Oanda is a multi-regulated and established online broker offering around 126 instruments across multiple financial markets to clients worldwide via versatile and user-friendly trading platforms. The broker supports a variety of convenient funding options and require a minimum deposit of just $1 to open a real account.
Oanda Review, Pros & Cons
- Regulated in multiple jurisdictions
- Flexible & easy to use trading platforms
- Advanced trading tools
- Various account types
- Range of deposit/withdrawal methods
- Trading guides
- $1 minimum deposit
- 24/5 support
- No fixed spread accounts
- Long sign-up process
In this detailed Oanda review, our online broker research team have covered some of the most important aspects for you to consider when choosing the best broker for your online trading needs.
Oanda was founded in 1995 by two professionals with a vision to change how the world interacts with different currencies. The company was incorporated in the USA but today, it has offices throughout the globe in Canada, UK, Japan, Singapore and Australia.
The broker has a team of expert analysts who present updated news, analyses and commentaries. Oanda has been recognised with over 50 industry awards over the years, in different areas including trading platform features, mobile apps, customer service, risk management, trader education and more.
Oanda asserts that it is the sole execution venue for all its clients’ orders. The broker also affirms that it does not operate an order book where clients’ orders could provide or take liquidity. All orders are executed at best available rates and optimum speeds. This method of execution makes the broker a ‘market maker’.
In the United States, OANDA Corporation is a member of the National Futures Association (NFA) with the no. 0325821. The broker is also registered with the Commodities Futures Trading Commission (CFTC) as a registered Futures Commission Merchant and Retail Foreign Exchange Dealer (RFED).
In Canada, the broker is regulated by the Investment Industry Regulatory Organisation of Canada (IIROC).
Oanda Europe Ltd is authorised and regulated by the Financial Conduct Authority (FCA) with the license number: 542574.
Oanda Asia Pacific Ptd Ltd is regulated by the Monetary Authority of Singapore (MAS).
OANDA Australia Pty Ltd is authorised and regulated by the Australian Securities and Investments Commission ASIC (ABN 26 152 088 349, AFSL No. 412981).
Oanda Japan Co. Ltd. is regulated by the Financial Futures Association of Japan (FFAJ). The license number is 1571.
OANDA Global Markets Ltd is a is authorised and regulated by the BVI Financial Services Commission in the British Virgin Islands.
Clients’ deposits are maintained in different segregated bank accounts. These funds are kept in top European banks such as NatWest, Barclays and Lloyds, Ulster Bank in Ireland, Deutsche Bank in Germany and Barclays in France. Oanda accounts records are regularly crosschecked by internal auditors. Every year, ‘PricewaterhouseCoopers’ audits the records and the reports are sent to the relevant regulatory authorities.
Oanda UK and European clients are insured by the Financial Services Compensation Scheme (FSCS). The scheme will compensate eligible clients for up to £85,000 per person if the broker becomes insolvent. The Canadian clients are insured for up to one million Canadian Dollars by the Canadian Investor Protection Fund (CIPF). The MAS regulated jurisdictions are entitled to an insurance of up to 50,000 Singapore dollars.
Oanda protects its trading platforms and websites with Secured Socket Layer (SSL) encryptions to ensure adequate user protection from identity thieves and cyber hackers.
Oanda accepts clients from across the globe but do not accept residents of some countries where there are certain restrictions in place. Some Oanda broker features and products mentioned within this Oanda review may not be available to traders from specific countries due to legal restrictions.
Oanda Next Generation Trading Platform
This is Oanda’s proprietary “next generation” platform that has won multiple awards. It has a set of tools for conducting market analysis, advanced charting and trade management. The platform offers a flexible and convenient trading environment for traders of all skill levels. It is available in 3 versions; web, desktop and mobile. The web version runs directly in the browser and thus, works on every operating system in most modern web browsers. The desktop version is installable on Windows and offers a fully customisable user interface. The mobile version is designed for Android/iOS devices and is useful for those who need to access their account and trade whilst on the go.
The following are some of the key features of the platform:
- Sophisticated technical analysis tools with over 10 chart layouts.
- Over 50 drawing tools and technical indicators for conducting chart analysis.
