OANDA US Review

Trust

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.

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

Different regulators provide different levels of protection. OANDA clients in the United States do not have negative balance protection, and their funds are not segregated. OANDA Corporation holds client funds in the same bank account as operating funds because US regulations do not permit forex accounts to have segregated account status.

In the unlikely event that OANDA Corporation becomes insolvent or files for protection under bankruptcy laws, clients may have only an unsecured claim against their deposited funds. OANDA Corporation would pay all debts to creditors before any unsecured claims in the event of liquidation.

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 company’s size, and whether important information about the company is readily available.

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

In my research, OANDA showed high transparency in its regulatory status, listing all regulators on the About Us page. There you can also find an in-depth coverage of OANDA’s history and senior management. The website breaks down costs on the Fees page. Traders can find the Terms of Use on the Legal Documents page.

Overall, I rated OANDA as having a strong level of transparency, better than average for the industry.

Fees

Trading Fees

I tested the spreads at OANDA Corporation across different currency pairs using the OANDA Trade Web Platform platform. I performed the tests at 8:00 a.m. GMT and 4:00 p.m. GMT on 22 September 2023. 8:00 a.m. GMT is the London open when there is high liquidity in the forex market and tighter spreads in currency pairs. 4:00 p.m. GMT is during the New York trading session.

The figures above reflect spread-only pricing. Clients with Standard and Elite Trader account types can choose spread-only pricing or access lower spreads with commissions with a core pricing plus commission model. Traders can view the price sheet for the core pricing plus commission here.

At OANDA US, swap fees (the cost of holding a position overnight) were average in my tests. 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). I recorded the data on 22 September 2023.

Non-Trading Fees

OANDA charges an inactivity fee of $10 per month for accounts that have been dormant for 12 months.

Are Fees at OANDA Competitive?

With a Standard account, I judged the fees at OANDA to be roughly average for the industry. Substantially lower costs are available via the Elite Trader account type, and clients can earn up to $17 in rebates per million units traded when minimum trading volumes are met.

Platforms and Tools

OANDA Web Platform

The OANDA Web 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. This feature lets traders view charts across numerous instruments and timeframes on one screen.

Charts

The platform features TradingView charts, which have 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 Web platform is impressive. Standard order types such as market, limit, and stop-loss are available. It is possible to select ‘time in force’ conditions, meaning that you can set your limit or stop-loss order to expire after a set time. In addition, trailing stop-loss orders are available.

The OANDA Web platform also has built-in Order Book, Heatmap, and Position Ratios tools.

The Order Book tool shows data on the open positions and orders of all the traders and investors using OANDA for a given instrument. This data can give traders a clue about the level of liquidity in the market at different price levels and where there may be strong support and resistance.

The Heatmap tool shows the major market movers, providing traders with ideas for interesting currencies to trade for the day.

The Position Ratios tool shows the percentage of OANDA traders who are long and short in each currency pair. This is called sentiment data and it provides powerful insight into the psychology of a market. Traders can interpret the data in a variety of ways. Most commonly, it is understood that when an extreme percentage of traders are either long or short an instrument, a trend reversal may be imminent.

Alerts and 1-click trading are not available on the OANDA Web platform. These features are available on MT4, the TradingView platform, and the OANDA mobile app.

My Key Takeaways after Testing the OANDA Web Platform

Having spent over two years reviewing the platforms of leading forex brokers, I rate OANDA Web as better than average. I appreciated its flexible order types, robust charting, and real-time news feed from Dow Jones. My experience trading forex showed me that sentiment data is an especially valuable indicator, so I was impressed to see the Position Ratios tool providing insights into the trading activity of OANDA’s large client base. The OANDA Web platform has a user-friendly UX that can accommodate beginners and also advanced proprietary features to satisfy experienced traders.

TradingView

The TradingView platform offers one-click trading, trading from the chart, watchlists, market news, and trading ideas. Traders can easily place trades and manage open positions and pending orders from the platform.

The industry-leading TradingView charts feature 11 time frames, 11 chart types, and over 100 technical indicators. A wide range of drawing tools, from trend lines to Fibonacci retracements, are also available.

