OANDA Review: Is It the Best Forex Broker for 2024?

Oanda is a CFD and forex broker that gives you online trading services all over the world. This broker is based in the US, and regulated by top regulatory authorities including ASIC, IIROC, FFAJ, MFSA, MAS,  FCA, CFTC, NFA, BVI FSC. We recommend OANDA as a trustworthy broker. This broker gives you various trading tools, indices, shares, commodities, Forex, and metals. Oanda supports famous trading platforms and tools such as MT4, MT5, TradingView, and fxTrade.

It is a highly regulated and trusted broker and has its strengths and weaknesses. In this blog, we will closely look at Oanda Broker and give you a review. Here you will learn about key features of Oanda, regulations, safety, account types, Oanda spreads, fees and commissions, advantages, drawbacks, and many more. So, read this complete review on Oanda Forex Broker, and know whether it is the right broker option for you or not.

What is OANDA?

 Oanda was launched in 1996 and became the first Forex online broker. With the time and achievements, Oanda will established in retail trading circles and give you a long list of trading instruments, currency pairs, and FX data services.

The global headquarters of Oanda are located in Canada, Toronto. There are various global bases of this broker company in London Tokyo, etc. The regulated broker has been operating across 8 global financial centers and has a client in over 196 countries. The company is regulated by regulatory bodies and has a license to legally operate in the US, UK, Australia, Japan, Canada, and Singapore. Oanda launched its rade platform in 2001 and became the first automated forex trading platform. Let us look at the given table to get a complete overview of Oanda Forex Broker.

Regulation and Safety

Oanda is regulated by several regulatory bodies and has licenses to operate in different countries. Here is how Oanda is regulated by

• United States – Oanda is a Registered Foreign Exchange Dealer (RFED) by CFTC & a Forex Dealer Member (FDM) of the National Futures Association (NFA # 0325821)
• Canada – Oanda is regulated by the Investment Industry Regulatory Organization of Canada (IIROC)
• Europe – This broker is regulated by the Financial Conduct Authority (FCA No: 542574)
• Asia-Pacific – Oanda  is regulated and licensed by the Monetary Authority of Singapore (CMS Licence No: CMS100122-4) and the International Enterprise Singapore (Commodity Brokers Licence No: OAP/CBL/2012)
• Australia – This broker is licensed by the Australian Securities and Investment Commission (ASIC ABN 26 152 088 349, ASFL No. 412981)

With the highly regulated and trusted broker, Oanda earned Best in Class honors for Ease of Use and Research.

OANDA Trading Platforms

OANDA broker provides a range of financial instruments, including MT4, MT5, TradingView, etc. It gives extensive features to traders to smooth their trade and get the best out of it. The functionality of every trading platform is deep and diverse and allows you to do a deep analysis of the market. These trading platforms will refine your strategies and increase the profits range. Here are the trading platforms available on Oanda broker

Proprietary Platform (OANDA fxTrade)

Oanda Broker provides you with a range of trading platforms to meet your trading needs. If you are a CFD trader and forex trader, then Oanda is the best broker for you. It gives you a proprietary trading platform called Oanda fxTrader. This trading platform gives you an intuitive and seamless trading experience. It provides with you real-time market data, integrated access to TradingView, and advanced charting features.

Oanda FxTraders is a famous charting tool for traders. It has a user-friendly interface and allows you to execute forex trade easily. It also provides you with tools for technical analysis, with customizable charts and indicators. You can use the Oanda fxTrade on your mobile and desktop, and it connects with other traders all over the world.

MetaTrader 4/5

Oanda provides you with MT4 and MT5 Trading platforms. You can see the various versions of these platforms on Oanda to use on your mobile and desktop. You can easily use these trading platforms on the web browser to trade in CFD and forex markets.

Oanda is a market maker and a trusted source for currency data, allowing you to execute trade on all platforms, without any rejections or costs. The platform also provides you minute by a minute industry news feed, to keep you updated on the latest market trends.

