Oanda Scam Test

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OANDA Review

Overview

The largest Forex broker OANDA is the leader of the US financial market. It acts as a guarantor of reliability and stability.

Details

Broker OANDA
Website URL oanda.com
Founded 1996
Headquarters 140 Broadway, 46th Floor New York, NY 10005 USA
Support Number + 44-20-3151-2050, +1 (212) 858-76-90
Support Types Chat, phone, email
Minimum 1st Deposit 1$
Minimum Trade Amount 1$
Bonus Bonuses up to 50%
Payout Up to 100%
Leverage 1:100
Spread from 0.5 points
Free Demo Account Open Demo
Regulated
Regulation FCA.org (No. 542574)
Account Types Demo, Standard
Deposit Methods Bank transfer VISA, MasterCard, credit, debit cards, PayPal
Withdrawal Methods Bank transfer VISA, MasterCard, credit, debit cards, PayPal
Number of Assets 100+
Types of Assets Forex, metals, CFD on indices, stocks, commodities, bonds
Trading Currency USD, EUR, JPY, GBP, etc.
US Traders Allowed
Mobile Trading
Overall Score 3/10

Full Review

Certainly, you would like to know whether OANDA is another scam or not. We’ll answer this question in the broker’s detailed review here below.

The creators of the brand believed that it is the Internet and new technologies that will open wide access to the markets for all customers. For more than 20 years, the company has been holding leadership positions, from a start-up to a global corporation, with offices and customers in over 196 countries. Being one of the oldest and most professional brokers, it still acts as a guarantor of reliability, stability and quality. The company grants access to nearly all world liquid markets, trade in currency pairs, stock indices, cfd for futures (oil, sugar, wheat, etc.), etc. Clients can also count on specialized tools: calculators, currency volatility charts, order book, indicators and much more.

To trade a variety of assets the Forex broker offers a rich choice, such as a reliable terminal MetaTrader 4, a browser platform Web Trading, as well as its own high-quality development of FXTrade. FXTrade is the first platform that provides data in a graphical form in real time. The unique program has a simple interface and fast execution speed. It’s equipped with graphing functions, and you can check trading strategies, study financial news. All platforms are convenient; they allow you to work comfortably, while mobile trading is available too.

For traders, there is a 24-hour service support, a free demo account that allows to test the system. The website has a Russian version that enables to get the necessary information about the work of the broker. However, analytics, news and reviews, all the teaching material, webinars, lessons are presented in English, which makes the trade more difficult.

Replenishment and withdrawal of earnings

OANDA offers a minimum of opportunities for withdrawal and replenishment of funds. To replenish the deposit, you need to register and get verification from the broker, deposit the amount by choosing a convenient way to transfer funds from the available options:

Pay attention, withdrawal of funds is possible only in the way the trader’s funds were replenished. The time for processing an application depends on the currency of the transfer and the method of withdrawal; the broker does not impose a transfer fee for the first application, but then all transactions are made with a commission. On the Internet, there are enough complaints from traders on problems with withdrawal of funds, so be careful and discuss the features of capital operations with a personal manager.

Complaints against OANDA

OANDA has different reviews on the Internet, but there are not so many. It means that Russian traders have not appreciated the company yet. Some traders highly praise the reliability of the company, favorable conditions, the set of services that help to make their trading strikingly profitable, to say nothing of an informative website.

Nevertheless, negative feedback is enough: users of the company complain about the problems in the withdrawal of funds (including the commission for withdrawal, there are few ways to withdraw), problems with the terminal, the inconvenient site, minimum information in Russian (including a large part of the necessary material: training, analytics, reviews, news – all of this is presented in English).

Despite the fact that OANDA has been in the financial services market for a long time, today its unique and worthy service is difficult to assess by Russian market players. As regards this issue, the broker still has to work hard if it plans to seriously cooperate with our traders.

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Is OANDA a scam?

Today OANDA is one of the most experienced and successful brokers, known throughout the world. It has been providing high quality service for trade for more than 20 years. The work takes place in several platforms. It’s a reliable and well-known terminal Metatrade and its own platform, which has many advantages as well as positive feedback from Russian traders. Having a terminal of its own that many brokers in our country are deprived of, is a serious step, which indicates that the company plans to occupy strong positions in the market, investing substantial funds in creating a unique service.

