OANDA Review

Regulation and Security

Six distinct regulatory jurisdictions govern this broker, and the geographical location of a trader will determine which regulatory framework will be applicable. OANDA Corporation is regulated in the US by the Commodity Futures Trading Commission (CFTC) as a Futures Commission Merchant and Retail Foreign Exchange Dealer. It is also a member of the National Futures Association under number 0325821. Canadian traders will operate under the Investment Industry Regulatory Organization of Canada (IIROC) framework, where OANDA (Canada) Corporation ULC is authorized. Traders are protected by the Canadian Investor Protection Fund. OANDA Europe LTD is regulated in the UK by the Financial Conduct Authority (FCA) under license number 542574, where the Financial Services Compensation Scheme (FSCS) offers protection up to £85,000.

OANDA Asia Pacific Pte LTD holds a Capital Markets Services License granted by the Monetary Authority of Singapore. The Australian Securities and Investments Commission (ASIC) regulates OANDA Australia Pty LTD under AFSL license number 412981. The Act of Grace mechanism under Section 65 of the Public Governance, Performance and Accountability Act 2013, protects the broker. Traders may rely on the Scheme for Compensation for Detriment caused by Defective Administration (CDDA Scheme) for unforeseen losses. OANDA Japan LTD is governed by the Financial Futures Association of Japan under subscriber number 1571.

OANDA is a well-regulated global brokerage, in full compliance with all of its regulatory agencies. Traders may have complete confidence in any of its six operating jurisdictions.

Oanda well regulated

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Fees

OANDA is a market maker, meaning it may profit directly from client losses; OANDA Europe lists the failure rate of traders at 73.5%. The majority of OANDA's income is derived from the mark-up on spreads. An in-house pricing engine deploys an algorithm to determine the mid-point of prices for all assets. Due to the full automation of spread calculation, this broker claims to achieve full price transparency, but the algorithm used is not open-source and, therefore, may be manipulated. With a minimum spread of 1.0 pips on the EUR/USD, claims of competitive pricing are overstated.

Swap rates on overnight leveraged positions are levied. The exact amount can be obtained directly from the trading account. A monthly fee of £10 per month, after twelve months of inactivity, is additionally charged. Third-party deposit and withdrawal fees may apply.

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What Can I Trade

With over 70 currency pairs, OANDA provides comprehensive coverage of the Forex market, its primary asset class. An entry-level selection of precious metals and commodities allows traders a fair number of diversification opportunities. Major global indices are listed together with bond CFDs. Regrettably, cryptocurrencies and equities are missing from the list of assets. Not all assets are available to all traders, which is dependent on geographical location. US-based clients have access to the fewest number of assets. Pure Forex traders will find the overall selection vast, while those seeking broader diversification will not be adequately served.

The coverage of the Forex market is exceptional, with the availability of over 70 currency pairs.

Oanda popular forex pairs

Index CFDs for major global markets are provided for cross-asset diversification.

Oanda popular indices

A limited selection of precious metal CFDs is available.

Oanda popular metal CFDs

Commodity CFDs grant acceptable exposure to this sector.

Oanda popular commodities

Bond CFDs provide an additional layer of diversification opportunities.

Oanda popular bonds

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Account Types

The standard account is where most traders will manage their portfolio. No minimum deposit is required, and the maximum leverage is dependent on the operating subsidiary's regulator. OANDA Australia Pty LTD grants the most generous leverage, but each entity lists exact margin requirements on its respective website. UK-based traders have access to a tax-free spread betting sub-account.

For a minimum deposit of $20,000 (or a currency equivalent), a premium account is accessible. Aside from the relatively unimportant assignment of a dedicated account manager and unlimited free wire transfers, no significant differences between the two account types are evident. OANDA does not offer a swap-free Islamic account.

The premium account carries no significant advantages over the standard account.

Oanda account type comparison

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Review

The OANDA Corporation is a US-registered financial firm founded in 1996; this OANDA review will focus on the period after 2001, when OANDA launched its retail brokerage division. Though a tech firm at heart, this broker was the first to introduce a pipette to Forex trading in 2004 (a pipette refers to the fifth decimal in quotes of currency pairs). In 2007, the company attracted $100 million in venture capital to expand into Asia, opening its first office in Singapore. Since then, it has expanded globally and, in 2018, it was acquired by private equity firm CVC Capital Partners.