Here is a comparison table of Mt4, MT5, and fx trader that helps you to understand the difference between these Oanda trading  platforms

Trading Costs: Spreads, Commissions, and Fees

Oanda Broker gives you low spreads and does not charge any fees on deposits and withdrawals. There are some swap rates and inactivity fees applicable to Oanda, that may increase the fees. So, you should know about these spreads, commissions, and all types of fees. Let us clear it.

Spreads and Pricing

Oanda gives you competitive spreads. For example, OANDA provides the average spread for the EUR/USD currency pair, which is 0.8 pips. This spread is lower than other brokers. Moreover, OANDA charges a 0.5% markup on the midpoint price during conversion time. Swap rates are significant and affect the currency pair and direction of trade position.

Commission Options

Oanda has possessed some forex trading costs with high effective spreads. There are core pricing structures you should look at. Oanda is not a discounted broker, but it will automate and execute your trade on different accounts.

Spreads

The bid and ask spreads of Oanda are not comparable to the Forex.com broker. The minimum spread costs of this broker are slightly higher than other brokerage firms, which is around 1.0 pip. For example, the average non-core pricing of Oanda was 1.61 pips on the EUR/USD pair in previous months.

Core pricing

Oanda core pricing consists the low spreads but also consists of a side commission of $5 per $100,000 currency worth. This option requires a $10,000 minimum deposit. If we talk about a commission, then all costs become slightly better than the commission fee structure.

For example, let us take a spread of 1.6 pips on the EUR/USD currency pair under the default pricing structure and a spread of 0.4 pips for core pricing. Once you factor it in the commission structure of 1 pip ( 0.5 pips per side), then the total core pricing will come to 1.4 pips, under the default price. 

Other fees

Oanda is the best forex broker in the world. It does not charge any fees on deposit and withdrawal requirements. This means you can easily start trading on Oanda Broker with a minimum deposit that suits you. It is free to deposit money into the Oanda account, which gives you the flexibility to start a trade. As such you can easily withdraw your earnings from your Oanda broker account. There is no limit on the withdrawal amount.

You can use online payment modes, credit cards, debit cards, e-wallets, and bank wire transfers to deposit or withdraw money from a broker account. However, keep in mind that using e-wallets and debit/credit cards is free, but if you use a bank wire transfer, then you must pay £20 fees.

There are inactivity fees possessed by Oanda, if you do not use your broker account for 12 months. In this case, you have to pay £10 monthly. Overnight charges are also applicable based on the margin amount you used and current interest rates. It ensures transparency in market conditions. If you want to do Margin trading that allows you to leverage the funds in your account, then you must pay reasonable rates starting from 5%. Its free structure is competitive, so you must look at a given table.

Leverage and Risk Management

Oanda leverage or margin trading allows you to open positions that are larger than the account balance. The maximum leverage of Oanda brokers varies based on trading assets and markets. Let us look at the given table to understand the maximum leverage offered by Oanda to pro traders and retail traders.

Risk Management Tools:

Oanda also provides you with risk management tools to reduce your risks. The top risk management tools consist of stop-loss orders, GSLOs (Guaranteed Stop-Loss Orders), Standard stop-loss orders, etc. Traders should use these risk management tools to navigate through the forex market and protect their investments. Here are the 3 different risk management tools

Stop-Loss Orders:

One of the most effective risk management tools offered by Oanda is stop-loss orders. It is the instruction given to the broker, to close the trade automatically when it reaches to certain price level. It reduces the risk of big losses. By setting stop-loss orders on your trade, you can protect your capital from sudden market movements, and save you from big losses.

This broker allows the traders to set stop-loss orders through various trading platforms. Traders can easily choose the stop loss level on the basis of risk appetite and trading strategy. This feature is beneficial for traders who want to reduce losses and increase profits.

Guaranteed Stop-Loss Orders (GSLOs):

Guaranteed Stop-Loss Orders are another risk management tool offered by Oanda. It is not available in the US. It ensures that you perform trades close to stop loss orders and save your money from highly volatile markets. It protects your money against slippage in sudden market changes.

Standard Stop-Loss Orders:

Standard stop loss orders are another tool that is available to all traders who want to protect their capital against sudden market movements

OANDA Account Types

Oanda gives several account types designed to fulfill maximum traders’ needs. However, it’s important to be aware of the number of accounts, fixed spread accounts, and funding accounts, including PAMM or copy trading accounts. This is because, at the same time, as the main needs of traders are met, some unique types of money owed that can be important for certain categories of traders are not available.

