OANDA is a Canadian-based foreign exchange company providing currency conversion, online retail foreign exchange trading (forex), online foreign currency transfers, and forex information. In the US it is a non-bank Futures Commission Merchant (FCM) specialized in spot forex trading and a registered FCM with the Commodity Futures Trading Commission (CFTC) and a member of the National Futures Association (NFA).
Overall Score
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Oanda is an online broker that was founded in 1996 by Oanda Corporation. Oanda Europe Limited is authorised and regulated by the UK’s Financial Conduct Authority (FCA). Traders can trade with various types of trading assets such as forex, indices, metals, commodities and CFDs.
The broker offers two types of live trading accounts that are standard and premium accounts along with a demo account. Traders can trade on Oanda Trade, which is their own trading platform. Apart from this, the other options are WebTrader and Mobile App powered by MetaTrader 4.
It is an award-winning broker that requires 0 dollars as a minimum deposit to start trading. The broker also offers many different types of technical indicators and research tools for traders. It includes AutoChartist, webinars, trading signals, and various others.
This broker is also one of the best forex and CFD broker, which means you can trade CFDs with this provider.
Is Oanda Scam or a Safe Broker?
Oanda is considered to be a safe broker because the same is protected by the Secure Sockets Layer (SSL). Also, the trading platform is encrypted, which means your data is completely safe with the broker. The broker is regulated also to ensure all the transactions are monitored by the regulatory body.
All these practices make sure that you do not have to face any trouble trading with the broker. The broker also offers CFD trading and CFDs are complex instruments. There is a high risk of losing money when trading CFDs.
Account Types of Oanda
There are three different types of accounts available for trading with this broker. Out of which one is a demo trading account and the other two are live trading accounts. The types of accounts include:
Demo Account
A demo account is for newbie traders so that they can get the live trading experience. Traders can start trading without making any deposit in the trading account. This is to eliminate the risk of losing money in the open market. Therefore, it is advised to all the traders to start their trading career with a demo account only.
Standard Account
This account is for normal traders who are also known as retail traders. The features of this trading account are as follows:
- 70 forex pairs
- Automated trading
- 24/5 customer support
- $0 minimum account balance
- Oanda currency converter
- Joint account available
- Oanda live rates
Premium Account
The premium account is for professional traders who like to trade large and in heavy volumes. These traders receive benefits that are listed below:
- 70 forex pairs
- Automated trading
- 24/5 customer support
- $20,000 minimum account balance
- Oanda currency converter
- Joint account available
- Oanda live rates
- Dedicated account manager
- Unlimited wire transfers
- Indicators update every 5 minutes
Account Opening
Traders need to follow a simple procedure to open an account. The procedure is as follows:
- Use the Oanda login page to start the process of account opening.
- Fill in the personal details and the contact details as asked by the broker.
- Upload all the necessary documents that are used for verification.
- Add a payment method and deposit some funds so that you can start trading.
Follow this process at the web portal of the broker with the help of any web browsers. Remember to use a secured internet connection instead of a public connection.
Trading Platform
Traders have two different options such as Oanda trade and MetaTrader 4 trading platform. The platforms are available for web, desktop, and mobile. This means you can trade at your convenience on a platform that suits you the most.
Multiple trading features are available on every trading platform and a wide range of trading tools. The trading platforms and their features are as follows:
Web Trading
- It has a fest trade execution speed to take advantage of the volatility of the market
- Traders can view current positions, pending orders, and snapshot related to trades
- Advance technical indicators are accessible and traders get trading signals also
- High-quality user interface and trading view to get the best results
Desktop Platform
- More than 10 types of price charts are available for traders to choose from
- 50+ drawing tools are provided to study charts and calculate future possibilities
- Traders can personalise the price chart layout according to the requirements
- Available for Windows and Mac operating systems
- Market analysis from Dow Jones and others
Mobile Trading
- Available for both Android and iOS operating systems for free
- Fully customisable interface according to trader’s preference
- You can set price alerts and receive trading signals
- Autochartist for technical analysis
- More than 50 technical indicators and 9 chart types
Products for Trading
Traders can choose from more than 150 trading assets of different financial markets and types. The trading instruments include:
- Forex
- Metals
- Indices
- Commodities
- Bond CFDs
These are the trading instruments that Oanda offers. CFDs are also available but they are complex instruments and come with high risk. Therefore, traders who trade in CFDs should do deep research before investing in the trading instruments.
Traders can trade in many forex pairs such as EUR/USD, GBP/USD, USD/AUD and more. Choose the best forex pairs Oanda offers.
