Overall OANDA is considered a low risk, with an overall Trust Score of 93 out of 100. They are licensed by ten Tier-1 Regulators (highly trusted), zero Tier-2 Regulators (trusted), zero Tier-3 Regulators (average risk), and zero Tier-4 Regulators (high risk). The broker offers two different retail accounts: Standard and Elite Trader. 

 

OANDA Review – 13 key points quick overview:

1. ☑️Overview
2. ☑️At a Glance
3. ☑️OANDA Account Types
4. ☑️How To Open an Account
5. ☑️Deposit & Withdrawal Options
6. ☑️Trading Instruments & Products
7. ☑️ Trading Platforms and Software
8. ☑️OANDA Spreads and Fees
9. ☑️Leverage and Margin
10. ☑️Educational Resources
11. ☑️OANDA Pros & Cons
12. ☑️Security Measures
13. ☑️Conclusion

 

Overview

 

OANDA, founded in 1996 by Dr. Michael Stumm and Dr. Richard Olsen, is a leading online forex brokerage firm.  

The company initially aimed to make foreign exchange rates publicly available online, but with increased interest in forex trading, it developed and introduced its retail trading platform in 2001.  

The broker emphasizes fair dealing and transparency, eliminating conflicts of interest among market makers. Its regulatory compliance across numerous countries gives global traders confidence.

OANDA has gained a reputation for customer service, trading platforms, and commitment to new features.  

Today, it serves a diverse global clientele and offers trading on various financial assets, including currencies, indices, precious metals, commodities, and bonds.  

With advanced tools and charting capabilities, the broker continues to improve its trading environment to meet the changing demands of knowledgeable traders. 

 

What are the funding options available with OANDA?

They accept various financing methods, including credit/debit cards, wire transfers, and several e-wallets.

 

Is OANDA good for beginner traders?

Indeed, OANDA offers an easy-to-use interface and instructional resources, making it suitable for beginners.

 

At a Glance

** Cryptocurrencies are offered through Paxos Trust Company. Paxos is a separate legal entity from OANDA. 

 

OANDA Account Types 

 

 

Standard Account

The Standard Account caters to a diverse user base with a user-friendly interface and competitive spreads starting at 1.0 pips. It offers no fees, flexibility, access to MetaTrader 4 and OANDA’s trading platform, making it suitable for both new and experienced traders. 

 

Elite Trader

 

Demo Account

Furthermore, the Demo Account offers risk-free training with unlimited access to trading platforms, real-time market data, and powerful charting tools, making it perfect for novice and experienced traders to practice without financial risk.

 

How does OANDA’s pricing model work?

The broker offers two price models: spread-only and elite trade. Your trading volume determines the price model.

 

Does OANDA offer accounts for high-volume traders?

Yes, OANDA’s Elite Trader account is particularly tailored to high-volume traders, with premium features and benefits.

 

How To Open an OANDA Account 

To register an account, follow these steps: 

Step 1 – Go to the Official Website

First, navigate to the OANDA website and select “Create an Account” or “Start Trading.” This will usually be a prominent button on the homepage. 

 

Step 2 – Follow The Sign-Up Steps

After opting to start the procedure, you will be prompted to select your country of residency, a vital factor in establishing parameters for regulatory requirements. 

 

Step 3 – Follow The Prompts & Questions

Next, You will provide basic personal information such as your complete name, email address, a secure password, and a security question for later account recovery. 

During the procedure, OANDA will request further personal information, such as your date of birth, residence address, and contact phone number. 

 

OANDA Deposit & Withdrawal Options 

 

Deposit Methods:

Bank Wire

✅Log into your trading account and go to the “Deposit” or “Funding” section. 

✅Select “Bank Wire Transfer” from the options, and you will be provided OANDA’s bank account details (beneficiary, account number, SWIFT code, and so on). 

✅Make a wire transfer through your bank, online, or by visiting a branch in person. Fill out the OANDA bank details completely and correctly. 

✅To guarantee that your money is correctly credited, provide your account number in the transfer reference or note. 

✅Bank wire deposits may take several business days to complete and appear in your trading account. 