Standard vs. Premium Accounts:

Currently, Oanda brokers only 2 main types of accounts for traders to execute trade

Standard Account

The OANDA Standard Account is designed for beginner and intermediate traders and provides spreads on currency pairs, commodities, indices, and valuable metals. This account is available under MFSA, FCA, ASIC, MAS, JFSA, NFA, CIRO (former IIROC), and BVI regulatory bodies.

It provides you with over 200 trading assets, to perform your trade. The minimum trade size to start on a standard account is 1 unit. It is suitable for investment amounts and gives flexibility for traders with reconcerninglevels. No minimum deposit requirement lets traders start trading with any amount they can have the funds for. This account includes signs and market analysis tools to help in making decisions and enhancing techniques for trend fans and traders.

Premium Account

The Premium account caters to traders who are experts in trading activities. It offers spreads, additional support, and personalized services. It is available under CIRO (former IIROC), BVI regulatory authorities. The minimum trade size to start trade on a premium account is 1 unit. There are over 200 assets offered by premium accounts, including Forex, indices, commodities, metals, bonds, and cryptocurrencies.

 This account provides trading conditions, support, and services best for experienced forex traders searching out the development of their trading journey. By opting for this account, traders can also reduce trading fees whilst gaining self-confidence.

Demo Account

 Oanda gives a demo account for traders to check their skills with unlimited digital finances and without a time limit for their use. Trading is performed with real market prices and current unfold values. To sign up for a demo account, one has to fill form similar to that used for beginning a real account.

OANDA’s Research and Educational Resources

Oanda’s academic services cater to new and experienced traders, offering a comprehensive learning experience in leveraged trading, market analysis, and practical trading strategies.

Trading Resources

Oanda offers a wealth of trading sources, which are crucial for boosting trading skills and growing techniques. The resources cover numerous elements of trading, as follows as

• Leveraged trading: A creation to leverage ideas in trading, supporting traders to know the variations and nuances of different trading paperwork.
• Fundamental analysis: This section explains the importance of essential analysis in trading and the way it affects trading decisions.
• Technical analysis: An important tool for traders, this element delves into how technical analysis works and its application in trading techniques.
• Indicators and oscillators: Exploring the role of indicators and oscillators in leveraged trading, highlighting their significance in market analysis.
• Webinars and Workshops
• Webinars: Oanda often hosts webinars where traders can check in to find out about various trading topics. Market experts lead these categories and cover a variety of topics, from live market analysis to advanced trading techniques.
• Trading workshops: Aimed at improving trading skills, these workshops are carried out by skilled market analysts. They provide a mixture of webinars and activities focusing on realistic trading skills and market insights.
• Live Market Analysis: These webinars offer insights into the market traits of important Forex and CFD trading units, assisting traders in making smart decisions.
• Premium Webinar Series: Exclusively available to live account holders for a limited time, these top-rated webinars delve into advanced trading techniques and the usage of technical support and indicators.

Pros and Cons of Using OANDA

OANDA plays a vital role in the forex trading market and provides traders with numerous tools and services on unique platforms. Known for its recognition, OANDA stands at the top in the forex market. Here’s a list of the benefits and disadvantages of OANDA.

Pros

Regulation and Security

 One of the largest benefits of trading with Oanda in the Forex market is its strong regulatory structure. Oanda, the Forex market is regulated through multiple governments, together with the Commodity Futures Trading Commission (CFTC) in the United States, the Financial Conduct Authority (FCA) in the United Kingdom, and the Australian Securities and Investments Commission (ASIC). This guarantees that the trader follows strict tips and gives safe trading surroundings for its clients.

Competitive Spreads

 Oanda Forex offers competitive spreads, which is a key thing for forex traders. The tight spreads provided by Oanda can assist traders in saving trading costs and increasing their profitability. Also, Oanda Forex does not charge any fee on trades, making it the best option for traders who need to avoid additional costs.