OANDA has a license that guarantees the safety of work with it. Reviews about the broker are diverse and there are not so many of them, they mostly indicate a number of serious problems that prevent the company from fully entering the Russian market and showing itself in full force (problems with withdrawing money, commission fees, a complex site, represented for the most part in English, etc.).

The company publishes analytics, training materials, but Russian traders find it difficult to use. Let’s hope that the situation will change for the better and this worthy broker will successfully work with the Russian audience (it is necessary to provide high-quality material on the website, ensure timely support, resolve problems with withdrawal of funds).

Do you still consider OANDA to be a scam, don’t you? We guess it has nothing common with an average scam. For more than 20 years of successful cooperation with traders around the world, the company has proved its reputation by providing high quality service as well as excellent trading conditions.

The broker’s regulator

Today, OANDA has a number of authoritative licenses, its activities are regulated:

  • The Investment Regulatory Organization of Canada IIROC,
  • The UK Financial Supervision Authority (License No. 542574),
  • The Monetary Authority of Singapore MAS (license No. 200704926K),
  • The Australian Securities and Investments Commission ASIC (registration number ABN 26 152 088 349, registration number AFSL 412981),
  • The Association of Financial Futures (registration No. 1571).

Bonuses in OANDA

Each trader of the company can receive a bonus of «50% on the deposit when replenishing the account.»

To receive a bonus, you need to replenish your account for at least 200 € and place the first deal. To the amount of 200€ an additional bonus amount of 100€ will be added. Please note, before using the promotion, it is necessary to clarify its terms with the personal manager.

Conclusion

The Forex broker OANDA has been successfully operating in the field of online trading for more than 20 years, occupying a leading position. Having a large database of users around the world and providing a reliable high quality product, the company does not stand still and it’s constantly evolving. An essential positive factor is the availability of our own platform and high quality service, licenses. However, according to negative feedback on the Internet the broker still has to work hard to offer a really high-quality service to Russian traders. Let’s hope, in this part the company plans to improve the service.

Should we consider OANDA to be a fraudster? This assumption has nothing to do with reality because for a long time the company has been demonstrating the high quality of services as well as reliability of cooperation with users around the globe. We ask traders for real feedback about OANDA, which will affect its ratings on our web portal, and also warn against problems in its work.

Oanda Review 2020

Summary

Recommended for forex traders who value a user-friendly platform and great research tools

Oanda is an American forex broker founded in 1996.

It is considered safe because it has a long track record, discloses its financials, and is regulated by top-tier authorities, such as the US Retail Foreign Exchange Dealer (RFED) and the UK’s Financial Conduct Authority (FCA).

Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73.5% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

We selected Oanda as Best mobile trading platform and Best broker for API trading for 2020, based on an in-depth analysis of 57 online brokers that included testing their live accounts. Check out the complete list of winners.

Oanda pros and cons

With just a few exceptions, Oanda’s fees are low. It offers a great and easy-to-use web trading platform, and a quick and user-friendly account opening process with no minimum deposit. Its research tools are powerful, with numerous technical indicators and a great API offer.

On the downside, Oanda has a limited product portfolio, as you can trade with forex and CFDs only. The bank withdrawal fee is high, while customer support could be improved as it is slow and not available 24/7.

Pros Cons
• Generally low fees • Only FX and some CFDs
• Easy-to-use web trading platform • Poor customer service
• Easy and digital account opening • High bank withdrawal fee
Oanda main features and highlights
��️ Country of regulation USA, UK, Australia, Singapore, Canada, Japan
�� Trading fees class Low
�� Inactivity fee charged Yes
�� Withdrawal fee amount $0
�� Minimum deposit $0
�� Time to open an account 1-3 days
�� Deposit with credit card Available
�� Depositing with electronic wallet Available
�� Number of base currencies supported 9
�� Demo account provided Yes
��️ Products offered Forex, CFD

Gergely Korpos

Author of this review

Everything you find on BrokerChooser is based on reliable data and unbiased information. We combine our 10+ years finance experience with readers feedback. Read more about our methodology

Oanda review
Fees

Oanda charges low CFD and low forex fees. Non-trading fees are low, though the withdrawal fee is quite high for bank transfers.

