Invest
Rating by Finanso®
i

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

0.0
(Leave feedback)

OANDA

Advertiser Disclosure
Konstantin Tochonyi - CEO Finanso®
Konstantin Tochonyi - CEO Finanso®

Finanso believes everyone should be able to make financial decisions with confidence. And while our site doesn’t feature every company or financial product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward — and free. 

The exclusive right to OANDA trademarks of third parties, including financial organizations, depicted on Finanso® belongs to their copyright holders in accordance with publications in the open registers of authorized bodies. Trademarks of third parties depicted on finanso.com, are indicated for informational purposes only.

ui.close

About the broker

OANDA, a well-established broker headquartered in the United States, is renowned for its expertise in the world of forex trading. While its primary focus is on forex trading, OANDA extends its services to European Union clients, allowing them to engage in US stock trading as well. This brokerage stands out with its user-friendly trading platforms, making it an excellent choice for both novice and experienced traders. The robust research tools offered by OANDA include an array of technical indicators and an impressive API, providing traders with valuable insights and flexibility in their strategies.

However, it's important to note some limitations with OANDA. The product portfolio is somewhat restricted, with US clients limited to forex and CFD trading, while stock trading is exclusively available to EU customers. Furthermore, OANDA is not publicly listed on any stock exchange, which may raise questions about its financial stability. Additionally, it lacks a banking background, potentially impacting its safety credentials. Lastly, OANDA's customer support operates during business days and not 24/7, which could be a drawback for traders who require assistance around the clock. Nonetheless, OANDA remains a reputable choice in the forex trading arena, offering a blend of quality platforms, research tools, and a straightforward account opening process.

Oanda

Key Features

  1. User-Friendly Trading Platforms. OANDA provides easy-to-use trading platforms that accommodate traders of all levels. These platforms offer intuitive interfaces, making executing trades and managing accounts simple.

  2. Powerful Research Tools. OANDA's comprehensive research tools offer traders access to numerous technical indicators and analysis tools. This empowers traders to make informed decisions and develop effective trading strategies.

  3. API Access. OANDA offers a robust API (Application Programming Interface) for traders seeking more customization and control. This feature allows for the development of custom trading solutions and automated strategies.

  4. TradingView Platform and VPS Services. OANDA provides its traders with access to the popular TradingView platform, enhancing the trading experience with advanced charting tools and analysis capabilities. Additionally, OANDA offers various Virtual Private Server (VPS) services for hosting the MetaTrader 4 (MT4) platform, ensuring traders have reliable and uninterrupted access to their trading accounts.

  5. Spot Crypto Trading through Paxos. OANDA's partnership with Paxos opens up opportunities for traders interested in the world of cryptocurrencies. This collaboration allows OANDA clients to trade spot crypto, providing access to a wide range of digital assets. This feature caters to the growing interest in the crypto market.

  6. Crypto CFDs Where Permitted. Select OANDA entities offer Crypto Contract for Differences (CFDs), allowing traders to speculate on the price movements of cryptocurrencies without owning the underlying assets. It's worth noting that the availability of crypto CFDs depends on local regulations, and they are not offered in the United States or to retail clients in the United Kingdom.

  7. Educational Resources. OANDA offers a variety of educational resources, including videos and materials, to assist traders in enhancing their knowledge and trading skills.

  8. Customer Support. Although available during business days, OANDA's customer support is known for its responsiveness and helpfulness, ensuring that traders have access to assistance when needed.

Pros and cons

Pros

Acceptance of U.S. Clients. OANDA stands out as one of the few global online forex brokers that accept U.S. clients, providing access to the forex market for traders in the United States.

Regulatory Compliance. OANDA Corporation is a registered Futures Commission Merchant (FDM) and Retail Foreign Exchange Dealer (RFED) with the Commodity Futures Trading Commission (CFTC). Additionally, it is a member of the National Futures Association (NFA). OANDA Europe operates under authorization and regulation by the United Kingdom's Financial Conduct Authority (FCA), offering clients a secure and regulated trading environment.

User-Friendly Mobile App. The Trade mobile app offers a well-balanced set of features and is highly regarded for its ease of use, allowing traders to manage their accounts and execute trades on the go conveniently.

