The past twenty years have seen US-headquartered Oanda grow into a player based on the global online brokerage stage. Today, they facilitate forex and index/commodity CFD trading for clients around the world. This detailed review of Oanda will cover everything from fees and trading platforms to accounts and rules. Risk Warning: CFDs are complex instruments and come with a high risk of losing money quickly due to leverage. 73.5% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money .
Brief history
Before we get stuck into the facts and figures of this Oanda merchant trader, it helps to first paint a picture of where Oanda companies started and how far they have come. Oanda’s humble beginnings date back to 1996, making it one of the early online forex brokers. Then it offers investors access to forex and CFDs venues. However, today, Oanda is established in the forex market, offering 124 trading instruments, corporate FX services, currency management solutions, as well as exchange rate data for global enterprises. Although headquartered in the United States, it has several global offices, including Tokyo and London. In fact, Oanda operates in eight global financial centers, with customers in over 196 countries. It has achieved licenses from key regulatory jurisdictions, including:
- United Kingdom
- United States of America
- Canada
- Japan
- Singapore
- Australia
Despite failing to comment on many Oanda review forums, the FxTrade platform launched in 2001, is actually a fully automated forex trading platform.
You may have seen on Oanda framed betting reviews and forums that companies offer betting spreads. While this is true, it is only available to Oanda Europe Ltd customers, who live in the UK or the Republic of Ireland.
Minimum Initial Deposit
Oanda has historically stuck to not requiring a minimum initial deposit. It ensures that aspiring day traders and those with limited capital don’t have to deposit more than they can afford as they find their feet. In addition, Oanda’s minimum lot size is one unit of the quoted base currency. They also offer many nano and calculators of many sizes.
Spreads & Commissions
Whether you’re looking for Oanda Europe Limited, Singapore, Philippines, or US price research, Oanda remains very competitive regardless of your location.
Oanda’s spread is comparable to other large firms, such as FXCM and FxPro.
To offer prices to traders, Oanda uses automated machines to monitor global prices, and spreads will also respond to market liquidity and volatility. High volatility, in particular, can widen the spread. Both current and historical average forecasts are clearly outlined, which should raise some traders’ concerns about hidden fees.
This transparent approach was voiced by Vatsa Narasimha, CEO of OANDA Global Group, who stated, ” We believe the retail trade industry as a whole would benefit from a more transparent approach where brokers are held accountable for making questionable statements or misrepresenting their interests . “
There is an important point to compare Oanda with an agency broker (there is no dealing desk). So, just comparing the spreads alone will not always give you a clear conclusion, as sometimes, other factors can affect the cost of trading over a period of time.
Leverage
For those who want to trade on margin, you will find leverage on Oanda. For retail customers, the maximum leverage is decided by the regulator in your geographic area, but all Oanda users can further reduce their leverage limit.
It’s also worth highlighting, that while you can potentially increase income, trading on margin can also amplify losses. Therefore, the use of stop loss orders to limit potential losses with leverage is a technique used by many parties.
Other Fees
Oanda’s trading fees are simple and very competitive. However, Oanda introduced an inactivity fee in September 2016. Fortunately, this effective tax will only affect those who have not placed a trade for at least two years.
Note there is no deposit bonus when you sign up with Oanda. Be careful on the official website for any changes to overnight payments (rollover), financing charges.
Oanda Trading Platform
FxTrade
It’s time to move on to the FxTrade review section, the main component of Oanda’s offering. Overall, the system is well designed and easy to use, offering plenty of tools and analytics. You can trade directly from the chart. You benefit from complex order types, such as buy, sell, and trailing stops. Account analysis is at your disposal. This financial trading software also includes charts from MultiCharts, which allows for advanced and sophisticated studies and display styles. In addition, you get watch lists, news feeds, and economic analysis. Accessing historical and live exchange rates is also easy.