 

Credit/Debit Card

✅Log in to your trading account and navigate to the “Deposit” or “Funding” area. 

✅Select “Credit Card” or “Debit Card” as your method. 

✅Enter your card information, including the card number, expiration date, and CVV code (found on the back). 

✅Specify the amount you want to deposit, ensuring it meets minimum deposit limitations. 

✅Confirm the transaction; deposits made with credit/debit cards should instantly show in your trading account. 

 

Withdrawal Methods:

Bank Wire

✅Navigate to the “Withdraw” section of your trading account. 

✅Select “Bank Wire Transfer” and input the banking details for your account. 

✅Please state how much you plan to withdraw. Keep in mind that there may be a minimum withdrawal amount. 

✅Examine all of the facts before validating the withdrawal request. 

✅Bank withdrawals may take up to several business days to complete. 

 

Credit/Debit Cards

✅Navigate to the “Withdraw” section of your account. 

✅Choose the “Credit Card” or “Debit Card” option. 

✅OANDA’s policy typically limits withdrawals to the amount originally deposited by card. Any earnings beyond this amount would necessitate a different withdrawal method. 

✅Enter your desired withdrawal amount. 

✅Submit the withdrawal request and card withdrawals will be handled promptly. 

 

Are third-party withdrawals allowed with OANDA?

No, OANDA only accepts withdrawals from accounts in the trader’s name.

 

Is it possible to deposit in different currencies with OANDA?

Yes, OANDA accepts deposits in several currencies.

 

Trading Instruments & Products 

OANDA offers the following trading instruments and products: 

➡️Forex – The broker provides 648 currency pairings, including major, minor, and exotic ones. Traders may interact with the broad and liquid forex market, taking advantage of competitive spreads and a leverage ratio of up to 50:1. 

➡️Cryptocurrencies – Moreover, OANDA supports trading 8 different cryptocurrencies**, allowing you to participate in this relatively new and volatile asset class that has received much attention due to its potential high returns and diversification benefits. 

**Cryptocurrencies are offered through Paxos Trust Company. Paxos is a separate legal entity from OANDA. 

 

Can I trade indices on OANDA?

N0, not in the US.

 

Are exotic currency pairs available for trading?

Yes, OANDA provides a variety of exotic currency pairs in addition to major and minor pairs.

 

OANDA Trading Platforms and Software 

 

MetaTrader 4

Moreover, the broker offers clients access to the popular MetaTrader 4 (MT4) platform, known for its powerful technical analysis tools, broad charting capabilities, and active community for automated trading systems. 

They provide this platform as a desktop program, offering instant and market execution order types and features seasoned traders rely on. 

 

OANDA Platform

The OANDA platform, developed in-house, offers traders a simplified trading experience. Additionally, it is available via web browser and desktop application.  

Moreover, it aligns with execution transparency and provides essential charting tools for market navigation, making it an ideal choice for those seeking a simplified trading experience.

 

Does OANDA’s platform have a mobile version?

Indeed, the broker has a mobile app accessible for both iOS and Android.

 

Is API trading supported on OANDA?

Yes, OANDA supports API trading for more complex trading methods.

 

OANDA Spreads and Fees 

Spreads

The spread-based pricing system aims to enhance market transparency and competition. Standard Accounts offer an all-inclusive spread at 0.6 pips, while Core Accounts have narrower spreads at 0.1 pips, catering to larger volume traders seeking cost savings.  

The range of spread products reflects OANDA’s commitment to providing personalized solutions for traders with varying trading styles and methods. 

 

Overnight Fees

The broker charges rollover or swap fees for overnight positions based on the interest rate differential between traded currencies. These industry-standard fees represent the expense of keeping positions open after trading.

OANDA’s Swap-Free Account eliminates these fees per Islamic financial standards, but Muslim traders may face fines for holding long-term indexes. 

 

Deposit and Withdrawal Fees

The broker waives deposit and withdrawal fees to offer a seamless trading experience, allowing traders to fund their accounts without additional expenses.  