Educational Resources. OANDA goes the extra mile by producing its podcast series, "Market Insight," providing valuable educational content and insights to traders.

Asset Protection for UK Clients. Clients in the United Kingdom benefit from asset protection of up to £85,000 through the Financial Services Compensation Scheme (FSCS), ensuring their funds are safeguarded in case of the firm's failure.

Abundance of Trading Tools. OANDA's trading platform, fxTrade, offers an extensive range of tools and resources. These include Dow Jones FX Select news, various calculators, and the integration of TradingView, an advanced financial visualization platform, into both desktop and web-based platforms, enhancing the trading experience.

Comprehensive Economic Analysis. OANDA provides a wealth of economic analysis tools, real-time news feeds, calendars, and advanced data analytics, offering traders access to valuable information and insights not typically found on retail trading platforms.

Cons

Lack of Negative Balance Protection for U.S. Clients. OANDA does not offer negative balance protection for U.S. clients, which means that U.S. traders with negative account balances could potentially owe money to the broker in case of extreme market volatility.

No Guaranteed Stop-Loss Orders (GSLO). OANDA does not provide guaranteed stop-loss orders (GSLO) for both U.S. and U.K. clients, which may be a limitation for traders who rely on this risk management feature.

Limited CFD Offerings for U.S. Clients. U.S. customers have restrictions on the types of CFDs they can access through OANDA. They are limited to trading more than 70 currency pairs, and other assets such as individual stocks, ETFs, and industry sectors are not available as CFDs. Cryptocurrency trading for U.S. clients is offered through a partner company.

Monthly Inactivity Fee and Deposit/Withdrawal Fees. OANDA charges a monthly inactivity fee, in addition to fees for deposits, withdrawals, bank wire transfers, and multiple debit card withdrawals in the same month. These fees can add up for inactive or frequent-transacting clients.

Limited Video Content. While OANDA offers educational material, its video content is not comprehensive and primarily consists of platform tutorials, potentially leaving some traders seeking more extensive video resources.

Investment options

OANDA offers a versatile array of investment options designed to cater to the diverse needs of traders across the globe. Whether you're an experienced investor or a novice trader, OANDA provides a platform to explore a wide range of financial markets.

Forex Trading is at the core of OANDA's offerings, allowing traders to participate in the foreign exchange market through both spot forex and Contracts for Difference (CFDs). With access to 71 forex pairs, traders can engage in currency trading on a global scale, taking advantage of opportunities in the dynamic forex market.

In addition to forex, OANDA extends its offerings to include various other asset classes, such as indices, metals, commodities, and bonds. The availability of these assets may vary based on your region and regulatory entity. Traders can also delve into the exciting world of cryptocurrencies, trading popular digital assets like Bitcoin, Ethereum, and Litecoin either through CFDs or by owning the actual assets.

For those interested in social and copy trading, OANDA provides a platform that allows traders to follow and replicate the strategies of experienced traders, fostering collaboration and knowledge sharing within the trading community. Whether you're looking to diversify your portfolio, explore new markets, or refine your trading skills, OANDA offers a comprehensive suite of investment options to suit your preferences and goals.

Trading products

  1. Forex Trading (Spot or CFDs). OANDA provides access to forex trading, allowing traders to engage in both spot forex and forex trading through Contracts for Difference (CFDs). This offers flexibility for traders to choose their preferred trading approach.

  2. Tradeable Symbols (Total). OANDA offers many tradeable symbols, providing access to a wide range of financial assets. The total number of tradeable symbols may vary based on your region and regulatory entity.

  3. Forex Pairs (Total). OANDA offers a diverse selection of forex pairs, with a total of 71 forex pairs available for trading. This allows traders to participate in the global forex market and explore various currency pairs.

  4. U.S. Stock Trading (Non CFD). OANDA does not offer direct trading of U.S. stocks as non-CFD assets. Traders looking to invest in U.S. stocks may need to consider alternative brokerage services for this specific asset class.

  5. International Stock Trading (Non CFD). Similar to U.S. stocks, OANDA does not provide direct access to international stocks as non-CFD assets. Traders interested in international stock trading may explore other brokerage options for such investments.

