Oanda Review 2022: Scam or Safe? Detailed Overview

oanda
Min Deposit

$1

Min Spread

1.2

Regulation

ASIC

Dr. Stumm and Dr. Olsen co-founded OANDA in 1996. It claims to do “all things currency,” from currency conversion to providing FX data services for businesses to giving a well-established worldwide online brokerage service to people looking to trade the retail FX and CFD markets.

OANDA offers two account categories, regular and premium, as well as a product catalog that includes a comprehensive range of CFD and spread betting solutions across a variety of asset classes, albeit not all are available in every location. To give trading opportunities throughout financial markets, the firm offers indices, metals, commodities, and bonds in addition to FX.

Depending on the area, Broker provides varying levels of account protection to most clients. Negative balance protection is provided by OANDA Europe Limited, while OANDA Pacific Pte Ltd provides guaranteed stop-loss orders.

Is OANDA a Scam?

No, OANDA is not a scam. OANDA is among the top performers in the CFTC’s Retail Forex Obligation report in the US. Represents the total amount of funds at an FCM, RFED, or FCMRFD that would be obtained by combining all money, securities, and property deposited by a retail forex customer into a retail forex account or accounts, adjusted for the realized and unrealized net profit or loss.” 

The Broker is in the top tier of online forex brokers because of its well-organized website with a declared purpose of openness, an emphasis on client education and research, different user interfaces, and global regulatory control.

The broker provides clients with access to a wide range of financial products, but it is best suited for experienced traders looking for a top-notch desktop trading experience. In addition, the products available differ by area.

OANDA is a registered company, and its registration number is 2026433. Its legal existence is in the US and has its registered office at Kingston Chambers, PO Box 173, Road Town, Tortola, British Virgin Islands.

OANDA Review: Advantages and Disadvantages

Advantages

  • US Clients: OANDA is one of the few worldwide online forex brokers that welcome US customers.
  • FCA and NFA Regulated: OANDA Corporation is a member of the NFA and a registered FCM and RFED with the CFTC. The FCA in the United Kingdom has authorized and regulated OANDA Europe.
  • Well-designed Platforms:  The broker has a great trading platform since it is well-designed and has a lot of useful tools and information, such as different sorts of calculators.
  • Brilliant Research Offerings: Broker provides a unique combination of economic analysis, real-time news feeds, calendars, and complex data analytics in a retail trading platform.

Disadvantages 

  • No Account Protection: OANDA does not provide “negative balance protection for US clients.” This means that traders in the US with negative account balances may owe money to their brokers.
  • No Stop-Losses Guarantee: It does not offer guaranteed stop-loss orders (GSLO) for clients in the US and the UK.
  • No Access for Crypto and CFDs: Because OANDA does not offer specific stocks, ETFs, industrial sectors, or cryptocurrencies, its overall CFD offering is limited to 55.
  • Ancillary Fees: In addition to costs for deposits/withdrawals, bank wire transfers, debit card, and ACH transactions, it levies a monthly inactivity fee.

OANDA Review: Trading Account Types

OANDA has no different types of accounts as it has a single basic account with no minimum deposit requirement. Unfortunately, high-volume traders with huge resources may be frustrated by the absence of additional benefits offered by some brokers to traders with substantial funds. It does, however, mean that everyone has access to over seventy currency and precious metal pairs, as well as trades of any size.

Demo Account

OANDA demo account reviews quickly point out one of the practice account’s most appealing features. Unlike many forex brokers, OANDA’s FxTrade demo account is available as long as a trader needs to hone his strategy and gain confidence. In addition, popular social media messaging systems, such as WhatsApp and Messenger, can also be used to access the practice solution.

You have nearly all of the same capabilities as live account holders after receiving your demo login details. Their demo account funded with simulated money is an excellent opportunity to familiarise yourself with market circumstances and evaluate OANDA as a potential broker.

You can easily upgrade to a real account after your confidence has grown with volume indications, currency heat maps, and backtesting.

OANDA Review: Trading Account Opening

OANDA trading account opened with the help of the following three easy steps:

Step 1: Request a Live Trading Account

You must be at least 18 years old to apply. We only ask questions pertinent to your application and are required by law. Our onboarding staff will review and approve your application.

Step 2: Account funding or make a deposit in your trading account

You can log in to your trading account and deposit, withdraw, and transfer funds once your account has been approved by our onboarding staff. This can be done using your portal’s transfers tab.

You can fill your account with a variety of methods, including debit and credit cards, wallets, and bank wire transfers. In addition, you can deposit up to US$9,000 (or currency equivalent) using your OANDA account*, and there is no minimum deposit amount.

Step 3: Start trading 

You’re now ready to use your OANDA account to make your first live transaction.

