OANDA

Overview of OANDA

OANDA is a well-known online forex broker that has been operating for over two decades. With a reputation for transparency and reliability, OANDA offers a wide range of trading products and services, including forex, CFDs, commodities, and indices.

Founded in 1996, OANDA is headquartered in New York City and is regulated in multiple jurisdictions, including the US, UK, Canada, Australia, and Japan. This ensures that OANDA operates within strict regulatory frameworks and offers a high level of security and protection to its clients.

OANDA offers a range of trading platforms, including its proprietary platform, as well as the popular MT4 platform. The broker also provides a range of educational resources and tools to help traders improve their trading skills and stay up-to-date with market developments.

Pros & Cons

One of the gauges to determine if a broker is reliable and legitimate is the regulation status. For Oanda, there are 6 authority bodies supervising its financial operations, setting rules to ensure standard-compliant operations to protect customer interest. Furthermore, no minimum deposit set is friendly for beginners or traders who want to trade with small capital.

Free demo account is essential and enables beginners to get familiar with the platform, while veterans can at the same time test new strategies within a risk-free environment. Traders can also choose the particular account that best suits their goals and financial status, while MT4 platform enhances customer experience with robust functions and recognition from traders worldwide.

The most negative aspect of the platform is the negative exposures on WikiFX, with most are about withdrawal issues, indicating that the broker still can be better on efficiency to refund profits to clients' accounts. Furthermore, commissions and service fees might irritate those with limited budget on investment due to potential increasing costs.

Is OANDA Legit?

OANDA is a legitimate forex broker that has been in operation for more than 20 years and is regulated by reputable financial authorities, such as the Financial Conduct Authority (FCA) in the UK and the Australian Securities and Investments Commission (ASIC). OANDA has also won numerous awards for its trading services and technology, including being named the “Best Forex Broker” by the Financial Times and Investors Chronicle for three consecutive years.

Regulated Country	Regulator	Regulated Entity	License Type	License No.
	ASIC	OANDA AUSTRALIA PTY LTD	Market Making (MM)	412981
	FCA	OANDA Europe Limited	Market Making (MM)	542574
	FSA	OANDA Japan Inc	Retail Forex License	Director-General of the Kanto Local Finance Bureau (Kinsho) No. 2137
	NFA	OANDA CORPORATION	Market Making (MM)	325821
	CIRO	OANDA (Canada) Corporation ULC	Market Making (MM)	Unreleased
	MAS	OANDA ASIA PACIFIC PTE. LTD.	Retail Forex License	Unreleased

Market Instruments

OANDA offers a wide range of trading instruments to its clients, allowing them to diversify their investment portfolio and take advantage of various market opportunities. The market instruments offered by OANDA include:

• Forex: OANDA provides access to a wide range of currency pairs, including major, minor, and exotic pairs. The forex market is the largest and most liquid market in the world, offering traders the potential for high returns.
• Indices: OANDA offers trading in a variety of global indices, such as the US 500, UK 100, and Germany 30. These indices represent the performance of a basket of stocks and provide traders with exposure to a broader market.
• Commodities: OANDA offers trading in commodities such as precious metals, energy, and agricultural products. These markets can be highly volatile, but they offer the potential for significant returns.
• Cryptocurrencies: OANDA offers trading in popular cryptocurrencies such as Bitcoin, Ethereum, and Litecoin. The cryptocurrency market is highly volatile and can offer traders significant opportunities.
• Bonds: OANDA also offers a range of bond CFDs to trade, including US Treasury Bonds, UK Gilts, and Euro Bunds. With bond trading, traders can access a wide range of bond markets and potentially benefit from price movements in global interest rates.

  Products	Offered
  Forex	✔
  Commodities	✔
  Indices	✔
  Cryptocurrencies	✔
  Bonds	✔
  Options	❌
  Stocks	❌
  Mutual Funds	❌
  ETFs	❌

Account Types

OANDA offers three live account types to cater to different trading needs and experience levels of traders. Here are the account types offered by OANDA:

• Standard Account: This account type is suitable for new traders who are just starting in the forex market. The minimum deposit requirement for this account is $0, and it offers access to the core features of OANDA's trading platform, including over 70 currency pairs, commodities, and indices.
• Premium Account: This account is designed for more experienced traders who require additional features and services. The minimum deposit requirement for this account is $20,000, and it offers tighter spreads, lower trading costs, and a dedicated relationship manager.