On the downside, the platform doesn’t have an ultra-modern look and some functions are awkward to use. Instead of being able to open news, forums and economic analysis on the platform, they open as web pages in a separate browser. Again, you open the Oanda order book outside the app. These can all hinder a smooth trading experience at times. Speed tests show server times and execution rates are industry standard. Conclusion – the FxTrade platform caters to traders of all experience levels. You have all the tools you need to trade in just a few clicks, but various additional features are useful. FxTrade API LibraryA subscription to Oanda also means you can explore automated trading. Python API tutorials are available online to help you get the most out of your API instruments. Automated trading allows you to run more trades than you can manually. It also means you can be active in several markets at once, from gold and oil to binary options and bitcoin CFDs. Notifications can be made for when you enter and exit positions and pre-programming your criteria can be done with Algo’s lab assistant. This gives you more time to download historical data, analyze tick data and create effective strategies. For experienced traders and technophiles, the FxTrade API library can also help do all of the following:
- Access current and historical market data
- Stop-loss, profit-taking or entry order
- Access past trade transactions
- Risk free test
- Trade requests
MetaTrader 4
If Oanda’s desktop platform doesn’t appeal, you have the option to download MetaTrader 4 (MT4). The study found industry standards including advanced charts, watchlists, as well as trade automation through ‘expert advisor’ (EA) plugins. You can also save layout profiles and charts. In addition, you can create exchange rates, as well as live and monthly exchange rate charts from within the platform. On the negative side, creating or amending an EA can be challenging. This is especially true for new traders who may not be familiar with the unique programming language. Although the audible signal can be annoying, there is a customisability option, and instead a mute button, so we can let that weakness slide. There are also some great trading tools available on Oanda:
- MotiveWave – This professional and technical chart analysis platform offers more than 250 built-in studies / indicators and 30 built-in trading strategies. This high performance and easy to use software is a powerful weapon to have in your trading arsenal.
- Oanda Market Report – Powered by Autochartist, this tool provides a quick summary of the market. The email is actually sent to traders before they start the analysis for the coming day. The Market Report provides the technical outlook of the forex market for the next 48 hours.
Drawing forex order books, indicators and potential strategies is also quick and easy. For those who want to hedge, it is not prohibited. You can view long and short positions for the same product on the MT4 platform. Note traders will also find there are additional platforms on the Oanda Marketplace. This includes third-party applications, including algorithmic trading platforms, such as the Seer trading system. Note Oanda does not offer Metatrader 5 (MT5).
Mobile Application
If you’re on the move a lot, being able to log in and out from your cell phone or tablet can prove very useful. Those looking for mobile and iPad studies of Oanda will be impressed by the capabilities of the FxTrade mobile trading platform. Not to mention the integration with various devices, from iPhone to Windows Phone 8. Once you have your web login details, you can download historical quotes, battle with future rates and start speculating on the FTSE 100 or Nasdaq , for example. Additionally, the platform is easy to navigate and the sleek design allows for a stress-free experience. There is access to Oanda trading instruments, historical spreads, account analysis, as well as complex order types. You retain the ability to trade directly from the chart, and you can benefit from charts with indicators and price overlays. You also have the option to tweak the display style to find a format that compliments your trading style. As an added bonus, news, economic calendars, and financial announcements are all easily accessible from within the app. This makes market measurement straightforward. There is regular maintenance to keep the list of instruments up to date. This also means that any issues and problems can be resolved quickly. Overall, their mobile offering allows for a seamless transition from desktop applications. and financial announcements all open easily from within the app. This makes market measurement straightforward. There is regular maintenance to keep the list of instruments up to date. This also means that any issues and problems can be resolved quickly. Overall, their mobile offering allows for a seamless transition from desktop applications. and financial announcements all open easily from within the app. This makes market measurement straightforward. There is regular maintenance to keep the list of instruments up to date. This also means that any issues and problems can be resolved quickly. Overall, their mobile offering allows for a seamless transition from desktop applications.
