OANDA Review 2024
Website: www.oanda.com
Min. Deposit: US$
Leverage: 50:1
Trading Platforms: Oanda trade, MT4, MT5
Regulation: CFTC, NFA, FCA, MAS, ASIC, IIROC, FFAJ, BVI FSC
Headquarters: USA
Founded: 1996
Regulatory Licenses:
- OANDA Corporation - authorized by the CFTC (USA) registration no: 0325821
- OANDA Europe Limited - authorized by FCA (UK) registration no. 542574
- OANDA Australia Pty Ltd - authorized by ASIC (Australia) registration no. ABN 26 152 088 349, AFSL 412981
- OANDA (Canada) Corporation ULC - authorized by IIROC (Canada) registration no. 09-0280
- OANDA Asia Pacific Pte. Ltd. - authorized by MAS (Singapore) registration no. 200704926K
- OANDA Japan Inc. - authorized by FFAJ (Japan) registration no. 1571
- OANDA Global Markets Ltd - authorized by BVI Financial Services Commission registration number SIBA/L/20/1130
Updated on May 21, 2024
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In our comprehensive review process, we meticulously evaluate forex brokers by comparing them against a wide array of metrics and standards. This extensive comparison covers over 1000 brokers, ensuring a thorough and unbiased analysis. Our aim is to present an accurate and detailed overview, helping traders make an informed decision when selecting a forex broker.
OANDA is a pioneering technology-driven financial services corporation and a Forex and CFD Broker, established in 1996 in the United States. It emerged with the vision that the internet would democratize the markets, providing equitable access to data and trading opportunities for all. Marking a series of firsts, OANDA was the inaugural company to offer comprehensive currency exchange information online and spearheaded the development of online currency trading in 2001. Today, as a global corporation, it boasts offices in 8 financial hubs across the globe, including the USA, Canada, the UK, Japan, Singapore, and Australia. It caters to clients from around 200 countries, offers support in 9 languages, and adheres to the stringent regulations of 6 major authorities.
What Type of Broker is OANDA? ▲
OANDA is categorized as a market maker broker, noted for its high level of regulation and offering extensive access to various technical tools and global CFD (Contract for Difference) instruments. This broker provides its clients with over 50 technical tools, which encompass 32 overlay indicators, 11 drawing tools, and a diverse selection of 9 different chart types. OANDA's extensive instrument offering includes a wide array of global CFDs, covering various asset classes such as indices, Forex (foreign exchange markets), cryptocurrencies, shares, commodities, and metals. This wide range of instruments and tools positions OANDA as a versatile broker catering to the diverse needs of traders in the global financial markets.
OANDA stands as a reliable broker with a longstanding history and robust establishment. It enjoys an excellent reputation, bolstered by numerous regulatory approvals. The absence of a minimum deposit requirement and a comprehensive professional education section make OANDA an attractive option for novice traders. The broker offers a plethora of trading tools, proprietary software, and industryleading tools at competitive costs and spreads. Being one of the largest and most heavily regulated brokers, OANDA is highly trusted and offers a great trading experience for a wide range of traders, including those from the US.
Pros
Reliable broker with a long history
No minimum deposit requirement
Comprehensive education resources
Cons
Trading conditions vary by entity and regulatory rules
Some withdrawals incur fees
OANDA Review Summary in 10 Points ▲
Headquarters: USA with official entities in Canada, UK, Japan, Singapore, and Australia
Regulation: CFTC, NFA, FCA, MAS, ASIC, IIROC, FFAJ, BVI FSC
Instruments: Forex and CFD trading, over 100 instruments, including currency pairs, indices, commodities, bonds, and metals, futures trading, commodities futures
Platforms: Oanda trade, MT4, MT5
Demo Account: Included
Base currencies: EUR, USD, GBP, AUD, CAD, CHF, HKD, JPY, SGD
Minimum deposit: No minimum requirement
EUR/USD Spread: 1.2 pips
Education: Education materials designed by level
Customer Support: 24/5
OANDA's reliability and trustworthiness are not only confirmed by our thorough analysis but also by the top global brands that choose OANDA as their partner. This includes major organizations like Google, KPMG, TESLA, Airbnb, FedEx, IATA, PWC, Twitter, Expedia, and more. As a financial corporation with rich experience in exchange and currency operations, OANDA offers unique solutions beyond trading, including money transfer services and Forex solutions for businesses. OANDA's Overall Ranking is 4.4 out of 5, based on our rigorous evaluation and comparison to over 1000 brokers.