OANDA Review: Trading Instruments and Offering a range

OANDA’s primary concentration is FX, which makes sense given that the company claims to be “all things currency.” The following are some of the services available:

  • Forex: It offers competitive CFD spreads on 45 forex pairs, including all the majors and minors. Our spreads start from just one pip on USD/JPY and EUR/USD.
  • Bonds: OANDA traded Bonds are a form of capital taken from merchants.
  • Metals: Metals are extremely rare elements with a high market value. OANDA allows you to trade precious metals such as gold and silver.
  • Indices: Stocks are classified into indices. Indexes like the Dow Jones, SNP 500, and FTSE are available through brokers.
  • Commodities: Commodities are items and raw resources that are used regularly. The broker allows you to trade everyday necessities such as crude oil, sugar, corn, etc

OANDA has the necessary variety to compete effectively in the online broker landscape of 2020, but it falls short in a few areas. For example, the broker does not offer specific stocks, ETFs, industrial sectors, or cryptocurrencies, limiting its overall CFD offering to 55, significantly less than its competitors. Other prominent forex brokers can provide anything from 1,000 to 10,000 CFDs to pick from to put things in perspective.

OANDA Review: Spreads, Commission, and Fees

The spreads at OANDA are comparable to those at FXCM and FxPro. The broker employs an automated computer to monitor worldwide markets to provide traders with the best prices, and spreads will adjust in response to market liquidity and volatility. Spreads can expand when there is a lot of volatility. Current and historical average spreads are prominently shown, assuaging some traders’ fears about hidden fees.

“We believe the retail trading sector as a whole will benefit from a more transparent approach where brokers are held accountable for making questionable assertions or incorrectly reporting their interests,” says Vatsa Narasimha, CEO of the OANDA Global Group.

When comparing broker spreads to those of agency brokers, there’s one thing to keep in mind is no dealing desk. So, simply comparing spreads won’t always lead to a clear conclusion, as other factors can occasionally influence the cost of trades over time.

Trading fees are transparent and competitive. However, in September 2016, OANDA imposed an inactivity fee. Thankfully, this effective tax will only apply to people who have not traded in at least two years.

You will not receive a deposit bonus when you sign up with a broker. Any modifications to overnight (rollover) costs or financing charges should be kept an eye on the official website.

OANDA Review: Leverages

OANDA provides leverage options for customers wishing to trade on margin. Authorities determine the maximum leverage for retail clients in your geographic location; however, all broker users can reduce their leverage limit further.

It’s also worth noting that while margin trading can raise profits, it can also increase losses. As a result, many traders use stop-loss orders to reduce their potential losses while using leverage.

OANDA Review: Deposits and Withdrawals

A growing number of day traders are looking for simple deposit and withdrawal solutions. Deposit, withdraw, and transfer funds from your OANDA account with the help of the following methods:

  • Bank Wire Transfer
  • Credit Card
  • Debit Card
  • Neteller
  • Skrill

Other alternatives may be available based on your location. For example, Those in China can utilize China UnionPay. It is recommended to visit their website to discover new ways in different areas.

The fees can range from 20 to 35 euros if you choose to pay by bank transfer. You are entitled to free card withdrawal every month.

Overall, traders have expressed satisfaction with OANDA customer reviews’ current money transfer mechanisms.

OANDA Review: Trading Platforms

OANDA provides worldwide known and extensively utilized trading platforms to make trading easier. The following sections provide a description and features of each trading platform. The platforms that the broker offers are well-known and high-quality equipped. You discover it during a thorough examination of the broker.

FXTrade

It’s time to move on to the FxTrade section of the study, which is an important portion of services by OANDA. Overall, it is a user-friendly, well-designed system with a variety of tools and metrics to choose from.

The chart can be used for complex order trading types, such as buy and sell and trailing stops, benefit you. MultiCharts are included in this financial trading software, allowing for advanced and comprehensive research and presentation styles.

This platform is designed to meet the demands of traders of all levels of experience.

API Libraries for FxTrade

With a Broker subscription, you can also experiment with automatic trading. Look for API python lessons online to get the most out of your API instruments. You can execute considerably more trades with automated trading than you could with human trading. It also implies that you can trade multiple markets at the same time, from gold and oil to binary options and bitcoin CFDs.

MetaTrader 4

Download MT4 if OANDA’s desktop platform does not appeal to you. According to the evaluation, the industry-standard incorporates advanced charting, watch lists, and trade automation via the “expert adviser” feature.

On the downside, developing or amending EAs might be complicated. This is particularly true for traders who may not be acquainted with the programming language. However, while the audio warnings can be bothersome, there are customization choices and a mute button, so we’ll overlook that flaw.