The range of available order types is excellent. Market orders, limit orders, stop-loss orders, and trailing stop-loss orders are available. Traders also have the option to apply time-in-force conditions such as Good-Til-Canceled (GTC).

Users can draw inspiration from the massive community active on TradingView with features such as the ideas stream. The TradingView platform has the rare combination of being powerful in its functionality and intuitive with a well-designed interface.

My Key Takeaways after Testing TradingView

My initial impression of the TradingView platform was that its design and usability are second to none. Compared to other brokers, I judged it to be one of the best browser-based platforms on the market. Advanced charting and order types are available, and the platform draws from the wisdom of the crowd with cutting-edge features like its ideas stream. With 1-click trading and trading from the chart, I rate TradingView as a platform that can cater to day traders and scalpers as well as longer-term investors.

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. The platform can deliver alerts via audio, email, or push notification to a mobile device.
• Watchlists. Traders can create a list of their favorite instruments and follow live quotes in a market watch panel.
• One-Click Trading. This feature allows traders to execute orders with a single click and no secondary confirmation. This feature enables traders to operate faster 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. Traders use market orders to buy or sell an instrument at the best current price.
• Limit Order. Traders use limit orders to buy or sell an instrument at a specified price or better.
• Stop Loss Order. Traders use stop-loss orders to buy or sell an instrument when its price reaches a specified level.
• Trailing Stop Order. Traders use trailing stop-loss orders as a stop-loss order at a defined percentage or dollar amount away from an instrument’s current market price. Trailing stop orders allows traders to secure profits when they 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. Traders can choose from nine time frames, from one minute to one month.
• 3 Chart Types. Traders can use 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.
• Automated Trading. MetaTrader 4 allows users to develop, test, and apply Expert Advisors (EAs). EAs are programs that monitor and trade markets using algorithms.

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

My Key Takeaways after Testing MetaTrader 4

The look and feel of MetaTrader 4 are a bit dated – I felt there is room for improvement in design and usability. But as one of the most popular trading platforms in the world and the only one offered by many forex brokers, I have spent a lot of time testing it.

MT4 is actually very well-rounded and can do more than most competitors – with advanced charting, a complete range of order types, and popular features like 1-click trading, trading from the chart, and alerts. The advanced features of the desktop platform set it apart in that it enables traders to run and backtest automated strategies.

Although it presents a steep learning curve, MT4 can cater to beginners. Meanwhile, its algorithmic trading capability and MAM/PAMM solutions can also accommodate professional traders and money managers.

OANDA Mobile App

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

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

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

Unlike the web interface, one-click trading and alerts are available via the app. Real-time news from Dow Jones and an economic calendar is 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 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.

My Key Takeaways after Testing OANDA US Mobile App

After two weeks of testing the OANDA Mobile app, I rate it as easy to use and feature-rich. Attention to detail is reflected in advanced settings, such as the ability to configure the daily candle start and end times. Compared with dozens of trading apps I have reviewed, I judged the design and usability of OANDA’s app as above average. With advanced order types, robust charting, real-time news, and alerts, this app is suitable for both beginners and advanced traders.

Order Execution

The US division of OANDA (OANDA Corporation) is a market maker broker. Market makers typically generate revenue through the bid/offer spread. Market makers attempt to match client orders to avoid trading directly in the market and increase their spread capture.

Tradable Instruments

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

CFD trading is not allowed in the United States due to restrictions by the Securities and Exchange Commission (SEC) on over-the-counter (OTC) instruments. OTC trading is done directly between two parties without going through a financial exchange.

OANDA Corporation offers trading in forex and a range of popular cryptocurrencies. At the time of this writing, clients can access the following tradable instruments:

• 68 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.
• 8 Cryptocurrencies with Paxos*. Major and minor coins, such as Bitcoin, Ethereum, and Uniswap.

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

In the tables below, you can see a selection highlighting the variety of currency pairs available to US traders:

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

My Key Takeaways after Exploring OANDA US Tradable Instruments

OANDA is one of a handful of brokers offering spot forex trading in the United States. After testing the available instruments at OANDA US for two weeks, I judged that it provides a good range of pairs to work with.

