Published on Oct 18, 2023

OANDA Broker Review: Unleash Your Trading Potential with a 25-Year Veteran

Hey there, folks! Today, we're diving into the world of OANDA, one of the heavy hitters in the trading game. We've got all the deets you need to know about their trading accounts, fees, platforms, and more. So, if you're wondering whether OANDA is the right fit for you, stick around, and let's get this show on the road.

The OANDA Universe: Multiple Subsidiaries, One Goal

Before we jump into the nitty-gritty, here's the scoop: OANDA operates through multiple subsidiaries worldwide. Your experience with OANDA depends on where you hang your hat. Each subsidiary offers a unique set of products and platforms, so the grass might be greener depending on your location. Just remember, if you're a trader from the good ol' US of A, CFDs aren't on the menu for you.

OANDA - Where Safety Meets Trading

Now, here's some good news for peace of mind: OANDA is a broker that takes regulations very seriously. They've got their ducks in a row, offering negative balance protection and keeping client funds safe and sound. In the EU and the UK, they even roll out the red carpet with investor compensation funds, covering traders up to a cool £85,000.

So, who's keeping an eye on them? Here's the regulatory rundown:

UK Financial Conduct Authority (FCA)
Australian Securities and Investments Commission (ASIC)
Canadian Investment Regulatory Organization (CIRO)
Malta Financial Services Authority (MFSA)
Monetary Authority of Singapore (MAS)
Japanese Financial Services Agency (FSA + FFAJ)
British Virgin Islands Financial Services Commission (BVI FSC)

The good news is, our trusty research squad didn't unearth any major security breaches or scams. But, you know the drill - be careful not to land in the wrong pond; there have been a few reports of copycat firms posing as OANDA.

Let's Talk Account Types

OANDA keeps it straightforward. They offer a Standard Account that's as versatile as a Swiss Army knife, with access to 68 forex pairs and a buffet of CFDs covering indices, energies, metals, and bonds. Oh, and here's the kicker: there's no minimum deposit. That means newbies can tiptoe into the trading scene without breaking the bank.

But it's not all sunshine and rainbows. If you're a Muslim trader, you might find the lack of a swap-free account a bit disappointing. And for the high-volume aficionados, OANDA doesn't throw a loyalty program your way. But hey, if you ask nicely, they might whip up a professional account for you.

How to Open a Live Account

Now, here's the part you've all been waiting for - opening an OANDA account. It's like a walk in the park, folks. In just 8 minutes, you'll be ready to roll. Here's your step-by-step guide:

Start by entering your email address, creating a password, and agreeing to those T&Cs.
Click 'Fill Out The Form Manually.'
Add your personal details - name, date of birth, citizenship, document type, and ID number.
Provide your mobile number and verify your registration with an SMS code.
Complete your address details, including your country and city of birth.
Confirm your tax residency details, including the relevant identification number.
Submit the application.

Don't forget, you'll need to prove your identity and residency by uploading a copy of your passport, driver's license, or another government-issued document. Once you're in the club, you can start depositing funds and making those trades.

Trading Fees

Now, when it comes to fees, OANDA's got a little something for everyone. They offer a choice between spread-only trading and tighter spreads with a small commission. The spread-only option is a newbie's dream, as you've only got one cost to keep an eye on.

During our test run, we found some competitive spreads, like 0.8 pips on the EUR/USD and 1.1 pips on the USD/JPY. That's right up there with the big dogs like FXCM and FxPro.

But, if you're a trading maestro, the commission-based account is where the action's at. You'll be looking at spreads from 0.1 pips, plus a $40 commission per million traded. We gave it a whirl and saw spreads of 0.1 pips on both the EUR/USD and USD/JPY. Not too shabby, if you ask me.

Watch Out for Sneaky Fees

Now, before you get too comfy, here's the lowdown on the not-so-fun fees. There's a $10 monthly inactivity fee, but don't fret - it only kicks in after a year of hibernation.