Pros Cons
• Low trading fees • High withdrawal fee for bank transfers
• Low forex fees
• No withdrawal fee
• No withdrawal fee in most cases
Oanda fees snapshot
Assets Fee level Fee terms
EURUSD Low The fees are built into spread, 1.2 pips is the average spread cost.
GBPUSD Low The fees are built into spread, 1.6 pips is the average spread cost.
S&P 500 CFD Low The fees are built into spread, 0.5 is the average spread cost.
Inactivity fee Low $10 per month after 2 years of inactivity

How we ranked fees

We ranked Oanda’s fee levels as low, average or high based on how they compare to those of all reviewed brokers.

To get things rolling, let’s go over some lingo related to broker fees. What you need to keep an eye on are trading fees, and non-trading fees.

  • Trading fees occur when you trade. These can be commissions, spreads, financing rates and conversion fees.
  • Non-trading fees include charges not directly related to trading, like withdrawal fees or inactivity fees.

In the sections below, you will find the most relevant fees of Oanda for each asset class. For example, in the case of forex and stock index trading, spreads, commissions and financing rates are the most important fees.

We also compared Oanda’s fees with those of two similar brokers we selected, Pepperstone and FXCM. This selection is based on objective factors such as products offered, client profile, fee structure, etc. See a more detailed rundown of Oanda alternatives.

To have a clear overview of Oanda, let’s start with the trading fees.

Oanda trading fees

Oanda trading fees are generally low.

We know it’s hard to compare trading fees for forex brokers. So what we did was we compared brokers by calculating all the fees of a typical trade for selected products.

We picked popular instruments within each asset class usually offered by forex brokers:

  • Forex: EURUSD, GBPUSD, AUDUSD, EURCHF and EURGBP
  • Stock index CFDs: SPX and EUSTX50

A typical trade means buying a leveraged product, holding it for one week and then selling it. For volume, we chose a $20,000 position for forex and a $2,000 position for stock index and stock CFD transactions. The leverage we used was:

  • 30:1 for forex
  • 20:1 for stock index CFDs

These catch-all benchmark fees include spreads, commissions and financing costs for all brokers. Let’s see the verdict for Oanda fees.

Forex fees

Oanda forex fees are low. The EURUSD fee is a bit higher than the average.

Oanda forex benchmark fees of a $20,000 30:1 long position held for one week

Oanda Pepperstone FXCM
EURUSD benchmark fee $15.9 $14.9 $16.7
GBPUSD benchmark fee $11.9 $12.5 $13.0
AUDUSD benchmark fee $8.3 $11.9 $126.5
EURCHF benchmark fee $7.1 $3.7 $4.6
EURGBP benchmark fee $10.7 $10.6 $9.6

CFD fees

Oanda has generally low CFD trading fees. Compared to Pepperstone and FXCM, Oanda’s fees are lower.

Oanda CFD fees for a $2,000 long position held for one week

Oanda Pepperstone FXCM
S&P 500 CFD benchmark fee $1.0 $1.7 $2.2
Europe 50 CFD benchmark fee $0.9 $1.6 $1.6

Non-trading fees

Oanda has average non-trading fees. There is no deposit fee. The withdrawal fee is low for credit/debit cards and PayPal, but the bank withdrawal fee is high. Oanda charges a reasonable $10 per month after 2 years of inactivity.

Oanda non-trading fees

Oanda Pepperstone FXCM
Account fee No No No
Inactivity fee Yes No Yes
Deposit fee $0 $0 $0
Withdrawal fee $0 $0 $0

Oanda review
Account opening

Oanda’s account opening is straightforward, with no required minimum balance.

Pros Cons
• Fully digital • Issues with ID verification can slow account opening
• No minimum deposit
• Low minimum deposit

Can you open an account?

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73.5% of retail CFD accounts lose money

What is the minimum deposit at Oanda?

There is no minimum deposit at Oanda.

Account types

There is only one type of trading account at Oanda (in addition to a demo account). However, you can open up to 19 sub-accounts. These are great if you want to have different base currencies under one account. E.g. you can have a USD account with EUR and GBP subaccounts.

How to open your account

From start to finish, you can calculate with less than 10 minutes. Account approval, though, can take multiple days, as we were asked to send some of our verification documents in email; but it’s still quick if you respond to their emails in time.

It takes four steps to complete Oanda account opening:

  1. Contact details: set your username and password.
  2. Personal information: submit basic personal information, like your employment status or income estimate.
  3. Appropriateness test: fill out a competence test with questions like “What are margins?”
  4. Verify your identity: upload a copy of your ID/passport to verify your identity, and a bank statement / utility bill to verify your residency.

