Oanda Review

Author By Jeffrey Cammack
Updated: April 25, 2021
Overall Rating
4.17 4.17 / 5
Min. Deposit
GBP 5
Regulators
Trading Desk
Trading Cost
USD 10
Website Language
English
Support Language
English
AlertAccepts UK Clients. Average spread EUR/USD 1 pip on the trading account with lowest minimum deposit. Islamic account available. MT4 platform supported. Oanda is regulated by the FCA, MAS and ASIC.

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Summary

OANDA is a multi-disciplinary financial services provider with a CFD trading division. A market maker, OANDA offers trading on Forex, indices, commodities, and metals. While trading costs are average compared to its peers and only the MT4 trading platform is supported, OANDA excels in terms of education, market analysis and trading tools.

Swap-free Islamic accounts are available alongside two other live accounts. The Standard Account has no minimum deposit and commission-free trading; the Core Account offers market spreads but charges a commission and has a 5000 USD minimum deposit. It is important to note that negative balance protection is not provided for traders outside of Australia, Europe or the UK.

Reviews

Regulation
111115/ 5
Trading Conditions
111104/ 5
Trading Platforms
111104/ 5
Deposit & Withdrawal
11110.54.5/ 5
Education & Research
11110.54.5/ 5
Assets Available
1110.503.5/ 5
Customer Service
1110.503.5/ 5
Beginner Friendly
Excellent
Bonuses

Account Information

Base Currencies
USD, EUR, SGD, HKD
Number of FX Pairs
38
Copy Trading
Hedging Allowed
Scalping Allowed
Islamic Acct

Trading Conditions

Min. Spread
1 pips
Commission
4 USD per lot
EUR/USD
1.0 pips
GBP/USD
1.4 pips
USD/JPY
1.0 pips
Max. Leverage
200:1

Company Details

Company Name
OANDA Global Markets Ltd
Founded
1997
Office Locations
USA, Canada

Pros

  • Well regulated
  • Tight spreads
  • Low minimum deposit
  • Good for beginners

Cons

  • MT4 only

OctaFX Home

Is Oanda Safe?

Founded in 1997 in Delaware, USA as an FX rate provider, Oanda has grown to become a large multi-service financial company offering retail CFD trading, Forex data services for institutions, and exchange rate information on over 38,000 currency pairs.

As an international CFD broker OANDA is remarkably well-regulated, with regulatory oversight from no less than 7 top tier national regulators:

  • OANDA Europe Limited is authorised and regulated by the Financial Conduct Authority in the UK, No: 542574
  • OANDA Asia Pacific Pte. Ltd. is regulated and licensed in Singapore by the Monetary Authority of Singapore (CMS Licence No: CMS100122-4) and the International Enterprise Singapore (Commodity Brokers Licence No: OAP/CBL/2012) to trade commodity CFDs.
  • OANDA Australia Pty Ltd. is regulated in Australia by the Australian Securities and Investment Commission (ASIC) ABN 26 152 088 349, AFSL No. 412981
  • OANDA Japan Inc. holds a Type 1 Financial Instruments license from the Japanese Financial Services Agency, registration with the Kanto Local Finance Bureau #2137, and is a member of the Financial Futures Association of Japan #1571.
  • OANDA Corporation is a registered Retail Foreign Exchange Dealer (RFED) with the U.S. Commodity Futures Trading Commission (CFTC), and a Forex Dealer Member (FDM) of the National Futures Association (NFA # 0325821).
  • OANDA (Canada) Corporation ULC is regulated in Canada by the Investment Industry Regulatory Organization of Canada (IIROC).
  • OANDA Europe Markets Limited is a company registered in Malta No: C 95813. It is authorised and regulated by the Malta Financial Services Authority as Category 3 Investment Services Licence Holder.

Clients outside of the jurisdictions listed above will be trading with OANDA Global Markets Ltd, which is registered in the British Virgin Islands (No. 2026433) and is authorised and regulated by the BVI Financial Services Commission, number: SIBA/L/20/1130.

While clients of OANDA Global Markets Ltd can be sure that their funds will be kept in segregated bank accounts, OANDA Global Markets Ltd does not offer negative balance protection, so traders may lose more than they invest.