User-Friendly Trading Platform

 Oanda the Forex market has its very own proprietary trading platform, referred to as Oanda Trade. The platform is known for its consumer-friendly interface and premium charting support. It gives traders a seamless trading experience and permits them to execute trades quickly and correctly. Oanda Trade is also available on mobile devices, allowing traders to trade on the move.

Educational Resources

Oanda Forex offers a huge range of educational assets for traders of all levels. Their website gives educational articles, webinars, and video tutorials to help traders enhance their information and skills. They actually have a demo account characteristic, which allows traders to practice trading strategies without risking real money.

Customer Support

 Oanda Forex has been recognized for its notable customer service. They offer 24/7 customer service through Email, live chat, and get in touch with. Their help team is known for being responsive and helpful, assisting traders with any issues or inquiries they have.

Cons

Limited Product Offering

 While Oanda, the Forex market, is frequently focused on Forex trading, its product offerings are limited to other brokers. They do not offer as many CFDs (Contract for Difference) on different asset training like shares, indices, or commodities. This can be a drawback for traders who favor expanding their portfolio throughout different markets.

No MetaTrader Platform

 Unlike many other brokers, Oanda Forex does not offer the popular MetaTrader platform. Some traders can also prefer the familiarity and advanced features of MetaTrader, making Oanda Trade less appealing to them.

Minimum Deposit Requirement

Oanda Forex has a minimum deposit requirement of $20, which can discourage some beginner traders who initially need a smaller amount of funding. However, this minimum deposit requirement is low compared to other brokers in the industry.

Limited Promotions and Bonuses

 Oanda Forex does not offer many promotions or bonuses as compared to a few other brokers. This can be a drawback for traders who are seeking out additional incentives or rewards for their trading activities.

OANDA vs. Other Brokers

To help you find the best broker for your trading, here we compare Oanda with IG and Forexmarket.com. So, you have to closely look at a given table to understand the difference between them and choose the best broker

OANDA vs. IG

 The best part about the Oanda platform is that it offers many research tools and indicators. Therefore, IG brokers are for customers seeking out trading in the US. Anyone who wants to trade in the trade markets will find IG brokers a top option. Both of the platforms are good, but the average consider rating of Oanda is 89 out of 99.

OANDA vs. Forex.Com

 There is no doubt that forex.Com is giving strong competition to Oanda. More forex currency pairs and account types are available on the platform of forex.Com.

These many trading pairs aren’t available on the platform of Oanda. It is suitable for a large number of forex traders. Tools services vary by location however still, it emphasizes reliable and fast execution, diversity of different Forex tools, and safety accounts.

How to Open an OANDA Account

The account opening process at OANDA is complete, digital, quick, and hassle-free as compared to other brokers. All Indian traders are eligible to open an account at OANDA. Creating an account is easy by following the given steps.

• New traders must click on the “Start Trading” button at the top of the website where they will be directed to sign up for an account.   
• OANDA’s registration form requires clients to fill in their details, including personal information (which includes name, country of residence, and phone number)
• Next, traders have to confirm their citizenship, filling in their identity or tax number.
• The fourth step requires traders to confirm their home addresses.
• Lastly, traders are required to fill in their employment status and financial information.
• Note that verification documents are not needed for traders who deposit much less than $9,000.
• For customers that deposit more than 9,000 USD, OANDA needs at the least documents to accept you as an individual trader.

Here are the essential documents you must have to open your trading account on OANDA

• Proof of Identification – OANDA accepts all government-issued ID documents, which include a Passport, country ID card, riding license, or different government-issued ID. The record needs to be valid and must comprise a trader’s complete name, date of birth, and a clear photo,  and if it has to have an expiry date, that has to appear properly.
• Proof of Address – Proof of residence is a document that must be issued with the name of the OANDA account holder in the previous 3 months and must include a trader’s complete name, current residential address, issue date, and issuing authority.

After the application is approved, traders can log in and fund their accounts. It is suggested to traders to check OANDA’s risk disclosure, client settlement, and terms and conditions before they start trading. Overall, OANDA’s account-opening process is quick and easy, and accounts are supported up for trading in 1 business day.

FAQ Section