OANDA's dedication to democratizing global financial markets has been widely acknowledged in the industry, earning it multiple awards for its services. Clients consistently rate the company highly for customer service, value for money, and overall satisfaction, reinforcing OANDA's position as a leading forex broker.
OANDA is not a scam. As a broker under heavy regulation, OANDA is considered safe to trade with. Its operations are closely overseen and comply with strict guidelines, ensuring transparency and trader protection. Holding licenses from top-tier authorities worldwide, OANDA abides by regulations set by the CFTC, NFA, FCA, ASIC, and more, offering a secure trading environment.
OANDA Corporation is indeed heavily regulated and authorized by various global regulatory bodies. Despite the slight differences in regulatory regimes across jurisdictions, all aim to protect the customer and ensure market transparency. Our ranked OANDA Trust Score is 4.4 out of 5, reflecting its strong reputation, reliable licenses, and regulated presence in each region it operates, although regulatory standards and protections can vary.
Our research revealed that OANDA ensures client funds are kept in top-tier bank accounts, fully segregated from the company's funds, and are safeguarded by negative balance protection. OANDA employs sophisticated risk management technology to manage currency exposure and risk effectively. This technology automatically and anonymously nets aggregate client positions, immediately hedging those that exceed predefined thresholds, ensuring client protection and stability.
The OANDA fxTrade platform supports margin trading, enabling traders to control large positions with a relatively small investment. The primary advantage of margin-based trading is the potential to generate significant profits relative to the amount invested. However, it's crucial to remember that leverage also increases the risk of losses. Thus, it's wise to use stop-loss orders and manage leverage carefully to mitigate potential losses. It's important to note that stop-loss orders are not guaranteed under Oanda's policy.
Regulatory authorities determine the maximum leverage offered by OANDA in different regions. While traders always have the option to limit their leverage to levels below those allowed, the regulatory guidelines are as follows: in the United States, a maximum leverage of 50:1 on Forex instruments is permitted; in Europe, ESMA regulation caps leverage at 30:1; Australian clients may also access leverage up to 30:1; whereas international and professional traders may be eligible for higher leverage options.
OANDA distinguishes itself by offering a single standard type of trading account, ensuring uniformity in service for all clients. Upon reaching a minimum deposit of $50K, clients are upgraded to Premium status, which entails tailored requirements, custom pricing, and tighter spreads, enhancing the trading experience for high-volume traders.
Opening a live trading account with OANDA is straightforward and quick. Prospective traders are required to complete a few steps: first, apply for a live trading account by providing the necessary information; then, fund the account. Following these steps, traders are set to commence trading with OANDA, entering the global markets with a reputable broker by their side.
OANDA's trading offerings allow for the trading of over 100 instruments without a minimum deposit or trade size requirement, and no added commissions. Trading costs are solely based on the spread, which is notably competitive. An overnight fee is applicable for orders held longer than a day, varying by the traded instrument and visible upon trade initiation. After an extensive comparison with over 1000 other brokers, OANDA's fees are ranked competitively low, with an overall rating of 4.5 out of 5. It's important to note that fees may vary between different entities offering OANDA's services, but overall, OANDA's fee structure is considered favorable.
OANDA calculates spreads via its platform, which is electronically linked to numerous global banks, ensuring access to the most accurate foreign exchange and CFD rates for Forex or CFD instrument trading. Standard account spreads start from 1.3 pips, and VIP accounts also offer spreads as low as 1.3 pips. For ECN accounts, spreads begin at 0 pips, with a charge of $3.5 per side as the commission. OANDA provides both live quotes and historical spread data on specific assets or instruments, offering valuable insights into their pricing policy and how market volatility affects spreads. Based on our comparative testing, OANDA's spreads are competitively low, with an overall rating of 4.4 out of 5. The spreads for Forex are notably below the industry average, and other instruments also feature attractive spreads.