Oanda review
Deposit and withdrawal

There is no deposit fee and you can conveniently use your debit card for deposit. While withdrawal is free in most cases, it is expensive for bank transfers, and it involves a fee if you withdraw to your card more than once a month.

Pros Cons
• Credit/Debit card available • High withdrawal fee for bank transfers
• No deposit fee
• Withdrawal is free for PayPal and for the first debit card transaction each month

Account base currencies

At Oanda, you can choose from 9 base currencies:

EUR USD GBP
AUD CAD CHF
HKD JPY SGD
Base currencies at Oanda vs similar brokers
Oanda Pepperstone FXCM
Number of base currencies 9 10 3

Why does this matter? For two reasons. If you fund your trading account in the same currency as your bank account or you trade assets in the same currency as your trading account base currency, you don’t have to pay a conversion fee.

A convenient way to save on currency conversion fees is by opening a multi-currency bank account at a digital bank. Revolut or Transferwise both offer bank accounts in several currencies with great currency exchange rates as well as free or cheap international bank transfers. Opening an account only takes a few minutes on your phone.

Deposit fees and options

Oanda charges no deposit fees for bank transfers and credit cards, but depositing via PayPal costs £0.35 per transaction plus 1.4% of the transferred amount.

Oanda deposit options

Oanda Pepperstone FXCM
Bank transfer Yes Yes Yes
Credit/Debit card Yes Yes Yes
Electronic wallets Yes Yes Yes

Deposit options vary depending on your residency and your account currency. We listed the main options below.

Deposit options in the regions

Option Europe United States Canada Asia-Pacific Australia
Bank transfer
Credit card
Debit card
PayPal

You can only deposit money from accounts that are in your name. A bank transfer can take several business days, while payment with a credit/debit card is instant. For more information, visit Oanda’s website.

Oanda withdrawal fees and options

Oanda charges no withdrawal fees for the first transfer each month for debit cards, while PayPal is free for EUR, USD, and GBP transactions. On the other hand, bank transfers cost a minimum of $20 (both domestic and international), and subsequent debit card withdrawals during the month cost $15 each.

Oanda withdrawal fees and options

Oanda Pepperstone FXCM
Bank Transfer Yes Yes Yes
Credit/Debit card Yes Yes Yes
Electronic wallets Yes Yes Yes
Withdrawal fee $0 $0 $0

Withdrawal options and fees vary depending on your residency. The main withdrawal options are the same as those for deposits.

You can only withdraw money to accounts in your name. How long does it take to withdraw money from Oanda? At Oanda’s website, you will see various time estimates for different methods. In our tests it took only one business day using a debit card.

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Oanda review
Web trading platform

Oanda’s web trading platform is user-friendly and safe with good customizability. On the downside, you can’t set price alerts.

Pros Cons
• User-friendly • No price alerts
• Clear fee report
• Two-step (safer) login
Oanda platforms to choose from
Trading platform Score Available
Web 4.5 / 5 stars Yes
Mobile 5.0 / 5 stars Yes
Desktop 3.8 / 5 stars Yes

At Oanda you can choose from two trading platforms: Oanda’s own platform or MetaTrader 4. In this review, we tested Oanda’s platform.

The web trading platform is available in several languages:

Chinese English French German Italian
Japanese Portuguese Russian Spanish Japanese

Look and feel

Oanda’s own trading platform is user-friendly and well-designed. It is also customizable, allowing you to change the tabs’ position and size.

Login and security

Oanda provides a two-step login, which is safer than using only a username and password. For two-step login to work, you’ll have to install the Google Authenticator app, which is a compromise that’s easy to live with for the sake of security.

Search functions

The platform’s search function is good, in that you can easily find the assets you are looking for. Assuming you found the search function in the first place – its location is not very intuitive, as the search menu can be found under the ‘Rates’ tab.

Placing orders

You can use the following order types:

  • Market
  • Limit
  • Take profit
  • Stop loss
  • Trailing stop

Only Good till Date (GTD) order time limit is available. To get a better understanding of these terms, read this overview of order types.

Alerts and notifications

You cannot set price alerts and notifications on the web trading platform, although this function would be useful and it is available at several other brokers.

Portfolio and fee reports

Oanda has clear portfolio and fee reports. You can find your summary of spread costs, commissions and profit under the ‘Activity’ tab.

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73.5% of retail CFD accounts lose money

Oanda review
Mobile trading platform

Oanda’s mobile platform is similar to the web trading platform in functionality, and as a plus, you can also set alerts.

