In more than 25 years the US-headquartered Oanda has grown as an established player in the forex industry. According to multiple Oanda reviews, they have expanded the offerings and currently offer index/commodity CFD instruments along with the forex for clients across the world. However, different Oanda broker review suggest that it was a forex broker mainly but, over the years they have expanded to other trading offerings. This Oanda forex review will take you through every Oanda account types, Oanda minimum deposit, platform, and more.
Without further ado let’s get into the detailed overview of Oanda broker and find if it is the best forex broker or not.
Oanda Review: Broker Facts
Oanda started its operation in 1996, which was founded by Dr.Olsen and Dr. Stumm. As per the advertisement, Oanda provides everything related to forex. So, individuals seeking forex and CFD trading can pick Oanda. Nevertheless, they provide service to more than 196 countries and they are currently ranks #2 in the USA.
Usually, Oanda provides their service via two types of accounts, standard and premium. Further, they also provide a product catalog that contains a numerous range of CFDs along with the offers of spread betting on different asset classes. However, all the asset classes or the instruments might not be available in every region in the world.
Additionally, traders will get to trade the metals, indices, bonds, commodities, and bitcoin CFD in the cryptocurrency category.
When it comes to the protection of the clients’ funds, Oanda provides a wide range of account protection services depending on the geographical location of the trader, that’s what numerous Oanda reviews suggested. Oanda Europe Limited works with ESMA and mandates negative balance protection. Alternatively, the OANDA Asia Pacific Pte Ltd gives the opportunity for stop-loss orders. However, US traders have bad news regarding such protection as Oanda Corporation in the USA doesn’t offer any such account protections. But still, Oanda is trusted by many American forex traders.
When you visit their website, you will find it well organized and emphasized research and education features for the clients.
Oanda’s service quality helped them to get a license from several top-tier forex regulatory bodies across the world.
Who Should Use the Oanda Broker?
Since Oanda offers a variety of instruments, it is an excellent fit for the seasonal traders who are looking for a desktop and mobile trading experience. Also, they offer products based on the region. So. Traders from all over the world will find the Oanda platform handy. For example, US traders are only allowed to trade forex. Hence, the Americans can access fast and reliable trade execution. Furthermore, any newbie and expert traders will not face any issues as Oanda algorithmic trading makes it easier for all.
Oanda has a membership for several regulatory bodies across the world. All the regulatory authorities that provide license Oanda are tier 1. The Oanda regulations include-
- US – Commodity Futures Trading Commission (CFTC)
- Canada – Investment Industry Regulatory Organization (IIROC)
- Australia – Australian Securities and Investment Commission (ASIC)
- UK – Financial Conduct Authority (FCA)
- Singapore – Monetary Authority of Singapore (MAS)
- Japan – Financial Services Agency (FSA + FFAJ)
- BVI – British Virgin Islands Financial Services Commission (BVIFSC)
The license from the tier 1 regulatory authority ensures that the traders’ assets remain safe and secure.
Range of Asset Classes
Oanda offers a wide range of asset classes or instruments for all types of traders. The asset classes include the forex, commodities, indices, metals, and bitcoin CFDs. As per different Oanda reviews, they don’t offer any sort of individual stocks. On the other hand, most of the top forex brokers offer numerous individual stocks of cryptocurrencies. So, Oanda fell short in terms of these offerings. Further, Oanda CFDs are also limited as they offer around 55 CFD instruments for all markets.
Oanda usually provides services for trading forex and CFDs. As a market maker in many different financial instruments, Oanda’s technology infrastructure facilitates hundreds of thousands of trades each day directly between buyers and sellers, who transact with each other at close to real-time speed due to direct connectivity with major stock exchanges.
As a trader, you can trade cryptos as CFD with the Oanda trading platform. You will be able to trade Bitcoin, Bitcoin Cash, Litecoin and Ethereum. These are the top cryptocurrencies in the world.
