OANDA

Overview of OANDA

OANDA is a well-known online forex broker that has been operating for over two decades. It is headquartered in New York City and is regulated in multiple jurisdictions, including the US, UK, Canada, Australia, Japan, and Singapore. With a reputation for transparency and reliability, OANDA offers CFD trading on forex, indices, cryptos, commodities, and bonds on TradingView, Oanda mobile, Oanda web, and MT4 platforms.

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.

However, 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.
• Indices: OANDA offers trading in a variety of global indices, such as the US 500, UK 100, and Germany 30.
• Cryptocurrencies: OANDA offers trading in popular cryptocurrencies such as Bitcoin, Ethereum, and Litecoin.
• Commodities: OANDA offers trading in commodities such as precious metals, energy, and agricultural products.
• Bonds: OANDA also offers a range of bond CFDs to trade, including US Treasury Bonds, UK Gilts, and Euro Bunds.

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 within 3 months	> $200 million within 3 months
  Core Pricing	$50/million	$40/million	$40/million
  Volume-Based Rebates	/	$4/million	$6/million
  Discounted Financing	/	/	20% reduction in admin fees
  Dedicated Account Manager	/	✔	✔

Apart from three live trading accounts, OANDA also offers free demo accounts, 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 1:20. 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.

• 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.

Deposit & Withdrawal

OANDA accepts deposits via PayNow, FBS Bill Pay, PayPal, FAST, and Bank/Wire transfers, while withdrawals via PayPal and Bank/Wire transfers.

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.

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, and 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, cryptos, commodities, and bonds.

Does OANDA charge commissions on trades?

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