Pros Cons
• User-friendly • No Touch/Face ID login
• Two-step (safer) login
• Good search function

Oanda’s mobile trading platform is available on both iOS and Android. We tested it on Android in English, but it’s also available in the following languages:

Arabic Chinese German
English Japanese Russian

Look and feel

The Oanda mobile trading platform is user-friendly. The chart tab is great, you can customize it well. This is not something you commonly find at other brokers.

Login and security

Oanda provides a two-step login, which is definitely safe, but you can’t use biometric authentication (i.e. fingerprint or face recognition on your phone), which would make the process even more convenient.

Alerts and notifications

Unlike on the web trading platform, it’s possible to set alerts and notifications on the Oanda mobile platform.

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73.5% of retail CFD accounts lose money

Oanda review
Desktop trading platform

Oanda’s desktop platform mimics the web platform in terms of functionality, but its design could be improved.

Pros Cons
• Clear fee report • No price alerts
• Good customizability (for charts, workspace)
• Good variety of order types

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73.5% of retail CFD accounts lose money

Oanda review
Markets and products

At Oanda you can trade only forex and CFDs. It offers fewer forex pairs but more CFDs than its closest competitors.

Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73.5% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Oanda has a wide selection of CFD products (including stock index, bond, and commodity CFDs), but the number of available currency pairs is average at best.

Oanda product selection

Oanda Pepperstone FXCM
Currency pairs (#) 71 80 39
Stock index CFDs (#) 16 14 14
Commodity CFDs (#) 31 14 10
Bond CFDs (#) 6

We really liked the fact that you can set the leverage manually. At some other brokers, including Pepperstone and FXCM, this feature is not available. It is located under the ‘Deposit and Withdrawal’ tab, which is not very intuitive though.

Changing the leverage is a very useful feature when you want to lower the risk of your trade. For example, instead of trading with 5:1 leverage, only trade with 2:1 leverage in the case of stock CFDs. Be careful with forex and CFD trading, as the preset leverage levels may be high.

Oanda review
Research

Oanda has a wide range of research tools, such as news, technical analysis and API.

Pros Cons
• Good interactive chart • Research tools are poorly organized
• Quality news flow
• User-friendly
• Great API

Oanda has a lot of research tools, but they are scattered across five different pages. For the sake of clarity, here they are in one place:

  • MarketPulse: analyses written by Oanda’s own research team. It also includes an economic calendar.
  • News: MarketPulse articles plus a feed by Dow Jones Newswires, a prominent third-party information provider
  • Economic analysis: analyses of important economic events. However, there is an overlap with MarketPulse as many of these articles can be found there as well.
  • Oanda Labs: tools developed by Oanda’s engineers. These tools are usually based on technical analysis, e.g. candlestick pattern analysis.
  • Technical analysis: many technical analysis tools powered by Autochartist
  • Algo Lab: a powerful tool for API trading

Research tools are available in multiple languages.

Fundamental data

Oanda provides no fundamental data, mostly because it concentrates on forex.

Charting

Oanda has great charting tools. The charts are very responsive, easy to edit, and you can use more than 70 technical indicators.

News feed

News is available on the ‘News’, ‘Market Pulse’, and ‘Economic Analysis’ pages. You can reach these pages from the trading platforms.

We think ‘MarketPulse‘ is your best bet to be in the know. It offers well-written news and analysis with visual elements like charts or videos. You can also find a great economic calendar. These elements are totally missing from the ‘News‘ page, while the ‘Economic analysis‘ page is not up to date.

Other research tools

There are so many other research tools that even a separate review wouldn’t do them justice. Therefore, we picked only the hottest ones.

Oanda has great API options. You can make/use your own APIs in a great and very user-friendly environment. Algo Lab allows you to code and deploy your own automated trading strategies right from your web browser. Programming languages supported by Algo Lab are C#, Python, and F#.

Oanda review
Customer service

You can reach Oanda’s customer service through several channels, but its quality and availability could be improved.