Among all the cryptocurrencies, Bitcoin is the pioneer as well as the most demanding one. Bitcoin is a digital currency that isn’t controlled or issued by a bank or government. Moreover, it is decentralized and runs on a peer-to-peer network made up of its users’ computers. It can be used to buy things electronically without involving banks or credit card companies. Further, Bitcoin can also be held as an investment much like gold instead of cash dollars in a savings account. The good news is you can now trade Bitcoin with an $80 spread via Oanda. However, the Bitcoin cash can be traded with a $2 spread.
Apart from Bitcoin, you will also get access to Litecoin and Ethereum trading through your Oanda trading account. For Litecoin, you will get $0.6 spreads, while it is $5 for Ethereum. Although The price of cryptocurrencies is usually volatile, the Oanda trading tool will help you to get the maximum benefits from crypto trading. If you have confusion, you can try with the demo account initially.
Oanda Trading Review: Costs
Oanda usually makes a profit via the spread. However, Oanda spreads follow a simple structure and offer two pricing options. One option is spread only and another one is core price + commission.
The spread only features generate profit when a client’s trade crosses the bid/ask spread and the core price + commission takes $50 per million toward the raw spread as per the industry standard. However, the commissions are adjusted with the client’s account as the cash adjustment.
You can find this pricing structure on Oanda’s website. Cost varies on the account type and you can compare them by looking at them on the website. For example, the US clients may see a spread of 1.3 pips for the EUR/USD on a standard account and this will be the raw spread of 0.4 pips for the core pricing and commission model.
Oanda broker uses an automated engine that follows global pricing keenly. However, the spread will still depend on the market liquidity as well as volatility. That is why data on Oanda historical spreads for all the instruments are published by the company.
To get free wire transfers and VPS American traders can participate in the “advanced trader program.” We have researched on that and multiple Oanda reviews indicates that it is a reward system for the traders who trade in high volume. Nevertheless, it provides other benefits too. Such as discounts on spreads and commissions, get a “dedicated relationship manager,” get discounts on third-party platforms, API support, and more.
To get all those benefits a Tier 1 client will need to deposit a minimum of $20,000 or make more than $10 million of transactions per month. Meanwhile, tier 2 will need monthly $100-$500 million trading and tier 3 $500+ millions of trading.
There is no cost for the deposit and there is no Oanda broker minimum deposit requirement for the standard account. On the other hand, the premium account needs a $20,000 minimum deposit for Oanda to start the trading. Besides, the premium account also provides unlimited free wire transfers.
In addition to the account inactivity fee, Oanda may also charge for bank/ wire, debit card transfers.
Oanda Trading Platform Review
Oanda mainly offers four different ways to trade which include, Oanda web platform, desktop, mobile, and Oanda MetaTrader 4. Further Oanda’s primary user interface fxTrade is well designed and provides access to the complex order types, trading instruments, and account analytics.
It is an essential element of Oanda broker. It is their core interface and the system is well designed with easy-to-use features which also offer a wide range of analytics and tools. Furthermore, traders can directly trade from the chart via the MultiChart feature, which gets you the sophisticated and advanced studies feature as well as display style. Apart from these features, fxTrade also provides economic analysis, watch list and news feed. On top of that, the users can also get the data on live and historical exchange rates.
However, the fxTrade’s downside is that it doesn’t have an ultra-modern look and some functions might feel awkward. Because, forum, news, and economic analytics open up in a separate tab in the browser. Also, the Oanda order book is also opened outside of the application. Hence, all these can hamper the smooth trading experience. However, the execution rate and server time are fast and industry standard.
Above all, the fxTrade fulfills the traders’ needs along with additional features through all the necessary tools in just a few clicks.
FXTrade API Libraries
fxTrade API allows the user to have automated trading. Further, they also provide python tutorials, so that a trade can use all the API instruments. Nevertheless, automated trading lets the traders trade many easily in an improved way. Besides, a trade can remain active in different markets at the same time. So, you might be able to trade gold to bitcoin CFDs at once.
It also allows to pre-program required criteria and creates a notification for entering and exit positions. Further, it also allows more time for historical data downloading and effective strategies. So, the Oanda users can do all of the following easily.
- Risk-free testing of a different strategy.
- Provide access to the historical as well as the current market data.
- Trade requests.
- Access previous trading records.
- Stop loss, take profit, or enter orders.