  Premium Plus Account: This account necessitates a $100,000 deposit and requires notional volumes above $200 million. It maintains core pricing at $40/million and offers the best rebates at $6/million, alongside a 20% discount on financing. This account includes all premium features. Only those high-net-worth investors and high-volume traders can find some advantages.

  Account Type	Standard	Premium	Premium Plus
  Initial Deposit	$0	$20,000	$100,000
  Notional Trade Volume	/	> $30 million	> $200 million
  Spreads	✔	✔	✔
  Core Pricing	$50/million	$40/million	$40/million
  Volume-Based Rebates	/	$4/million	$6/million
  Discounted Financing	/	/	20% reduction
  Trading Platforms	Web, Mobile, MT4, TradingView
  Trading Tools	AutoChartist, API	VPS, AutoChartist, API	VPS, AutoChartist, API
  Dedicated Account Manager	/	✔	✔
  Trading Support	24/5 Support

Apart from three live trading accounts, OANDA also offers a free demo account, which allows traders to practice trading with virtual funds in a risk-free environment. The demo account provides access to all the features and tools of the OANDA platform, allowing traders to test their strategies and trading skills without risking real money.

Leverage

OANDA offers leverage up to 50:1 for major currency pairs and up to 20:1 for minor currency pairs, commodities, and indices. However, leverage may vary based on the regulatory requirements of the country where the trader is located. It is important to note that high leverage can increase both profits and losses, and traders should carefully consider their risk tolerance before using leverage.

Spreads & Commissions (Trading Fees)

OANDA charges variable spreads that start from as low as 0.1 pips on major currency pairs. OANDA's spreads can vary depending on market volatility and liquidity, but they tend to be lower than the industry average.

In terms of commissions, OANDA does not charge any commissions on trades. Instead, the broker earns revenue from the spreads on trades. This can be a plus for traders who prefer to avoid paying commissions.

It's worth noting that OANDA also offers a range of order types, including limit, stop-loss, and take-profit orders, which can help traders manage their risk and maximize their profits.

Non-Trading Fees

OANDA also charges certain non-trading fees, which include:

• Inactivity fee: OANDA charges an inactivity fee of 10 units of the account's base currency per month if there has been no trading activity for a period of 12 months or more. This fee can be avoided by simply placing a trade during this period.

• Financing/rollover fees: If a position is held overnight, OANDA charges a financing/rollover fee. This fee is based on the interest rate differential between the two currencies involved in the trade and is calculated using the following formula: (trade size x interest rate differential x 1/365).

  Deposit/withdrawal fees: OANDA does not charge deposit fees. No fees for withdrawals by PayPal, but Internet and Bank Wire Transfer withdrawal will be charged fees monthly.

  Currency	First Withdrawal Fee	Additional Withdrawal Fee
  SGD	❌	❌
  CAD	CAD $20	CAD $40
  AUD	AUD $20	AUD $40
  EUR	EUR €20	EUR €35
  GBP	GBP £10	GBP £20
  JPY	JPY ¥2,000	JPY ¥4,000
  USD	USD $20	USD $35

• Conversion fees: If you are depositing or withdrawing funds in a currency other than your account's base currency, OANDA charges a conversion fee based on the mid-price of the FX spot rate plus a 0.5% spread on profits, losses, and related fees.

Trading Platform

OANDA offers multiple choices of trading platforms, namely MetaTrader 4 (MT4), OANDA Web, and OANDA Mobile, and TradingView.

MetaTrader 4 (MT4): This is a widely used trading platform in the forex industry, popular for its advanced charting tools and automated trading capabilities. OANDA offers MT4 to its clients as a downloadable desktop application and mobile app.

OANDA offers proprietary OANDA Mobile platform, which are highly customizable and offer a wide range of charting tools, technical indicators, and order types.

OANDA Web Trading Platform: This is a web-based platform accessible from any device with internet connectivity. It offers a user-friendly interface and customizable features for traders to analyze the market and execute trades.

Furthermore, you can use TradingView for visualized charting tools and indicators to apply multiple timeframe analysis. This tool can be used on the web directly, or through an app available on iOS and Android devices.

Trading Tools

OANDA provides several trading tools to its clients, including:

Advanced Charting: OANDA's advanced charting tools offer technical analysis and indicators.

Economic Calendar: OANDA's economic calendar provides real-time updates on important economic events and news releases that can affect the markets.

