Oanda Broker Review

Is OANDA Safe?

Well-known and ASIC-regulated, OANDA has a very high trust rating and is a reliable trading partner for Australian traders.

Trusted: Headquartered in Sydney and regulated by the Australian Securities and Investment Commission (ASIC), OANDA has a good reputation in the Forex trading community and the company has received multiple awards for its customer service and customer satisfaction ratings. 

Safety Features: ASIC is a tier 1 regulator and it requires OANDA to provide negative balance protection for all clients and to keep its operational funds segregated from client accounts. It also prevents OANDA from offering leverage higher than 30:1 on Forex pairs or offering promotions or bonuses. Finance professionals and wealthy clients can waive these safety features by proving their wholesale trader status.

Some Australian traders may find the low leverage levels and lack of bonuses restrictive. Unless you qualify for wholesale status the only way around these restrictions is to trade with a broker which does not have ASIC regulation, which means less protection.

Company Details:

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We confirmed each of the licences and regulations on the regulator’s online register. See below for details of OANDA’s ASIC-regulated entity:

OANDA’s Financial Instruments

The choice of financial assets offered by OANDA is slightly limited compared to other large international brokers, and more advanced traders looking for particular instruments may be disappointed, but it offers over 70 Forex pairs.

Full List of Instruments and Leverage:

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• Forex: OANDA has 70 currency pairs available for trading which is around the industry average.  These include majors (EUR/USD, GBP/USD, and USD/JPY), minors (NZD/CAD, EUR/JPY, and USD/ZAR). 
• Indices: Limited compared to other brokerages, there are only 16 indices available for trading at OANDA. The most popular indices are those that combine the shares of some of the largest and globally acknowledged companies.  
• Commodities: OANDA offers an average range of commodities for trading, including over 21 metals crosses with gold and silver, and energies such as oil. 
• Bonds: OANDA offers trading on six bonds, a wider range than other brokers. 
• Cryptocurrencies: OANDA offers trading on only 4 cryptocurrencies, including Bitcoin, Ethereum, and Litecoin, among others. This is a limited range compared to other brokers.

Accounts and Trading Fees

OANDA offers two accounts, which is limited compared to other brokers, but we were pleased to find that its trading fees are lower than most other brokers. 

Trading Fees: The Spread Pricing Account has trading costs included in its variable spreads, while the Core Account offers tighter spreads in exchange for a small commission per trade. Neither account has a minimum deposit requirement.  

See below for account details:

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As you can see from the table above, the trading costs on the Spread Pricing Account are built into the spread and are the same as the costs on the Core Pricing Account, which has a small commission per lot traded.  Overall OANDA has some of the lowest trading costs in the Forex industry- the average cost of trading one lot of EUR/USD is 9 USD at most other market makers, so whichever OANDA account you choose will be lower cost than most other brokers. 

Spread Pricing Account

A commission-free account, the Spread Pricing Account has no minimum deposit, leverage of up to 30:1, and access to all tradable instruments.  Spreads start at 0.7 pips on the EUR/USD, which is tighter than other market maker brokers.

Core Pricing Account  

Costs are included in the spread and the commission that is charged on this account.  Spreads start at 0.1 pips on the EUR/USD which, like the Spread Pricing Account is tighter than other brokers, and a commission of 7 AUD (round turn) is charged.  Leverage is up to 30:1 for Forex pairs.  

Deposits and Withdrawals

OANDA offers a limited range of funding methods and charges high fees for withdrawals via bank transfer.

In line with Anti-Money Laundering policies, deposits and withdrawals at OANDA cannot be made to/from third-party accounts.

Trading Account Currencies: The base currencies available at OANDA include USD, GBP, EUR, SGD, HKD, JPY, AUD, CHF, and CAD. OANDA offers a broad range of base currencies and offers accounts denominated in AUD, which is good for Australian residents who will likely have AUD bank accounts. Australian traders will therefore be able to avoid paying conversion fees, unless trading on instruments with other base currencies, such as the EUR/USD.  Conversion fees can make trading expensive, and are usually not presented on the fee report, but affect profitability.

