OANDA Review 2022

Trust

This section will cover how the different entities of OANDA are regulated and how this impacts you as a trader. We rate regulators on a scale of 1 to 3, with 1 reflecting the highest level of trust.

• OANDA Europe Limited is authorized and regulated by the UK Financial Conduct Authority (FCA), reference number 542574. We rate FCA as a Tier 1 regulator.
• OANDA Corporation is a registered Futures Commission Merchant and Retail Foreign Exchange Dealer with the US Commodity Futures Trading Commission (CFTC) and a member of the National Futures Association (NFA) reference number 0325821. We rate CFTC and NFA as Tier 1 regulators.
• OANDA (Canada) Corporation ULC is regulated by the Investment Industry Regulatory Organization of Canada (IIROC). We rate IIROC as a Tier 1 regulator.
• OANDA Asia Pacific Pte Ltd (Co. Reg. No 200704926K) holds a Capital Markets Services Licence issued by the Monetary Authority of Singapore (MAS). We rate MAS as a Tier 2 regulator.
• OANDA Australia Pty Ltd is regulated by the Australian Securities and Investments Commission (ASIC) ABN 26 152 088 349, AFSL No. 412981. We rate ASIC as a Tier 1 regulator.
• OANDA Japan Co., Ltd. is registered with the Institute Financial Futures Association of Japan (FFAJ), subscriber number 1571. We rate FFAJ as a Tier 2 regulator.
• OANDA Europe Markets Limited is authorized and regulated by the Malta Financial Services Authority (MFSA) as Category 3 Investment Services Licence Holder to provide services to the residents in the European Union. We rate MFSA as a Tier 2 regulator.
• OANDA Global Markets Ltd is authorized and regulated by the British Virgin Islands Financial Services Commission (FSC), number: SIBA/L/20/1130. We rate FSC as a Tier 3 regulator.

Why is it important to know where your broker subsidiary (entity) is regulated?

Different regulators provide different levels of protection. For example, OANDA clients in the United Kingdom benefit from the oversight of the Financial Conduct Authority (FCA). The FCA requires that clients have negative balance protection, which means they cannot lose more than their deposit.

In addition, when trading with a broker authorized by the FCA, client funds are also protected by the Financial Services Compensation Scheme (FSCS). The FSCS protects investments of up to £85,000 if a firm becomes insolvent. By contrast, a trader working with a broker entity regulated offshore would not necessarily have these benefits.

The table below breaks down the protections and benefits by entity, regulator, and region.

Stability and Transparency

In our tests for the Trust category, we also cover factors relating to stability and transparency. Here, we focus on how long the broker has been in business, the size of the company, and how transparent they are in terms of information being readily available.

OANDA was founded in 1996, making it one of the oldest forex and CFD brokers. According to its LinkedIn page, the company is headquartered in New York and has 201-500 employees.

In our research, OANDA showed a good level of transparency in its regulatory status, with a listing of all regulators on the About Us page.

Charges are clearly outlined on the Fees page. The Terms of Use document can be found in the website’s footer.

OANDA’s history and senior management are covered in-depth on the About Us page. Overall, we rated OANDA as having a high level of transparency, better than average for the industry.

Fees

Trading Fees

We tested the spreads at OANDA across different asset classes using the OANDA Trade web platform at 8 AM GMT and 2 PM GMT on July 20th, 2022. We made our tests at two different times to allow greater perspective. 8 AM GMT is the London open when there is a great deal of liquidity in the forex market and tighter spreads in currency pairs. 2 PM GMT is during the New York trading session.

Swap Fees

Swap fees (the cost of holding a position overnight) were average at OANDA.

In the table below, you can see the Swap Long (the cost/credit of holding a buy position overnight) and the Swap Short (the cost/credit of maintaining a sell position overnight) for one full-sized contract. A full-sized contract is 100,000 units of the base currency (the first currency quoted in the pair). We recorded the data on May 27th.

Non-Trading Fees

OANDA Global Markets Ltd charges an inactivity fee of £10 per month for accounts that have been dormant for 12 months.

Are Fees at OANDA Competitive?

OANDA’s spreads range from average to competitive in some cases. Swap fees and non-trading fees are average for the industry. Overall, we rate OANDA’s fees as slightly better than average.

Platforms and Tools

Clients can choose between two desktop platforms (OANDA Trade Desktop and MetaTrader 4), the web-based OANDA Trade Web, and the OANDA mobile app for Android and iOS.

OANDA Trade Web Platform

The OANDA Trade web-based platform is well designed and easy to navigate. It is also customizable, allowing you to change the layout to suit your preference. Multiple chart layouts are available, and traders can view up to 8 charts at once.

Charts

Charting is provided by TradingView, which features over 100 indicators, over 50 drawing tools, 9 time frames, and 11 chart types. Users can also trade directly from the chart.