Broker also offers a number of amazing trading tools:

  • MotiveWave
  • OANDA Market Reports

MetaTrader 5

MetaTrader 5 (MT5) has recently been added to OANDA’s list of world-class trading platforms. MT5 is the next version of MT4, and it comes with a slew of new features. These are some of them:

  • Support for Netting
  • There are 12 more periods.
  • There are 13 more graphical objects
  • Policies for partial order fulfillment
  • Community chat is integrated into the website.
  • Economic calendar 
  • Reports with HTML chart formats
  • Improvements in market depth
  • Logfile compression that is automated

Mobile Apps

Entering and departing positions from your mobile or tablet can be beneficial if you regularly trade. The FxTrade mobile trading platform features will impress those looking for a broker mobile and iPad review. Not to mention the compatibility with various devices, including iPhones and Windows Phone 8.

You can then get historical quotes, compete with forwarding rates, and begin speculating on the FTSE 100 or Nasdaq after you have your web login details. Furthermore, the platform is simple to use, and the modern design ensures a stress-free experience.

OANDA trading instruments, spread history, account analytics, and sophisticated order types are all available. In addition, you can trade directly from charts and take advantage of charts with indicators and price overlays. You can also play with display styles to find a format that suits your trading style.

The news, economic calendars, and financial releases may be accessed directly from the app. This makes determining market sentiment simple. 

Instrument listings are kept up to date by routine maintenance. This also implies that any problems or malfunctions are quickly fixed. Overall, their mobile app makes for a seamless transition from the PC version.

OANDA Review: Education and Research

The broker checks all of the boxes in this category, with a wide range of economic analyses, real-time news feeds, calendars, and extensive data analytics that are uncommon in a retail trading platform. 

The “order book” gives information on the emotions and conduct of traders. MarketPulse, Autochartist, Dow Jones headlines, and calendars are just a few of the analytical tools available to traders. Pattern matching engines and volatility analysis will be especially useful for more experienced traders.

Traders can test their ideas using standard coding languages and immediately study the impact of economic news on charts using OANDA’s analysis tools. Experienced traders who require advanced analytics and resources to deploy, test, and manage their trading strategies in real-time are the target market for such features.

It’s no wonder, then, that Broker was honored by the Investment Trends study with many “highest client satisfaction” awards. However, one potential disadvantage of having diverse tools and studies is the education and training required to adequately utilize them.

Although broker provides education and support for most of its tools and capabilities, it is disjointed and difficult to find.

Overall, it’s a strong product and an area where OANDA outperforms the competition. Still, if there’s one critique, the information is dispersed over the company’s website and trading platforms. So as traders try to locate everything, they should expect a learning curve.

OANDA Review: Customer Support

Every second counts in the day trading market. This means that any platform or account malfunction could reduce your revenues. As a result, providing quick and effective customer service might be critical. Fortunately, OANDA trading reviews quickly point out that the company provides multilingual help 24 hours a day, seven days a week.

You can contact the Broker customer service team through email at any time, except during holiday trading hours. Alternatively, live online chat and phone help are accessible during business hours. For their phone number in your area, go to their official website.

Customer support is available in the following languages: English, German, Spanish, Italian, French, Portuguese, and Russian. However, it’s also worth noting that customer support response times can be poor, according to several bad broker customer reviews.

On the other hand, Staff on the hotline remain kind and helpful, making every effort to address your inquiries using their support website and archives thoroughly. As a result, users may trade with confidence, knowing that effective support is available, regardless of location or time zone.

Conclusion

For seasoned forex traders, OANDA is a well-known name. Its proprietary platform, fxTrade, provides an outstanding desktop trading experience combined with strong research and analytical capabilities. It is well suited to traders already familiar with the retail foreign exchange market. The broker’s stated purpose is to set itself apart through improved trade execution and transparency, and all evidence suggests that this is the case.

Primefin, Investby, ABInvesting are some of the top-rated and leading online brokers available in the market. They offer explicitly low spreads and commissions, with exceptional trading features and services that can help traders multiply their profits and make their trading prosperous.

 

FAQ
mobile-faqs-banner

The minimum deposit for OANDA is $1

OANDA is based at OANDA Europe Limited, Tower 42, Floor 9a, 25 Old Broad St, London, EC2N 1HQ.

OANDA makes money mainly through spreads and swaps on different tradable asset classes.

Withdrawals can be made from OANDA via debit or credit card, bank wire transfer or PayPal.

OANDA offers only the MetaTrader4 platform.

OANDA does not offer guaranteed stop loss. With guaranteed stop-loss protection risk is managed. Traders are guaranteed to close your trade at your specified price. Stop Loss orders are guaranteed only during market hours and under normal trading conditions.

OANDA is not a market maker. A market maker speeds up trading as a market maker will purchase your stocks and commodities even if a buyer is not lined up.

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