OANDA has won numerous awards for their services and products over the years, such as Best Education Materials 2018 (Investment Trends – US Foreign Exchange Report) and No. 1 Forex Broker in Singapore 2017 (Investment Trends Singapore CFD & FX Report). More recently, OANDA was voted Most Popular Broker and Best Forex and CFD Broker 2020 by TradingView clients in the firm’s inaugural TradingView Broker Awards. TradingView is one of the world’s largest social networks for traders, boasting more than 15 million registered users around the world.

OANDA Trading Conditions

A market-maker broker, OANDA offers trading on four instruments: Forex, indices, commodities, and precious metals. While only 28 Forex pairs are available and only the MT4 trading platform is supported, three account types are available. These are the Demo Account, the Standard Account, the Core Account, and a Swap-free Account for traders of the Islamic faith.

All three live accounts feature maximum leverage of 200:1 and a minimum order size of 0.01 lots.  All three accounts also allow hedging, scalping and automated trading. Base currencies for trading accounts include USD, EUR, SGD, and HKD.

Oanda Account Types

 

Demo Account: OANDA’s demo account mimics the conditions found on the Standard Account and is available with a virtual 100,000 USD balance. The demo account will not expire if you request this from OANDA customer service.

Standard Account: A commission-free account, the Standard Account has no minimum deposit, leverage from 200:1 and access to all tradeable instruments.

Core Account: The Core Account offers much tighter spreads than the Standard Account but charges a commission of 4 USD per lot. The minimum deposit for the Core Account is 5000 USD and maximum leverage is set at 200:1.

Swap-free Account: This account is also commission-free, and as no interest is paid or received spreads are slightly wider than the Standard Account. The only base currency supported for this account is USD, but otherwise, it is similar to the Standard Account. Swap-free accounts are opened by first opening a Standard Account and then requesting the change from OANDA customer service.

Spreads and Commission

Spreads at OANDA are wider than similar-sized market makers, with the EUR/USD spreads on the Standard Account starting at 1 pip. Core Account spreads are tighter, starting at 0.2 pips on the EUR/USD with a commission of 4 USD per lot traded – this is about average for similar raw spread accounts.  The Swap-free Account is also commission-free but spreads on the EUR/USD start at 1.6 pips.

Deposit and Withdrawals

Deposits and withdrawals can be made by the following methods:

  • Bank Wire: Bank wire deposits take 3-5 business days and are free. Bank wire withdrawals are charged at 20 USD per transaction and will take 2-4 business days. Be aware that banks may also charge a processing fee, especially in the case of international bank transfers.
  • Credit/Debit Card: Credit and debit card deposits are processed immediately and are free. Withdrawals to credit/debit cards take 1-3 business days and are also free.
  • Skrill/Neteller: Deposits with Skrill and Neteller are free and take up to 1 business day – Skrill/Neteller may charge a service fee, however. Withdrawals to Skrill and Neteller take up to 1 business day and are also free, though conversion fees may apply and Skrill/Neteller may charge an additional service fee.

OANDA for Beginners

Beginner traders will find OANDA a relatively welcoming experience with a well-structured education section available for traders with different levels of experience. Considering OANDA’s history as an FX data service, it’s no surprise that the market analysis is detailed and excellent. 

Educational Material

Oanda Education

The education section is not easily discoverable on OANDA’s website. It is not linked from the menus across the top of the page and can only be found in the menus at the bottom of the page. Whether this is intentional or an oversight is unknown.

Once discovered, education at OANDA is split into three subsections: Getting Started, Tools and Strategies and Capital Management. Information is detailed and helpful and is presented in a mixture of video and text.

The Getting Started section covers the basic aspects of Forex CFD trading such as leverage and margin and introduces traders to the MT4 platform. The Tools and Strategies section covers analysis and explains how traders can use various technical analysis tools to better predict the markets an essential skill for successful traders. Finally, the Capital Management section covers risk management and how to apply it in real market conditions.

Alongside these tutorials, OANDA also hosts frequent webinars on all aspects of trading, including the Basics of Trading and Live Market Analysis. Past webinars are also stored in an archive and are available on demand. Webinars and the webinar archive are free but do require registration with your name and email address.

Analysis Material

Market analysis is supplied by OANDA’s MarketPulse service. MarketPulse is an award-winning news site that delivers round-the-clock commentary on a wide range of asset classes, as well as in-depth insights into the major economic trends and events that impact the markets. 

The 24/7 coverage at MarketPulse is provided by six expert analysts and professional traders with decades of experience covering and trading the full range of markets. All analysis is detailed, accurate and posted within minutes of a market event occurring.