Orders

The range of order types on the OANDA Trade web platform is impressive. Standard order types such as market, limit, and stop-loss are available. It is possible to set time in force conditions; you can set your limit of stop-loss order to expire after a set time, for example, 2 days or 1 week.

In addition, trailing stop-loss orders and guaranteed stop-loss orders (GSLO) are also available. GSLOs are similar to standard stop-loss orders, but they differ in that they guarantee to close your trade at a specified price for an additional fee. The fee varies based on the instrument traded and can be seen on the order window.

Alerts and 1-click trading are not available on the OANDA Trade web platform, but they are available on the OANDA mobile app. Overall, we rate this web platform as better than average for the industry, with a robust range of features and solid charting.

OANDA Trade Desktop Platform

OANDA‘s desktop platform has the same strong range of order types as the web platform. Charting has 24 indicators, 9 drawing tools, 9 time frames, and 10 chart types. One of the most useful advantages of the charts is that you can adjust the candlesticks to bid, ask, and mid. This adjustment is not possible on the mobile application. 1-click trading and trading from the chart are available. Clients have the flexibility of trading sizes of just 1 unit.

The platform includes analytical tools designed to identify trading strengths and weaknesses using behavior patterns. The software uses the past six months of trading statistics and is available on live accounts only.

We rate the OANDA Trade desktop platform as powerful and feature-rich. However, the look and feel are a bit dated, and it is not as intuitive as the OANDA Trade web platform. The desktop platform is available in English, Spanish, Portuguese, French, Italian, German, Japanese, Chinese, and Russian.

MetaTrader 4 Desktop

OANDA offers MetaTrader 4 for desktop, which includes advanced functions such as copy trading and automated trading.

MetaTrader 4 is available in 39 languages, from Arabic to Vietnamese. The platform provides popular features such as:

• Alerts. This feature allows traders to be updated when an instrument reaches a specific price level. Alerts can be delivered via audio, email, or push notification to a mobile device.
• Watchlists. Traders can set up a list of their favorite instruments and follow live quotes in a Market Watch panel.
• 1-click trading. This feature allows traders to execute orders with a single click and no secondary confirmation. Being able to place a trade with a single click saves time and is especially useful for short-term traders.
• Trading from the chart. MT4 also allows users the convenience of trading directly from the chart.

MetaTrader also delivers when it comes to the range of available order types. The platform offers the following order types:

• Market Order. This is an order to buy or sell an instrument at the current best available price.
• Limit Order. This is an order to buy or sell an instrument at a specified price or better.
• Stop Loss Order. This is an order to buy or sell an instrument that is triggered when the price reaches a specified level.
• Trailing-Stop Order. This is a stop-loss order that can be set at a defined percentage or dollar amount away from an instrument’s current market price. It is used to secure profits when you are in a winning trade, while not having to exit the position.

Charting features are robust. MetaTrader 4 offers:

• 30 technical indicators. These include classic trend indicators, volume indicators, and oscillators.
• 23 analytical objects. These include lines, channels, Gann, and Fibonacci tools.
• 9 time frames Each instrument can be displayed in multiple time frames, from one minute to one month.
• 3 chart types. Traders can choose between Bar Charts, Japanese Candlestick Charts, and Line Charts.

MetaTrader is also popular due to its copy trading and automated trading features.

• Trading Signals. Signals in MetaTrader 4 allow users to copy other traders’ activity in real-time automatically.
• Automated trading. MetaTrader 4 allows users to develop, test, and apply Expert Advisors (EAs). EAs are programs that monitor and trade markets using algorithms. They find opportunities according to set parameters and then either create a notification or automatically open a trade.

The MetaTrader 4 desktop platform is one of the most feature-rich and popular trading platforms globally. It does not have the most beautiful interface, and it does require some time and effort to learn, but that is typical of advanced platforms.

OANDA Mobile App

OANDA’s mobile app has an intuitive and user-friendly interface. The same range of standard and advanced order types seen on the web and desktop platforms are available on the app. The layout is customizable, so you can see your favorite instruments and adjust the size of charts to suit your preference.

The charting within the app is solid and has the following features:

• 16 time frames, ranging from 5 seconds to one month.
• 8 chart types, including Japanese candlesticks, Heikin Ashi, and OHLC (open-high-low-close).
• 16 overlays, from Bollinger Bands to exponential moving averages.
• 17 indicators, including MACD (moving average convergence/divergence) and RSI (relative strength index).
• 13 drawing tools, from pivot points to Fibonacci retracements.

Unlike the web interface, 1-click trading and alerts are available via the app. Real-time news from Dow Jones and an economic calendar are also built-in. Two-factor authentication (2FA) is available to add an extra level of security when you sign in to OANDA’s trading platforms from either your computer or mobile device. If you need to top up your account on the go, it is possible to add funds via mobile.

The app is available in English, German, Japanese and Chinese.

Order Execution

OANDA acts as principal and not as an agent when executing client trades and acts as the sole execution venue. OANDA group companies look to the execution venues available to them for the pricing, hedging, and execution of orders.

