Compare OctaFx vs Trading212
What is OctaFx? What is Trading212 ?
OctaFx is a forex and CFD broker that offers trading on various instruments, such as currency pairs, metals, indices, cryptocurrencies, and commodities. OctaFx is regulated by the Cyprus Securities and Exchange Commission (CySEC) and the Financial Sector Conduct Authority (FSCA) of South Africa. OctaFx also provides social trading and copy trading features through its Octa Social platform.
Trading212 is a UK-based broker that offers trading on stocks, forex, commodities, indices, and cryptocurrencies. Trading212 is regulated by the Financial Conduct Authority (FCA) of the UK and the Cyprus Securities and Exchange Commission (CySEC). Trading212 also allows traders to invest in real stocks and ETFs without paying commissions.
OctaFx vs Trading212 Regulation Comparison
Both brokers are regulated by CySEC, which means they have to comply with the rules and standards of the European Union’s Markets in Financial Instruments Directive (MiFID). However, Trading212 has an additional license from the FCA, which is considered a more reputable and strict regulator than CySEC. The FCA provides more protection to traders, such as the Financial Services Compensation Scheme (FSCS), which covers up to £85,000 per client in case of broker insolvency. OctaFx does not have such a scheme for its clients. OctaFx has a license from the FSCA of South Africa, which is a relatively new regulator that has not established a strong reputation yet. The FSCA does not offer any compensation scheme or negative balance protection to traders. Therefore, Trading212 has an edge over OctaFx in terms of regulation and trustworthiness.
OctaFx vs Trading212 Trading Assets Comparison
Trading212 offers a wider range of trading assets than OctaFx. Trading212 provides traders with 184 currency pairs, 1785 CFDs, and over 10,000 real stocks and ETFs. OctaFx only offers 40 currency pairs, 229 CFDs, and no real stocks or ETFs. Trading212 also has more cryptocurrency options than OctaFx, with 25 crypto CFDs versus 4 crypto CFDs. Therefore, Trading212 is more suitable for traders who want to diversify their portfolio and access more markets.
OctaFx vs Trading212 Trading Fees Comparison
Both brokers have competitive trading fees, but they differ in their pricing models. OctaFx charges variable spreads on its accounts, which depend on the market conditions and the account type. OctaFx does not charge any commissions or withdrawal fees. Trading212 charges fixed spreads on its CFD account and variable spreads on its Invest account. Trading212 does not charge any commissions on its CFD or Invest accounts. However, Trading212 may charge some fees for deposits, withdrawals, currency conversion, inactivity, or corporate actions.
| Instrument | OctaFx Spread | Trading212 Spread |
|---|---|---|
| EUR/USD | 0.4 pips (Micro account) | 0.9 pips (CFD account) |
| GBP/USD | 0.5 pips (Micro account) | 1.9 pips (CFD account) |
| USD/JPY | 0.4 pips (Micro account) | 1.2 pips (CFD account) |
| Gold | $0.30 (Micro account) | $0.37 (CFD account) |
| Bitcoin | $30 (Micro account) | $36.8 (CFD account) |
OctaFx has lower spreads than Trading212 for most of the instruments we compared . However, this does not necessarily mean that OctaFx is cheaper than Trading212 overall, as there may be other factors that affect the trading costs, such as slippage, execution speed, swap rates, etc.
OctaFx vs Trading212 Account Types Comparison
OctaFx offers three types of accounts: Micro, Pro, and ECN. The Micro account is suitable for beginners, as it has low minimum deposit ($100), high leverage (up to 1:500), and small lot sizes (from 0.01). The Pro account is designed for experienced traders, as it has lower spreads, higher minimum deposit ($500), and lower leverage (up to 1:200). The ECN account is for advanced traders who want to trade with the best market conditions, as it has the lowest spreads, highest minimum deposit ($1000), and lowest leverage (up to 1:100).
Trading212 offers two types of accounts: CFD and Invest. The CFD account allows traders to trade on various instruments with leverage, while the Invest account allows traders to buy and sell real stocks and ETFs without leverage. Both accounts have no minimum deposit requirement and offer a free demo account.
OctaFx vs Trading212 Deposit Options Comparison
Both brokers offer a variety of deposit and withdrawal options, such as bank wire transfer, credit/debit cards, e-wallets, and local payment methods . However, Trading212 has more restrictions on the currencies and methods that can be used for deposits and withdrawals.
For example, Trading212 only accepts deposits in EUR, GBP, USD, CHF, NOK, SEK, DKK, RON, BGN, or PLN. OctaFx accepts deposits in more than 20 currencies, including VND. Trading212 also charges some fees for certain deposit and withdrawal methods, such as 0.7% for Skrill deposits or £1 for bank wire withdrawals. OctaFx does not charge any fees for deposits or withdrawals.
OctaFx vs Trading212 Trading Platforms Comparison
OctaFx offers three trading platforms: MetaTrader 4 (MT4), MetaTrader 5 (MT5), and cTrader. MT4 and MT5 are the most popular platforms in the forex industry, as they offer a user-friendly interface, advanced charting tools, custom indicators, automated trading, and a large community of traders and developers. cTrader is a newer platform that offers more features and flexibility for ECN trading, such as depth of market, level II pricing, detachable charts, etc.
Trading212 offers its own proprietary platform that is available as a web-based version or a mobile app. The platform is easy to use and has a sleek design, but it lacks some of the features and functionalities that are available on MT4 or MT5. For example, the platform does not support custom indicators or automated trading. The platform also has limited charting tools and analytical tools compared to MT4 or MT5.
OctaFx vs Trading212 Analytical Tools Comparison
Both brokers provide some analytical tools to help traders with their trading decisions. OctaFx offers market news, economic calendar, trading signals, market insights, webinars, and video tutorials. Trading212 offers market news, economic calendar, price alerts, trading ideas, podcasts, and video tutorials. However, neither broker offers comprehensive research or analysis from third-party providers or in-house experts. Therefore, traders may need to use external sources or tools to supplement their trading strategies.
OctaFx vs Trading212 . Which forex broker is better? Which forex broker should you choose?
Choosing the right broker depends on your personal preferences, trading goals, risk appetite and budget. However, here are some possible scenarios where you might prefer one broker over another:
- If you are looking for a broker with more regulation and protection, you might prefer Trading212 over OctaFx, as Trading212 has a license from the FCA and offers the FSCS scheme to its clients.
- If you are looking for a broker with more trading assets and markets, you might prefer Trading212 over OctaFx, as Trading212 offers more currency pairs, CFDs, and real stocks and ETFs than OctaFx.
- If you are looking for a broker with lower trading costs and fees, you might prefer OctaFx over Trading212, as OctaFx has lower spreads and does not charge any commissions or withdrawal fees.
- If you are looking for a broker with more trading platforms and features, you might prefer OctaFx over Trading212, as OctaFx offers MT4, MT5, and cTrader platforms that have more functionalities and customizability than Trading212’s proprietary platform.
- If you are looking for a broker with more social trading and copy trading options, you might prefer OctaFx over Trading212, as OctaFx offers its own Octa Social platform that allows you to follow and copy other traders.
In the end, the best way to decide which broker is better for you is to experiment for yourself. You can open a free demo account with both brokers and test their platforms, services and performance. You can also read user reviews and feedback from other traders who have used both brokers. This way, you can make an informed decision based on your own experience and research.
