OANDA US Review 2023

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.

Regulatory requirements are subject to change. We gathered the data listed above in October 2022.

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 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 good transparency in its regulatory status, listing all regulators on the About Us page.

The website breaks down costs on the Fees page. Traders can find the Terms of Use on the Legal Documents page.

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 Corporation across different currency pairs using the OANDA Trade Web Platform platform. We performed the tests at 8 AM GMT and 4 PM GMT on 4 October 2022. 8 AM GMT is the London open when there is high liquidity in the forex market and tighter spreads in currency pairs. 4 PM GMT is during the New York trading session.

The figures above reflect spread-only pricing. Clients can choose the 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.

Swap Fees

At OANDA Corporation, swap fees (the cost of holding a position overnight) were average.

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 4 October 2022.

Non-Trading Fees

For US clients, 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, we judged the fees at OANDA to be roughly average for the industry. Lower costs are available via the Advanced Trader account type, which requires a $10,000 minimum deposit. Tighter spreads are available via the core pricing plus commission model.

Platforms and Tools

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. 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 Trade 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.

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

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 market-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 above average. 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.

MetaTrader 4 Desktop

OANDA offers MetaTrader 4 and MetaTrader 5 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:

• 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.
• 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.

OANDA Trade Desktop Platform

OANDA’s desktop platform has the same broad 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 valuable 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. One-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. The desktop platform is available in English, Spanish, Portuguese, French, Italian, German, Japanese, Chinese, and Russian.

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 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 the 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, 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.

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

Currently, OANDA Corporation offers trading in forex.  Also, spot cryptocurrency trading is available. Spot cryptocurrency trading refers to directly buying or selling cryptocurrencies.

At the time of this writing, OANDA Corporation offers 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.
• 5 Cryptocurrencies. Cryptocurrencies, such as Bitcoin, are digital currencies secured by cryptography.

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

Customer Support

We tested customer support with various queries, ranging from available leverage 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 we received good support from industry-savvy agents.

Deposits & Withdrawals

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

Deposits

Note:

• 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 performing a withdrawal. Your bank may charge you a service fee.

Withdrawals

Note:

• 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.

We judged that OANDA’s withdrawal fees by bank wire are roughly average for the industry. Remember that these fees can be avoided by having the Advanced Trader account type.

Account Types and Terms

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

The Advanced Trader program allows clients to earn cash rebates or commission markdowns when minimum volume and deposit requirements are met. A minimum deposit of $10,000 and a monthly trading volume of over $10 million are required to qualify for rebates, access to dedicated relationship managers, and free wire transfers.

Account Application

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

Employment Details

• Company name.
• Job title.
• Annual income.
• Source of trading funds.
• Personal net worth.
• Liquid net worth.

Trading Experience

• Level of experience trading commodities or futures, FX, and securities.
• 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

• Applicants must upload documents to verify their identity with a government-issued ID, (using a driver’s license or passport which includes name, date of birth, and expiration date.
• Proof of address must be also provided (using a bank statement, phone bill, or utility bill).

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

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.

Islamic Accounts

OANDA does not offer a swap-free Islamic account to US clients.

Leverage

One of the reasons that traders are attracted to the forex and CFD 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.

Supported Countries

The US entity of OANDA (OANDA Corporation) only accepts residents of the United States as clients.

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.

Education

OANDA’s educational resources include the basics, such as a demo account and platform tutorials. They also 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 protecting and managing 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 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.

Due to SEC restrictions, the range of tradable instruments is narrow, but the addition of spot cryptocurrency broadens the appeal of OANDA’s service in the United States. While spreads for the Standard Account are about average for the industry, lower trading costs are available with the core pricing plus commissions option. Research and educational materials are better than average and can cater to various experience levels. Reliable customer support rounds out a robust overall offering from this broker.

FAQ