OANDA Review
OANDA is one of the leading forex and CFD trading providers. But what does it offer? Read on to discover how OANDA elevates your trading journey.
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Earn Cash Rebates of up to $17 per Million | |||
Overall Score | 4.3 | ||
Spread | 4.0 | ||
Mobile App | 4.0 | ||
Customer Service | 5.0 | ||
Ease of Use | 4.0 | ||
Education | 3.0 | ||
Forex Trading | 4.5 | ||
Trading Platform | 4.5 | ||
Trustworthy | 5.0 | ||
Pros and Cons
- $0 minimum
- Exceptional customer service
- User-friendly platform
- Only 1:50 leverage
- Slow withdrawal processing
- Incomprehensive educational videos
Bottom Line
Regulated forex broker with no minimum deposit
Navigating the forex financial market can be an overwhelming task. Without the right trading platform, it's easy to feel lost in a sea of information.
OANDA has established itself as a trusted broker, but how do you know if it's a good fit for you?
In this review, explore the offerings, features, costs, pros and cons that OANDA brings to the table.
What is OANDA?
OANDA, short for Olsen and Associates, is one of the premier forex (foreign exchange) brokers in the world. The company has a strong track record of regulatory compliance.
This broker has one of the largest customer funds held. This demonstrates the company's commitment to providing a secure and reliable trading environment.
OANDA offers forex and CFD
(contract for differences) traders all they need to effectively navigate the financial markets. OANDA claims to handle "all things currency," which includes:
- Currency conversion
- Offering foreign exchange data services
- Providing a global online brokerage service
This serves as a global online brokerage service and a trusted platform for traders worldwide. It is not publicly traded and does not operate as a bank.
Who Is OANDA Best For?
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OANDA is best for:
- Experienced traders engaged in forex, options, and CFD trading
- Beginner traders who need easy-to-use platform
- Cryptocurrency enthusiast (cryptos are traded as CFDs in OANDA)
- Short-term investors
Unfortunately, CFD trading is not permitted in the U.S. Thus, from a technical standpoint, OANDA is primarily best for forex traders.
OANDA is an ideal broker for experienced traders, but it has features that are also beginner-friendly. OANDA offers MT4, which is a trading platform suitable for beginners. OANDA's platform and trading tools are also user-friendly, so it's good if you're just starting out. Also, its research and education resources can help beginners learn more about trading.
Who Should Skip OANDA?
Unfortunately, OANDA won't be suited for everyone. Here's who should skip it:
- Stock traders and investors (it doesn't offer US or international stocks)
- Traders who don't engage in currency or CFD trading
Now that you know whether you should skip OANDA or not, let's find out what it offers.
Pros and Cons
Listed below are some reasons that can help you decide whether you should use OANDA or not.
Pros:
- Exceptional customer service
- Offers quality market research
- Strong regulatory track record
- Easy-to-use mobile app
- Offers social copy trading
- Offers rebates for active traders
- No minimum deposit
- User-friendly platform
- Integrations with third-party platforms
Cons:
- Has new browsers that pop up
- Limited CFD offerings
- Limited withdrawal options
- Leverage is only 1:50
- Slow withdrawal processing
- Incomprehensive educational videos
Spreads and Fees
OANDA's trading costs are minimal compared to other brokers. OANDA doesn't have a required minimum deposit.
But just like any broker, it has bid/ask spreads, or the fees users pay to trade. This spread is seen in every trade (it's how the broker makes money). For the most popular currency pair EUR/USD, OANDA charges a 1.0 spread.
| Currency Pair | OANDA Spread[2] | Industry Average Spread |
|---|---|---|
| EUR/USD | 1.4 | 0.26 |
| USD/JPY | 1.4 | 0.56 |
| GBP/USD | 2 | 0.88 |
| USD/CHF | 1.8 | 1.02 |
| AUD/USD | 1.4 | 1.04 |
| NZD/USD | 1.7 | 1.14 |
That means, whenever you trade EUR/USD, you will have to pay OANDA a fee amounting to a 1.0 difference between the currency pair's ask price and bid price.