Pros Cons
• Phone support • No 24/7 support
• Live chat • Speed could be improved

It is a big plus that you can contact Oanda in several ways:

  • live chat (with an Oanda rep)
  • chatbot (virtual assistant)
  • phone
  • email

Oanda’s customer service is available 24 hours a day, but live chat and phone support is available only between Sunday and Friday. Although not 24/7, this is still good availability, but we were not satisfied with the quality:

  • On live chat, we got relevant answers, but the response time can be long. On several occasions, we had to wait around 15 minutes before an agent was connected. Furthermore, they wrap up live chat very quickly if you don’t respond right away. A good feature though is that you can export message texts.
  • The chatbot is a really innovative solution in theory, but it cannot answer even basic questions, like what the average spreads are on EURUSD.
  • On the phone, both relevance and response times could be improved. Once we waited around 8 minutes, and then couldn’t get a fully satisfactory answer to our question (we wanted to get a good overview of fees).
  • Email support gave relevant answers, but their response was slow (taking 3 to 7 days).

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73.5% of retail CFD accounts lose money

Oanda review
Education

Oanda offers live and pre-recorded webinars ranging from the basics to expert trading, but this wide selection of educational materials is not structured well.

Pros Cons
• Demo account • Materials are not well-organized
• Trading platform tutorial
• Educational videos

It is great that you can use many tools for education:

  • Demo account
  • Educational videos
  • Platform tutorial videos
  • Webinars
  • Texts

We enjoyed the quality of the videos, they were well produced. On the other hand, we felt they should be better organized; for example, a playlist for trading platform basics would be nice.

There are high-quality webinars available to everyone, covering basic trading topics like risk management. Premium webinars are only accessible to Oanda customers. Educational materials are also available for reading, covering many of the same topics. On the negative side, educational tools could be more structured. As with research tools, we felt lost as educational tools were scattered all over the platform.

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73.5% of retail CFD accounts lose money

Oanda review
Safety

Oanda is regulated by top-tier authorities, but it doesn’t have a banking license and is not traded on a stock exchange.

Pros Cons
• Majority of clients belong to a top-tier financial authority • Does not hold a banking license
• Negative balance protection • Not listed on stock exchange
• Financial information is publicly available

Is Oanda regulated?

Yes, it is regulated by several financial authorities, including top-tier regulators like the UK’s Financial Conduct Authority (FCA). You can find a list of regulators overseeing Oanda’s respective legal entities here.

Is Oanda safe?

To be certain, we highly advise that you check two facts:

  • how you are protected if something goes wrong
  • what the background of the broker is

How you are protected

Oanda has six legal entities. This is important for you because the investor protection amount and the regulator differs from entity to entity.

Not all investments are protected by SIPC. In general, SIPC covers notes, stocks, bonds, mutual funds and other investment company shares, and other registered securities. It does not cover instruments such as unregistered investment contracts, unregistered limited partnerships, fixed annuity contracts, currency, and interests in gold, silver, or other commodity futures contracts or commodity options.

Legal entities

Client country Investor protection amount Regulator Legal entity
Europe £85,000 (FSCS) Financial Conduct Authority (FCA) OANDA Europe Limited
USA No protection Commodity Trading Futures Commission and National Futures Association OANDA Corporation
Canada $1,000,000 (CIPF) Investment Industry Regulatory Organization of Canada (IIROC) OANDA (Canada) Corporation ULC
Australia No protection Australian Securities and Investment Commission (ASIC) OANDA Australia Pty Ltd
Asia (except Japan) No protection Monetary Authority of Singapore (MAS) OANDA Asia Pacific Pte Ltd
Japan No protection Financial Services Agency (FAS) OANDA Japan Inc

Oanda provides negative balance protection for forex spot and CFD trading, but only for retail clients from the European Union. Professional and non-EU clients are not covered with any negative balance protection.

Background

Oanda is based in the USA and was founded in 1996. The longer track record a broker has, the more proof we have that it has successfully weathered previous financial crises.

It provides annual financial statements and is regulated by a top-tier regulator. All of these are great markers of Oanda’s safety.

Oanda review
Bottom line

Oanda is a good forex broker: its fees are great, and it has a good web trading platform where you will quickly feel comfortable. It provides a user-friendly and fully digital account opening process, as well as powerful research tools, especially API.

On the other hand, Oanda has a limited product portfolio, as only forex and CFDs are available. Customer support is slow, and bank withdrawal fees can be high.

Feel free to try Oanda: it is regulated by top-tier regulators, there is no minimum deposit, and the inactivity fee only kicks in after two years.

