OANDA Review

Екілік опциялар брокерлерінің рейтингі 2020:
Contents

Oanda Review 2020

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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.

Екілік опциялар брокерлерінің рейтингі 2020:

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 $16.5
GBPUSD benchmark fee $11.9 $12.5 $13.0
AUDUSD benchmark fee $8.3 $11.9 $17.3
EURCHF benchmark fee $7.1 $3.7 $4.6
EURGBP benchmark fee $10.7 $10.6 $12.2

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 index CFD fee $1.0 $2.0 $2.2
Europe 50 index CFD 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

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.

OANDA Review

As a trusted global brand, OANDA provides forex and CFD traders a limited offering of FX pairs and CFDs but stands out for its reputation and quality market research.

Top Takeaways for 2020

After spending five months testing 30 of the best forex brokers for our 4th Annual Review, here are our top findings on OANDA:

  • Founded in 1996, OANDA is regulated in six tier-1 jurisdictions, making it a safe broker (low-risk) for forex and CFDs trading.
  • OANDA’s offering of research tools, news, and market analysis is excellent. With pricing, we found OANDA offers slightly better than average rates but still trails discount leaders CMC Markets and IG by a wide margin.
  • OANDA’s trading platform suite, fxTrade, is good, but not great, and, overall, it trails platform leaders such as IG and Saxo Bank. That said, OANDA provides excellent options for algorithmic trading.

Overall Summary

Feature OANDA
Overall 4 Stars
Trust Score 89
Offering of Investments 3.5 Stars
Commissions & Fees 4 Stars
Platform & Tools 3.5 Stars
Research 4.5 Stars
Mobile Trading 4 Stars
Customer Service 4 Stars
Education 3.5 Stars

Is OANDA Safe?

OANDA is considered low-risk, with an overall Trust Score of 89 out of 99. OANDA is not publicly traded and does not operate a bank. OANDA is authorised by six tier-1 regulators (high trust), zero tier-2 regulators (average trust), and zero tier-3 regulators (low trust). OANDA is authorised by the following tier-1 regulators: Australian Securities & Investment Commission (ASIC), Investment Industry Regulatory Organization of Canada (IIROC), Japanese Financial Services Authority (JFSA), Monetary Authority of Singapore (MAS), Financial Conduct Authority (FCA), and the Commodity Futures Trading Commission (CFTC) . Learn more about Trust Score.

Regulations Comparison

Feature OANDA
Year Founded 1996
Publicly Traded (Listed) No
Bank No
Tier-1 Licenses 6
Tier-2 Licenses 0
Tier-3 Licenses 0
Trust Score 89

Offering of Investments

Depending on the OANDA entity where you establish an account, the range of markets may vary slightly. CFDs are not available in the US, whereas, in Singapore, OANDA offers Bitcoin as a CFD. The following table summarizes the different investment products available to OANDA clients.

Feature OANDA
Forex: Spot Trading Yes
Currency Pairs (Total Forex pairs) 71
CFDs – Total Offered 53
Social Trading / Copy-Trading Yes
Cryptocurrency traded as actual No
Cryptocurrency traded as CFD Yes

Commissions & Fees

When it comes to pricing, overall, OANDA is just slightly better than the industry standard.

Spreads: OANDA’s bid/ask spreads, which are the fees clients pay to trade, are most comparable to FOREX.com and FxPro, while the minimum spread cost available (or lowest advertised rate) may be slightly higher than other firms that list a sub-pip spread (i.e., less than 1.0 pip). For example, the average non-core pricing at OANDA was 1.2 pips on the EUR/USD pair during Q1 2020.

Micro lots: In most cases, the smallest contract size for trading forex is one micro lot. However, unique to OANDA, the broker brings this minimum trade size down by three orders of magnitude to 1 unit or 0.001 micro lot.