Payment method
Understandably, more and more day traders are looking for an easy deposit and withdrawal system. You can make deposits and withdrawals into your Oanda account with any of the following:
- PayPal
- Bank wire transfer
- Credit & debit cards
Their website walks you through the process and their customer service should be able to help with any production issues. There are also other options available, depending on your location. For example in China you can use China UnionPay and Bpay. So it’s worth heading over to their website to see what works where you are. It should be noted that there are production costs. This can be as much as 20 to 35 euros if you choose a bank transfer. Having said that, you get one free monthly card withdrawal. Overall, Oanda customer reviews have shown merchants are satisfied with the current money transfer mechanism.
Account Type
Oanda offers a standard account, which does not require a minimum deposit. Unfortunately, high-volume traders with deep pockets can be disappointed by the lack of additional benefits that some brokers offer traders with large capital. However, this means that everyone benefits from more than seventy currencies and precious metal pairs, plus trades of any size.
Demo Account
The OOO demo account review quickly highlights the impressive greetings to the Oanda practice account. While many forex brokers offer practice downloads for a limited period of time, the FxTrade Oanda demo account is available as long as the trader needs to hone his strategy and build his confidence. Once you have your demo login details, you have almost all the same functionality as a live account holder. Funded with simulated money, their practice account is an ideal way to get to know the market conditions and test drive Oanda as a potential broker. Once your confidence grows with volume indicators, currency heatmaps and backtesting, you can then easily upgrade to a live account.
Additional features
If you ask about this research that separates their Oanda from the rest, then the various research and trading tools can only be done. Their offer surpasses many retail trading platforms. Oanda Academy, for example, offers the following:
- Webinars – These online videos cover a wide range of subjects, from ‘Starting to Trade’ to more advanced topics, such as ‘Fibonacci Takes and Clusters: Advanced Improvements on Trend Formation.’
- Interviews – Learn from experienced traders as they discuss a variety of topics, from trading plans to strategies.
- Articles – These detailed articles are aimed at traders of all experience levels.
- Tutorials – Tutorials can help users with a variety of topics, including how to promote bitcoin, read data feeds and identify correlations. In addition, you can learn how to start scalping and compare the latest live spreads. All that can help increase your daily trading salary.
In addition, Oanda has made access to historical average exchange rates live. Viewing the ratio of open positions and short lengths is also quick and easy. Furthermore, monthly and annual averages, plus historical classic interest rates are available. This can all make in-depth research an easy independent process. You can also benefit from news reports from various sources on Oanda. These include MarketPulse, 4Cast, as well as Dow Jones FX Select, where you’ll find breaking news, trend analysis, as well as policy commentary. In addition, there is direct access to margin and leverage calculators to help you establish potential profits and losses.
The only downside is that with so many resources available, finding them can be a bit of a minefield.
Safety & Security
With the rise of cybercrime, digital security is a major concern in broker reviews in 2017. So, is Oanda a trustworthy broker? Fortunately, your personal data and trading activity will be secured. They do this by using high-tech and sophisticated encryption technology.
Oanda rules
In recent years, too many day traders have fallen prey to unscrupulous brokers. This makes the selection of a licensed and regulated broker, all the more important. Oanda’s pro-active approach to regulation should bring peace of mind to customers. Having received several international awards, it is not surprising to learn customer reviews are satisfied with the standard regulatory oversight. Oanda is regulated in the following countries:
- US – Commodity Futures Trading Commission (CFTC)
- Canada – Investment Industry Regulatory Organization (IIROC)
- UK – Financial Conduct Authority (FCA)
- Australia – Australian Securities and Investments Commission (ASIC)
- Singapore – Monetary Authority of Singapore (MAS)
- Japan – Financial Services Agency (FSA)
It’s also important to highlight that, despite extensive regulatory oversight, the level of account protection in the event of default can vary depending on where you hold your account.
