Oanda Broker

Oanda was established in 1996. It is registered with the Commodity Futures Trading Commission (CFTC). The broker offers above-average number of investment products, a lot of flexibility in account types, and great, easy-to-use trading and analysis tools. It has its headquarters in New York.

Regulation and Safety

Regulation

  • Oanda is a well-regulated Forex and CFD online brokerage firm. However, CFDs are not allowed for trading for U.S-based clients. The company is a member of the National Futures Association (NFA) and is fully registered with the Commodity Futures Trading Commission (CFTC).

Safety

  • Oanda is safe to use. The interests of clients are always protected and their accounts are segregated. Also, the company is a solidly reputable company with authorization by regulatory bodies, apart from the Commodity Futures Trading Commission (CFTC), the Financial Conduct Authority (FCA) in the UK, the Australian Securities and Investment Commission (ASIC), and the Investment Industry Regulatory Organisation of Canada (IIROC).
  • Established in 1996, Oanda has had a stable presence in the Forex brokerage industry. Interestingly, it provides negative balance protection. This type of coverage will ensure that no matter how low your trading account gets, you will never lose beyond your deposited amount.

Customer Support Service

  • Oanda’s customer support service is available 24 hours a day in email, live chat, chatbot, and telephone options. The email option is on 24/7 while you can contact them via the live chat and phone options only from Monday to Friday.
  • The drawback is that the responsiveness is slow. For instance, it can take up to 7 days to get your inquiries replied via email. Sometimes, the other options like chatbot and live chat do not provide helpful replies to inquiries. Also, the hours of operation are too limited, especially for live chat and phone.

Account Types and Account Opening

Account Types

  • Oanda has very limited account type offering. In fact, it provides only one account type. But the only good side is that this account type is designed in such a way that it has many sub-types, up to 19. You can choose to open any one of those.

Leverage

  • Variable according to individual preferences.

Account Opening

  • For Oanda, account opening is a fast, digital process. All you have to do to open an account is to provide your contact and personal information such as your name, employment status, and residential address. Next, you will have to do a short test evaluating your level of knowledge of trading.  Then, you will have to verify your identity by uploading any of your government-issued ID cards such as your passport. Voila! That is all. The only disadvantage is that it can take days to be approved.

Minimum Deposit

  • Oanda does not have any minimum amount requirements. Although it is advisable you have a reasonably significant amount, you can really open an Oanda’s account with any amount.

Charges and Rates

Trading Fees

  • Oanda’s has low trading fees.

Non-trading Fees

  • Oanda charges a withdrawal fee of $35. This depends on the number of withdrawals per month.
  • It institutes a fee after two years of inactivity.

Financing Rates

  • For this broker, financing rates are high. It offers a financing rates calculator, but it can be hard to use.

Markets, Products, and Investments

Markets

  • The broker covers a reasonable number of markets such as bonds, precious metals, indices, commodities, and Forex.

Products

  • Oanda offers over 50 Forex pairs, a combined 48 stock indices and commodity CFDs, and at least 6 bond CFDs. These offerings are only average as most other brokers offer far more. It is important to note that as a U.S-based client, CFDs trading is not allowed.

Investments

  • The broker does not offer any investment plan.

Trading Platforms, Educational Resources, and Research Tools

Trading Platforms

  • Oanda offers both a proprietary trading platform and MetaTrader 4. Its proprietary trading platform is available in three forms: web, mobile, and desktop. The web-based platform supports many languages – Arabic, Chinese, German, French, and of course English, among others – and is highly customisable. It is easy to use and has a two-step authentication login. The search function is also effective and the four available order types can be easily located and applied. However, you cannot set the price alerts and notifications.
  • The mobile trading platform is available in both iOs and Android versions. It also has a two-step authentication login and virtually every other functionality of the web-based platform, plus one more: you can set price alerts and notifications. However, the desktop platform is not as user-friendly as the web and mobile platforms and can, therefore, be significantly improved.

Educational Resources

  • The broker provides videos on the basics of trading and platform tutorials. The educational resources are also available in the forms of webinars and texts. The webinars are of a high quality and cover essential topics such as risk management.

Research Tools

  • Oanda has a number of research tools that can help you in analyzing the market and making more informed trading decisions. There is MarketPulse which is a collection of analyses and economic calendar developed by the broker’s research team.
  • There is a news feed from MarketPulse and a third-party news provider, the Dow Jones Newswires. With over 70 technical indicators, Oanda has a great lab of tools for technical analysis which include Autochartist, an advanced charting functionality. There is also an algo lab for semi-automated trading. The broker’s Forex Order Book, a 24-hour summary of open orders and positions held by its clients, can serve as a great market sentiment analysis tool.

Methods of Payment

The broker supports many options of depositing and withdrawing funds. Deposit is free but withdrawal attracts a charge. The withdrawal fee is competitive for debit card but it can be high on bank transfers. However, the first withdrawal of every month is free for debit card.

Deposit

  • Bank transfer (1-5 working days)
  • Debit card (instant)
  • Checks
  • Automated Clearing House (ACH)

Withdrawal

  • Same as deposit.

Bonuses, Promotion, and Prospect

Bonuses

  • None at this time

Promotion

  • None at this time

Prospect

  • Oanda has a long industry presence. Also, it is registered with the top-tier regulatory authorities. Its prospect is good and clients can use it with peace of mind.

Conclusion

Established in 1996, Oanda has a solid industry presence. Also, it is a member of the National Futures Association (NFA) and is registered with the Commodity Futures Trading Commission (CFTC). Hence, clients can be sure that their funds are safe. Its trading platform is easy to use, the educational resources are abundant, and the research tools are adequately useful. Plus, it has no minimum deposit requirements. However, the slow responsiveness of the customer support service, its high withdrawal fee, and limited product offerings can make it unappealing. It does not offer some instruments like cryptocurrencies and therefore, traders wishing to trade many markets may not find it ideal. Nevertheless, Oanda’s great web trading platform with a wide array of advanced research and analysis tools will easily endear you to the broker.