Deposit and Withdrawal Fees: While no fees are charged for deposits, OANDA charges fees for withdrawals by bank transfer.  See below for more details:

• Bank Wire: Bank wire deposits take 3-5 business days and are free. Bank wire withdrawals are charged at 20 AUD for the first withdrawal in a calendar month, and 40 AUD for each subsequent transaction.  Withdrawals will take 2-4 business days to be processed. Be aware that banks may also charge a processing fee, especially in the case of international bank transfers.
• Credit/Debit Card: Credit and debit card deposits are processed immediately and are free. Withdrawals to credit/debit cards take 1-3 business days and are also free.
• PayPal: Deposits with PayPal are free and immediate, but PayPal may charge a service fee. Withdrawals to PayPal take up to 1 business day and are also free, though conversion fees may apply and PayPal may charge an additional service fee.

Overall, withdrawals by bank transfer are expensive and OANDA offers few methods for depositing and withdrawing funds.

OANDA’s Mobile Trading Platforms

With support for MT4 and its own in-house mobile trading app, OANDA’s mobile platform support is better than other brokers.

Both of OANDA’s mobile platforms are available on both Android and iOS.  

OANDA App

We downloaded and tested the OANDA app on an iPhone 11 and were impressed that we could access all our accounts with one login. The app integrates seamlessly with MT4 and you can trade directly on the charts, view multiple time frames, deposit and withdraw funds, choose from a huge number of technical indicators, and access VPS services. We were also pleased to find how easy it is to set risk and profit parameters on our order ticket. 

MT4 Mobile App

Traders should be aware that there is some loss in functionality when compared to the MT4 desktop trading platform, including reduced time frames and fewer charting options, but traders can close and modify existing orders, calculate profit and loss, and trade on the charts.  

Other Trading Platforms

OANDA offers full support for the MT4 and OANDA web trade platforms, which is average compared to other similar brokers.

OANDA Web Trader

The OANDA web trader is web-based and offers a streamlined trading experience, appealing to traders who want to avoid the complexity of third-party platforms.  We found that the platform looks fantastic, is very easy to use, and has a solid reputation in the trading community.

The powerful platform combines an intuitive interface, a suite of technical analysis tools, a sophisticated charting package, and allows users to create watchlists, analyze charts, place and monitor trades.  It also allows traders to access TradingView’s top indicators and drawing tools.  Overall, the platform is a good choice for beginner traders because it is easier to set up and use than the MT4 platform.

MT4 

The advantage of brokers offering third-party platforms such as MT4, is that traders can take their own customised version with them should they decide to migrate to another broker.  Additionally, there are thousands of plugins and tools available for the MT4 platform.   However, MT4 is not as beginner-friendly as the in-house platforms offered by other brokers.

Opening an Account at OANDA

We found that OANDA’s account-opening process is seamless and hassle-free compared to other brokers, and we were pleased that our trading account was ready for trading within a day.

We tested the account opening process, which took approximately 10 minutes to complete, and once our documentation had been submitted, our accounts were ready for trading within a day. 

OANDA offers corporate and individual accounts, but we will focus on opening an individual account:

How to open an account at OANDA:

1. New traders will have to click on the “Start Trading” button at the top of the page where they will be directed to register an account.    
2. OANDA’s intake form requires clients to fill in their country of residence, and personal details,  (including name, country of residence, and telephone number). 
3. Next clients must confirm their citizenship, filling in their identity or tax number.
4. The fourth step requires traders to confirm their home address.
5. Lastly, traders are required to fill in their employment status and financial details. 
6. Note that verification documents are not needed for traders who deposit less than 9,000 USD. 
7. For clients that deposit more than 9,000 USD, OANDA needs at least two documents to accept you as an individual client:

1. Proof of Identification – OANDA accepts all government-issued identification documents such as passports, national ID cards, driving licenses, or other government-issued ID. The document must be valid and must contain a trader’s full name, date of birth, a clear photograph, and issue date, and if it has to have an expiry date, that should be visible as well.
2. Proof of Address – Proof of residence/address document must be issued in the name of the OANDA account holder within the last 3 months and must contain a trader’s full name, current residential address, issue date, and issuing authority.

After the application is approved, traders can log in and fund their accounts.  We advise you to read OANDA’s risk disclosure, customer agreement, and terms of business before you start trading. 

Overall, OANDA’s account-opening process is quick and efficient, and accounts are generally ready for trading within one business day. 

OANDA’s Trading Tools

OANDA’s trading tools are excellent compared to other similar brokers.

OANDA offers a variety of trading tools, including Autochartist, MT4 Premium Tools, TradingView, and a Trading Performance Portal.

