FXGrow vs OctaFX

FXGrow or OctaFX?

ECN execution or a wide range of instruments?

• Written by Marcus Taylor
• Founder & CEO

If you’re a trader looking for a broker that offers ECN execution (as opposed to a market maker), FXGrow is likely the better choice. However, if you want a broker with a large range of instruments available to trade, OctaFX may be more suitable.

Which broker is more reliable?

You can determine a broker’s reliability & trustworthiness by looking at eight factors:

• Who are they regulated by?
• How long have they been around for?
• Do they hold your money in a separate bank account?
• Do they use reputable “tier-1” banks like Barclays, Goldman Sachs or HSBC?
• Have they been fined or penalised in the last five years?
• The popularity of their service/website
• Are they publicly listed?
• Where are they located?

Based on these eight factors, we consider OctaFX to be the more reliable broker. We’ve broken down why below:

Who are they regulated by?

FXGrow is regulated by Financial Conduct Authority and CySEC, while OctaFX is regulated by FSA.

AvaTrade are regulated by Central Bank of Ireland, ASIC, IIROC, FSA, FSB, UAE and BVI

How long have they been around for?

If a broker has been around for a long period of time, they’re likely to be more reliable (in comparison, most scam brokers only exist for several years before they disappear).

This also suggests that a broker has good risk management processes that have prevented them being caught out by major financial events, as was the case with Alpari UK going bust when they were there was a policy reversal of capping the Swiss Franc against the Euro.

FXGrow has been around for 9 years, while OctaFX have been around for 10 years. Our third alternative broker, AvaTrade, have been around for 15 years.

Do they hold your money in a separate bank account?

You wouldn’t want your broker paying their staff out of the same bank account account that you’re depositing your trading funds into, would you?

Fortunately, all regulated brokers must use segregated bank accounts to hold client money. This is one of the reasons why we only feature regulated brokers here on BrokerNotes.

All three brokers above will hold your money in a separate bank account.

Do they use reputable “tier-1” banks like Barclays, Goldman Sachs or HSBC?

Most tier-1 banks like Barclays and HSBC have been around for over 100 years and manage trillions of dollars of assets, proving that they have stood the test of time.

Both FXGrow and OctaFX use tier one banks, but we are not sure of which bank specifically.

Have they been fined or penalised in the last five years?

If a broker has been penalised by a regulator in the past five years, it may mean that they were caught doing something they shouldn’t be doing - which may be of concern to you as an end client.

How popular is their service/website?

While not always the case, the number of traders a broker has can be a good metric for understanding how reputable a brokers is.

OctaFX is more popular with over 300,000 traders.

Are they publicly listed?

Companies that are publicly listed on a stock exchange tend to be considered more reputable as they will be required to disclose their financials, and aspects of their operations, to the public.

Both FXGrow and OctaFX are privately owned companies.

Where are they located?

Most reputable brokers tend to be headquartered in a major capital city or a financial hub such as Cyprus.

FXGrow are based in Limassol, Cyprus, while OctaFX are based in Suite 305, Griffith Corporate Centre, Beachmont, Kingstown, St. Vincent and the Grenadines .

Do they offer the features you need?

Assuming the brokers you’re choosing between are reputable, the next point to consider is whether they offer all of the features you require to trade.

This can be broken down into three categories:

• Services & instruments
• Platforms & account types
• Trading features, risk management tools & funding methods

Services and Instruments

If you’re looking to trade currency pairs, both FXGrow and OctaFX offer forex trading. OctaFX have a slightly larger variety of currency pairs with 28 pairs, compared to offered by FXGrow. Also, if you’re looking to trade cryptocurrencies, OctaFX offers a handful of cryptocurrency CFDs to trade, including Bitcoin, Ethereum and Ripple.

neither FXGrow nor FXGrow offer commodity trading.

Platforms & Account Types

If you trade forex, there’s a good chance you might want a broker that offers the popular MT4 trading platform. If that’s the case, both FXGrow and OctaFX offer this. OctaFX also offer the new & improved MT5 platform. Our alternative broker, AvaTrade, also offers MT4 and MT5.

In addition to the platform, you’ll also want to ensure that the broker you choose offers the account type best suited to your needs. AvaTrade, for example, offer a mini account, standard account and VIP account.

Trading features, risk management tools & funding methods

If you have a certain trading style (e.g. scalping, hedging, or using EAs), you’ll want to double check that the broker you choose allows this, as not all of them do.

FXGrow does allow scalping and hedging. While OctaFX also allows scalping and hedging. You can trade with EAs (expert advisors) on both FXGrow and OctaFX.

In terms of risk management tools, FXGrow does offer negative balance protection to prevent you owing your broker more than you’ve deposited, but OctaFX doesn't offer this.

FXGrow also offer stop losses, limit orders, and price alerts to help you automate aspects of your trading strategy.

Both FXGrow and OctaFX accept Neteller as a funding method.

Are they affordable for what you need?

Comparing the fee structures of different brokers can be a minefield at times. The important thing to consider is what the spreads & fees are on the specific instruments and account type that you will be using.

For trading EUR/USD, FXGrow and OctaFX both charge points. Therefore, both brokers are equally affordable for this instrument. You can jump back up to our comparison of their currency pair & indice spreads above.

Another consideration is whether or not your broker charges inactivity, deposit/withdrawal fees, or commissions on trades. If you’re a frequent trader, inactivity fees are unlikely to be an issue.

The Verdict: FXGrow or OctaFX?

There’s no such thing as a perfect broker, but some are going to be a better fit for you than others.

Objectively, OctaFX is more reliable based on our criteria above. OctaFX has a wider range of instruments to trade. OctaFX offer lower spreads on popular forex instruments like EUR/USD and are used by more traders.

Both brokers offer demo accounts, allowing you to test their platforms to see which is suitable for you. You can test drive their demos using the links below:

• Try FXGrow’s demo account (Your capital is at risk)
• Try OctaFX’s demo account (Losses can exceed deposits)
• Try AvaTrade’s demo account (79% of retail investor accounts lose money when trading CFDs with this provider.)

Finally, if you’re really not sure you can always use our free tool (takes 15 seconds) that will help you find a suitable broker based on your precise requirements here.