For example, EUR/USD's current ask price is 1.0779 while its bid price is 1.0778. Subtracting the two will give you a difference of 0.0001 or equivalent to 1 pip. The spread is written in terms of pips or the smallest whole unit price fluctuation that the exchange rate can undergo.
This broker also has a $10/month inactivity fee for accounts with no open trades for at least one year.[3]
OANDA also charges $20 for the first withdrawal processed within calendar month through bank wire transfer. Additional withdrawals will cost $35[4] However, they don't charge deposit fees.
There are also overnight financing charges. This is charged on trades that don't close at 5pm EST. This fee differs depending on the type of asset being traded and the number of trading days.
OANDA is generally considered competitive in terms of fees. OANDA offers variable spreads, which means they can fluctuate based on market conditions. While the spreads are generally competitive, they can widen during periods of high volatility.
For some account types, OANDA offers commission-based pricing, where traders pay a lower spread but incur a commission per trade. This option can be cost-effective for high-volume traders.
Is OANDA safe?
Yes, OANDA is safe and highly trusted. It is authorized by multiple top-tier regulators, including:[5]
- Investment Industry Regulatory Organization of Canada (IIROC)
- Australian Securities & Investment Commission (ASIC)
- Monetary Authority of Singapore (MAS)
- Japanese Financial Services Authority (JFSA)
- Commodity Futures Trading Commission (CFTC)
- Financial Conduct Authority (FCA)
- Polish Financial Supervision Authority (PFSA)
- British Virgin Islands Financial Services Commission (BVIFSC)
OANDA operates as a registered Futures Commission Merchant (FCM) and Retail Foreign Exchange Dealer (RFED) with the CFTC and is a member of the NFA. These regulations ensure that OANDA complies with strict standards regarding leverage, reporting, and transparency.
The CFTC and NFA enforce rules to protect retail traders and maintain market integrity.
OANDA also uses advanced encryption and security protocols to protect user data and ensure secure transactions.
What Does OANDA Offer?
Listed below are its key features and offerings.
Tradeable Assets
OANDA offers 68 currency pairs, 53 CFDs, and a few cryptocurrency assets. However, its investment offerings change slightly depending on the entities regulating the account.
For instance, U.S. regulators do not allow CFDs, but Australian regulators allow it.
Some of the CFDs OANDA offers include:
- Indices
- Stocks
- Cryptocurrency
- Precious metals
- Commodities
OANDA also offers trading on soft commodities like coffee, cocoa, sugar, and cotton through CFDs.
OANDA offers leveraged trading on many of its assets, allowing traders to control a larger position with a smaller initial investment.
CFDs, or contract for differences, are financial derivatives instruments. That means there's an underlying financial asset it is derived from. CFD trading is not permitted in the US.
Instead of physically buying/selling the underlying asset (such as the stock of a company), a CFD is just a transaction or contract in which two parties (normally the broker and the trader) agree to exchange money based on the change in value of the underlying asset.
Thus, when you buy a particular stock CFD, you don't really get the actual stock of the company. But you still profit when that stock increases in value.
Platform Overview
OANDA offers two trading platform suites:
- Its own trading platform, called the fxTrade, and
- The MetaTrader 4 & 5 (MT4 & MT5) platforms by MetaQuotes Software Corp.
Both trading platforms are available on the web, mobile, and desktop. But MetaTrader 5 (MT5) is not available in the U.S. for OANDA clients.
With the MetaTrader platform, you get to use automatic chart pattern recognition tools. This helps in analyzing key levels in the chart such as supports and resistances. You also get to customize your charts for easy analysis.
MT4 is the most commonly used trading platform as it is easy to use for beginners. MT5 is the advanced version that offers more analysis tools. MT5 is ideal for experienced traders.
If you're the kind of trader who likes switching between the web and desktop, it's better to use fxTrade since its web and desktop versions look identical.
OANDA's trading platform has over 65 technical indicators that help you analyze charts. You can also compare multiple currency pairs within a single chart.
Its platform integrations, however, are not seamless. It's easy to get distracted because of new windows that pop up when you click through some features.
