Opteck Review

WHO IS OPTECK?      

According to research in South Africa, Opteck – is a Cyprus-based broker which has been in operation since 2011.

Opteck has licenses which allow for it to offer brokerage services in Cyprus through regulation and authorization by CySEC, and IFSC. Opteck is currently only offering its services to clients based in the EU region.

Opteck is a reputable broker that offers trading in CFDs for Forex, stocks, commodities, and indices through a fixed spreads without any commissions charged on trading.

SAFE OR SCAM

When choosing a broker, it is imperative that traders ensure that brokers are regulated and authorized only through reputable, well-known regulatory entities. Respectively, Opteck is regulated and authorized by:

• Cyprus Securities and Exchange Commission, or CySEC, in Cyprus, and
• International Financial Services Commission, or IFSC, in Belize.

PRO AND CONS

LEVERAGE

Leverage offered by brokers allow traders to open much larger positions against and despite their initial deposits. This increases the potential for profit, but it also increases the risk of incurring substantial losses that may exceed the trader’s initial deposit.

Brokers offer differing levels of leverage that may often be subjected to and restricted by the regulatory entity through which the broker is authorized and regulated. Leverage can start from 1:1 and even go up to 1:2000.

Should the trader have access to leverage of, for instance 1:30, and they have made a minimum deposit of $1,000, they can subsequently open positions to the value of $30,000.

When opening a live trading account with Opteck, traders have access to leverage of between 1:30 and 1:500, depending on the type of account the trader opens in conjunction with the CFDs being traded.

ACCOUNTS   

Opteck offers traders with a great variety in accounting options which cater for individual traders of varying experience levels, whether beginners or professionals.

One of the advantages in registering for an account with Opteck is that there are no commissions charged on trades and variable spreads are available on all account options, but spreads are significantly lower with more professional accounts.

Opteck offers traders with the following choice in accounts:

• Basic – minimum deposit of $250.
• Bronze – minimum deposit of $1,000.
• Silver – minimum deposit of $2,500.
• Gold – minimum deposit of $10,000.
• Platinum – minimum deposit of $25,000.
• Black – For exclusive clients only, there is no additional information regarding this accounting option.

Better spreads can be expected with accounts such as Gold, and Platinum, but the typical offer when trading EUR/USD is 0.3 pips, 5.5 pips when trading Crude Oil WTI, and $0.75 when trading Gold.

Each broker offers different trading conditions that appeal and cater for different types of traders depending on their level of knowledge, skill, and experience along with different financial needs and limits.

Traders need to note that when trading financial instruments such as Forex, there are overnight, roll over, or swap fees involved when holding positions open for longer than a trading day.

The typical fee is approximately -0.00987 for short positions and -0.00125 when trading EUR/USD and holding the position open for longer after the trading day has concluded.

Muslim traders who follow the Sharia law often have the option of converting their standard live trading account to an Islamic Account, which exempts them from paying such fees which are seen as a form of interest, which the Sharia law forbids.

Opteck operates in the Middle Eastern Region, allowing Muslim traders to convert their standard live account to that of an Islamic Account, ensuring that they will not be subjected to overnight fees, or any interest as specified by the Sharia law.

Often, the number and type of accounts that a trader can open with a broker company differs depending on the country in which it operates and the regulation authorities under whose jurisdiction it falls.

MARKET INSTRUMENTS

Opteck offers the trade in several financial instruments, including:

• CFDs on Forex
• CFDs on Stocks
• CFDs on Commodities, and
• CFDs on Indices

CFDs on Forex

Opteck offers the trade in several Forex pairs including EUR/JPY, USD/CAD, GBP/USD, and several more, with spreads typically starting form 0.3 pips on EUR/USD.

CFDs on Stocks

Traders have access to some of the most popular shares which can be traded as CFDs, including, but not limited to:

• Apple
• Google
• Amazon
• Facebook, and more.

CFDs on Commodities

Opteck offers a great variety of CFDs on commodities which can be traded such as Gold, Oil JUL20, Silver, Brent AUG20, and more.

CFDs on Indices

Opteck offers access to some of the most popular indices which includes, but is not limited to the DAX30, NSDQCO, DJIA, CAC40, and more.

FEES

There can be differentiated between two types of fees that traders can encounter when opening an account with Opteck, these are trading and non-trading fees.

Trading fees related to the costs when trades are executed while non-trading fees pertain to broker fees, which is how brokers make their money, such fees include commissions, spreads, margin requirements, and deposit and withdrawal fees, amidst others.

Spreads

The spread is the difference between the bid and the ask price of an instrument which can either be fixed, floating and variable. Some brokers offer spreads that start from 0.0 pips, but traders will find that with such spreads, commission fees per trade are often charged.

