Oanda Review 2024: Pros and Cons Revealed

Oanda
Founded in	1996
Registered Country	Australia
Regulatory Oversight	Regulated by ASIC, FCA, FSA, NFA, CIRO, MAS
Security Measures	2FA, guaranteed stop loss orders
Market Instruments	CFDs on forex, indices, commodities, cryptocurrencies and bonds
Demo Account	✅
Account Minimums	$0 - Standard account
	$20,000 - Premium account
	$100,000 - Premium Plus account
Margin Rates	2-25%
Leverage	Up to 1:50
Fees	Commission: $30 per 1M
	Deposit: ❌
	PayPal and SGD withdrawal via wire transfer: ❌
	Non-SGD withdrawal via wire transfer: USD 20 or equivalent for the first withdrawal within a calendar month, USD 35 or equivalent for subsequent withdrawals in same calendar month
	Inactivity fee: max SGD 10 or equivalent per month
	Currency conversion fee: additional spread of 0.5%
	Administration fee: 0.75-4%
App/Platforms	Oanda mobile, Oanda web, MT4, TradingView
Promotions	✅

Oanda is a US-based financial company who was initially founded in 1996 and extented global presence over the years in 10 countries across Asia, Europe and North America. All their subsidiaries are regulated by local supervisory authorities by ASIC, FCA, FSA, NFA, CIRO, MAS.

Its business scope mainly focuses on trading in CFDs on forex, indices, commodities, cryptocurrencies and bonds. Trades can be executed from the world-renowned MetaTrader4, TradingView and its proprietary Oanada platforms.

However, there's no such thing as perfection in the world, it's same case with Oanda. Like many brokers, Oanda broker charges fees for their services, which might disappoint those who want free transactions and services. What's more, there's still room for improvement on the broker's operation efficiency due to some negative exposures recorded on WikiFX.

Oanda Pros and Cons

✅ Where Oanda Shines:

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.

❌ Where Oanda Falls Short:

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.

Market Instruments

Oanda enables trading in CFDs across several asset classes: forex, indices, cryptos, commodities and bonds.

The broker offers trading in more than 70 forex currency pairs, with the popular major pairs like EUR/USD, USD/JPY included, spread from 0.6 pips. Major US, Asian and European indices are available, along with the predominant coins such as Bitcoin, Litecoin, Ether, etc. You can also trade commodities like Brent crude oil or corporate bonds with this broker to broaden your investment portofolio and scatter risks.

Oanda Account Review

OANDA offers a demo account simulating real market conditions for users to practice and test their trading strategies without financial risk.

For live accounts, there are three tiers for different client groups: Standard, Premium, and Premium Plus.

Standard Account

This entry-level option has no initial deposit requirement, making it accessible for new traders. It does not require minimum trade volume and charges a commission of core pricing at $50/million. Although it lacks volume-based rebates and dedicated account management, it provides essential trading tools and 24/5 support.

Premium Account

This account requires a high minimum S$20,000 deposit and targets notional trade volumes exceeding $30 million. Core pricing commission is slightly lower at $40/million and it offers volume-based rebates of $4/million, along with a dedicated account manager and advanced trading tools, including VPS support.

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.

The higher the rank your account is, the more initial money you need to invest in, but the more advanced trading capabilities you will enjoy as well. Always choose the best that suits your needs basing on financial capacity and risk tolerance.

Oanda Trading Platforms

With Oanda, you can execute trades on the web MetaTrader4 as well as the broker's proprietary platform which is available through web, with an app version downloadable from iOS and Android devices. Both platforms are equipped with customizable interface, charting functionalities and rich technical analysis, friendly to users of all kinds to catch market trends and seize investment opportunities efficiently.

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.

Oanda Fees Review

Commission for Core Pricing

Deposit Fee

No deposit fees charged by OANDA, but you may incur fees from your payment provider or bank.

Withdrawal Fee

Withdrawal fees vary by method:

• PayPal

No fee for withdrawals by PayPal. There might be exchange fees if the account currency differs from GBP, EUR, or USD.

• Internet and Bank Wire Transfer (Monthly)

Inactivity Fee

OANDA charges up to SGD10 monthly if there's no trading activity for 12 months, excluding open positions.

Currency Conversion Fee

When trading in a different currency, OANDA adds a conversion fee based on the mid-price of the FX spot rate plus a 0.5% spread on profits, losses, and related fees.

Financing Costs

Financing costs apply to open positions held overnight. Calculated based on:

• FX, Gold, Silver:

Daily Financing Charge=Size of Position×Applicable Funding Rate/365

• Indices:

Daily Financing Charge=Value of Position×Applicable Funding Rate/365

• Admin Fees: Vary by instrument type.

Overall, OANDA's fee structure is transparent but charging items is quite overwhelming. Though there's no deposit fees and withdrawal fees for PayPal, the withdrawal fees by wire transfer is quite high, especially when you only withdraw small amount of money from your account.

Core pricing decreases for higher-tier accounts and financing costs reflect market conditions and are calculated daily. These costs are quite a burden to many investors, in particular for beginners or those with limited capital.

Oanda Margin Rates/Leverage

OANDA provides competitive margin rates and leverage across a wide variety of currency pairs.

Margin Rates

1. Margin rates vary significantly across currency pairs, ranging from 2.0% to 25.0%.

Pairs with lower margin rates (e.g., USD/CAD at 2.0%) require less capital to control a larger position, while higher margin rates (e.g., TRY/JPY and EUR/TRY at 25.0%) imply a greater capital requirement.

Leverage

1. Leverage ratios range from 4:1 (for high-risk pairs like TRY/JPY and USD/TRY) to 50:1 (for pairs like USD/CAD and EUR/USD).

1. Higher leverage allows traders to control larger positions with a smaller amount of capital, but it also increases risk exposure. Leverage ratios of 20:1 and 33.3:1 are common for many major currency pairs, striking a balance between potential profit and risk.

Compare to Similar Brokerages

Logo
Broker	Oanda	Webull	Robinhood	Fidelity
Regulators	ASIC, FCA, FSA, NFA, CIRO, MAS	FINRA, AISC, FSA, SFC, MAS	FINRA	FSA
Product Offerings	CFDs on forex, indices, commodities, cryptocurrencies and bonds	Stocks, Options, Index Options, Futures, ETFs, OTC, Margin, Fractional Shares, Cryptos	Crypto, Options, Retirement, ETFs	Mutual Funds, Cryptos, Direct Indexing, Fixed Income, Bonds & CDs, ETFs, Options
Account Minimum	$0	$0	$1	$10
Commission	$30 per 1M	$0 per trade	$0 per trade	$0 per trade
Promotions	✅	✅	✅	❌

The Bottom Line

In summary, Oanda is one of the world's largest and most reputable brokers who was well regulated by regulatory bodies in different countries by ASIC, FCA, FSA, NFA, CIRO and MAS, meaning that the company's financial activities are under supervision and rectification from these institutions. Though negative reviews are recorded on WikiFX, you can still go ahead to explore further possibilities with Oanda with proper risk management and strategies.