2: Complete Details.
After pressing the Open Account button, a registration form will appear. Complete the required information and press the Open Account button located below the form.
Step 3: Email Account Verification.
After all the required details have been completed and submitted, a confirmation email will be sent to the applicant’s account. After locating and opening the email – press Confirm.
Step 4: Complete Personal Details.
Once the applicant’s email has been confirmed, they will be directed to the OctaFX website to fill in their personal details. The information provided by the applicant must be accurate, relevant, and up-to-date.
Step 5: Select a Trading Platform.
The applicant must select between a real or demo account.
Step 6: Complete Account Selection.
After choosing a platform, the applicant will press continue in order to finalize account creation.
Step 7: Make a Deposit.
What is OctaFX’s spread costs on an Islamic Account?
OctaFX’s variable spreads are marked up to account for the broker’s service charge for executing trades. As a result, spreads at OctaFX are subject to change based on current market circumstances and the traded financial instrument.
The average spread for the most liquid currency pair on the foreign exchange market, EUR/USD, is 0.6 pips, which provides Botswanan traders an idea of what to expect.
OctaFX offers real-time quotes for all trading instruments on its website to provide traders with a safe, fair, and transparent environment. Other spreads Botswana investors might expect based on the financial product they trade include:
➡️ EUR/USD – from 0.6 pips
➡️ USD/JPY – from 1 pip
➡️ NAS100 – from 1.2 pips
➡️ BTC/USD – from 2.8 pips
➡️ XBR/USD – from 0.7 pips
➡️ XTI/USD – from 0.7 pips
How do spread costs work on OctaFX’s Islamic Account, and are they different from other account types?
OctaFX’s Islamic Account, like its other account types, may involve spread costs, which are the differences between the buying (ask) and selling (bid) prices of trading instruments. The spread costs on an Islamic Account are typically determined by market conditions, liquidity, and the specific instruments being traded.
Are there any advantages to using OctaFX’s Islamic Account in terms of spread costs compared to other account types?
OctaFX’s Islamic Account is designed to be interest-free in compliance with Islamic finance principles, and as such, it does not involve overnight swap or interest rates. While the spread costs on an Islamic Account are typically determined by market conditions, they may be viewed as advantageous by traders who prefer to avoid interest-based trading.
Overall Rating
- 4.6/5
Min Deposit
USD 25
Regulators
FCA UK
Trading Platform
MT5, MT4, OctaTrader
Crypto
Yes
Total Pairs
28
Islamic Account
Yes
Trading Fees
Low
Account Activation Time
24 Hours
What other features does OctaFX Islamic Account offer traders?
Apart from interest and swaps, the OctaFX Islamic Account is identical to a standard retail account. The following features are available to Muslim traders in addition to the normal ones:
offers Islamic swap-free trading on 2 trading accounts levels. OctaFX MT4 Swap-free and OctaFX MT5 Swap-free.
OctaFX offers an OctaFX Swap-Free account option by default to all applicable trading accounts created by clients in non-Islamic countries.
In addition to being swap-free, what are the other features or benefits of OctaFX’s Islamic Account that traders can enjoy?
OctaFX’s Islamic Account, also known as a swap-free account, offers traders several key features and benefits. These typically include access to the same range of trading instruments, competitive spreads, and a variety of trading platforms, just like other account types.
Can traders switch between OctaFX’s Islamic Account and other account types if their trading preferences change, and are there any restrictions on such transitions?
OctaFX typically allows traders to switch between account types based on their trading preferences. However, it’s important to note that there may be certain conditions or requirements associated with transitioning between account types.
OctaFX Pros and Cons
| ✔️ Pros | ❌ Cons |
| Fixed spread accounts are offered to retail traders | US clients are restricted |
| The broker accepts hedging and scalping strategies | There are only a few financial markets that can be traded |
| Negative balance protection is applied to retail investor accounts | |
| The broker is well-regulated and has a decent trust score | |
| There is commission-free trading |
Verdict on OctaFX
Overall, OctaFX is very competitive in terms of its trading fees and spreads.
You might also like: OctaFX Review
You might also like: OctaFX Account Types
You might also like: OctaFX Demo Account
You might also like: OctaFX Fees and Spreads
You might also like: OctaFX Minimum Deposit
Conclusion
Now it is your turn to participate:
Do you have any prior experience with OctaFX?
What was the determining factor in your decision to engage with OctaFX?
Was it because of the minimum deposit, regulation, retail trading accounts, or any other factors?
Have you experienced any issues with OctaFX such as difficulty withdrawing funds, inability to verify regulations, irresponsive customer support, etc.?
Regardless, please share your thoughts in the comments below.
Frequently Asked Questions
Does OctaFX offer an Islamic Account?
OctaFX offers Muslim traders the chance to convert their live account into an Islamic Account.
Are there holding fees on the OctaFX Islamic Account?
There are no holding fees when Muslim traders keep positions open on the Islamic Account.
Is OctaFX Sharia-compliant?
Yes, OctaFX is fully Sharia-compliant in terms of its Islamic Account.
What are the average spreads I can expect on the OctaFX Islamic Account?
The average spreads you can expect start from 0.6 pips EUR/USD. Mark-up is added to all spreads to cover OctaFX’s fee for facilitating the trade instead of commissions being applied.
What does OctaFX do with my funds?
OctaFX keeps all client funds in segregated accounts. These accounts are separate from the broker account and are held with top-tier banks.