Commissions and Fees
Oanda is not a commission-free broker; it charges commissions and other fees on your trades. The trading fees and includes swaps and spreads charges. They are different for different types of trading instruments. Also, the broker has higher overnight swap charges.
Traders need to study all the charges before they enter into any trade and then calculate the profits before entering any positions. The spreads can also be different for different forex pairs such as 0.3 pips, 0.6 pips, 0.5 pips and others.
Deposit and Withdrawal
This online broker offers various types of deposit and withdrawal options. Traders can choose the best according to themselves. Each option consumes a different amount of time which is also discussed below. Therefore, the available options are:
- Bank transfer
- Credit cards
- Debit cards
- PayPal
The deposits made with bank transfer can take up to 1-3 working days. On the other hand, deposits made with PayPal can consume time up to 1 day. However, withdrawals can take up to 1-6 business days.
With the help of this honest Oanda review, traders can choose the most suitable option for transferring funds. Deposit or withdraw funds stress-free with this broker.
Trading Leverage
Oanda is regulated by the FCA (UK) and it is a secured broker. Trading who have an Oanda account can use leverage to improve their trading experience. But it is advised to traders that if you cannot afford to take risk then do not use leverage.
The maximum leverage Oanda offers is 1:100 for forex trading. You should make proper trading strategies and read the historical rates from the Oanda historical rates page. Traders can also use the Oanda converter for calculating foreign exchange market rates.
Currency converter Oanda is accessible for free to each trader. The use of leverages also vary depending on a trader to trader, so use it in affordable limits. Oanda forex trading has more than 70 currency pairs in which you can trade.
Customer Service
Traders get reliable customer services from the broker. The contact details of the broker are as follows:
- Phone: +44 20 3151 2050/+ 44 20 7101 1600
- Email: [email protected]
- Website: https://www.oanda.com/
- Live Chat: Multilingual customer support is available for traders
- Head Office Address: OANDA Europe Limited, Tower 42, Floor 9a, 25 Old Broad St, London, EC2N 1HQ
Apart from this, there are other branches also of the broker such as Oanda Japan and others. Customer support is accessible 24/5 and traders can resolve all their issues quickly. This can make your Oanda trading account experience more special.
Research Tools
There are various types of research tools that can be used for CFD, forex trading, and others. The tools are available on all the trading platforms such as mobile trading, desktop trading and others. These tools make it one of the best forex brokers in the world.
There is a separate website for research tools that is MarketPulse. The tools are:
- Technical analysis
- Financial news
- Economic calendar
Along with these, there are other tools also to increase the profits on your trades.
Education Tools and Resources
Oanda’s trading experience became the best with the help of an impressive range of educational resources. The several types of educational resources offered by the broker include:
- Articles
- Videos
- Webinars
- Events
- Live market analysis
- On-demand learning
These are some of the trading education tools that traders can use to enhance their trades. They can earn good profits with the help of these tools. These tools are available free of cost and users can access them anytime they want.
Pros and Cons of Oanda Trading
The pros of the broker are listed below:
- It is regulated by FCA (UK) and trustable
- Oanda exchange rates or currency converter
- Different types of trading accounts
- A huge collection of trading tools and educational material
- Reliable and fast customer service
- Trading leverage available for traders
On the other hand, the cons of the broker are as follows:
- No stock trading
- Commission of trades
- High overnight swaps
- Spreads are not competitive
The Bottom Line
Oanda offers trading on a reliable trading platform that is accessible on the web, desktop, and mobile. It is one of the best forex and CFD brokers. Traders can trade with many currency pairs and CFD instruments across the globe. It is a top tier regulated broker with FCA (UK). Along with these, there are many other benefits and trading features a trader can receive trading with this broker. Therefore, open an account to enjoy those features and trading benefits.
FAQ
Why Do Retail Investor Accounts Lose Money When Trading CFDs?
CFDs are complex instruments and come with a high risk. They require higher trading skills and experience. Retail investor accounts lose money when trading CFDs. This is because of the lack of experience and skills required for trading.
It is not compulsory to start CFD trading because it is available to trade CFDs with this provider. Another most important thing is to control your use of leverage. There is a high risk of losing money rapidly due to leverage. Hence, traders should understand how CFDs work and then trade them.
How To Minimise the High Risk of Losing Money?
To avoid the high risk of losing money rapidly due to leverage, traders can use the educational material of the broker. The broker also offers negative balance protection but still does not take the high-risk trades.
The amounts of leverages vary depending on the type of trading assets. Traders should not use full leverage, they should use the amount they can afford to take the risk. Understand how CFDs work and then enter into trades.