United States traders can experience trading popular pairs like EUR/USD, more volatile minor pairs like GBP/JPY, and even exotic pairs like TRY/JPY. The option of trading popular spot cryptocurrencies in addition to forex is rare in the US and enhances the overall offering.

Overall, the range of instruments can cater to beginners, and there is also enough variety to satisfy advanced traders.

Customer Support

I tested customer support with various queries, ranging from platforms to tradable instruments. Chat support responded within seconds, and emails were typically responded to the same day or within one business day.

Via phone, navigating a series of automated questions designed to segment callers was necessary, but ultimately I received good support from industry-savvy agents.

US clients with forex trading accounts can access support from Sunday at 4:00 p.m. ET to Friday at 6:00 p.m.

Deposits & Withdrawals

In the tables below, I break down the fees and processing times for each deposit and withdrawal method.

Deposits

In the case of a deposit via debit card or bank wire transfer, your bank may charge you a service fee.

Funds arriving via ACH need to be returned to the same bank when a withdrawal is made. Your bank may charge you a service fee.

Withdrawals

For withdrawals via debit card, OANDA can process up to 100% of the original deposited amount back to a debit card. Traders can withdraw any trading profits or amount beyond this limit via another method.

For withdrawals via bank wire, your bank may charge additional fees and take additional time to complete your withdrawal beyond OANDA’s standard processing time. I judged that OANDA’s withdrawal fees by bank wire are roughly average for the industry.

Account Types and Terms

The table below breaks down the key features of each account type.

Standard and Elite Trader Accounts both have access to the full range of 68 currency pairs and all four trading platforms (OANDA Web, OANDA Mobile, TradingView, and MetaTrader 4).

The Elite Trader Account loyalty program has several attractive benefits:

• Traders can earn cash rebates of US$5 to US$17 per million units traded – a reduction of up to 34% in trading costs
• A dedicated relationship manager
• Exclusive discounts on third-party platforms such as TradingView
• VIP content and events.

To qualify for the Elite Trader Account, OANDA clients must fill out an application form and meet a minimum trade volume requirement of US$10M each calendar month.

Account Application

To open an individual account at the OANDA Corporation, prospective clients must answer the following questions.

Personal details

• Name, date of birth, mobile phone, citizenship, residential address.

Employment and Financial Details

• Company name, job title, industry, annual income, source of trading funds, personal net worth, liquid net worth.

Trading Experience

• Level of experience trading futures, FX, securities, and cryptocurrencies.
• Whether you operate a commodity pool, a pooled investment vehicle, or act as an intermediary accepting funds from others, or if you will be trading on behalf of others.

Verification of Identity

• Fast track method using driver’s license and SSN/TIN.
• Standard method with 3 forms of ID (Government-issued Photo ID, proof of address, and SSN or TIN).

Nine base currencies (the currency in which your account is denominated) are available.

Cryptocurrency Accounts*

Only individual live trading accounts registered with OANDA Corporation can access spot cryptocurrency trading. Account activation is subject to approval by Paxos Trust, a New York-based company specializing in blockchain.

When it comes to trading spot cryptocurrencies at OANDA US, there are some important differences to trading forex.

• Spot cryptocurrencies can be traded via the OANDA mobile app only.
• It isn’t possible to sell short cryptocurrencies.
• Cryptocurrencies can be traded 24/7 with the exception of OANDA maintenance hours.

*OANDA Corporation is not party to cryptocurrency transactions. All transactions in digital assets (including cryptocurrencies) occur on the Paxos Trust Company exchange. Any positions in digital assets are custodied solely with Paxos and held in an account in your name outside of OANDA Corporation.

Demo Accounts

OANDA offers free demo accounts via the OANDA Trade web platform, the OANDA mobile app, and MetaTrader 4. Demo accounts are a boon for beginners, allowing 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 multiple forex pairs. Once users have gotten up to speed on a demo account, they can easily switch over to a live version.

Leverage

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

For US clients, OANDA offers a maximum of 1:50 in leverage. 1:50 leverage means that with $1,000 of funds in an account, a trader can take on up to $50,000 worth of market positions.