Oanda globally recognized broker

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Trading Platforms

An in-house developed proprietary trading platform, labeled OANDA Trade, offers the best trading portal to traders. The webtrader features a next-generation trading engine for fast execution speeds, innovative trader tools, and simple risk management features. Chart-trading is provided on the desktop version, together with personalized charts, market data coverage, and performance tools. Traders have a customizable interface and price signal notifications on the mobile versions.

The MT4 trading platform is also available, but merely as the most basic version without any of the necessary third-party tools which would unlock its complete functionality. Understandably, OANDA's focus is clearly on its proprietary software. Traders without existing trading solutions developed on the MT4 infrastructure will best be served with the OANDA Trade platform, while others may opt for access to a superior trading solution through an upgraded MT4 platform.

The webtrader provides a user-friendly trading portal to clients.

Oanda proprietary trading portal

A sound selection of analytics and tools are accessible in the desktop version.

Oanda desktop platform

Mobile traders will receive notifications to market-moving events.

Oanda mobile platform

The MT4 trading platform is equally supported but without any of the requisite third-party plugins which would render it fully functional.

Oanda MT4 platform

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Unique Features

OANDA provides traders with three unique features which enhance the overall trading experience; namely, advanced charts, trading performance portal as powered by Chasing Returns, and access to APIs. In partnership with TradingView, advanced charts with over 65 technical indicators allow manual traders to properly and easily recognize trading opportunities. Eleven customizable types enable chart-trading, which would allow traders to maximize their trade execution. The OANDA trading performance portal is powered by Chasing Returns; it allows portfolio improvements and trading strategy optimization via Gameplan, Modules, and Journal. Custom trading solutions are supported through a host of APIs which will allow for the creation of custom trading solutions.

Manual traders are provided with all necessary tools through advanced charts.

Oanda advanced chart

Strategy improvements are supported via the trading performance portal.

Oanda trading performance portal

Developers have access to APIs, which allows for the creation of custom trading solutions.

Oanda API comparison

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Research and Education

Four senior analysts lead the in-house research team at OANDA; they are responsible for MarketPulse, the blog operated by this broker. It is a well-designed financial portal, and represents one of OANDA's best and most useful attributes. The Macroeconomic section is sub-divided into MarketPulse, Economic Exposure, Central Bank Watch, and OANDA Video. It provides Forex traders with an attractive summary of fundamental developments that could affect their trading strategies.

OANDA’s technical analysis section features commentary on Forex, commodities, and indices. The presentation is a mix of videos and written analytics. Whether traders are looking for fresh trading ideas, desire confirmation of a trading signal, or simply want a respite from trading, MarketPulse provides a valuable service. Forex News rounds up this vital service that OANDA provides, and weekly updates are available on a subscription basis. This blog easily competes with the market leaders in financial news coverage.

Traders who prefer to conduct manual technical analysis are supported through a comprehensive research portal powered by Autochartist. It features automated chart pattern recognition and pattern quality indicators, and allows trade placement directly from the interface. Other tools that OANDA offers include the OANDA Forex Open Position Ratios, OANDA Forex Order Book, and the MT4 Open Order Indicator.

Four senior analysts provide traders with high-quality coverage of global financial markets.

Oanda senior analysts

MarketPulse represents the highest quality attribute that OANDA offers to traders.

Oanda MarketPulse

Autochartist is at the core of a technical analysis suite which allows traders to identify potential trading opportunities.

Oanda technical analysis

New traders have access to a comprehensive educational section. OANDA introduces new clients to its trading services and basic terms via the Getting Started section. Dedicated categories for fundamental analysis, technical analysis, and capital management provide well-presented content for traders to study. The Classroom is a must-read section, as it sums up countless educational lessons; it consists of webinars, videos, and a properly structured user-interface for traders to access desired information.

OANDA has provided an outstanding service with its research and education categories, countering other brokers' typical trading environment. Both help this broker stand out from the majority of its competitors. The care and dedication which is pervasive throughout the section, is evident. Refreshingly, and unlike many competitors that are motivated by marketing, the research and education section was designed simply by an honest desire to provide a valuable auxiliary trading service.

The fundamental analysis lessons provide a solid start to the education of new traders.

Oanda fundamental analysis

A comprehensive technical analysis section is a “must-read.”

Oanda must read technical analysis

OANDA dedicated an entire section to capital management, one of the most under-educated core principles of successful traders.