  6. Social Trading / Copy Trading. OANDA offers social trading and copy trading features, allowing traders to follow and replicate the trading strategies of experienced traders. This feature enhances the collaborative aspect of trading and provides opportunities for learning and diversification.

  7. Cryptocurrency (Physical). OANDA facilitates cryptocurrency trading through physical ownership. Traders can invest in actual cryptocurrency assets, such as Bitcoin, via its Paxos account offering. This allows for the direct ownership and storage of cryptocurrencies.

  8. Cryptocurrency (Derivative). OANDA also offers cryptocurrency trading through derivatives, specifically Contracts for Difference (CFDs). Traders can speculate on the price movements of cryptocurrencies like Bitcoin, Ethereum, and Litecoin without owning the underlying assets.

Commission and Fees

  • Spread Options. OANDA offers two primary pricing options, "spread only" and "core pricing + commission." The "spread only" option generates revenue through customer trades that involve the bid-ask spread, while the "core pricing + commission" model includes a base commission of $50 per million added to the raw spread. These pricing options are available for both standard and Elite Trader accounts.

  • Spread Variability. The spreads offered by OANDA are designed to closely follow global pricing but are subject to market volatility and liquidity. Clients can find historical spread data for all asset classes on OANDA's platforms, enhancing transparency in trading costs.

  • Elite Trader Program. U.S. clients have the opportunity to participate in OANDA's Elite Trader program, offering a four-tiered reward system and premium account features for high-volume traders. Benefits include spread or commission discounts, access to a dedicated relationship manager, API support, free VPS, discounted wire transfers, and reduced fees for third-party platforms. The tiers are based on deposit amounts and monthly trade volume, starting from Tier 1 with a minimum deposit of $10,000.

  • Standard Account. OANDA offers a standard account with no minimum deposit for traders who do not meet the Elite Trader program requirements. However, this account does not provide benefits such as a dedicated relationship manager and free wire transfers.

  • Funding Fees. OANDA's forex funding fees, applied to positions held overnight, are determined as a combination of underlying liquidity providers' tom-next swap rates, adjusted by an admin fee, and calculated annually.

  • Additional Fees. OANDA also discloses various additional fees, including a monthly inactivity fee for accounts with no open trades for at least 12 months. The broker lists fees for deposits, withdrawals, bank wire transfers, and multiple debit card withdrawals in the same month.

Research and education

  • OANDA provides a series of educational videos and articles designed to benefit investors of all experience levels. These resources cover various aspects of trading and investing, making them valuable for both beginners and seasoned traders.
  • OANDA hosts live webinars that cover a wide array of subjects. These webinars include topics such as market analysis, platform education, economic analysis, and Q&A sessions. They offer an interactive way for traders to stay informed about market developments and improve their trading skills.
  • While OANDA's educational resources are comprehensive, some minor annoyances exist. For example, images and videos sometimes use inconsistent platforms, and certain information may be outdated compared to current trading platform releases. Additionally, the educational content is not centralized in one location, which can make navigation challenging.
  • OANDA's educational material is suitable for beginners but may require patience. The content for beginners is valuable, but it is considered poorly organized. Clients who want to create a structured learning plan and track their progress might find it challenging to determine which educational materials they have completed and what should come next.
  • The OANDA classroom consists of a series of webinars, primarily focusing on live market analysis. It also covers basic platform navigation and analysis, which can help fill gaps in traders' education. However, much of the advanced content in the classroom is geared toward explaining individual tools rather than developing broader investing skills.
  • While OANDA offers a decent range of written educational material and webinars, it lacks an extensive collection of educational videos, such as a dedicated YouTube channel. Improving the organization of existing content and expanding the range of videos could enhance OANDA's educational offerings, aligning it more closely with industry leaders like IG and AvaTrade.
  • OANDA's online course comprises 19 chapters covering technical and fundamental analysis. Each chapter contains multiple lessons, but some of the accompanying videos are primarily platform tutorials rather than comprehensive financial market education.

Alternatives to OANDA

  1. Saxo Bank is known for offering one of the best web-based trading platforms in the industry. It provides a user-friendly interface, a wide range of trading instruments, and advanced charting tools. Saxo Bank caters to both retail and professional traders.