Partners & VPS: OANDA partners with TradingView, a leading charting platform, to provide its clients with advanced charting and analysis tools. OANDA also partners with MotiveWave, a professional trading platform, to offer advanced technical analysis tools and trading strategies. In addition, OANDA offers a virtual private server (VPS) service to traders who require uninterrupted trading connectivity.

Deposit & Withdrawal

Deposit

OANDA offers several deposit methods, including:

• PayNow/QR Pay: This payment method is available for Singapore residents only. It allows for instant deposits into your trading account. Deposits from the following banks in Singapore: DBS/POSB, Bank of China, Citi, HSBC, Maybank, OCBC, Standard Chartered and UOB, are accepted.
• DBS Bill Pay (SGD only): Another payment method available only for Singapore residents, DBS Bill Pay allows you to make SGD-denominated deposits into your trading account.
• PayPal: PayPal is a popular online payment system that is accepted by OANDA. It allows you to make instant deposits and withdrawals from your trading account.
• FAST: FAST (Fast and Secure Transfers) is a real-time interbank payment and settlement system in Singapore. It allows for instant SGD-denominated deposits into your trading account.
• Bank wire transfer: You can also fund your trading account via bank wire transfer. This method typically takes 1-2 business days to process.
• Cheques: Cheques are accepted for deposits only, and they must be in SGD currency.

Withdrawal

While withdrawals that can be done are limited to three channels: PayPal, Bank Wire Transfer, and Cheque.

• Paypal: This is an online payment system that allows you to send and receive money electronically. To use this method for withdrawal, you will need to have a verified Paypal account that is linked to your OANDA trading account. Withdrawals are typically processed within 1-2 business days.
• Bank Transfer: This method involves transferring funds from your OANDA trading account directly to your bank account. The time it takes to receive your funds will depend on your bank's processing time. OANDA does not charge any fees for bank transfers, but your bank may have its own fees.
• Cheque: You can request to receive your funds via cheque, which will be sent to your registered address. It typically takes around 7-10 business days to receive your cheque. However, there may be additional fees for this method, depending on your location.

Customer Support

OANDA offers customer support services through various channels, including email, live chat, phone, and social media. The support team is available 24/7 to assist traders with any issues they may encounter during their trading journey.

One notable feature of OANDA's customer support is its multilingual support, which is available in several languages, including English, Chinese, French, German, Italian, Japanese, Korean, Portuguese, Russian, Spanish, and Turkish.

In addition to its customer support services, OANDA provides a comprehensive FAQ section on its website, which covers various topics, including account management, trading platforms, technical analysis, and more. The FAQ section is a valuable resource for traders who may have common questions and want quick answers without contacting customer support.

Educational Resources

OANDA offers a wealth of educational resources to its clients, enabling them to develop their trading skills and stay up-to-date with the latest market trends. Whether you are a beginner or an experienced trader, OANDA's educational resources cater to your needs.

One of OANDA's important educational resources is the OANDA Academy, which offers a range of educational materials, including videos, tutorials, webinars, and articles, covering a wide range of trading topics, from the basics of forex trading to advanced trading strategies.

Additionally, OANDA provides clients with a variety of market analysis tools and resources, including market news, economic indicators, and trading signals, enabling traders to stay informed about the latest market trends and make informed trading decisions.

Conclusion

OANDA is a well-established online broker that offers a variety of trading instruments, account types, and platforms to its clients. The broker is regulated by multiple reputable authorities and has been operating for more than two decades, which gives it credibility and reliability. Additionally, OANDA provides several trading tools, educational resources.

However, it is important to note that OANDA has received a significant number of complaints regarding its customer support, trading platforms, and pricing policies. While the broker has taken steps to address these issues, they still raise concerns about the overall quality of its services.

Overall, OANDA is a legitimate and reputable broker that offers a range of benefits to its clients. However, traders should be aware of the complaints and consider them before making a decision to open an account with OANDA.

Frequently Asked Questions (FAQs)

Is OANDA regulated?

Yes, OANDA is regulated by multiple financial regulatory authorities around the world, including ASIC, FCA, FSA, NFA, CIRO, MAS.

What is the minimum deposit required to open an account with OANDA?

The minimum deposit required to open an account with OANDA varies depending on the account type and the regulatory jurisdiction. In general, it ranges from $0 to $100,000.

What trading instruments are available on OANDA's platform?

OANDA offers a wide range of trading instruments, including CFDs on forex, indices, commodities, cryptocurrencies and bonds.

Does OANDA charge commissions on trades?

OANDA does not charge commissions on trades. Instead, they make money from the spread, which is the difference between the bid and ask price.