Currently i have the pihole working, if i manually set my devices such as my phone to use my rapsberry pi's static address, i can see pihole filtering.
However on my smart router, provided by optimum Specifically: Sagemcom 5260
I cant set my pi as a dns, i get Error: invalid arguments
However i can set dns providers such as google dns by using 8.8.8.8
is this because this router is managed over the "cloud"?
I guess it rejects DNS server addresses that are within your local networking range. That is a common problem where router manufacturers try to save their customers (at least those how have no clue what they are doing) gray hairs because they are not able to resolve webpages anymore after having changed settings on the router they didn't understood.
However, for the experienced guys (like you) this is an obstacle that you usually can't solve with this router. Have a look at the Pi-hole's DHCP server (disable your routers DHCP server!). It was engineered exactly for this purpose.