Oanda Broker Review
Worldwide Top Rated Online Broker Oanda and Why Traders Choose It
One of the largest online brokers, Oanda, has received mixed feedback over recent years with some criticism over some policies. However, its stellar services and infrastructure have made it a top choice among traders of all levels. We review the ins and outs of the brokerage to help you assess whether it is the right broker for you.
Online Brokerage Oanda
Oanda is a Canadian online broker that has been operating since 1995. Oanda provides trading services in all major regions worldwide. Users can avail of both forex trading and access other markets through CFD products. Traders in the US are restricted to forex trading. Spread betting services are available to customers residing in either the United Kingdom or Ireland.
The company is authorised and regulated to provide services in several jurisdictions worldwide including the US, Europe, and the Asia Pacific. The company is authorised and regulated to provide services in each of these jurisdictions. Regulatory bodies overseeing the activities of the company include the FCA, ASIC, IIROC, CFTC, and ASIC. Customer deposits are separated into different accounts at top-tier banks.
Oanda has received some negative feedback for not providing deposit protection beyond the guidelines set by regulators. There was also some criticism for there being no slippage or negative balance protection with their services. However, its high-quality infrastructure and reputable service have built up trust among a large user base making it one of the most highly regarded and liquid online brokerages in the industry today. The website for Oanda is available in multiple languages including German, French, Spanish, and Portuguese and the brokerage also has a customer support team distributed across offices in a variety of different jurisdictions.
Trading Markets and Products
Oanda provides access to numerous markets including forex, equities, commodities, precious metals, bonds, and indices. Oanda has been noted as one of the most liquid markets for retail traders and investors. One of the downsides noted by users and reviewers of the platform is the absence of cryptocurrency markets. With cryptocurrency markets providing significant returns so far in 2019, the lack of a cryptocurrency market has been a big downside for a lot of potential users. However, the wide offering of other markets and the high-quality infrastructure to trade them has more than made up for this for a lot of other traders.
It is reported that the broker accounts for 20% of the retail forex market. It is considered one of the most liquid markets traders can use. Their liquid markets have been facilitated through partnerships with top tier banks and liquidity providers. The number of regulatory authorities that Oanda complies with plays a large role in successfully securing these relationships. The markets provide transparent pricing on all instruments and reliable execution. Leverage is available on major forex pairs at maximum margin requirements of 50:1. Leverage is also able to be applied to the other forex pairs with maximum margin requirements of 20:1. The leverage for CFD products varies based on the instrument. For the best in CFD brokers have a look at the reviews.
Oanda Trading Platform and Features
Oanda has both its own proprietary trading platform and also provides MT4. MT4 is an extremely popular software among traders. Oanda allows users to access MT4 through either desktop or mobile. MT4 has become extremely popular among traders due to the wide variety of tools its uses and the analytical capabilities these tools provide. Oanda’s own proprietary trading platform, “Oanda Trade” also places a wide variety of tools at the disposal of traders.
Some of these tools are especially useful to the more advanced traders. Advanced traders can design automated trading strategies by using the Rest and Fix API tools which Oanda provide. There are also a number of trading apps available to Oanda users which allow users to access Oanda’s services from mobile, tablet, or computer. If users don’t wish to download any of the applications or desktop software, there is also a web-based platform that users can access.
All of Oanda’s platforms are integrated with powerful analytical and trading tools. They have an extensive library of charting tools and also have integrated news feeds as well as research and analysis. Oanda have also partnered with a number of other services to provide features above and beyond what their platforms provide. For example, their partners Multicharts and MotiveWave provide an even more extensive library of charting tools to users. Oanda has their own in-house team of analysts generating key content for traders to keep up to date with.
What are the Oanda Fees?
The fees which Oanda generate are incorporated into the spread of the markets which Oanda provides. Spreads are as low as one pip on some trading pairs. Oanda charges no commission on the trades that users execute. Users can stay updated with the spread rates through the Oanda website.
What else does Oanda do?
Oanda provides a number of other services through the linked NFA regulated firm Oanda Corporation. These services include a currency converter, money transfers and accessing an exchange rate API. For trading services, Oanda provides a vast library of educational resources for active users and potential customers. These materials cover both getting started with setting up an account and also analysis tools and strategies which can be used.
For any issues that users face, the Oanda customer support team has been highly rated. Customer support is available for 24 hours in six days of the week. The support is available in a wide variety of languages and support teams can be accessed from multiple offices around the world.
Why trade with Oanda?
A broker of the size and scale of Oanda is a serious consideration for both retail traders and professional traders alike. The broker has high-quality reviews from highly-respected sources such as Investopedia. Some of the downsides noted is the absence of cryptocurrency markets and also some policies on not providing deposit protection beyond what is required by regulators. However, the versatility of their trading platforms and the liquidity of their markets has helped Oanda in scaling up to become on the biggest brokers in the world. Users of the service have a wide variety of platforms to choose from with high-quality analytical tools. All in all, Oanda is a good choice for traders who are both at the beginning of their careers and traders who are more advanced. Those interested in the cryptocurrency markets and high deposit guarantees will have plenty of other online brokerages to choose from. But those who care most about liquid markets and the quality of tools will likely have Oanda as a top consideration.