Transparency: OANDA continually publishes a trailing average of its average spread across nearly all timeframes, as part of its push for greater transparency with pricing. However, because it does not publish a specific number that reflects the average spread over a fixed period, such as one day or one month, it is difficult to make a more precise comparison.

Feature OANDA
Minimum Initial Deposit $0.00
Average Spread EUR/USD – Standard 1.4 (as of Q3 2020)
All-in Cost EUR/USD – Active 1.4 (as of Oct 19)
Active Trader or VIP Discounts Yes

Platforms & Tools

OANDA’s trading platform suite, fxTrade, is suitable for charting and news but lacks in other areas. Despite an overall diverse offering of platforms, OANDA is good, but not great.

fxTrade platform: OANDA’s flagship fxTrade platform is available for web, desktop, and mobile. Powered by TradingView, charting offers over 80 indicators and additional features, such as the ability to overlay multiple currency pairs within a single chart for comparison. I also appreciated the fact that both the web-based and desktop versions of fxTrade were identical to each other, making swapping between both painless.

Algorithmic trading: Additional platforms are available from third-party developers within OANDA’s Marketplace, including the Seer Trading Platform, which supports algorithmic trading system development, including back-testing and forward-testing automated trading systems. OANDA also supports trading connectivity to multiple charting platforms such as NinjaTrader, MultiCharts, and MotiveWave. Lastly, OANDA’s Algo Labs page uses Quant Connect to let users build their apps in various supported languages, including Python and C#.

Account management: OANDA combines several services into its online account management portal that makes it easy to transfer money between accounts and access your statements. Account features include performance analysis from the analytics provider Chasing Returns.

MetaTrader: For traders who prefer MT4, OANDA also offers the MetaTrader4 (MT4) platform.

Research

Despite most research opening in a new browser window (annoying), OANDA provides forex and CFD traders everything they need, and more, to successfully navigate the markets.

Market news: OANDA offers a broad range of research for forex traders. For example, news headlines on OANDA’s MetaTrader4 (MT4) platform stream from Reuters, MarketPulse, MarketWatch, Mainichi, and CNBC, among other providers.

Premium content: Research content includes technical analysis, various macroeconomic news, research from UBS, an economic calendar forecast from 4CAST, and access to AutoChartist. The broker also offers Dow Jones Select for a monthly fee.

MarketPulse: OANDA’s MarketPulse site has content dedicated to news, research, and analysis, and the firm’s research team powers much of the content. OANDA’s mobile app, fxTrade, streams news from Dow Jones as well as the company’s blog.

Mobile Trading

OANDA’s fxTrade mobile app is easy to use, provides quality market research, and includes excellent charting features (33 technical indicators). That said, like its desktop and web-based counterparts, it lacks in other areas important to everyday forex and CFD traders.

Order entry: One neat feature that stood out was the seamless transition to the trade ticket window within the charts. Users can quickly enter their orders from the chart then adjust their stop-loss and limit order levels using simple drag & drop.

Deposits: Funding via the mobile app is simple, and during my testing, funds credited to the live account almost immediately showed up after the transaction was completed.

Syncing: Positives aside, one feature I’d like to see added is the addition of global watch list syncing. With syncing, instruments that are added in the web or desktop version of the platform automatically appear in the mobile app. Similarly, mobile chart indicators do not sync with the desktop or web version of fxTrade.

Customer Service

To score Customer Service, ForexBrokers.com partnered with customer experience research group Customerwise to conduct phone tests from locations throughout the UK. For our 2020 Review, 330 customer service tests were conducted over six weeks.

Results

  • Average Connection Time: 1 – 2 minutes
  • Average Net Promoter Score: 6.7 / 10
  • Average Professionalism Score: 9.5 / 10
  • Overall Score: 7.98 / 10
  • Ranking: 11 th (22 brokers)

Final Thoughts

OANDA’s edge is its strong regulatory track record, with licenses in the strictest major financial centers, alongside robust market research. Cons include a small list of tradable products and pricing that trails discount leaders.