Tradable Instruments

What are CFDs?

CFDs (Contract for Differences) are financial derivative products that allow traders to speculate in various markets without owning the underlying assets. Tradable instruments at OANDA Global Markets Ltd include the following assets:

• 45 CFDs on Currency Pairs. A currency pair combines two different currencies, with the value of one currency quoted against the other. For example, EUR/USD, which reflects the value of the euro measured in dollars.
• 19 Index CFDs. An index is a basket of trading instruments used to gauge a market sector, stocks within an exchange, or a country’s economy.
• 10 Commodity CFDs. Commodities are raw products, such as gold, oil, and metals.
• 228 CFDs on stocks. These include 50 CFDs on Spanish stocks, 100 CFDs on German stocks, 28 CFDs on Dutch stocks, and 50 CFDs on French stocks. A stock is a security that represents partial ownership of a corporation. Keep in mind that when trading stock CFDs you are speculating on the price of a stock without actually taking ownership of the underlying company.

In the tables below, you can see a selection highlighting the variety of instruments available at OANDA:

Customer Support

We tested customer support with a wide variety of queries, ranging from inactivity fees to the order types available. Chat support responded within seconds, and emails were typically responded to within one business day. Via phone, we also received good support from industry-savvy agents.

If you do not have a demo or live account, customer support via chat is harder to access, and it is necessary to navigate several questions from a chatbot. However, once you have an account and select chat from within the client portal, it typically takes only a short time to receive a response.

Deposits & Withdrawals

The tables below break down the fees and processing times for each deposit and withdrawal method.

Deposits

Note: While OANDA does not charge deposit fees, you may be charged by your payment provider or bank when depositing funds into your account.

Withdrawals

OANDA returns all funds to the same source. If, for instance, you deposited using a credit card, you would need to withdraw funds back to that same card.

Account Types and Terms

Account Application

To open an individual account at OANDA Global Markets Ltd , prospective clients must provide their personal details, citizenship, home address, employment status. Finally, clients must verify their identity (passport, national ID card, or driving license) and address (bank statements, utility bill, or government-issued photo ID). Available base currencies are EUR, HKD, SGD, AUD, CHF, and USD.

Demo Accounts

OANDA offers demo accounts that clients can use across all of its platforms. Demo accounts are especially important for beginners as they allow them to practice their strategies and get comfortable with the trading platform without risking any real money.

The demo account features live quotes and simulates live market conditions in assets such as forex and CFDs on commodities, indices, and stocks. Once users have gotten up to speed on a demo account, they can easily switch to a live account.

Islamic Accounts

OANDA offers a swap-free Islamic account that adheres to the principles of Sharia law.

Leverage

One of the reasons traders are attracted to the forex and CFD markets is the high degree of available leverage. Leverage is the use of borrowed funds to increase the size of your trading positions beyond what would be possible using only the cash in your account.

For example, OANDA Global Markets offers leverage of up to 1:200. This means you can control up to $200,000 in positions with a $1,000 account. Leverage is often described as a ‘double-edged sword’ as it can hurt you as much as it helps you. Traders must remember that it can amplify both their profits and their losses.

Supported Countries

OANDA takes clients from the majority of countries globally. However, clients are not accepted from China, India, North Korea, and Iran.

Research

OANDA’s news and research portal, MarketPulse.com, offers insightful analysis covering both fundamental and technical analysis across forex, indices, commodities, and cryptocurrencies. The Week Ahead articles keep traders abreast of upcoming economic events and what to expect. Other articles and videos are more technical, and traders can get ideas from chart patterns and support and resistance levels.

OANDA clients can also stay informed with the Dow Jones FX Select news feed. This provides real-time news, data, and insights from a global team of business news reporters and editors. The feed can be accessed from OANDA’s web, desktop, and mobile platforms and is available in a variety of languages.

Education

OANDA‘s educational resources include the basics, such as a demo account and platform tutorials. They also go further to offer a wide variety of educational articles, videos, and live webinars.

The education section is broken down into 4 categories.

• Getting started. This section features content covering order types, charts, and trading terminology.
• Tools and strategies. Fundamental and technical analysis concepts are explained in this section.
• Capital Management. Here the focus is on how to protect and manage your funds using margin, leverage, and stop-loss orders.
• Live and recorded webinars. These include topics such as risk management, Fibonacci, and platform tutorials.

While the quality of the content is good, the organization of materials could be improved, for example, by adding progress tracking.

The Bottom Line

OANDA is a pioneer in the world of forex and CFD trading, with over 25 years of experience.

Many regional entities of OANDA are overseen by top-tier regulators, making it one of the safer brokers. Fees are not rock bottom but, on balance, better than average for the industry. OANDA outshines most rivals in the area of platforms, with choices that can suit everyone from beginners to highly sophisticated traders. Research and educational materials are also better than average and can cater to various experience levels. Reliable customer support rounds out a good overall offering from this broker.

FAQ