In addition to MarketPulse’s text-based coverage, regular videos and podcasts are also published.

Customer Support

Customer support is only available in English, Chinese, Spanish, and German. Support is available via email and live chat 24/5. For the purposes of this review, we found the customer support to be responsive but not knowledgeable of OANDA’s products and services.

OANDA Trading Platforms

OANDA only provides support for the MT4 trading platform and its associated desktop, mobile and web-based applications. The MT4 trading platform is the most widely used Forex trading platform and can also be used to trade other instruments like commodities, cryptocurrency, stock index, and stock CFDs. Though it is now showing its age, MT4 is still popular for its auto trading features that enable algorithmic trading and strategy backtesting with expert advisors (trading robots).

OANDA Connect

 

MT4 at OANDA also is available with free Autochartist, a powerful pattern recognition tool that scans and analyses the markets to identify trading opportunities. Also provided is the MT4 premium upgrade, which provides a host of tools to improve the quality of the MT4 trading environment. These include the OANDA Connect app, which provides direct access to content from Dow Jones, market news sentiment, as well as two calendars to stay up to date. Also available are the OANDA performance dashboard (powered by Chasing Returns), as well as OANDA’s Forex blog content.

Evaluation Method

We value transparency and openness in the way we review the partners. To bring transparency to the forefront, we have published our review process that includes a detailed breakdown of the OANDA’s offering. Central to that process is the evaluation of the reliability of the broker, the platform offering of the broker and the trading conditions offered to clients, which are summarised in this review. Each one of these is graded, and an overall score is calculated and assigned to the broker.

Risk Statement

Trading Forex is risky, and each broker is required to detail how risky the trading of Forex CFDs is to clients. OANDA would like you to know that: Trading our Products is high risk and can result in losses that exceed the total sum you have invested. All negative balances are payable.

Overview

A market maker with an impressive history and a large non-CFD business, OANDA is relatively disappointing as a CFD provider. Only 38 FX pairs are available to trade, alongside a small range of commodities, indices, and metals and only MT4 is supported. While there is no minimum deposit on the Standard Account, trading conditions are average at best, and no negative balance protection is provided for traders outside of Europe, Australia or the UK. Customer service is not available via telephone in many regions, but education and market analysis are excellent and OANDA provides a host of tools and plugins for MT4.

AlertAccepts UK Clients. Average spread EUR/USD 1 pip on the trading account with lowest minimum deposit. Islamic account available. MT4 platform supported. Oanda is regulated by the FCA, MAS and ASIC.
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Overall Rating
Min. Deposit
Regulation
Trading Desk Type
Trading Instruments
Forex Pairs
Crypto Pairs
Pros
Cons
Regulation
Trading Conditions
Trading Platforms
Deposit & Withdrawal
Education & Research
Assets Available
Customer Service
% Lose with this broker
Leverage
Spread
Hedging
Scalping
Account Types
Islamic Acct
Trading Platforms
Funding Methods
Trading Commission
11110.54.17/ 5
GBP 5
Market Maker
Commodities
Forex
Metals
Indicies
38
0
  • Well regulated
  • Tight spreads
  • Low minimum deposit
  • Good for beginners
  • MT4 only
111115/ 5
111104/ 5
111104/ 5
11110.54.5/ 5
11110.54.5/ 5
1110.503.5/ 5
1110.503.5/ 5
73.5% of retail investor accounts lose money when trading CFDs with this provider
200:1
1 pips
Premium
Standard
Bank Transfer
Visa
Mastercard
Skrill
Neteller
4 USD per lot
1110.503.28/ 5
GBP 10
Market Maker
Commodities
Cryptocurrencies
Forex
Indicies
Equities
ETFs
57
12
  • Low minimum deposit
  • Wide range of assets
  • Unpublished spreads
  • Expensive withdrawals
  • Limited education
  • Limited market analysis
1110.503.5/ 5
1110.503.5/ 5
111104/ 5
100001/ 5
10.50001.5/ 5
111104/ 5
11110.54.5/ 5
85% of retail investor accounts lose money when trading CFDs with this provider
30:1
5 pips
Live Account
IQ option
Bank Transfer
Visa
Mastercard
Skrill
Neteller
Bitcoin
Fees Included in Spread
Visit Broker
AlertMost retail CFD accounts lose money. Your capital is at risk.

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