All in all, OANDA is best suited for casual investors alongside sophisticated traders who prefer to connect via API, or who use automated trading systems on MT4. In 2020, OANDA was Best in Class in the Ease of Use category, thanks to its straightforward web and mobile trading platforms.

About OANDA

Founded in 1996, OANDA operates across eight global financial centers, serving clients in over 196 countries through its entities licensed in six major regulatory jurisdictions, including the US, UK, Canada, Australia, Japan, and Singapore.

In May 2020, CVC Capital Partners (CVC) Asia Fund IV, a private equity and investment advisory firm that manages $70 billion, announced the acquisition of all the outstanding equity of OANDA, subject to regulatory approval.

OANDA Trading Features

Feature OANDA
Virtual Trading (Demo) Yes
Proprietary Platform Yes
Desktop Platform (Windows) Yes
Web Platform Yes
Social Trading / Copy-Trading Yes
MetaTrader 4 (MT4) Yes
MetaTrader 5 (MT5) No
cTrader No
Charting – Indicators / Studies (Total) 51
Charting – Drawing Tools (Total) 31
Charting – Trade From Chart Yes
Watchlists – Total Fields 7
Order Type – Trailing Stop Yes

OANDA Research Features

Feature OANDA
Daily Market Commentary Yes
Forex News (Top-Tier Sources) Yes
Weekly Webinars Yes
AutoChartist Yes
Trading Central (Recognia) No
Delkos Research No
Social Sentiment – Currency Pairs Yes
Economic Calendar Yes

OANDA Mobile App Features

Feature OANDA
Android App Yes
Apple iOS App Yes
Trading – Forex Yes
Trading – CFDs Yes
Alerts – Basic Fields Yes
Watch List Yes
Watch List Syncing No
Charting – Indicators / Studies 30
Charting – Draw Trend Lines Yes
Charting – Trend Lines Moveable Yes
Charting – Multiple Time Frames Yes
Charting – Drawings Autosave Yes
Forex Calendar Yes

2020 Review Methodology

For our 2020 Forex Broker Review we assessed, rated, and ranked 30 international forex brokers over a five month time period. Each broker was graded on 105 different variables and, in total, over 50,000 words of research were produced.

While encouraged, broker participation was optional. Each broker had the opportunity to complete an in-depth data profile and provide executive time (live in person or over the web) for an annual update meeting.

All data submitted by brokers is hand-checked for accuracy. Ultimately, our rigorous data validation process yields an error rate of less than 1% each year, providing site visitors quality data they can trust. Learn more about how we test.

Forex Risk Disclaimer

«There is a very high degree of risk involved in trading securities. With respect to margin-based foreign exchange trading, off-exchange derivatives, and cryptocurrencies, there is considerable exposure to risk, including but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or related instrument. It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable, or that they will not result in losses.» Learn more.

About the author: Steven Hatzakis Steven Hatzakis is the Global Director of Research for ForexBrokers.com. Steven previously served as an Editor for Finance Magnates, where he authored over 1,000 published articles about the online finance industry. Steven is an active fintech and crypto industry researcher and advises blockchain companies at the board level. Over the past 20 years, Steven has held numerous positions within the international forex markets, from writing to consulting to serving as a registered commodity futures representative.

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Trading CFDs, FX, and cryptocurrencies involve a high degree of risk. All providers have a percentage of retail investor accounts that lose money when trading CFDs with their company. You should consider whether you can afford to take the high risk of losing your money and whether you understand how CFDs, FX, and cryptocurrencies work. All data was obtained from a published web site as of 01/20/2020 and is believed to be accurate, but is not guaranteed. The ForexBrokers.com staff is constantly working with its online broker representatives to obtain the latest data. If you believe any data listed above is inaccurate, please contact us using the link at the bottom of this page.

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OANDA – CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% 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.

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