Oanda capital management

The Classroom provides traders with a well-structured educational environment, driven by an honest desire to enhance trader knowledge.

Oanda the classroom

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Customer Support

OANDA attempts to solve all support-related inquiries via the help portal, which features FAQs to the most common issues. For critical issues, a live chat feature is the most efficient way to reach a support representative. E-mail and phone support are also available, but response times may be prolonged. Support is offered 24/5 and represents a service most traders never request, especially at a well-managed brokerage like OANDA.

Oanda help portal

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Bonuses and Promotions

Like most highly-regulated Forex brokers, OANDA does not offer bonuses, promotions or incentives.

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Opening an Account

An online application form is required to open an account, which is standard operating procedure. Six distinct regulators govern OANDA, and the geographical location will dictate the applicable framework. During our OANDA review we found that the company’s account opening process is a five-step procedure which includes the KYC/AML requirements. Traders are required to confirm their identity via a copy of their relevant ID and the submission of proof of residency document. Given OANDA's strict adherence to the comprehensive framework of regulations, a trader may have full trust in this broker with personal and financial information.

Oanda account opening procedure

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Deposits and Withdrawals

OANDA supports bank wires, electronic wire options, credit/debit cards, and PayPal. Unlike most other Forex brokers, OANDA doesn’t feature any of the modern payment processors. This was, perhaps, one of the biggest surprises we found during this OANDA review. Given that traditional funding options are increasingly falling out of favor, that may present a challenge for a majority of potential traders. This broker waives deposit costs, though traders may face third-party charges. Withdrawals carry a fee; the exact fee may be obtained from inside the trading account, or by contacting support.

In compliance with AML regulations, the name on the payment processor and trading account must be identical, while withdrawal hierarchy rules apply. Some electronic wire options may only be available to specific traders, which is dependent on the regulatory framework of the operating subsidiary.

Oanda deposits and withdrawals

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General Information

Company Information

  • Broker's Name : Oanda
  • Headquarter : United States
  • Regulation : CFTC, IIROC, FCA, ASIC, MAS, IFFA

Account Information

  • Type of Broker : Market Maker
  • U.S. Clients Allowed :
  • Minimum Deposit : None
  • Maximum Leverage : 1:48
  • Commissions / Spreads : Spread
  • Account 1 : Standard
  • Account 2 : Premium
  • Demo Account :
  • Islamic Account :
  • Segregated Account :
  • Managed Accounts :
  • Deposit Options :
  • Withdrawal Options :

Instruments Traded

  • ETFs :
  • CFDs :
  • Commodities :
  • Metals :
  • Stocks :
  • Oil :
  • Gold :
  • Binary Options :
  • Indices :

Trading Platforms

  • Type of Platform : MetaTrader 4, Proprietary platform, Web-based
    • Platform Languages :
      • English
    • OS Compatibility :
      • Mac
      • Windows
      • Linux
      • Mobile
      • Web
      • iPhone
      • iPad
  • Trading Signals :
  • Charting Package :
  • Market Analysis :
  • Chart Trading :
  • Automated Trading :
  • Scalping :
  • Hedging :
  • Mobile Alerts :
  • E-mail Alerts :
  • Trailing Stops :
  • Guaranteed Stop Loss :
  • Guaranteed Limit Orders :
  • Guaranteed Execution :
  • One-click Execution :
  • OCO Orders :
  • Interest on Margin :
  • Web-based Trading :
  • Mobile Trading :

Customer Support

    • Website Languages :
      • English
      • Spanish
      • Italian
      • French
      • German
      • Chinese
      • Russian
      • Portuguese
  • Support Hours : 24/5
  • E-mail Support :
  • SMS Support :
  • Chat :

Pros and Cons

  • Extensive Educational Material
  • Highly Regulated
  • Accepts U.S. Clients
  • Slower phone support

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FAQ

How long does it take to withdraw from OANDA?

This depends on the payment processor utilized. PayPal processing times are noted as one business day, while bank wires may take up to seven business days. OANDA exclusively relies on old-fashioned payment processors and fails to support modern ones.

Is OANDA a market maker?

Yes, OANDA deploys the market maker model. This broker states that the pricing of assets is handled 100% autonomously by its pricing algorithm. Since it is not open-source, manipulation remains a possibility.

Does OANDA allow scalping?

