OANDA Review Summary
OANDA Review Highlights
Pros & Cons
- Consumer Diversity – As a day-to-day dealer, a variety of goods will offer greater incentives. With OANDA, you have access to 71 currency pairs, 16 stock CFDs, 23 metal CFDs, 8 commodity CFDs, and 6 CFD bonds.
- Platforms – You can use OANDA's proprietary mobile applications and apps like MetaTrader 4. Developers also work hard to incorporate changes on a daily basis.
- Direct chart trading – Traders can enter and close their positions directly from the map. You'll find this feature on both the Oanda and MetaTrader 4 trading platforms.
- No minimum account size – this helps you to open accounts with as little as $1, making it perfect for testing and implementing intraday strategies.
- Regulation – As mentioned above, OANDA is regulated by a variety of bodies around the world. This obliges the broker to abide by the regulations designed to protect traders. This should help to reduce concerns about fraud.
- Demo accounts– Clients get a free trial account on all platforms where traders can test the platform and practice.
- Missing tools – OANDA offers a fair amount of financial instruments for trading. However, if you're looking for cryptocurrencies and single-stock CFD trading, you will be disappointed.
- Limited additional protection – While OANDA does comply with regulatory standards, additional slippage and deposit protection could further benefit prospective day traders, particularly in volatile markets. In fact, more should be done to maintain the negative balance.
- Slow customer service – In a company where time is money, OANDA often has slow customer service that may delay and frustrate highly active traders.
- Disorganized tools – On the other side, OANDA provides a variety of educational and trading services, from webinars to news outlets. Nonetheless, these tools are rather disorganized and are only accessible after the launch of external websites. This could slow down your trading experience.
- ECN – OANDA is not an ECN broker, it is a market maker, and some people assume that you can find lower spreads with ECN brokers.
What’s the OANDA?
OANDA is a technology-driven financial services company formed back in 1996 with the expectation that the Internet would open up markets with equal access to data and trading for all. Indeed, what we encounter now shows that the strategy was completely correct, while OANDA was the first company to offer detailed currency exchange information online and promoted the growth of currency trading in 2001.
Recently, the broker has become multinational, with offices set up in 8 financial centers (USA , Canada, UK , Japan, Singapore, and Australia), serving clients from over 20 different nations, maintaining support in 9 languages and enforcing strict regulations of 6 major authorities.
OANDA is a pioneer in currency data providing Forex & CFD trading (over 100 instruments, including currency pairs, indices, currencies, bonds, and metals), corporate FX payments, and exchange rate services to a wide range of organizations and investors.
However, OANDA ‘s efficiency and confidence are also verified by leading global brands that select OANDA as their partner, including the world’s largest Google, KPMG, TESLA, Airbnb, Ups, IATA, PWC, Twitter, Expedia, and more.
In addition, OANDA ‘s contribution to democratizing global financial markets has been recognized by its numerous industry awards in business publications and organizations. OANDA ‘s clients have voted the company as the number one customer support provider or value for money and overall customer satisfaction on an annual basis.
Is OANDA trustworthy, or is it a scam?
OANDA is, in fact, heavily regulated and authorized by various governments due to its global footprint and coverage of various jurisdictions. Simply put, the broker’s licensing means that it complies with the international standards that test the viability of the firm prior to its launch, periodically during its service, and even protect customer funds in the event of a company’s insolvency with specified limits.
A regulated company much safer to work with, as its every move and activity is strictly monitored and the operating procedures are complied with.
In the case of OANDA, it’s various subsidiaries are divided into geographical regions that include U.S., Canadian, European, Asian, and Australian markets.
All customer funds are kept in top-tier bank accounts and are completely segregated, as well as secured by negative balance protection. In the trading process, OANDA controls currency exposure, and risk by using risk management technology, which automatically and anonymously secures positions.
Platforms for trading
Generally speaking, OANDA Review has recognized technology and software solutions that aim to build on the right approach to protect the client and therefore adheres to tighter spreads and custom platforms across the premium offering and automation of trading strategies.