Benefits
This Oanda study found the following key benefits:
- Product variety – As a day trader, product variety can mean greater opportunities. With Oanda, you get access to 71 currency pairs, 16 stock index CFDs, 23 metal CFDs, 8 commodity CFDs, and 6 bond CFDs.
- Applications – You can use Oanda’s proprietary desktop software and platforms such as MetaTrader 4. The developers also work hard to always implement updates.
- Live chart trading – Traders can enter and close positions directly from the chart. You will find this feature on both the Oanda and MetaTrader 4 trading platforms.
- No minimum account size – This allows you to open an account with just $1, making it ideal for testing and developing intraday strategies.
- Regulation – As detailed above, Oanda impresses with regulatory oversight by multiple bodies, worldwide. This obligates Oanda to stay within the rules and regulations designed to protect you, the merchant. This should help reduce concerns about scams and scams.
- Demo account – You get a long and easy free trial to download a MetaTrader 4 demo account. You can then open a position and get your head around the live exchange rate average. You can also practice with stop loss and more weights.
For these reasons, Oanda is considered among the top 100 traders.
Weakness
Despite the many benefits, there are also some Oanda negatives to highlight in this review:
- Missing instruments – Oanda is effective in simplifying the instruments they offer. However, if you are looking for cryptocurrency and single stock CFD trading, you will be disappointed.
- Limited additional coverage – Although Oanda complies with regulatory standards, additional coverage and deposit protection can benefit aspiring day traders, especially in volatile markets. In addition, more can be done in terms of negative balance protection.
- Slow customer service – In a business where time is money, Oanda’s sometimes slow customer service can hinder and frustrate very active merchants.
- Irregular resources – On the positive side, Oanda offers many educational and trading resources, from webinars to news sources. However, these resources are somewhat disorganized and only available after launching an external website. This can slow down your trading experience.
- ECN – Oanda is not an ECN broker, it is a market maker and some people believe you find lower spreads with an ECN broker.
Oanda Trading Hours
Oanda’s trading hours coincide with many global financial markets. Trading is available from 17:00 on Sunday to 17:00 on Friday UTC – 5. Having said that, the hours of operation of Oanda will vary depending on which side you hold your account. Asia Pacific traders can rest easy knowing all the major markets they want to access will be open for business on their Oanda trading platform.
Contact & Customer Support
In the day trading business, every second is money. This means that every glitch and account issue can cut into your profits. Therefore, having fast and effective customer support can prove its importance. Fortunately, Oanda trade reviews are quick to highlight companies that offer 24/7, multilingual support. Apart from holiday trading hours, you can contact Oanda’s customer support team by email at any time. Alternatively, online chat and phone support are also available during trading hours. Check the official website for their contact phone number in your location. You can find support in the following languages:
- English
- Germany
- Spain
- Italy
- French
- Portuguese
- Russia
It’s also worth highlighting, some negative Oanda customer reviews indicate customer service response times can be slow. However, the hotline staff remain polite and helpful, making an effort to use their website and support archives to fully answer your questions. Overall, users can trade with confidence knowing effective support is at hand, regardless of location and time zone.
Verdict
So, is Oanda a good forex broker? Well, they score very high in ratings and reviews and it’s not too hard to see why. They offer easy setup, competitive pricing, a wide range of product offerings, not to mention a sophisticated trading platform. So, even if you compare Oanda vs FXCM and other famous brokers, Oanda still continues to impress. However, there is room for improvement in terms of customer service. Dealers who prioritize fast and reliable support can look elsewhere. However, this Oanda survey has found the company to be an attractive proposition to customers from around the world.
Accepted Countries
Oanda accepts merchants from Australia, Thailand, Canada, United Kingdom, South Africa, Singapore, Hong Kong, India, Germany, Norway, Sweden, Italy, Denmark, United Arab Emirates, Saudi Arabia, Kuwait, Luxembourg, Qatar and many other countries. Merchants cannot use Oanda from Belgium, France, Netherlands, Cyprus, USA.