While scalping is allowed, the above-average spreads make this broker unsuitable for this trading strategy.

Is OANDA good for beginners?

The educational section provides new traders with an exceptional introduction to trading. Moreover, the asset selection in the Forex market is excellent, and the proprietary trading platform is user-friendly. It does support new traders well, making OANDA a sound choice.

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Summary

OANDA is a well-regulated brokerage, in operation since 2001. While it ranks as the prime Forex broker in Japan and Singapore, this US-headquartered company has generated more marketing traction than its trading environment deserves. Asset selection outside of the Forex market is limited, making proper cross-asset diversification difficult if not impossible. Trading fees are above average, but this market maker claims to possess competitive spreads. The premium account, available for $20,000, is nearly identical to the standard account, where no minimum deposit is required.

The best attribute of this broker is its blog, MarketPulse, written by a dedicated four-man team of analysts who cover global financial markets. MarketPulse is easily on par with well-established financial news outlets. A well-executed educational section provides new traders with a proper introduction to trading. Partnerships with TradingView and Autochartist enhance manual trading, and developers have access to five APIs. Auxiliary trading services are noted, providing a much-needed improvement to the weak core trading environment.

OANDA unfortunately remains loyal to only traditional deposit and withdrawal choices, failing to consider emerging funding options. In another disappointing setback, OANDA fails to provide coverage of the cryptocurrencies or equities markets.

New traders may feel comfortable at OANDA due to its solid reputation, but more advanced traders will find the elevated trading costs and limited asset selection (outside of its Forex pairs) unfavorable; as a consequence, some traders may be better served at other brokerages.

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User Reviews

Did you have a good experience with this broker? A bad one? Tell our team and traders worldwide about your experience in our User Reviews tab. Your email address will not be posted.

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17 User Reviews
vanyoelle12

I have to come out of the dark to help traders. With my Binary option and Forex strategies, I have made profit in the past 3 years and now I make £20,000 every week. After changing a lot of strategies, I and my associates have decided to share this one since it's a success. It is the least I can do for beginners or people who have lost much to binary options and are looking for the right strategy which I am willing to help for free. Email me via my email [email protected] for help.

Cormac.Terry

Been with Oanda since May 2006. I find their charting indicators very basic and pretty useless for me. My biggest gripe is the fact you can not hedge in just one account - you have to go long in one account and short in another. As both accounts look identical in terms of color and indicators shown, you have to be extremely careful that you are in your appropriate account when opening or closing a trade, otherwise you will be offsetting an already open trade in the account you place the trade. Most frustrating - and expensive!
For charting, I use one of the several "free" charting services with more options for my indicators - I don't have to use closing prices exclusively, I can use high,low or mid points as my variables etc...

vovkfx

Oanda is very old and reliable broker, with many licenses. That’s why I opened an account with them. A lot of interesting services and good pack of instruments. But when I started trading I faced a lot of problems: sometimes my SLs was removed, spreads are often higher then must be. Also my friend, scalper, was trying to do business with them, but after 2 weeks of trading he WD his money and changed his broker, so if you are a scalper, I advise you to stay away: big slippages and bad execution.

Barbara O'Sullivan

I see that Daily Forex has a new format for its reviews and that they have updated their review of this broker. I've been trading with Oanda for years now and it's been a good experience. They have added the MT4 platform which has made trading much easier.

Go For It

I'm doing lots of research for a forex broker. This one is regulated so maybe I will go with it.

Jose Fernandez

This is a good broker. I live in the United States and there isn't too many brokers that sell currencies. I like this one a lot.

Alie Campbell

Oanda seems to have been around forever. But they always seem to be changing and I guess that is good. I am debating whether to open an account with them or with another broker. I like that they use the metatrader4 platform.

idht

They will tell you about how good they are, let me concentrate on the other side to be fair. So, what have we got?

- A buggy website.
- A lot of bureaucracy during account opening.
- No options for secure electronic document uploading, you have to take the risk and email them scans of the documents. It's quite unsafe and unsecure.
- Waaay outdated trading tools. Aren't they still on MT4????
In trading, the winner is often the one with the best tools. Good luck if you are with Oanda. you may need it often.
- hidden fees during the money transfers: I paid for the incoming wire to Oanda, for the outgoing wire. I thought, that was it. No, two weeks later I received a (well delayed, wasn't it) extra charge for $25 "from the intermediary bank". an authentic hidden charge.

they sure have a nice marketing team though. WE ARE THE BEST they tell you. Sorry, I don't think so.