Opteck’ spreads depend on the financial instrument being traded and some of the spreads that traders can expect include, but is not limited to:

• Forex – variable spreads from 0.3 pips when trading EUR/USD.
• Commodities – variable spreads from 5.5 pips when trading Crude Oil WTI and $0.75 when trading Gold.

Commissions

Opteck does not charge any commissions on trades that are executed.

Margin

The margin requirement is the balance that the trader must have when they open a position and this is calculated by the current price of the financial instrument weighted against the USD, the size or volume of the position and the leverage which is applied.

Overnight fees

Traders who are not in possession of an Islamic account are subjected to charges when positions are held open for longer than a day. The fees charged will be determined by the financial instrument as well as the duration of the open position.

Additional Broker Fees

Traders need to note that some brokers charge fees should their trading account be left dormant for a certain duration of time. This fee differs between brokers and traders will need to verify this information before opening a live trading account.

Opteck charges a monthly maintenance fee of $7.50 on all accounts which encompasses all the services and features that are made available to traders. In addition, there is a profit clearance fee, which can be broken down as follows:

• $250 or less – a clearance fee of $1.50 is applicable.
• Between $251 to $500 – $2.00
• Between $501 to $1,000 – $3.00
• Between $1,001 to $2,500 – $4.00
• Between $2,501 and more – $5.00

Deposit and Withdrawal Fees

Some brokers carry the costs when deposits to and withdrawals form the account are made and it can either be expressed as a fixed amount or as a certain percentage deducted from the total deposited or withdrawn.

It unclear whether Opteck charges deposit or withdrawal fees according to the payment method used, although with the Platinum and Black Accounts there is one free withdrawal per month, after which a 3.5% fee is charged per withdrawal.

DEPOSIT AND WITHDRAWAL

When opening a live trading account with Opteck, depending on the account type, traders are subjected to the following minimum deposit amounts:

• Basic – minimum deposit of $250.
• Bronze – minimum deposit of $1,000.
• Silver – minimum deposit of $2,500.
• Gold – minimum deposit of $10,000.
• Platinum – minimum deposit of $25,000.
• Black – There is no minimum deposit indicated, merely that this account type caters for exclusive clients only.

Opteck offers commonly used and trusted payment methods along with a wide variety of e-payments as well. Payment methods include, but is not limited to:

• Bank Wire Transfer
• Credit/Debit Cards
• E-payments such as Neteller, Skrill, Yandex, and various others.

The processing times of both deposits and withdrawals will depend on the method used and it can be instant, or it may take up to 10 days, respectively.

Opteck supports a wide variety of deposit currencies although the currencies available will be determined by the type of payment method used when depositing or withdrawing funds.

The deposit currencies in which payments can be made is not indicated, but it is safe to assume, due to the vast majority of e-payments available, that Opteck supports a vast majority of common currencies such as USD, GBP, JPY, CAD, AUD, and more.

Traders should note that third-party deposit and withdrawals are prohibited and that withdrawals have to be made through the same method that was used when funds were deposited into the trading account.

TRADING PLATFORMS

Trading platforms serve as the trading environment, or vehicle, through which transactions are executed and brokers may offer a variety of trading platforms, or they may rely on their own proprietary in-house trading platform which is tailored to their trading conditions.

Trading platforms differ in the same way that brokers differ, and not all trading platforms are designed to facilitate multi-asset trading, traders will therefore need to ensure that both the broker and trading platform can cater for their trading needs.

Opteck offers the use of its own proprietary, in-house trading platform, the Opteck WebTrader, which can be used either on various web browsers, or on mobile devices.

HOW TO OPEN AN ACCOUNT

In order to register for a live account with Opteck, traders will have to complete an online application that requires some basic personal information, contact information and residential information.

Due to strict regulations, all traders who apply for an account will have to go through a “Know Your Client”, or KYC, process which involves the submitting of documents pertaining to proof of identity as well as proof of residence.

These documents will go through a verification process and once they have been approved, the trader will be able to fund their account with the minimum required deposit, and trading can commence.

CUSTOMER SUPPORT

When evaluating brokers, this is one of the crucial factors that traders need to test so that they will have an idea of whether the broker caters sufficiently for client queries, especially should there be an emergency query.

Opteck has comprehensive customer support telephonically in Bahrain, Canada, New Zealand, Canada, Malaysia, and Russia. In addition, there is an international telephone number and email address provided.

There is a comprehensive FAQ section which provides support on a variety of topics and the option of Live/Instant Chat is available on Opteck’s webpage.