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.

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.

News from Dow Jones is available from OANDA’s web, desktop, and mobile platforms. The global team of Dow Jones business news reporters and editors provides:

• Real-time breaking news
• Expert trend analysis
• In-depth policy commentary

OANDA US clients also have access to powerful third-party tools: AutoChartist, MotiveWave, and MultiCharts.

• Autochartist automatically identifies chart patterns and key price levels and uses this information to predict the most likely direction of the trend.
• MotiveWave provides advanced charting capabilities for strategy backtesting, strategy optimization, and replay mode.
• MultiCharts is available via the OANDA Application Programming Interface (API) and offers high-definition charting, dynamic strategy backtesting, and EasyLanguage support.

My Key Takeaways after Examining OANDA US Research Section

I came away feeling like OANDA US checks all the boxes regarding research. Its decades of experience in the forex market are reflected in the high-quality analysis of MarketPulse writers. Traders can rely on fast updates on major news events and economic releases from the Dow Jones news feed.

I was most impressed by the powerful proprietary research tools, including sentiment analysis, within the OANDA Web platform. The third-party research tools from MultiCharts and MotiveWave enable strategy backtesting and optimization and cater primarily to advanced traders. Meanwhile, trading ideas from Autochartist are easy for beginners to grasp.

Education

OANDA’s educational resources include a wide variety of educational articles, videos, and live webinars.

The trading resources section on Oanda.com covers basics like leveraged trading to more advanced themes, including technical analysis, indicators, and trading strategies. I liked that OANDA goes beyond theory and delves into practical topics like finding good entry and exit points for a trade.

Learning from industry experts in a live setting is one of the best ways of building a foundation of market knowledge. OANDA delivers in this area with live and recorded webinars spanning topics like risk management, Fibonacci, and platform tutorials.

The Trade Tap blog is another great resource, providing clients with further market insights. Long-form articles tackle themes like Crypto Technical Analysis and How to use Divergence Analysis in Your Trading.

The Bottom Line

OANDA is a forex industry pioneer with over 25 years of experience. The company’s US entity is one of a small number of brokers providing US residents access to the spot forex market. With a $0 minimum deposit, the barrier to entry is low, and the range of available platforms and tools is excellent.

While spreads for the Standard Account are about average for the industry, competitive trading costs are available with the Elite Trader account type. OANDA really shines in its offering of research and educational materials, which can cater to various experience levels. Reliable customer support rounds out a robust overall offering from this broker.

OANDA Corporation is regulated by the CFTC/NFA. OANDA is a member Firm of the NFA (Member ID: 0325821). CFDs are not available to residents in the United States.

Disclaimers:

OANDA CORPORATION IS A MEMBER OF NFA AND IS SUBJECT TO NFA’S REGULATORY OVERSIGHT AND EXAMINATIONS. HOWEVER, YOU SHOULD BE AWARE THAT NFA DOES NOT HAVE REGULATORY OVERSIGHT AUTHORITY OVER UNDERLYING OR SPOT VIRTUAL CURRENCY PRODUCTS OR TRANSACTIONS OR VIRTUAL CURRENCY EXCHANGES, CUSTODIANS OR MARKETS

Trading in digital assets, including cryptocurrencies, is especially risky and is only for individuals with a high risk tolerance and the financial ability to sustain losses. OANDA Corporation is not party to any transactions in digital assets and does not custody digital assets on your behalf. All digital asset transactions occur on the Paxos Trust Company exchange. Any positions in digital assets are custodied solely with Paxos and held in an account in your name outside of OANDA Corporation. Digital assets held with Paxos are not protected by SIPC. Paxos is not an NFA member and is not subject to the NFA’s regulatory oversight and examinations.

Leveraged trading in foreign currency contracts or other off-exchange products on margin carries a high level of risk and may not be suitable for everyone. We advise you to carefully consider whether trading is appropriate for you in light of your personal circumstances. You may lose more than you invest. Information on this website is general in nature. We recommend that you seek independent financial advice and ensure you fully understand the risks involved before trading. Trading through an online platform carries additional risks.
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