Greg

Im not sure how old this review is but it seems a bit dated. I can say as far as Oanda platforms they have a nice Java one and really nice iPhone and iPad one as well. Now I can't say that I have used MetaTrader but I can tell you that Oanda does indeed offer it as an option to those who wish it. Oanda does seem to offer very tight spreads at least compared to FXCM. They also claim not to trade against their traders. Just some food for thought.

Sara Patterson

Same Guy - you're totally right, and I fixed it. Thanks for bringing it to our attention!

same guy

BTW, they now accept credit card deposit for USD, so you might as well update the "disadvantage" section. ;) http://fxtrade.oanda.com/account/deposit-funds

lolatyou

LOL @ all these negative "ya ya ya bucket shop bucket shop" comments by the shills. Have fun!

Raul

I am totally agree with Baneya. Oanda is a Bucket Shop. What he is telling happened to me yesterday. I was trading and the market move against me. When I wanted to close the trade, the connetion was lost. So, stay away of Oanda and look for a real ECN broker. They are thieves.

sonny

I've used Oanda on a test basis and one comment I want to add is that during new breaks (medium to high FX calander events) their spreads wided unto 10-15 pips. during the same period DBFX only went to 4-5 pip range.

Jeff

Oanda are thieves. They may say the spreads are small, but they charge interest on every one of their trades, except for going long on AUD. If you go long EUR against the USD, you pay negative interest. If you go long EUR against the JPY, you pay negative interest. Long EUR against the Swissie, you pay negative interest. It is a backdoor way to steal your money, very underhanded, and should be actionable for misleading trade practices.

baneya

I have been with Oanda for about a year. Oanda is a market maker so they actively trade against there customers. They actively hunt stop losses. Oanda's trading platform freezes often. I have lost my connection to my trading account while trading and they told me that I was having internet connectivity problems even though I could get to other web sites and log in to my email without a problem. They also did not know that I used to be a network administrator before telling me that I was having internet connectivity problems. Oanda is a highly manipulated environment. The correct term for this type of broker is a "Bucket Shop" ECN brokers are the most free market breed of broker. They do not have a dealing desk that can be manipulated. ECN brokers want you to be successful because they make money when you make money. Oanda makes money when you loose. As time moves forward traders will opt for ECN brokers and market makers will go bust.

Vahrokh

I find it odd to see this site flagged with 3 stars, while completely trash others have 5. I tried a dozen including most of the top page and they might be beautiful or super-easy but what ultimately matters is the meat, sorry. OANDA is NOT easy mode - true and opening a cross oceanic account can be a pain. But past those barriers, their factual quality is hugely above other 5 star names. 1) They are actually certified and traceable, unlike so many "fiscal paradise island funds" who can do you any abuse and even disappear with little hope of refund. They want 1000 safety measures when opening an account (is it bad? Sure it sucks but it's quite transparent, i.e. something new in finance and they helped me online for hours when my bank made a mistake) 2) Their platform is not as easy or powerful as I'd like (ie no Metatrade or similar) but in exchange they have low response times and even during moderate big jumps your quotes are honored, stop loss and trailing always saved my money so far. 3) In case of trouble (and as new trader you *WILL* have some) their chat was always ready, prompt and resolutive (this is what I mean with "meat", the good services can be seen when things go wrong not by their nice graphics) 4) The spread is decent indeed just make sure to check what rate is going for the day and pair because despite they publish their wages (aka spread) per currency there are so many combinations you can easily miss on one of them. 5) As I said above, their platform is not Metatrade but still it supports a good deal of parametrizable indicators, oscillators and so on, from Fibonacci to many famous and less famous ones. They got a PDF and online guide about when to use them but remember their site is for the "newbie that has learned some ropes already". But to fully know what to do, just spend (or better, *invest* because it's gold time) some time on babypips.com/school and you'll be more than setup. In closing, I'd give OANDA 4 to 4.5 stars and only because they lack of programmable platform. The long term and standing qualities (not without troubles, but no broker has no troubles expecially those spending all their time at making taking money off you VERY easy but hard to take it back) and long term day after day viability make it for me one of the best entry level and middle level brokers. I found better - there's always better - but they expect you to be a semi-professional with $10k+ on hand and thus beyond this review site.

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