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73.5% of retail CFD accounts lose money

OANDA Review

OANDA is best for experienced traders with ample capital

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  • Account Minimum: $0
  • Fees: EUR/USD 1.3 pips, USD/JPY 1.1 pips
  • Best For: Seasoned traders looking for a stellar desktop trading experience

OANDA is well known to experienced traders in the forex market. While its standard trading platforms and below-average trading costs are attractive, the company tries to differentiate itself with superior execution quality and transparency.

OANDA currently ranks in the following category:

They offer an above-average number of products for trading, including currencies, commodities, and index instruments. OANDA was dinged slightly in our review for not providing slippage protection or additional deposit protections beyond the amounts set by regulators. But pricing transparency, platform technology, regulatory oversight, and a comprehensive product offering, including spread-betting in Ireland and the U.K., all give OANDA a competitive advantage in the FX market.

Accounts can be opened with as little as one dollar

OANDA is regulated by major governmental regulatory bodies

Traders can access 71 currency pairs and a wide variety of other asset classes

Traders can use platforms like MetaTrader 4 or OANDA’s custom-built web and desktop trading software

Traders cannot access cryptocurrencies or single-stock CFDs

We found OANDA’s customer service representatives to be good but slow to respond

Accounts do not have a negative-balance or slippage protection

Some of OANDA’s research and news resources are only available by launching external web pages or applications

Trust

If there’s one area where OANDA suffered slightly in our ratings, it was with trust. It’s worth noting, however, that most of the reason for this was their lack of protection above and beyond what’s required by regulators. One could argue that this lack of additional protection is mitigated by their stellar reputation in the industry. (OANDA was awarded highest overall customer satisfaction by Investment Trends magazine.)

While we would like to see OANDA take additional steps to protect customer accounts, we applaud their efforts to position themselves as a trusted broker in the space. The company has emphasized its position by saying, “We believe the retail trading industry as a whole will benefit from a more transparent approach where brokers are held accountable for making questionable statements or falsely disclosing their interests.”

OANDA is registered with the U.S. Commodity Futures Trading Commission (CFTC), the Investment Industry Regulatory Organization of Canada (IIROC), the Financial Conduct Authority in the U.K. (FCA), the Australian Securities and Investment Commission (ASIC), the Monetary Authority of Singapore, and the International Enterprise Singapore. Despite the impressive amount of regulatory oversight, the amount of protection for each account in the event of default is limited and may vary depending on where your account is held.

Desktop Experience

An overall excellent service, the FXTrade desktop trading platform provides access to OANDA’s trading instruments, complex order types, and account analytics. The platform includes charts from TradingView and MultiCharts, which offer very advanced studies and display styles. We liked the ability to trade directly from the chart. Other features include watchlists, news feeds, and economic analysis.

In addition to OANDA’s desktop, mobile, or web apps, clients can use the popular MetaTrader 4 (MT4) platform for trading. MT4 includes advanced charting, studies, watchlists, and trade automation through “expert advisor” plugins that many traders appreciate. Because the MT4 platform is such a well-known industry standard, traders moving to OANDA from other brokers will be familiar with its functionality. On the downside, the look and feel of the application is a little dated and some functions can be clunky.

Mobile Experience

The FXTrade mobile trading platform crams an impressive amount of functionality into a small platform. In fact, we found the mobile application to offer similar functionality to the desktop application. Traders can access OANDA’s trading instruments, complex order types, and account analytics all from their mobile device.

The mobile platform also includes charts with price overlays, indicators, and flexible display styles as well as the ability to trade directly from the chart, just like the desktop application. Other features include news feeds and economic analysis. It was nice to be able to continue our research and trading experience on a mobile platform that felt very similar to our desktop experience.

Research Tools and Insights

OANDA ticks all the boxes here as they offer economic analysis, real-time news feeds, calendars, and advanced data analytics. It’s a very robust offering, but if we had one gripe it was that things are scattered across OANDA’s website and trading platforms. The amount and quality of the resources are above average but investors should expect a learning curve as they try to find everything.

OANDA provides a very wide range of analytics, research, and tools. We found the insights into the behavior of other traders through the Order Book and COT reports particularly interesting. Economic analysis and calendars are comprehensive and include historical trend graphs. For more experienced traders, the pattern matching engines and volatility analysis will be particularly helpful.

Trading is no longer a solitary task and more and more traders have come to rely on the opinions and insights of other traders. Social traders will find their experience lacking on the OANDA platform. Other than a forum, OANDA doesn’t offer any social investing tools. The research and analysis features are comprehensive, but as we’ve mentioned previously, things tend to be very scattered across OANDA’s website and platforms. This can make things difficult to find.