However, withdrawals may incur charges, particularly for bank wire transfers, which can cost up to 20 units of the trader’s base currency. The framework encourages cost-efficient banking activities and easy access to trading money. 

 

Inactivity Fees

In order to encourage active trading, OANDA charges a $10 monthly penalty for dormant accounts. If a trader’s account has no activity for a year, the fee serves as a reminder to stay active and manage their accounts to avoid fines.

 

Currency Conversion Fees

The broker charges currency conversion fees for transactions in currencies other than the account’s base currency, applicable to deposits and withdrawals.  

Furthermore, this structure aligns with OANDA’s global reach, catering to foreign clients who may trade in multiple currencies and require currency conversions as part of their trading and capital management plans.

 

Is there a fee for real-time data?

No, real-time market data is provided at no additional expense.

 

Does OANDA charge a commission on trades?

They provide both commission-free and commission-based account options.

 

Leverage and Margin 

The leverage and margin policy aims to provide traders with flexibility in their trading strategies while controlling risk. Leverage is a method of trading larger quantities with little investment, known as margin.  

For example, with a 30:1 leverage, you can control a transaction worth up to $30 for every dollar margin in your account, increasing earnings and losses. Accordingly, the Margin is the real amount needed to maintain an open trade position, set aside from your account balance as a good-faith deposit.  

No minimum margin deposit is required to start a trading account with OANDA, but the amount available determines the size of the transactions.  

Additionally, margin requirements reflect the minimum balance required to keep a deal active. If your account goes below this threshold, you will receive a margin call, requiring you to deposit more funds or cancel holdings. If you fail to meet these requirements, a margin closeout may occur.

 

Can I change my leverage with OANDA?

 

Does OANDA restrict leverage per region?

Indeed, OANDA offers leverage according to the region of traders and the relevant regulatory entity under which they fall. For instance, leverage for UK/EU clients is restricted to 1:30.

 

Educational Resources 

The broker offers the following educational resources: 

➡️Introduction to Leverage Trading – OANDA’s leverage trading materials outline using borrowed funds to increase market exposure, highlighting the potential for increased earnings and losses. They also provide an overview of leverage’s historical context, associated risks, and regulations to protect traders. 

➡️Fundamental Analysis – The platform offers fundamental analysis guidance for traders, guiding them in collecting and evaluating market data, and understanding economic indicators and events that can influence market prices, which is crucial for those relying on the country’s economic health rather than just price fluctuations. 

➡️Technical Analysis – OANDA provides technical analysis materials to help traders forecast market moves by analyzing previous price data and chart patterns, enabling them to use various charting tools and indicators in their trading methods. 

➡️ Additionally, Indicators and Oscillators – OANDA teaches traders to use indicators and oscillators to identify trading opportunities, make informed decisions, and determine entry and exit locations in a market, thereby enhancing their trading skills.

➡️In addition, OANDA provides live, interactive webinars and events, covering platform training and market research to help traders stay updated on the latest trends and trading tactics, offering interactive learning opportunities

 

Are the educational materials OANDA offers updated regularly?

Indeed, the broker regularly updates its instructional content to suit market movements.

 

Does OANDA offer any webinars?

Indeed, OANDA provides frequent seminars on a wide range of trading subjects.

 

OANDA Pros & Cons 

 

Security Measures 

Firstly, OANDA is a leading financial services firm that uses robust security measures to protect its clients’ financial information. Top authorities like the CFTC and NFA regulate it, ensuring stringent financial standards and frequent supervision.  

The broker also employs multi-factor authentication and password protection to prevent unauthorized access and protect clients’ personal and financial data.  

OANDA’s platform offers safe trading features like stop-loss orders and is accessible through web, desktop, and mobile applications. Furthermore, the platform uses advanced encryption technology to protect personal and transaction data.

 

Are funds segregated at OANDA?

No, they are unsegregated.

 

Does OANDA have a history of security breaches?

No, they are unsegregated.

 

 

Conclusion 

Overall, OANDA is a forex that offers a complex trading experience with user-friendly tools, making it suitable for traders of all skill levels.

Disclaimer