A practical scheme to perform the fast Fourier transform in the optical domain is introduced. Optical real-time FFT signal processing is performed at speeds far beyond the limits of electronic digital processing, and with negligible energy consumption. To illustrate the power of the method we demonstrate an optical 400 Gbit/s OFDM receiver. It performs an optical real-time FFT on the consolidated OFDM data stream, thereby demultiplexing the signal into lower bit rate subcarrier tributaries, which can then be processed electronically.