Also, if you're trading an instrument in a different currency than your account, you might be in for a currency conversion fee. And remember, overnight fees apply if you're keeping positions open after 5:00 pm (ET). That's par for the course, though.

Payment Methods

OANDA offers a fair but not a fancy lineup of payment methods. You can fund your account with credit/debit cards and wire transfers. But, here's the kicker - there are no e-wallets like PayPal in sight.

For the quickest transaction times, your best bet is to go with Visa or Mastercard. These methods offer near-instant funding. Wire transfers, on the other hand, are like a slow train to nowhere, taking up to five business days.

What's sweet about OANDA, though, is that they don't throw any deposit or withdrawal fees your way. And with a minimum deposit requirement of $0, they're giving a warm welcome to budget-conscious traders.

The Lowdown on Assets & Markets

OANDA doesn't have the biggest selection of trading products on the block, but they've got enough to keep most retail traders happy. You can dive into 120 different instruments through CFDs.

Where they shine is the choice of currency pairs. They've got over 65 of 'em, more than most brokers in the biz. So if you're a forex fanatic, you'll feel right at home.

But that's not all - you can also trade:

Bonds, including the UK 10-year Gilt and US 5-year T-note
Stocks, with over 1600 shares, including heavyweights like Amazon, Tesla, and Netflix
Indices, with 15 major global indices like the FTSE100 and S&P500
Forex, with 68 major, minor, and exotic pairs
Commodities, speculating on precious metals, energies, and soft commodities

Lightning-Fast Execution

OANDA is what they call a market maker, or a dealing desk broker. In a nutshell, they grease the wheels of the market by adding a small markup to the buy and sell prices.

Our research squad was pretty impressed with OANDA's speedy order execution. They averaged a mere 12 milliseconds, which is right up there with the best in the business. Anything below 100 milliseconds is a win in our book.

Leverage:

OANDA offers leveraged trading, in line with the regulations. For EU traders, it's up to 1:30 for forex and 1:10 for commodities. Just remember, higher leverage often comes with more risk, especially for the rookies. If your account balance dips to 50% of the margin requirement, you might get a margin call.

Platforms for Everyone

One thing I love about OANDA is their platform variety. They offer both in-house and third-party platforms, including MetaTrader 4 and TradingView.

The in-house platform is web-based and comes with nifty charting features and tons of customization. It's also mobile-friendly. MetaTrader 4, on the other hand, is a world-renowned platform with a user-friendly design and powerful analysis tools.

But our favorite? That'd be TradingView. It's user-friendly, visually appealing, and super easy to navigate. If you're big into charting and technical analysis, MetaTrader 4 is your go-to. However, I have to admit that the in-house terminal can feel a bit clunky at times, and loading news might test your patience.

Placing a Trade:

Placing a trade on the OANDA Web platform is as easy as pie. Here's a quick how-to guide:

Click the buy or sell icons above the chart (blue for buy, red for sell) to open the new order screen.
Pick your order type (market, limit, or stop).
Use the arrows to adjust the number of units.
Review the trade value and margin requirements.
Optionally, set stop loss or take profit prices.
Hit 'Submit' to seal the deal.

The Tools of the Trade

OANDA goes the extra mile with a bunch of trading tools to jazz up your trading experience. They've got a spread calculator, lot size calculator, MT4 indicators, Dow Jones FX Select news, Autochartist for chart pattern identification, and advanced charting from TradingView.

If you're a data fiend, you'll also dig their margin call calculator, leverage calculator, live FX rates, and monthly average exchange rates. These tools are like your secret weapons in the trading game.

Education & Research

OANDA doesn't skimp on education. They've got the goods to help newbies and pros level up. You'll find topics on fundamental and technical analysis, how to use indicators, and an intro to leverage.

One cool thing they offer is live market analysis webinars. These are a treasure trove of insights into forex, indices, commodities, and cryptocurrency markets. Just keep in mind, these webinars are for live account holders only.

Now, the not-so-great part is that there aren't any tutorial videos or interactive learning tools, and the articles are pretty text-heavy. But hey, you can't have it all, right?