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Broker

Economic Calendar

Autochartist

Trading Central

Trading View

Free VPS

Oanda

Yes

Yes

No

No

Yes

eToro

No

No

No

No

No

Axi

Yes

Yes

No

No

Yes

Autochartist

Autocharist is a powerful pattern recognition tool that scans and analyses the markets to identify trading opportunities. Other features of Autochartist include:

• Continuous intraday market scanning
• Correlating signals: receive email notifications and flag trading opportunities when support/resistance levels coincide with chart pattern projections
• Spot potential trading opportunities: get automated alerts about emerging or completed charts, Fibonacci, and key level formations
• Review only the forecasts that have historically had a certain level of success probability
• Volatility analysis
• Set instrument-specific exits based on estimated market volatility
• Performance statistics
• Customisable daily market reports sent to your inbox

Autochartist is one of the best technical analysis tools on the market, and OANDA does well to offer this tool to its clients.  

MT Premium Tools

The MT4 Premium Tools are a host of powerful forex trading indicators, including an alarm manager, keyboard trading, mini terminal, tick chart trader, and more.  These are provided by FX Blue Labs. You can access over 15 indicators and nine expert advisors in a single download. Popular features such as Renko charts, one cancels the other (OCO) orders, keyboard trading, tick chart trading, and advanced trade management are all included free of charge to OANDA MT4 traders.

Trading Performance Portal

The Trading Performance Portal is a behavioural analysis tool that is designed to help you improve your trading patterns. Powered by Chasing Returns, OANDA’s portal analyses your trading history and helps you focus on your strengths while identifying areas you can improve.

Advanced Charts Powered by Trading View

TradingView’s advanced charting solution is available through the OANDA Trade platform. Leading indicators and drawing tools include trade-through charts and 65+ technical indicators. Traders can analyse market trends using drawing tools such as Pitchforks, Gann Fans, Elliott Waves, and more.  Overall, an excellent addition to the suite of trading tools on offer at OANDA.  

OANDA Connect App

The OANDA Connect app provides direct access to content from Dow Jones, market news sentiment, as well as two calendars to stay up to date. Dow Jones FX Select provides real-time breaking news, expert trend analysis, and in-depth policy commentary developed by a global team of Dow Jones business news reporters and editors. It is available in a variety of languages.

Overall, OANDA offers a comprehensive suite of useful trading tools compared to other similar brokers. 

Trading Tools Comparison:

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Broker

Economic Calendar

Autochartist

Trading Central

Trading View

Free VPS

Oanda

Yes

Yes

No

No

Yes

eToro

No

No

No

No

No

Axi

Yes

Yes

No

No

Yes

OANDA for Beginners

Beginner traders will find OANDA a relatively welcoming experience with a well-structured education section available for traders with different levels of experience. Considering OANDA’s history as an FX data service, it’s no surprise that the market analysis is detailed and excellent.

Education

OANDA offers a good selection of educational materials compared to most other brokers, and it is suitable for both beginners and more experienced traders alike.

The education section is not easily discoverable on OANDA’s website. It is not linked from the menus across the top of the page and can only be found in the menus at the bottom of the page. Whether this is intentional or an oversight is unknown.

Once discovered, education at OANDA is split into three subsections: Getting Started, Tools and Strategies, and Capital Management. Information is detailed and helpful and is presented in a mixture of video and text. It also offers a demo account.

The Getting Started section covers the basic aspects of Forex CFD trading such as leverage and margin and introduces traders to the MT4 platform. The Tools and Strategies section covers analysis and explains how traders can use various technical analysis tools to better predict the markets an essential skill for successful traders. Finally, the Capital Management section covers risk management and how to apply it in real market conditions.

Alongside these tutorials, OANDA also hosts frequent webinars on all aspects of trading, including the Basics of Trading and Live Market Analysis. Past webinars are also stored in an archive and are available on demand. Webinars and the webinar archive are free but do require registration with your name and email address.

Demo Account

OANDA’s demo account mimics the conditions found on the Spread Pricing Account and is available with a virtual 100,000 USD balance. The demo account will not expire if you request this from OANDA customer service. 

Education Comparison: 

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Broker

Beginner Course

Advanced Course

Well Structured Education

Education Quality

Webinars

Oanda

Yes

Yes

Yes

Medium

Yes

eToro

No

No

No

Low

Yes

Axi

Yes

No

Yes

Medium

Yes

Analysis Material

OANDA’s analysis section is excellent compared to other brokers, curated by its in-house analysts and third-party provider, Market Pulse.

