Dr. Stumm and Dr. Olsen co-founded OANDA in 1996, and 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, oanda forex provides varying levels of account protection to most clients. Negative balance protection is provided by OANDA Europe Limited, while guaranteed stop-loss orders are provided by OANDA Asia Pacific Pte Ltd. Clients in the United States are an exception, as OANDA Corporation does not provide such security for their accounts.
Oanda has always had a policy of not requiring a minimum initial deposit. It ensures that ambitious day traders and those with limited cash do not have to put up more money than they can afford while they learn the ropes.
Furthermore, Oanda’s minimum lot size is one unit of the quote’s base currency. They also provide a lot size calculator and micro-lots.
Read More: LiteForex Broker Review 2022: Pros & Cons
Commissions & Spreads
Table of Contents
Whether you’re looking for a price comparison for Oanda Europe Limited, Singapore, the Philippines, or the United States, Oanda stays incredibly competitive.
The spreads at Oanda are comparable to those at FXCM and FxPro.
Oanda employs an automated computer to monitor worldwide markets in order 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,” Vatsa Narasimha, CEO of the OANDA Global Group, noted.
When comparing Oanda spreads to those of agency brokers, there’s one thing to keep in mind (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.
Read More: How to Choose a Forex Broker on Traders Union and avoid scams?
Oanda provides leverage options for customers wishing to trade on margin. The maximum leverage for retail clients is determined by authorities in your geographic location; however, all Oanda users can reduce their leverage limit further.
It’s also worth noting that, while trading on margin can possibly raise profits, it can also increase losses. As a result, many traders use stop-loss orders to reduce their potential losses while using leverage.
Trading fees at Oanda are transparent and competitive. In September 2016, Oanda, on the other hand, imposed an inactivity fee. Thankfully, this effective tax will only apply to people who have not traded in at least two years.
When you sign up with Oanda, you will not receive a deposit bonus. Any modifications to overnight (rollover) costs or financing charges should be kept an eye on the official website.
Read More: Top Forex Brokers for Beginners in 2022
Oanda Trading Platforms
- MetaTrader 4
- MetaTrader 5
- Mobile Apps
Methods of Payment
Understandably, an increasing number of day traders are looking for straightforward deposit and withdrawal systems.
You can make deposits and withdrawals into your Oanda account with any of the following:
- Bank wire transfer
- Credit & debit cards
Oanda has a single standard 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.
For experienced forex traders, OANDA is a well-known name. Its proprietary platform, fxTrade, provides an outstanding desktop trading experience that, when combined with strong research and analytical capabilities, is well suited to traders who are already familiar with the retail foreign exchange market. The broker’s stated purpose is to differentiate itself through superior trade execution and transparency, and all data indicates to that being the case.
While the research offerings are extensive, the data is dispersed over OANDA’s website and platforms, making organizing a challenge. Furthermore, despite OANDA’s long history in the online brokerage industry, the company’s product offerings are restricted, especially when compared to its competitors. Being regulated by the NFA/FCA is a benefit, but the lack of slippage protection or further deposit protections beyond what regulators require is troubling.
In the end, this Oanda review discovered that the company continues to be a compelling option for clients all around the world.