Education

A series of educational videos and articles is available for new and experienced investors alike. Live webinars are also available and cover a wide range of subjects, including market analysis, platform education, economic analysis, and Q&A sessions. Minor annoyances include the fact that the images and videos use inconsistent platforms, and some information is out of date compared to current trading platform releases. Not all the education is in a single place and navigation can be difficult.

New investors will need some patience as they try to navigate their way through the educational material. While we found some of the material for beginners very good, it was poorly organized. Creating a plan and tracking your progress will also be difficult. We couldn’t figure out what education we completed and what we should complete next. The OANDA classroom, which is focused mainly on live market analysis, also includes a lot of basic platform navigation and analysis that should help fill the educational gaps. Much of the advanced content was focused on how to use individual tools rather than investing skills.

Special Features

OANDA offers an impressive array of research and trading tools that are unusual to find in a retail trading platform. It’s no surprise, then, that OANDA was awarded multiple “highest customer satisfaction” awards by Investment Trends research. One possible drawback to such a wide array of tools and research is the education and training required to fully take advantage of them. OANDA does offer education and help for most of their tools and features, but it is fragmented, and we found it difficult to locate. Because of this, their rating for special features suffered a bit.

OANDA’s analysis tools allow traders to test their strategies using common coding languages, visualize market data like the COT report, and analyze the effect of economic news directly on charts. We have found the target market for such features tend to be experienced traders who need advanced analytics and resources to deploy, test, and manage their trading strategies in real time.

Investment Products

OANDA has a nice variety of markets including bonds, precious metals, indexes, commodities, and forex. Though they have variety, they are lacking in some categories. Compared to its competitors, OANDA falls short in terms of how many CFDs they offer with just 52. To put that into perspective, other leading forex brokers can offer anywhere from 1,000 to 10,000 CFDs to choose from.

Commissions and Fees

OANDA uses an automated engine to attempt to follow global pricing closely, but spreads are still subject to market volatility and liquidity. The company makes it easy to see current spreads and historical average spreads to make their pricing more transparent. For traders who meet certain account requirements, there is a commission plus raw-spread model available, which should be cheaper than regular spreads. OANDA has no required initial investment and industry average spreads.

Customer Support

OANDA’s customer support is available 24/7 via email. Live chat and phone support is only available Monday through Friday from 1:00pm to 6:00pm ET. During our tests, we found that OANDA’s support was slow and hold times were long. (At one point we waited on hold for 33 minutes.) The available times for chat and phone support were inconvenient and too narrow in our opinion.

Despite slow customer service responses, we found OANDA’s representatives to be courteous and knowledgeable. The support website also has a good knowledge base and searchable archive that should answer most questions about the trading platforms and order types. But this experience is likely to be inadequate for both very experienced and very inexperienced investors. We found the educational resources to be extensive, but they weren’t organized and could be difficult to find in a rush.

What you Need to Know

OANDA is best for experienced traders with sufficient capital who are looking for low costs, transparency, and lots of options. When compared to the rest of the industry, OANDA has a very long history and some solid regulatory oversight that should give investors comfort.

If you are a beginner or expect a lot of hand-holding, OANDA may not be right for you. While helpful when we could reach them, we found that customer service was slow. Telephone and chat support were often not as available as we would expect. Despite OANDA’s range of trading instruments, we were surprised that cryptocurrency trading and single stock CFDs were not offered.

Compare OANDA

Seasoned traders looking for a great desktop platform can find what they are looking for with OANDA. See how they compare against other online brokers we reviewed.

Methodology

Investopedia is dedicated to providing investors with unbiased, comprehensive reviews and ratings of online brokers. Our reviews are the result of six months of evaluating all aspects of an online broker’s platform, including the user experience, the quality of trade executions, the products available on their platforms, costs and fees, security, the mobile experience and customer service. We established a rating scale based on our criteria, collecting over 3,000 data points that we weighed into our star scoring system.

In addition, every broker we surveyed was required to fill out a 320-point survey about all aspects of their platform that we used in our testing. Many of the online brokers we evaluated provided us with in-person demonstrations of their platforms at our offices.

Our team of industry experts, led by Theresa W. Carey, conducted our reviews and developed this best-in-industry methodology for ranking online investing platforms for users at all levels. Click here to read our full methodology.

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