No one would argue that execution means a lot in trading, and at OANDA you can enjoy a new proprietary v20 execution engine that executes trades in just a few milliseconds.
OANDA’s proprietary platform One Trade Web, is an easy-to-use, functional trading platform that has received several awards among numerous top traders. A platform providing access through trading features, including advanced charting tools, chart pattern recognition, institutional quality back-testing, and a stream of financial news from leading providers.
Ultimately, the platform can indeed be rated as top-notch amongst its competitors and can certainly be enjoyed by traders of different levels. OANDA supports Online Trading, Internet Trading, and Smartphone Trading Apps.
Nonetheless, if you prefer MetaTrader4 it is still an option with OANDA. MT4 offers all the advantages of excellent execution, favorable spreads, full support of EAs including hedging scopes, and the possibility of installing the MT4 model plugin for technical analysis.
Another feature designed by OANDA is the OANDA Forex Labs, which offers Forex Analysis, Signals & FX Tools.
For OANDA, there is no distinction between customers, which is why the broker does not offer different types of accounts and features only one standard trading account. Nonetheless, the client can transform their account to a professional one with a minimum deposit of $50,000. The professional account offers tailored specifications, personalized pricing, and wider spreads.
The broker offers over 100 instruments, including currency pairs, commodities, indices, bonds, and metals. There is no minimum deposit or minimum trade size and no extra fees. The broker integrates its fee into the spread.
OANDA’s spreads are electronically linked to a number of global banks that have access to the most accurate foreign exchange and CFD rates. Below you can see an average spread across most traded instruments, as well as a snapshot of live quotes.
Apart from live quotes, you may find information on the historical spread of a particular asset or instrument, which may be very useful to understand OANDA’s pricing policy and to learn how the spread is influenced by volatile market conditions.
What’s OANDA’s leverage cap?
OANDA supports margin trading, which ensures that you can swap positions greater than your account balance. The benefit of margin-based trading is that you can manipulate funds in your account and theoretically generate large gains relative to the amount invested, but the downside is that you have an equal opportunity to cause losses in your account.
Therefore, in good practice, you should apply stop-loss orders and limit high leverage to specific potential losses. However, stop-loss orders are not guaranteed by OANDA .
The maximum leverage allowed is calculated by the regulators in each geographic region. You may always choose to be cautious and restrict the leverage used to lower levels than that required by regulators. For example, the US regulator needs 50:1 leverage on Forex instruments, while the recent European Authority Regulation requires a maximum of 30:1. However, Australian clients may still refer to the 400:1 leverage.
Deposits and Withdrawals
OANDA does not have a minimum deposit requirement rule, but there may be trading fees and margins.
Funding costs depend on the residence of the trader and under which OANDA body they keep an account. It is a fact that different jurisdictions, due to tax and regulation, require some methods of payment, while others may be forbidden from using them.
As a result, US clients provide options for bank transfers and payment via credit cards, checks, and – with no fees, however, be prepared to charge certain performance services to your bank. Clients of Canada: Bank wire transfer and PayPal (CAD only). European Consumers can use Credit / Debit Cards, SWIFT wire transfer, PayPal (GBP, USD, and EUR), BACS, and CHAPS (only GBP).
Asian Pacific traders are eligible to use DBS Pay Bills, Internet Banking Transfer, Bank Wire Transfer, PayPal (SGD only), Cheques (SGD only), China UnionPay. And the last category is Australian Clients who have been permitted to use Credit / Debit Cards, Internet Banking Transfer, Bank Wire Transfer, PayPal, Bpay, China UnionPay.
As with deposits, the withdrawal policies vary depending on where the trader is based. Most often transactions are carried out by bank transfer, or credit cards with a $0 withdrawal charge for the first request within one month. Nevertheless, if you wish to withdraw more funds, additional fees may incur.
Overall, OANDA offers attractive features such as no minimum deposit, price transparency, technological optimization, and a variety of tools. The broker has achieved a high level of trust and popularity among traders.
The fact that the company has reliable and successful cooperation with “global business giants” definitely adds another advantage to OANDA.
If you are the owner of this platform you can manage this account. First you need to claim the ownership of the platform.