Two Types of Trading Accounts
OANDA offers two types of trading accounts. One is the Standard account and the other is the Elite Trader Loyalty program account. These two accounts have 3 key differences:
| Standard Account | Elite Trader Loyalty Account | |
|---|---|---|
| Minimum Trade Volume Requirement | X | $10M |
| Dedicated Relationship Manager | X | ✓ |
| Unlimited free wire transfers | X | ✓ |
The Standard account has no minimum trade volume requirement while the Elite Trader account requires a minimum trading volume of $10 million.
The Elite Trader account also offers you a dedicated relationship manager whom you can directly ask for concerns or inquiries while the Standard account doesn't.
Lastly, the Elite Trader account offers unlimited free wire transfers while you have to pay a withdrawal fee for every transaction with the Standard account.
This makes the Elite Trader account best for traders with large accounts while the Standard account may cater more to beginner traders.
Yes, OANDA is a good broker. It is a highly trusted, highly regulated broker that's reliable and credible. In addition, it won the Best Trading Tools from the Online Personal Wealth Awards 2021 and the Best Forex and CFD Broker for 2021 from TradingView Awards.[6]
Portfolio and Charting Tools
OANDA offers features that analyze trading history and trading activity.
It provides real-time information on transactions and profit/loss breakdown of your portfolio. This gives you valuable insights into your trading performance.
Some of its charting tools include:
- 11 customizable charts including candles, Renko, point & figure, and Heiken-Ashi
- Drawing tools such as Pitchforks, Gann Fans, and Elliott Waves
- 65+ technical indicators such as MACD, Bollinger Bands, Stochastics, and Moving Averages
- Multiple chart view that allows up to 8 charts in one layout
- MotiveWave's advanced analysis tools such as ratio analysis and Fibonacci
The platform has a responsive design that allows for easy zooming in and out of charts. This makes it easy for you to take a closer look at specific data points or get a broader view of market trends.
The charts also have an integrated trade ticket window. This allows you to quickly enter orders straight from the chart so you don't miss trading opportunities that present themselves in real time.
Trading Tools
OANDA allows trading directly from the charts. This enables you to place trades with unmatched speed and precision.
Some of its trading tools include customizable watchlist, price alerts, limit orders, and stop loss levels.
Its customizable watchlists keep you informed about the assets that matter most to you. The price alerts enable you to never miss out on crucial market movements. And with limit orders, you can automatically enter or exit positions at predetermined price levels.
One of the standout features of OANDA is the stop loss level. This acts as your guardian, allowing you to set a predefined point at which a running trade is automatically closed to prevent further losses.
Other trading tools include:
- Tick-chart and keyboard trading
- Chart-ladder order entry
- Five-minute orderbook
- Alarm manager that triggers alert trading
OANDA is widely regarded as a reliable and accurate platform for forex trading, currency data, and exchange rates. It is known for providing real-time data that is updated frequently, which is crucial for traders and analysts who rely on up-to-the-minute information. For most purposes, OANDA is considered accurate and trustworthy by professionals in the finance and trading industries.
TradingView Integration
Another useful feature that OANDA has is its integration with TradingView. TradingView is a chart analysis platform that is used by over 50 million traders around the world.
TradingView users are pleased that they don't have to adjust to a new charting platform when trading with OANDA. They can just place a trade on OANDA directly from TradingView.
Mobile App
OANDA's trading platform has a mobile app with an easy-to-use layout. You can set up a buy/sell trade or add a price alert on the app.
You can also enter orders or adjust limit order levels by simply dragging and dropping a line on the chart.
The app's charting features include over 50 technical tools (32 overlay indicators, 11 drawing tools, and 9 chart types). This enables you to analyze charts even when you're on the go.
Market News and Research
OANDA has a MarketPulse site offering market news, high-quality research, and analysis content. It has its own in-house research team providing the content.
Its research team offers fundamental analysis data, news feed, and trading ideas.
The platform streams news from Dow Jones Newswire and OANDA's blog. It also has a Market Insights series that gives analysis updates each day.
Education
OANDA's MarketPulse has a selection of articles in various categories, including trading strategies and technical analysis.