- News aggregator with search function.
- Access to algorithmic trading with Algo Labs
- Risk management features including stop loss.
- Trade performance analytics tool.
- Customisable layouts and interface.
- Powerful charting courtesy of Trading View.
- Market news and analysis, economic calendar available on the platform.
MetaTrader 4 (MT4) Platform
This platform is perhaps the most popular in the forex trading world and has become a standard among many brokers and millions of traders worldwide. The MT4 platform is intuitive, versatile, fully customisable and packed with a vast array of essential tools useful to traders. Oanda presents MT4 as a downloadable desktop application and as mobile apps.
Here are some of the key features of the MT4 platform:
- Real-time price quotes in the market watch window.
- Multiple chart types (candlestick, bar, line) that can be displayed over 9 timeframes.
- 30 inbuilt technical indicators and over 20 drawing tools.
- Automated trading using Expert Advisors (EAs).
- Strategy tester for historically testing EAs.
- MQL editor for programming custom indicators, EAs and scripts.
- Trade directly from the charts.
- One-click trading.
- Order management tools as well as risk control tools like stop loss and take profit.
- Alert notifications via the platform, email and SMS.
- Online community and marketplace for additional tools.
Both the Oanda trading platform and the MT4 platform support mobile trading via iOS and Android apps. These mobile apps can be downloaded and installed from the respective app stores. They integrate seamlessly with the desktop applications and maintain similar features and functionality.
Here are a few features of the apps:
- Real-time price quotes.
- Support for technical analysis via charts, indicators and drawing tools.
- Simple and user-friendly interface that can be customised to the user’s selections.
- Monitor live trades, charts and news on the go.
- Used to open, modify or close trade positions.
- Trade performance analysis and history.
- Push notifications.
Oanda Trading Tools
Oanda offer an advanced charting package on its proprietary Oanda Trade platform. The charting package consists of over 65 indicators and drawing tools. Clients can trade directly from the charts. There are about 11 customisable charts including the Heikin-Ashin, Renko, etc.
The charting package is provided by TradingView; a leading web-based charting package and social networking site. Oanda have conveniently integrated TradingView’s charting package into the ‘Oanda Trade’ platform.
This module gives access to historical back tests, coding and deployment of automated trading strategies. It is powered by QuantConnect; a free algorithmic trading platform for forex and CFD trading. With the Algo Lab, clients can back test Oanda’s tick data from 2004. It is available in multiple programming languages such as C#, Python and F#. Clients can deploy their strategies straight from the Algo Lab to Oanda’s trading servers and trade forex and CFDs. It should be noted that historical performance is by no means any guarantee of future performance.
Pattern Recognition & Price Projection
The pattern recognition is a tool inbuilt into the Next Generation trading platform. It scans the charts and recognises technical patterns such as triangles and wedges, etc. When the patterns are complete, it creates a price projection box highlighting an area where it predicts the price action may go.
This tool enables the grouping of charts together for the sake of comparison. This tool is useful for examining the same assets over multiple charts, timeframes, indicators, etc at the same time.
Oanda Chart Forum Community
This is where traders can discuss strategies, exchange ideas and share chart analysis. It is part of the Next Generation trading platform. Traders can copy analysis, save and comment on posts.
This tool shows the percentage of traders that have bought a particular instrument as well as the percentage that have sold the same instrument. Sentiment analysis is commonly used as part of a contrarian trading strategy.
This shows the dates and times scheduled for different global events as well as their predicted impact on the market. This calendar is powered by Reuters and it is streamed on the Next Generation platform.
This consists of daily commentaries and video analysis as presented by Oanda analysts. It is accessible via the trading platform. The aim is to give traders ideas on how to proceed based on the analysis and price movements surrounding various assets.
Market News & Analysis
The topics covered are market commentary, chart analysis, weekly outlook, technical and fundamental analysis. This is also prepared and presented by the team of analysts at Oanda.
The Oanda website has a ‘Learn’ Section where a comprehensive range of educational materials for traders is provided. There are several training videos covering a variety of different trading topics including fundamental analysis, technical indicators, forex/CFD trading, etc. The videos are grouped for beginners, intermediate and advanced traders. There are trading guides covering different types of trading. In addition to this, there are articles explaining basic concepts which beginners may find useful if they are just getting started with online trading.
