OANDA Review 2021 – Is This the Most Reliable Forex and CFD broker?

BrokerOanda
Web addresswww1.oanda.com
Founded in1995
Head officeCalifornia
Customer service+44 20 3151 2050
Type of supportEmail, phone, chat
LanguagesFR, EN, ES, DE, IT, PT, CN, JP
Minimum deposit€0
Leverage1:30
Demo accountYes
Deposit methodsBank transfer, credit card, PayPal
RegulatedYes
Mobile appYes
Tablet appYes
General rating4.8/5

Summary

OANDA is a Forex and CFD broker founded in 1996 and based in San Francisco. It is regulated by various reputable regulatory organizations on several continents, making it a safe broker to trade in markets. OANDA has the advantage of being one of the few CFD brokers to be regulated in the United States.

To help clients make the best decisions, OANDA provides them with several advanced research tools. This includes indicators of market sentiment and analysis.

OANDA offers its own trading platform called fxTrade, which we find quite equipped. Metatrader 4 and NinjaTrader are also available. Traders can automate their strategies on these different platforms.

Overall, OANDA is a competitive broker. If you want to rely on a strictly regulated broker to trade CFDs with substantial capital, OANDA will suit you perfectly.

Account opening

OANDA offers only one standard type of account. Account opening is quick, but validation can take several days.

With only one type of account offered, all customers will have the same trading conditions. However, you can open multiple accounts under different currencies. You will start by giving your personal information: name, first name and address. Then you will respond to a form about your professional status and income.

OANDA will have you take a short test of your knowledge of online trading before moving on to identity and residency verification. For this step, you will have to send a photo of your ID card or passport via the platform, as well as a utility bill or bank statement.

After checking your documents and validating your trading account, you will be able to credit your account.

Deposit and withdrawal

OANDA offers 3 deposit methods for European customers: bank card, transfer and PayPal.

The deposits and withdrawals you make on OANDA must necessarily be made with accounts that are in your name. OANDA offers several currencies for your account balance, including the euro and the dollar. You can, for example, open one account in euros and another in dollars. This is very useful, as you can create an account in the same currency as your bank account to avoid conversion fees when depositing.

OANDA offers several deposit methods, which may vary in availability depending on your country of residence. In Europe, you have card payment, bank transfer and PayPal. PayPal and card deposits are instantaneous, while the bank transfer can take up to 5 days before the funds reach your OANDA trading account.

Regarding withdrawals, your first request of the month by card or PayPal is free. From your second transaction, OANDA charges a fee that depends on the currency of your account. For the euro account, they amount to 20 euros. The funds normally reach you after 3 working days.

Trading platforms

fxTrade is OANDA’s official trading platform. The broker also allows you to trade with TradingView, NinjaTrader and Metatrader 4.

OANDA offers its own trading platform, but also third-party platforms to enrich its experience. You’ll find all the necessary tools to carry out your analysis before making an investment decision.

fxTrade

Oanda fxTrade

This is OANDA’s main platform. It is available in webversion (webtrader), mobile and PC. The fxTrade webtrader and PC software are identical and give virtually the same experience. fxTrade offers flexibility as you can switch from one platform to another and continue to follow the markets.

fxTrade integrates TradingView’s charting tools, which provides great flexibility for technical analysts. For example, you can compare several graphs by layering them. In addition, more than 80 technical indicators are available.

Automated trading platform

OANDA offers tools to automate your strategies. In partnership with the Seer Trading platform, the broker allows the development of trading robots. Back test and forward test tools are available, so you can get an idea of the reliability of your robots in the markets.

Another platform, ALGO LAB, developed by QuantConnect, also allows you to develop advanced automated trading algorithms. It is entirely cloud-based and allows you to test data dating back to 2004.

Third-party trading platforms

You can log into your OANDA account through third-party platforms that the broker accepts. Among them is NinjaTrader, which is a very advanced technical analysis trading platform. This software offers a complete solution for technical analytics enthusiasts. It also allows you to design trading algos.

In addition to including TradingView’s charting tools, OANDA allows you to trade directly from its platform. Simply log in to your OANDA account from the trading panel. TradingView provides a better experience for the trader and technical analyst.

OANDA also offers Metatrader 4 for fans of this platform. MT4 is the most popular platform for Forex and CFD trading. It is easy to use and very customizable. MT4 also allows the development of trading robots.

The dashboard

We liked OANDA’s dashboard, which allows you to manage your trading accounts. It is easy to transfer funds from one account to another. In addition, the broker provides you with interesting tools for analyzing the performance of trading accounts. These tools are  provided by Chasing Returns.

fxTrade on mobile

Oanda fxTrade on mobile

OANDA has developed the mobile version of fxTrade, which is available on the Play Store and App Store. Mobile fxTrade is less equipped than the webtrader and PC app, but has enough tools to monitor markets and place orders. It has about 30 indicators.

Regarding trading execution, we liked the fact that fxTrade mobile allows to open trades from the graph. You can quickly change your stop loss and take profit on the chart with your fingers. MT4 mobile does not yet have this feature. fxTrade Mobile also allows you to make deposits and withdrawal requests. So, the application is pretty complete.