Additionally, it has webinars and educational videos. But they're not very extensive. The videos are mainly platform tutorials.
OANDA also offers an online course discussing technical and fundamental analysis. This is great for traders who want to learn more about trading strategies or chart analysis.
The only drawback is that you won't find all of OANDA's educational materials in one place. They're fragmented and scattered all over the platform, so you'll have to look for what you need.
Rebates
OANDA offers rebates for those with advanced trader status. This is for active traders who are trading a minimum of $10 million in volume.
These rebates range from $5 to $17 for every million.[7]
Customer Service
You can reach OANDA's customer service via email or phone call. You can also see all the details you need on OANDA's Contact page.
- Email: frontdesk@oanda.com
- Available from: Sunday (4pm) to Friday (6pm) ET
Their customer service is highly praised by OANDA's existing customers. They say their queries and concerns are quickly dealt with (usually with one email or phone call).
OANDA's customer support team was described as very helpful and very knowledgeable. Users appreciate how OANDA's customer support entertained questions even before account opening.
Once the account had been opened, users were immediately contacted to explain what the platform offers, including some trading basics.
Customer Experience
Here are some reviews from OANDA users:
What Are The Common Complaints?
Here are some common complaints from OANDA users, based on Trustpilot reviews:
- Low Leverage
OANDA only offers a leverage of 1:50, while other brokers have a leverage of 1:1000.Leverage is the capability to borrow money from the broker that you can use for trading. A 1:50 leverage means you can trade with a multiplied deposit by up to 50 times.
That means, with OANDA, you can't trade much with a small account. Basically, you would need a higher deposit so you can earn a significant income.
- Withdrawal Options
Another common complaint is the withdrawal. With OANDA, U.S. clients can only withdraw through debit cards and bank wire transfers.Other brokers offer more ways of withdrawal. These other ways include electronic wallets.
- Slow Withdrawal Processing
OANDA has slow withdrawal processing. Its bank card withdrawal can take 7 days. Bank transfers can also take 7 days.
How to Open an Account in OANDA?
Opening an OANDA trading account is quick and easy. All you need to do is:
- Fill in the registration form
- Submit the required identity and residency documents
- Fund your account
You can only open an account if you're over 18 years old. Once you've submitted your application to open an account, OANDA's onboarding team will review it and get back to you after about 3 days.
How to Deposit Funds
You have several deposit methods to choose from, depending on your country or region. This includes bank transfer, credit card, debit card, PayPal, Neteller, and Skrill. U.S. clients can deposit funds using a debit card, wire transfer, and ACH bank transfer. Here's how to deposit funds into your OANDA account:
- Go to the deposit interface and choose what method you prefer
- Input how much you want to deposit and complete the request
- Input the reference number
You will then receive an email that confirms the deposit. It may just take a few days for the deposit to reflect on your account.
OANDA does not have a minimum deposit requirement for opening a live trading account. This makes it accessible to traders with different levels of capital. This allows you to start trading with an amount you are comfortable with. However, it's important to note that while there is no minimum deposit, the amount you choose to deposit will determine your ability to meet margin requirements for trades.
How to Withdraw Funds
OANDA's withdrawal methods include bank transfer, credit card, debit card, PayPal, Neteller, and Skrill. However, your withdrawal methods will depend on your country or region. U.S. clients can only withdraw funds via debit card and bank wire transfer. Here's how to withdraw your funds from OANDA:
- Go to 'Withdraw Funds' in the menu tab
- Input the amount to be withdrawn and select your preferred method
- Confirm the information and submit the request
You may then check the current withdrawal status on your dashboard.
To officially close your account, you'll need to contact OANDA's customer support. You can do this through their online chat, email, or by phone. Provide them with your account details and request to close your account. Once you've made the request, OANDA will process your account closure. You may receive a confirmation email once your account has been successfully closed.
Is OANDA better than its competitors? Let's find out.
How Does OANDA Compare?