EDUCATION       

Educational tools and resources serve the purpose of helping traders, especially beginners, in learning about trading and trading specifically on the broker’s platform. These resources often incorporate a variety of tools and offers substantial support to traders.

Opteck offers a comprehensive education centre which caters for beginners, advanced traders, and professional traders, which contains the following:

• Video courses
• Trading eBooks
• A FAQ section, and
• A Glossary

RESEARCH         

Research platforms, support and tools help traders in making trading decisions more efficiently as these tools provide them with vital information along with access to certain features which can be applied to the way in which they conduct trading.

Opteck makes provision for research through its Trading Information section, which offers the following:

• Market analysis
• Fundamental Analysis
• Blog, and
• An economic calendar

AWARDS

The Opteck website does not indicate whether there are any awards that have been won during the time that the broker has been in operation.

CONCLUSION  

Opteck is a CFD broker that makes extensive provision for trading conditions that suit beginner, advanced, and professional trading through the various account options and the comprehensive financial instrument asset list.

The spreads are quite favourable and an advantage that Opteck has over its peers is that there are no commissions charged on trades.

Although Opteck does not offer the use of popular trading platforms such as MetaTrader 4 and MetaTrader 5, its proprietary trading platform can be used across a variety of devices, providing full account integration.

Opteck provides adequate education and research essential for traders despite their level of skill, experience, and knowledge.

Opteck does not seem to charge deposit or withdrawal fees on any payment methods supported, but Platinum and Black Account holders only receive one free withdrawal per month, with a withdrawal fee applicable on withdrawals henceforth.

DISCLAIMER

Opteck warns potential customers that Forex and CFDs trading always carries a high risk and may not be suitable for all investors.

Before deciding to trade with Opteck, potential traders are advised to carefully consider their investment objectives, financial situation, needs and level of experience before investing money they cannot afford to lose.

Opteck warns that margin trading involves the potential for profit as well as the risk of loss and that movements in the price of foreign exchange and commodities are very unpredictable, hence Opteck cannot guarantee a maximum loss that a trader may suffer, according to research in South Africa.

FAQs

TRADING ENVIRONMENT

How many instruments can I trade with Opteck?

You can trade several different instruments with Opteck, which include the following:

• CFDs on Forex
• CFDs on Commodities
• CFDs on Stocks, and
• CFDs on Indices

Which platforms are supported by Opteck?

Opteck offers the use of its own proprietary trading platform which can be used on various web browsers as well as mobile devices.

Does Opteck offer leverage?

Yes, Opteck offers a maximum leverage of 1:500.

What spreads can I expect with Opteck?

Opteck offers spreads that start from 0.3 pips when trading Forex.

Does Opteck charge commission?

No, commissions are not charged on trades.

Is Opteck regulated?

Yes, Opteck is regulated and authorized by the CySEC and IFSC.

Is Opteck a recommended forex trading broker for experts and beginners?

Opteck caters for both beginner and experienced traders in its offering.

What is the overall rating out of 10 for Opteck?

7/10

ACCOUNTS

What is the difference between a demo and live trading account?

A Demo Account is a risk-free account which is funded by virtual money and allows traders to either practice trading, explore the brokers offering, or test trading strategies in a mimicked live trading environment.

Does Opteck offer a demo account?

No, Opteck does not make provision for a Demo Account.

For how long is the demo account valid?

Demo accounts can typically be used for up to 30-days until they expire, depending on the broker’s offering, but in this case, Opteck does not offer a Demo Account at all.

Which live trading accounts does Opteck offer?

• Basic Account – minimum deposit of $250.
• Bronze Account – minimum deposit of $1,000.
• Silver Account – minimum deposit of $2,500.
• Gold Account – minimum deposit of $10,000.
• Platinum Account – minimum deposit of $25,000.
• Black Account – For exclusive clients only, there is no additional information regarding this accounting option.
• Islamic Account Option

What are the available deposit currencies for a live trading account?

The deposit currencies in which payments can be made is not indicated, but it is safe to assume, due to the vast majority of e-payments available, that Opteck supports a vast majority of common currencies such as USD, GBP, JPY, CAD, AUD, and more.

DEPOSITS AND WITHDRAWALS

What is the minimum deposit for Opteck?

The minimum deposit to open a live account with Opteck is $250.

How do you make a deposit and withdrawal with Opteck?

Deposits and withdrawals can be made through the following payment methods:

• Bank Wire Transfer
• Credit/Debit Cards
• E-payments such as Neteller, Skrill, Yandex, and various others.

Does Opteck charge withdrawal fees?

No, there are no fees indicated pertaining to withdrawals.

How long does it take to make a withdrawal?

Depending on the withdrawal method used, processing times are between one business days and up to ten days.