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.
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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.Back to Top
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.
Index CFDs for major global markets are provided for cross-asset diversification.
A limited selection of precious metal CFDs is available.
Commodity CFDs grant acceptable exposure to this sector.
Bond CFDs provide an additional layer of diversification opportunities.
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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.
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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.
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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.
A sound selection of analytics and tools are accessible in the desktop version.
Mobile traders will receive notifications to market-moving events.
The MT4 trading platform is equally supported but without any of the requisite third-party plugins which would render it fully functional.
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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.
Strategy improvements are supported via the trading performance portal.
Developers have access to APIs, which allows for the creation of custom trading solutions.
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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.
MarketPulse represents the highest quality attribute that OANDA offers to traders.
Autochartist is at the core of a technical analysis suite which allows traders to identify potential trading opportunities.
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.
A comprehensive technical analysis section is a “must-read.”
OANDA dedicated an entire section to capital management, one of the most under-educated core principles of successful traders.
The Classroom provides traders with a well-structured educational environment, driven by an honest desire to enhance trader knowledge.
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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.
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Bonuses and Promotions
Like most highly-regulated Forex brokers, OANDA does not offer bonuses, promotions or incentives.Back to Top
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.
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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.
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- Broker's Name : Oanda
- Headquarter : United States
- Regulation :
- 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 :
- ETFs :
- CFDs :
- Commodities :
- Metals :
- Stocks :
- Oil :
- Gold :
- Binary Options :
- Indices :
- Type of Platform : MetaTrader 4, Proprietary platform, Web-based
- Platform Languages :
- OS Compatibility :
- 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 :
- Website Languages :
- 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
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.Back to Top
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.Back to Top
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