Market analysis is supplied by OANDA’s MarketPulse service. MarketPulse is an award-winning news site that delivers round-the-clock commentary on a wide range of asset classes, as well as in-depth insights into the major economic trends and events that impact the markets. 

The 24/7 coverage at MarketPulse is provided by six expert analysts and professional traders with decades of experience covering and trading the full range of markets. All analysis is detailed, accurate, and posted within minutes of a market event occurring.

In addition to MarketPulse’s text-based coverage, regular videos and podcasts are also published.

Customer Support

Customer support is only available in English, Chinese, Spanish, and German. Support is available via email and live chat 24/5. For the purposes of this review, we found the customer support to be responsive but not knowledgeable of OANDA’s products and services.

Safety and Industry Recognition

Regulation: Founded in 1997 in Delaware, USA as an FX rate provider, OANDA has grown to become a large multi-service financial company offering retail CFD trading, Forex data services for institutions, and exchange rate information on over 38,000 currency pairs. As an international CFD broker OANDA is remarkably well-regulated, with regulatory oversight from no less than 7 top tier national regulators:

• OANDA Asia Pacific Pty. Ltd. is regulated and licensed in Singapore by the Monetary Authority of Singapore (CMS Licence No: CMS100122-4) and the International Enterprise Singapore (Commodity Brokers Licence No: OAP/CBL/2012) to trade commodity CFDs.
• OANDA Australia Pty Ltd. is regulated in Australia by the Australian Securities and Investment Commission (ASIC) ABN 26 152 088 349, AFSL No. 412981
• OANDA Japan Inc. holds a Type 1 Financial Instruments license from the Japanese Financial Services Agency, registration with the Kanto Local Finance Bureau #2137, and is a member of the Financial Futures Association of Japan #1571.
• OANDA Corporation is a registered Retail Foreign Exchange Dealer (RFED) with the U.S. Commodity Futures Trading Commission (CFTC), and a Forex Dealer Member (FDM) of the National Futures Association (NFA # 0325821).
• OANDA (Canada) Corporation ULC is regulated in Canada by the Investment Industry Regulatory Organization of Canada (IIROC).
• OANDA Europe Limited is authorised and regulated by the Financial Conduct Authority in the UK, No: 542574
• OANDA Europe Markets Limited is a company registered in Malta No: C 95813. It is authorised and regulated by the Malta Financial Services Authority as Category 3 Investment

Awards

OANDA has won numerous awards for its services and products over the years, such as Best Education Materials 2018 (Investment Trends – US Foreign Exchange Report) and No. 1 Forex Broker in Singapore 2017 (Investment Trends Singapore CFD & FX Report). More recently, OANDA was voted Most Popular Broker and Best Forex and CFD Broker 2020 by TradingView clients in the firm’s inaugural TradingView Broker Awards. TradingView is one of the world’s largest social networks for traders, boasting more than 15 million registered users around the world.

Overall, because of its history of responsible behaviour, strong international regulation, strict auditing processes, and wide industry acclaim, we consider OANDA a trustworthy broker. 

Evaluation Method

We value transparency and openness in the way we review the partners. To bring transparency to the forefront, we have published our review process. Central to that process is the evaluation of the reliability of the broker, the platform offering of the broker, and the trading conditions offered to clients, which are summarised in this review. Each one of these is graded, and an overall score is calculated and assigned to the broker.

OANDA Disclaimer

Trading Forex is risky, and each broker is required to detail how risky the trading of Forex CFDs is to clients. OANDA would like you to know that: Trading our Products is high risk and can result in losses that exceed the total sum you have invested. All negative balances are payable.

Overview

A market maker with an impressive history and a large non-CFD business, OANDA is a well-regulated broker. Over 70 FX pairs and 31 commodities are available to trade, a broader range than is typically available at other brokers, alongside a small range of indices, bonds, and one cryptocurrency.  OANDA offers support for MT4 and its own award-winning proprietary platform which is beneficial for beginner traders, and although OANDA only offers trading on two live accounts, its trading costs are lower than other similar brokers.  Customer service is not available via telephone in many regions, but education and market analysis are excellent and OANDA provides a host of useful trading tools and plugins.