Following our comprehensive analysis, we have ascertained that OANDA delivers an exceptional selection of trading instruments, encompassing Forex and CFD trading, with over 100 instruments that include currency pairs, indices, commodities, bonds, and metals, in addition to futures trading and commodities futures. Furthermore, the broker extends corporate FX payments and exchange rate services catering to a diverse clientele of organizations and investors. The OANDA Markets Range is rated at 4.6 out of 5, highlighting its extensive selection among Forex, Indices, Cryptos, Shares, and more.
Our investigation reveals that managing funds with OANDA is straightforward, enabling deposits, withdrawals, and transfers between OANDA accounts directly from the "Transfers" section of the user portal. Nonetheless, it's important to note that due to tax laws and regulations, the availability of certain payment methods may vary by jurisdiction. OANDA's funding methods received a commendable rating of 4.3 out of 5. The broker's minimum deposit stands at an industry average, with minimal to no fees, and supports several account-based currencies, though options differ across entities.
Pros
Multiple payment methods including Credit/Debit cards, Bank Wire, Skrill, Neteller, and PayPal
Cons
Availability of payment methods may vary by jurisdiction
The OANDA minimum deposit policy imposes no specific requirement, yet traders should consider the necessary amount to cover trading fees and margins, determined by the traded instrument. Comparatively, many other brokers require a minimum deposit of $500.
Regarding withdrawals, options and conditions may differ among the company's divisions. Typically, transactions are conducted via Bank Wire Transfer or Credit card, with the first withdrawal request within a month being fee-free. Subsequent withdrawals might incur fees depending on the jurisdiction.
How to Withdraw Money from OANDA Step by Step includes logging in to your account, selecting 'Withdraw Funds', entering the amount, choosing a method, completing the request with necessary details, confirming the information, and submitting. You can monitor the status of your withdrawal through your Dashboard.
Our evaluation indicates that OANDA provides access to highly customizable MT4 and MT5 platforms, in addition to its award-winning fxTrade mobile app. OANDA's technology suite, including the NinjaTrader 8 platform known for futures trading, offers tighter spreads and custom platforms across premium offerings and supports automated trading strategies. OANDA's platform is rated at 4.5 out of 5, placing it among the top in the industry for its range, including MT4 and MT5, suitable for professional trading, supplemented with outstanding research and tools.
The proprietary platform, Oanda Trade, acclaimed for its "easy to use trading functionality", has garnered numerous awards and high regard from traders. It supports Web Trading, Desktop Trading, and Mobile Trading Apps, with the Web Trading platform accessible via any browser. The desktop platform offers a full suite of capabilities, including advanced charting tools, chart pattern recognition, institutional quality backtesting, and a stream of financial news from leading providers. Though MetaTrader4 is also an option with OANDA, it includes all the benefits of exceptional execution, competitive spreads, full support of EAs including hedging scopes, and the option to install a pattern MT4 plugin for technical analysis.
OANDA excels in customer service and support, offering a multilingual help portal, live chat, email, and international phone lines almost worldwide. The only limitation is the availability of customer support 24/5. Nevertheless, concerns can be left for the support team to address once available. OANDA's customer support is rated at 4.3 out of 5, based on our testing, which yielded fast and knowledgeable responses, easily reachable during working days.
Our research reveals that OANDA boasts a remarkable educational section, catering to both novice and seasoned traders. The broker's educational materials and webinars are categorized by skill level, featuring a full range of trading tools, analysis reports, and advanced charts powered by Trading View. Additionally, OANDA provides economic overlays and other crucial research tools essential for a successful trading experience. OANDA's education is rated at 4.8 out of 5, underscoring the high quality of its educational materials and research collaborations with leading data providers.
In summary, the OANDA review confirms it as a safe and reliable broker, offering competitive features such as no minimum deposit, transparent pricing, advanced technical optimization, and a variety of tools. Its strong operational background and suitability for various traders, including professionals and those of regular size, underscore OANDA's advantages. OANDA is recommended for beginners, advanced traders, those preferring MT4 and MT5, futures trading through NinjaTrader, currency and CFD trading, a variety of trading strategies, algorithmic or API traders, those seeking low fees and competitive spreads, excellent customer support, and quality educational materials.