Oanda MetaTrader 4
If the customized desktop platform doesn’t suit, you can download the MetaTrader 4 or MT4 platform. Oanda review has found that MT4 provides advanced charting along with Oanda algorithmic trading thigh numerous expert advisors (EA).
Further, MT4 also allows saving the chart profiles and layouts for future trading. Additionally, a trader can also draw up the swap rates. The MT4 Oanda also provides the live and monthly exchange rates chary access through the platform.
However, creating or developing the EAs might be challenging for some users, especially for the new traders.
Some other mind-blowing tools that come with Oanda are-
- MotiveWave: It is a professional charting tool as well as a technical analysis platform that provides 250+ built-in indicators and around 30 trading strategies by default. So, MotiveWave’s high-performance feature, as well as easy-to-use feature, can boost the trading.
- Oanda Market Reports: It is done through the Autochartist and it also offers a brief market summary. The market report supply the next 48 hours forex market report. Oanda usually sends an email before they start the market analysis.
Apart from these traders will also find other platforms within the MT4 via third-party providers or apps, which includes algorithmic trading platforms.
Oanda MetaTrader 5
Recently Oanda has added MetaTrader 5 to their platform list. It is like the MT4 but an upgraded version. The changes you will experience on Oanda MT5 are-
- 12 additional timeframes
- Extra 8 built-in indicators
- 13 additional graphical objects
- Partial order filling
- Community chat feature
- 2 additional pending other types along with an extra order execution process
- Strategy testing for multiple trading
- Automatically compress the log file
- Economic calendar
- Use of HTML chart format to produce different reports
- Use of MQL5 programming language
Oanda Mobile Apps
If you don’t get adequate time to sit on the computer or if you are on the move, you can initiate enter as well as exit position from the mobile apps. According to the Oanda mobile and iPad review, it has the great capability to provide all the features of the fxTrade desktop application. Nevertheless, Oanda mobile apps are available for iPhones, Androids, and Windows Phone 8.
The mobile app has all the identical features of desktop apps including trading instruments, account analytics, and more.
Moreover, a trader can also trade directly from the chart. On top of that, users can also change the display style that is perfect for them. Unlike the desktop platform, the economic calendar, news, etc. are opened inside the app.
The app also does regular maintenance to ensure up-to-date instruments. Hence, any emerged issues are updated swiftly.
Oanda Account Types
As per multiple Oanda broker review, they offer three types of accounts which includes, Islamic forex account, standard, and core account. Although the accounts are different, anyone can trade in 0.01 lot size. However, the swap-free account is not for all kinds of the trader and it needs manual approval from Oanda. On the other hand, the standard and core account can be accessed by any type of user regardless of the experience and location.
Oanda Demo Account Review
According to the Oanda forex review, traders also get the opportunity to open an Oanda practice account which is mainly used to check the broker’s status. Normally, the Oanda demo account is opened by the new traders or the traders are thinking of starting trading with Oanda. Nevertheless, the demo account Oanda is identical to the real account. But, you don’t need to deposit any money to start the trading. Instead, Oanda will provide virtual money for the Oanda demo trading account and one can practice with that. The earnings from the demo trading cannot be withdrawn either.
Other Account Types
Many traders may wonder about the Oanda ECN account, as some traders want to initiate ECN trading. Unfortunately, Oanda doesn’t provide the ECN account. Since the ECN automated system doesn’t come with the Oanda service, Oanda social trading and Oanda Copy trading are not provided.
However, traders may consider Oanda scalping in some cases, though the company doesn’t provide any clear idea about scalping within the broker account. In addition to that, there is no clear idea about the Oanda PAMM accounts.
Oanda Minimum Deposit
The minimum deposit for Oanda is zero to any amount. Therefore, the Oanda forex minimum deposit allows the traders to deposit any amount they want. But, if any user wants to deposit $9000+, he or she will need to supply some additional requirements including the passport, bank documents, and more. So, it will be wise to make Oanda min deposit less than $9,000. As a result, you will not need to go through the hassle of proving the extra documents.