Education
The range of markets that OANDA offers vary depending on the entity that regulates your account. For instance, in the U.S., it doesn’t offer contracts for differences (CFDs), although in Australia and the British Virgin Islands, the broker offers over 120 symbols and 71 forex pairs. Additionally, it allows clients to trade various cryptocurrencies such as Bitcoin, Ethereum and Litecoin through CFDs.
OANDA offers both standard and premium accounts globally, and its product catalog includes spreads betting and CFDs across different asset classes. Although these are not available in every region, you can also access other financial instruments such as bonds, commodities and indices.
The online course of OANDA covers fundamental and technical analysis. OANDA offers a variety of educational videos and articles for new and experienced investors. There are also live webinar programs that cover various subjects, such as economic and market analysis. However, most of its videos are platform tutorials not designed to provide a comprehensive view of the financial market.
The broker’s blog could be improved by adding more finance-related videos to its already existing content and making its offerings more competitive with those of other educational providers such as AvaTrade and IG.
The educational content of OANDA is scattered across its website, and it could be improved by allowing users to filter the resources for them based on their experience level. This would allow users to easily find the most relevant content.
Due to the rise of social trading, more and more people are turning to the opinions and insights of others for their trading decisions. Unfortunately, OANDA only provides a forum for social investors.
Security
OANDA Corporation is a member of various organizations, such as the National Futures Association (NFA) and the Commodity Futures Trading Commission (CFTC). It is also a registered Futures Commission Merchant (FCM) and a Retail Foreign Exchange Dealer (RFED). In the U.K., OANDA Europe is regulated by the Financial Conduct Authority (FCA).
The broker is also regulated by various organizations such as the IIROC, ASIC, and the Monetary Authority of Singapore.
Despite the various regulatory oversights that OANDA has, the amount of protection it provides for its clients in the event of a default is limited. For instance, OANDA Europe Limited and OANDA Asia Pacific Pte Ltd. provide ESMA-compliant negative balance protection. However, U.S. clients are the exception.
Despite its mobile app’s lack of biometric and two-factor authentication features, OANDA still meets the regulatory standards. It’s a bit puzzling that OANDA refuses to provide additional protection for its clients even though it has been recognized for its excellence in providing a superior customer experience.
FAQ
How much do I have to deposit on OANDA?
Unlike other brokers that only require a deposit to activate a live account, OANDA does not have a minimum balance. Also, it allows clients to trade currencies with a small deposit. This means that OANDA is a great alternative for those who are looking to test their trading strategy with a small amount of money.
I am a beginner. Is OANDA the best option for me?
The ease of use of OANDA’s platform is also a major factor that makes it a great choice for beginner investors. Its client dashboard and fxTrade platform are both very user-friendly, making them an ideal choice for people new to the world of financial trading.
Can I trust my money with OANDA?
Since 1996, OANDA has been regulated by various Tier-1 organizations in the U.S., UK, Japan, Australia and Canada. This ensures that its clients are protected from the risks associated with financial transactions. The company’s long history of being a regulated broker has made it an ideal choice for investors.
Do I have to verify my ID with OANDA?
Yes. To comply with the regulations, financial institutions are required to collect, retain and verify information about their clients. This information is used to prevent money laundering and terrorism financing.
Can I automate my trades on OANDA?
Yes. With OANDA’s API, traders can easily integrate their preferred programming languages into the broker’s trading engines. These are ideal for individuals who are looking to automate their trading.
Pros
- One of the most liquid online brokers
- A wide suite of trading tools suitable for advanced traders and beginning traders alike
- Offers services in areas worldwide and is authorised and regulated in jurisdictions where it operates
Cons
- Does not provide deposit protection beyond what regulation requires
- No slippage or negative balance protection on accounts
- No cryptocurrency markets available
Fixed spreads
Variable spreads
Stop losses
Limit orders
One-click trading
Trailing stops
Expert advisors (EAs)
Virtual private server
Direct market access
STP broker
ECN broker
Market maker
Price alerts
Signal trading
Watchlists
Charting tools
iOS App
Android App
Windows App
Major Stock markets (US UK Germany)
Indices
Penny stocks
Forex
Majors
ETF
CFDs
Bitcoin
Commodities
ETFs
IPO
Options
Futures
Bonds
Hong Kong stocks
Japanese stocks
Listed on Stock Exchange
Scalping
Hedging
Demo account
Islamic account
Micro account
Standard account
VIP account
Zero spread account
Managed account
Credit cards
Bank transfer
PayPal
Neteller
Skrill
Electronic wallets