  2. Interactive Brokers is an excellent choice for traders seeking a comprehensive trading platform. Professional traders particularly favor it due to its advanced features and competitive pricing. Interactive Brokers offers access to various asset classes and global markets.

  3. CMC Markets stands out for its exceptional platform technology. The broker provides a powerful web trading platform with advanced charting and analysis tools. It is suitable for traders who value technology-driven trading experiences.

  4. TD Ameritrade is a top pick for traders seeking a robust desktop platform. While it caters primarily to U.S. clients, it offers a feature-rich platform with educational resources and research tools. It's an excellent choice for traders in the United States.

  5. FOREX.com is known for its well-rounded offering. It provides various trading instruments, educational resources, and research tools. It caters to traders of all experience levels and offers a comprehensive trading experience.

Editorial opinion

OANDA has established itself as a prominent player in the online trading industry, catering to a diverse range of traders from retail investors to advanced professionals. Its commitment to offering access to global financial markets is evident through the variety of trading instruments it provides, including major and minor currency pairs, CFDs, and spot virtual currency products. The broker's web-based and mobile platforms offer user-friendly interfaces, making it accessible to traders of different experience levels.

However, some areas warrant consideration. OANDA's educational resources, while comprehensive, could benefit from better organization for an improved user experience. Additionally, traders in certain regions may find that the product catalog is not consistently available, depending on their regulatory jurisdiction. Despite these minor drawbacks, OANDA remains a trusted broker with a strong reputation for transparency and regulatory oversight, making it a viable choice for those seeking to participate in the world of online trading.

Additional Resources

Sources

FAQ

Is OANDA a good broker for beginners?

Yes, OANDA is indeed a good broker for beginners. Several factors contribute to this assessment. Firstly, OANDA offers low trading fees, which can be beneficial for novice traders who are conscious of cost considerations. Additionally, their educational platform is exceptional, providing a wealth of resources and educational materials to help beginners learn the ropes of trading effectively.

Furthermore, OANDA utilizes popular and intuitive trading platforms, which are user-friendly and accessible for those who are new to trading. The availability of a demo account is also a valuable feature, allowing beginners to practice and gain experience without risking real capital. In summary, OANDA's combination of low fees, comprehensive education, and user-friendly platforms makes it an excellent choice for novice traders looking to enter the world of forex trading.

How much money do you need to start trading with OANDA?

With OANDA, you can start trading with no minimum deposit requirement. This means that you can open an account and fund it with any amount you're comfortable with, making it accessible to traders with varying capital levels. Additionally, OANDA allows you to deposit up to US$9,000 or its currency equivalent, providing further flexibility for traders to decide the initial amount they want to invest. This lack of a strict minimum deposit requirement makes OANDA an inclusive option for traders, whether they are starting with a small or larger capital base.

Can I use OANDA in the U.S.?

Yes, you can use OANDA in the United States. However, it's important to note that OANDA's product portfolio for US clients is limited compared to what is available to clients in other regions. In the U.S., OANDA allows trading in forex and CFDs. Stock trading, on the other hand, is available only to EU customers. Therefore, if you are a U.S. resident or trader, you can engage in forex and CFD trading through OANDA's platform, but you won't have access to stock trading options offered by OANDA.

Useful
1805 views
Update 16.10.2023

This site is protected by reCAPTCHA and the GooglePrivacy Policy and Terms of Service apply.

Your comment has been added
Error
Your complaint has been recorded
Invalid username or password
comment.alert.error-reg
Please log in to like/dislike
Invalid SMS code has been entered
OANDA reviews 2024
Leave feedback
Similar companies
Capital.com
Vasiliou Makedonos 8, Kinnis Building, Floors 1-3, 3040 Limassol, Cyprus
+357 25 024950
eToro
221 River St., 9th Floor Hoboken NJ 07030
+1 (888) 271-8365
TradeStation
8050 SW 10th St STE 4000, Plantation, FL 33324-3290
+1 (800) 822-0512
IG
1330 W Fulton, Chicago, IL 60607
+1 (312) 981-0499
Nextmarkets
Portomaso Business Tower, Level 15 Portomaso, St. Julians STJ 4011, Malta
+49 221 98259 007