Demo Account

If you're not ready to dive into the trading pool just yet, OANDA's got your back with a demo account. You can test the waters without risking real cash. The best part? There's no time limit, so you can keep that baby running as long as you want.

To get your hands on a demo account, follow these simple steps:

Click the 'Demo' icon on the top right of the broker's website.
Pop in your name, email, and phone number.
Review and agree to the T&Cs.
Click 'Open Demo Account.'
Activate your account through the link sent to your email.

Bonus Hunters, Beware!

If you're all about those sweet bonus deals, I hate to break it to you - OANDA doesn't roll that way. They don't offer welcome bonuses. But, remember, these promotions are a no-go in many regulatory circles.

On the downside, high-volume traders won't find any fee rebates or special perks here. The only offer on the table is a chance to score a rebate on up to three months of inactivity fees if you decide to get back in the trading game.

Customer Support:

Now, let's talk about customer support. OANDA takes the gold in this category. You can reach them by phone from Monday to Friday, 8:00 am to 8:00 pm (CET), and they speak English, Spanish, French, and German.

If you prefer to type your way to help, they've got you covered with email and online chat, available 24/5. And let me tell you, the live chat is lightning-fast. We're talking responses in three minutes flat. Here's how to reach them:

New Customers – info@eu@oanda.com
Existing Customers – cxsupport@oanda.com
Telephone Numbers (Existing Customers) – Poland (+48) 799366830, Malta (+356) 20345018, Spain (+34) 910479707, France (+33) 182884361, and Germany (+49) 6995019607
Telephone Numbers (New Customers) – Poland (+48) 799399910, Germany (+49) 6995019606, Spain (+34) 911120029, France (+33) 184131722, Italy (+39) 0684009607, and Netherlands (+31) 203233130

The OANDA Story: A Brief History Lesson

A little background check on OANDA - they've been in the game since 1996. They were the trailblazers who started publishing stock exchange rate info online for free. Several financial firms jumped on board for a piece of the action.

In 2018, they were acquired by CVC Capital Partners. But it didn't stop there - they also scooped up TMS Brokers to strengthen their presence in Eastern Europe and the Baltic region.

Across the pond, OANDA's European and UK subsidiary has offices in the UK, Poland, Malta, and Germany. The top brass includes Gavin Bambury (CEO), Kurt vom Scheidt (COO), and Emmanuel Coulon (CTO).

And here's the icing on the cake: OANDA has bagged a bunch of global awards, including Brokerage House of the Year and Best Forex and CFD Broker.

Trading Hours

Trading hours at OANDA vary depending on the market. But, in general, you can get your trading fix from Sunday at 10:00 pm to Friday at 10:00 pm (GMT). If you need specifics, just click the 'Check Conditions' icon on the product page for trading times of individual instruments.

As for holidays and market closures, you'll find all the info you need on their website. They've got the lowdown on public holidays and company announcements.

Pros and Cons

Pros:

Tier-one regulators keep OANDA in check.
The guaranteed stop loss order (GSLO) is a handy risk management tool that's not standard at other brokers.
The OANDA web platform is newbie-friendly and has nifty charting tools.
OANDA is a respected broker with 25 years under its belt and a stack of awards.
They don't restrict your trading strategies, so you can go all out with scalping, hedging, and netting.
The $0 minimum deposit makes it a great choice for rookie traders.
With 68 forex pairs to choose from, it's a paradise for active forex traders.
Tight spreads and no hidden fees? Sign us up!

Cons:

The payment methods are a bit limited, with no PayPal in sight.
High-volume traders won't find many fee rebates or perks.
Weekend customer support is MIA.
There's no support for social and copy trading.

In the grand scheme of things, OANDA is a big player. They've got powerful trading platforms, top-notch tools, and a competitive fee structure. Plus, with no minimum deposit, it's a newbie-friendly broker. The unlimited demo account is the cherry on top.

OANDA Broker Details

Disclaimer: - We at forexoverflow do not endorse neither refer anyone to trading broker websites. The information is for educational purpose and source of information is from the broker website.