Oanda Spreads Review
By looking at the Oanda historical spreads it can be said that the Oanda broker provides competitive spreads across the world. So, whether you are from the USA, Europe, Singapore, or even from the Philippines, traders from everywhere will surely receive a competitive price. So, you will find that Oanda spreads are highly comparable with other big players in the industry.
Oanda spreads use an automated machine to observe the price changes globally and offer the spread according to the market liquidity as well as the volatility. This transparent process attracts the clients greatly.
Oanda leverage depends on the respective regulatory authority of a location. However, Oanda maximum leverage depends on the regulators as they fix the maximum leverage for the respective geographical location. However, Oanda traders can get the opportunity to reduce the potential Oanda margin limit.
Oanda Review: Security
Since the forex market is massive, many scammers are out there who always search for a loophole to lure investors. As a result, a secured transaction process has become a concern for many traders. But, the good thing is that Oanda offers a highly secured server and they don’t compromise with the safety. Hence, investors’ assets and data remain in a safe hand. Further, the encrypted data transfer also makes the transaction process smooth.
Oanda Review: Customer Service
Oanda’s regular business hours are Sunday through Friday. But the customer support via live chat remains active from 1 PM ET to 6 PM ET. However, support via email is available 24/7. Nevertheless, customer support via phone is not available regularly. Multiple Oanda review suggest that the customer service workers at Oanda are highly knowledgeable. So, the users get solutions promptly.
Oanda Forex Broker Review: Education
Forex Oanda provides multiple videos on forex education including the articles on Oanda forex trading. So, traders from any background can understand the forex through the Oanda FX education features. Aside from these, newsletters are also provided to enlighten about the market. However, the videos might be outdated and some users may find issues with that.
Oanda Forex Review: Research
For the forex research purpose, Oanda offers numerous economic analysis tools along with live news updates. These things help the traders to do the market research properly before they go for a forex strategy. Research tools also help the traders to make the right decision at the right time. On top of that, expert traders can get benefits from an advanced research tool named volatility analysis. Besides, pattern matching engineering also makes researching on forex easier.
Oanda Forex Review: Oanda Scam or Legit?
To find the right answer for this, we have checked numerous Oanda reviews and found that everyone supports Oanda legit broker. Moreover, their regulatory membership from the top-tier authorities proves them as authentic brokers. If Oanda was not legit they would not have been granted by the top forex regulators in the world.
Oanda Pros and Cons
- Oanda broker takes the traders from the USA and they have become one of the top forex brokers globally who gives access to FX to the USA clients. Usually, most FX brokers don’t accept US traders.
- The abundance of relevant trading tools and resources makes the trading effortless for the traders. The resources include the Dow Jones FX Select news as well as different calculators. These all together make the Oanda web platform and mobile platform user-friendly.
- The advanced financial visualization feature named TradingView lets the user understand the market through various charts.
- It offers different economic analysis features based on real-time news feeds, data analytics, and calendars.
- Oanda Corporation has the license from FCM and RFED along with the CFTC and is also a member of NFA (#0325821).
- Oanda Europe is licensed with FCA (#542574). Besides, the European traders can get fund protection up to £85,000 via different Financial Services Compensation Scheme (FSCS).
- Traders do not need to provide verification documents when they trade up to $9.000.
- US traders don’t get the “negative balance protection.” Hence, if any US trader has a negative account balance, may need to pay money to the broker.
- US clients don’t get guaranteed stop-loss orders either.
- No individual stocks, cryptocurrencies, industry sectors, or ETFs are offered by Oanda. Only 55 CFDs to trade which is far below the competitors.
- Traders are subject to charge a monthly inactivity fee. Traders may also need to pay some fees for withdrawal via bank transfer.
Hopefully, this Oanda review article lets you know some unknown facts about Oanda. Besides, the article should also help you to decide whether you want to trade with Oanda or not. The variety of Oanda account types along with the smooth forex trading platform can give you the ultimate trading experience.
So, if anyone seeks the best forex broker, Oanda can be the one! Not only our research team but also the current user prefers Oanda over another top forex broker, as Oanda rating for trust score is 91. Hence, you can understand how trustworthy they are.
Whether you are a new trader or even an expert, you may check out the performance via the Oanda practice account.