We found that fxTrade mobile is unfortunately not synchronized with the webtrader or fxTrade PC. Your graphic scans on the webtrader will not appear on mobile and vice versa. However, this feature would be really useful and appreciated by OANDA customers.

Fees and commissions

The average spread at OANDA is quite competitive and the broker does not charge commission.

OANDA does not charge commissions on your trades, only a variable spread is applied. Spreads are acceptable, but remain quite wide compared to some of its competitors. It is still competitive. On the EUR/USD, the average spread is 1.2 pip.

ProductsAverage spreads
EUR/USD1,2
GBP/USD1,6
USD/JPY1,3
Gold27
CAC 401,4

We liked the fact that OANDA is transparent about this. The broker offers a tool that allows you to know the average spread of a given asset over a period of time. You can therefore read the average spread on the EUR/USD over the last month.

Oanda Fees and commissions

The broker also allows to trade micro lots, i.e. one thousandth of a lot. This will be ideal for those with low capital and want to limit their exposure at the beginning of their market adventure. The minimum size is set at 0.01 lot for most Forex and CFD brokers.

Inactivity charges

OANDA charges an inactivity fee from your account after two years of inactivity. This fee is 10 euros per month.

Withdrawal costs

When withdrawing, OANDA will charge you a fee of 20 euros (for an account in euros). These withdrawal fees are quite high, knowing that some other brokers do not charge any fees.

Markets and financial products

OANDA offers relatively few assets compared to its competitors. Nevertheless, they have the most traded currencies and CFD pairs.

OANDA offers trading on 70 currency pairs as well as CFDs on indices, bonds and commodities. Here are  some of the most  traded  assets  on OANDA.

  • Forex: EUS/USD, USD/JPY, GBP/USD, EUR/JPY
  • CFD indices: France 40 (CAC 40), Germany 30 (DAX), US SPX 500 US Wall St 30.
  • CFD raw materials and metals:  natural gas, gold, silver, oil
  • CFD Bonds: Bund, UK 10Y T-Note, US T-Bond.
  • CFD shares: are not offered.

Research

In addition to its own analytics and research tools, OANDA offers third-party platforms to enrich its offer.

OANDA is one of the best market research brokers. You will have at your disposal several technical and fundamental analysis tools at your disposal.

OANDA customers receive the latest market events in real time. The sources of this news are diverse and come from reputable suppliers such as Reuters and CNBC. OANDA’s MarketPulse platform is powered daily by the broker’s team of technical analysts.

For technical analytics enthusiasts, OANDA Technical Analysis is a platform that forecasts the evolution of currency pairs with the help of Autochartist. You can see, graphically, the potential levels that prices could reach in the short term. These are not trading signals, but its forecasts can reinforce your views on a given currency pair. Other volatility and performance analysis tools are also available.

Customer support

Customer support can be contacted through a variety of means: instant messaging, phone and email. However, the answers may take time.

OANDA has taken care to diversify the methods by which you can contact their customer support department. The fastest way is instant messaging, available at the official website. Telephone and email support are also available.

The support team is available 24 hours a day, 6 days a week. The wait time on the chat can still be quite long, as can email responses. However, the support is professional and will answer your questions, with possible links to OANDA resources, for more information.

Before contacting the support, it may be worth checking out the FAQs, which is on the contact page. There are a number of answers to questions a beginner might ask. It deals with CFDs, different platforms, deposits and withdrawals, etc.

Training

Trading training is available on the OANDA website. But it is not translated into many languages and is poorly organized.

OANDA offers training for trading and different methods of analysis. The training is divided into several chapters consisting of articles. Some are accompanied by illustrative videos. However, we noted the absence of the overall training plan, which would allow for better navigation. The training is not well organized.

Webinars are also regularly hosted by OANDA’s team of analysts, but they are offered only in English. They cover the basic principles of market trading: technical and fundamental analysis, risk management, etc.

Security

A broker benefiting from several regulations especially in the United States. OANDA offers negative balance protection and fxTrade has the 2FA function.

OANDA is arguably the safest CFD broker. Its various branches are regulated in several major economies by reputable regulatory bodies. Here is the list:

There is a high risk in negotiating CFDs. As a protective measure, the broker has put in place a mechanism to protect against negative balance. This means that your losses will not exceed the funds available in your account, even if the market was making a big gap against one of your positions.

For trading, fxTrade has the dual-factor authentication function (2 FA). This mechanism adds additional protection to your account, in addition to the password. You can use Google Authenticator to enable this feature.

Conclusion

OANDA is one of the world’s leading CFD brokers. Its offer on CFDs is quite limited, but its fxTrade platform is well designed and gives a good trading experience. The broker also offers several other third-party platforms, so that its clients can use the platform that suits them best.

Several deposit methods are available and customer service is available 6 days a week. The most notable advantage of trading with OANDA is the existence of different regulations from reliable bodies.

FAQs

Where is OANDA?

Oanda is based in California. But the group has offices in London, New York, Japan and Singapore.

How much is required to negotiate on OANDA?

There is no minimum deposit at OANDA.

What is the maximum lever at OANDA?

Leverage is limited to 1:30.

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