Compared to other brokers, OANDA has limited asset offerings. But its edge is in its no minimum deposit requirement. Read on to see how OANDA compares with FOREX.com.
| ||
| Visit Site | Learn More | |
OANDA | Forex.com | |
|---|---|---|
Benefits and Features | ||
| Minimum Deposit | ||
| Stock Trading | ||
| Currency Trading | ||
| CFD Trading | Yes (CFD trading is not permitted in the US) | |
| Withdrawal Fee | $20 for bank transfer (first withdrawal processed within calendar month) and $35 (additional withdrawals) | |
| Trading Platform | OANDA Web, OANDA Mobile, TradingVIew, MetaTrader4 | |
| Virtual Trading | ||
| Online Platform | ||
| Mobile App | ||
| Live Chat Support | ||
| Visit Site | Learn More | |
OANDA: Information sourced from the published website as of 04/22/2024. Forex.com: Information sourced from the published website as of 08/13/2024. | ||
OANDA vs FOREX.com
OANDA and FOREX.com are similar in that they are both forex/CFD brokers. And they both allow U.S. traders to access their platforms. Some brokers restrict traders from the U.S.
The bid/ask spreads of these two brokers are also similar, though the spread on FOREX.com is slightly higher. Also unlike OANDA, FOREX.com requires a minimum deposit. The minimum is $100.[8]
Both brokers trade currencies and CFDs, but FOREX.com also trades stocks. So if you're a stocks investor who also wants to trade currencies, FOREX.com would be a better fit for you.
In terms of desktop platform, OANDA has a better layout since it's more user-friendly for new traders.
BOTTOM LINE
Knowing whether OANDA is a good fit for you or not depends on your preferences as a trader. Do you prefer a broker with no minimum deposit but has an inactivity fee? If you're confident you'll be an active trader anyway, there's no need to worry about the inactivity fee.
From OANDA's array of tools and services, it's pretty clear that they equip traders with the necessary insights and analysis to navigate the financial markets confidently.
The platform's reputation, built over two decades, solidifies its standing as a trusted name in the industry.
References
- ^ OANDA. Our History, Retrieved 09/02/2024
- ^ OANDA. Our spreads, Retrieved 09/02/2024
- ^ OANDA. Our charges and fees, Retrieved 09/02/2024
- ^ OANDA. Withdrawal fees and costs: Trading, Retrieved 09/02/2024
- ^ OANDA. Regulatory public disclosures, Retrieved 09/02/2024
- ^ OANDA. Awards, Retrieved 09/02/2024
- ^ OANDA. Elite Trader, Retrieved 09/02/2024
- ^ FOREX.com. What is the minimum/maximum amount I can deposit?, Retrieved 09/02/2024
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OANDA Corporation is regulated by the CFTC/NFA. OANDA is a member Firm of the NFA (Member ID: 0325821). CFDs are not available to residents in the United States. Affiliate receives a commission for accounts opened through the link on this page
OANDA CORPORATION IS A MEMBER OF NFA AND IS SUBJECT TO NFA'S REGULATORY OVERSIGHT AND EXAMINATIONS. HOWEVER, YOU SHOULD BE AWARE THAT NFA DOES NOT HAVE REGULATORY OVERSIGHT AUTHORITY OVER UNDERLYING OR SPOT VIRTUAL CURRENCY PRODUCTS OR TRANSACTIONS OR VIRTUAL CURRENCY EXCHANGES, CUSTODIANS OR MARKETS
Trading in digital assets, including cryptocurrencies, is especially risky and is only for individuals with a high risk tolerance and the financial ability to sustain losses. OANDA Corporation is not party to any transactions in digital assets and does not custody digital assets on your behalf. All digital asset transactions occur on the Paxos Trust Company exchange. Any positions in digital assets are custodied solely with Paxos and held in an account in your name outside of OANDA Corporation. Digital assets held with Paxos are not protected by SIPC. Paxos is not an NFA member and is not subject to the NFA's regulatory oversight and examinations.
Leveraged trading in foreign currency contracts or other off-exchange products on margin carries a high level of risk and may not be suitable for everyone. We advise you to carefully consider whether trading is appropriate for you in light of your personal circumstances. You may lose more than you invest. Information on this website is general in nature. We recommend that you seek independent financial advice and ensure you fully understand the risks involved before trading. Trading through an online platform carries additional risks.
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