Oanda offers around 126 instruments including approximately 70 forex assets including the major, minor and exotic pairs. The only assets available to US clients are currency pairs. CFDs are not available for trading in the United States.
For clients from other regions, the following pairs are available:
- 70 currency pairs
- 16 indices
- 8 Commodities
- 6 Bonds
- 23 Metals
Oanda Accounts & Fees
Oanda operates from 5 regions: Europe, United States, Canada, Asia Pacific and Australia. Each of these regions is regulated by a different authority. The account types and leverage offered to clients depends on the region. OANDA Global Markets Ltd have leverage up to 1:200. Spreads are variable according to liquidity with EURUSD spreads starting from 0 pips, depending on the account type.
Here are the various Oanda account types:
- Standard Account: There is no minimum deposit on this account and it is available to all clients.
- Premium Account: The minimum deposit is $20,000 for US clients, 50,000 CAD for Canadian clients, $50,000 for European clients & Asia Pacific clients. Australian clients can open this account with 50,000 AUD.
- IRA: This account is only available for US clients. The account is supported by IRA custodians like Midland IRA, Real Trust IRA, Pensco trust company, etc.
- Professional Account: This account is available to European clients only.
- Joint Account: Available to European & Canadian clients.
- Business Entity Account: This is for Europeans & Canadians who run a business.
- Eligible Contract Participant (ECP): This is available to US residents that have more than $10 million.
- Corporate Accounts: This account is for Asia Pacific & Australian clients only.
As broker fees can vary and change, there may be additional fees that are not listed in this Oanda review. It is imperative to ensure that you check and understand all of the latest information before you open a Oanda broker account for online trading.
The Oanda support desk is available 5 days a week via phone, email and live chat. Oanda chat is a virtual assistant that first initiates the chat. It speaks English, Chinese, Spanish and Dutch. The support page on the website has a Frequently Asked Questions (FAQs) section that can give instant answers to some common questions that you may have. Facebook, Twitter, LinkedIn and YouTube are the social media channels available.
Oanda Deposit & Withdrawal
The payment options available to you depends on your country of residence. Oanda does not accept payments from third parties.
The following payment options are available:
- Automatic Clearing House (ACH): This method is payment is only available for USD accounts. Maximum limit is $50,000 and it takes up to 6 days.
- Credit/Debit Cards: The cards are accepted are Mastercard and Visa card. There is a limit of $20,000 per month.
- Wire Transfer: This takes 1-3 working days to deposit money through this method. International transfers can take up to 5 business days. There are no limitations on bank transfers.
- Checks: This is only acceptable in the United States for only deposits. There are no deposit fees and it takes 4-6 days before the check clears.
- Online Payments: The accepted payments are PayPal, BACS, CHAPS, Swift, SEPA and BPay.
Accounts can be opened in USD, EUR, HKD, SGD. The different currency options are beneficial as currency conversion fees do not apply when using an account in your own currency.
Oanda Account Opening
To create a new trading account, visit the Oanda website and click on the ‘Open Live Account’ button which is found at the top of every webpage. The new account opening page opens. Type in your country in the textbox, if Oanda accepts residents from your country the form loads and opens, but if not, registration cannot continue.
There are forms to complete including account information, personal information and identity verification. If everything is done correctly, the account is approved and an email containing further instructions is sent by Oanda to the new client.
Oanda is a well-established broker that continues to implement the latest innovative trading technologies. The broker holds multiple regulations from different authorities and thus must carefully abide by the stringent regulatory provisions.
They have a generous selection of trading instruments whilst they can accommodate individual, corporate and international traders. There is no minimum deposit, meaning that anyone is welcome to use their trading services irrespective of trading capital or experience.
The proprietary Next Generation trading platform is a multiple award-winning platform. It has a myriad of innovative tools to assist traders. The sentiment analyses, social forum, news from Reuters as well as analysts’ insights are all welcome additions that make the platform an acceptable choice for all levels of trader. There is also a comprehensive range of training videos and other educational resources available on the Oanda website and platform.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73.5% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.