Oanda 2019: Fees, Pros and Cons and Features

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Forex and CFD brokers are in constant competition to attract traders with some of the best products and trading tools including trading platforms, leverage ratio, margin requirements, payment methods, etc. Oanda Logo

Founded in 1995, Oanda established a reputation in the industry and is one of the most well-known forex and CFD brokers. However, there are some missing elements and services that Oanda does not provide compared to other brokers in the industry and we have found many users online wondering whether this broker is legit.

We have put it to the test by testing their platform, pros , cons etc and have found it not be legit. Read our full review to find out why you should stay away from this broker.

Is Oanda recommended?

❌We do not recommend Oanda due to trading limitations and flaws compared to other brokers in the industry such as the selections of products, high trading and non-trading fees, average customer service and more.

What is Oanda?

Founded in 1995, Oanda is a well-known CFD and forex broker offering financial products such as forex, indices, commodities, stocks (shares), and bonds. The broker provides traders to buy and sell currency pairs and Contract for difference (CFDs) through an online trading platform with the ability to leverage their capital.

Based in the United States, the broker operates offices the United Kingdom, Canada, Japan, Singapore, Australia and is regulated in the United States, Europe, Canada, Asia-Pacific, and Australia and accepts US residents.

Oanda Markets and Products

Score: 6/10

One of the disadvantages of Oanda is the limited selection of financial products. Take note that Oanda does not offer stocks as well as Exchange Traded Funds (ETF’s) while other brokers such as Plus500, and Coinbase provide a wider range of financial products.

  • Forex – 71 currency pairs
  • Indices – 16 global indices
  • Commodities – 8 commodities.
  • Precious metals – A variety of gold and silver quotes in exchange to different currencies such as AUD/CAD/CHF/EUR/GBP/HKD/JPY/NZD/SGD as well as Gold/Silver.
  • Bonds (Fixed Income) – 6 bonds and interest rates.

Oanda Special Features

Oanda offers several useful features, including features that are not trading related such as the currency converter and money transfer. Oanda’s features include:

Oanda API

Oanda offers Application programming interface (API) that allows traders to develop automated trading based on your trading strategy. Oanda supports several programming languages via the Oanda developer portal to apply your automated trading.

Currency Converter

Oanda currency converter is not necessarily a trading tool but is a useful feature offered by Oanda. the option to transfer funds through the currency converter is also available.

MT4 Technical Analysis Plugin

One of the advantages of MT4 is the ability to add plugins to get markets or advanced trading tools. Oanda offers a plugin that expands your technical analysis indicators and charting tools.

Oanda MT4 plugin

Supported Countries

Score: 8/10

Oanda offers online CFD and forex trading service to more than 196 countries. Oanda is regulated by six major regulators including CFTC, IIROC, FCA, ASIC, Monetary Authority of Singapore and International Enterprise Singapore in the following jurisdictions:

  • The United Kingdom
  • The United States
  • Canada
  • Japan
  • Singapore
  • Australia

The broker, however,  does not offer its services to the following countries:

  • New Zealand
  • Turkey
  • India
  • South Korea

Languages

Score: 7/10

Oanda customer support is limited compared to other CFD brokers in the industry and is available in 9 different languages:

  1. English
  2. German
  3. Chinese
  4. Spanish
  5. French
  6. Japanese
  7. Italian
  8. Portugese
  9. Russian

Oanda Trading Platforms

Score: 6/10

Oanda offers traders and investors a selection of two trading platform: the in house proprietary FXTrade trading platform and the popular Meta Trader 4 available as a web-based platform, desktop, and mobile app.

Oanda FxTrade

The Oanda FxTrade is a proprietary in-house trading platform launched in 2001. The platform is available as a web-based platform, desktop, and mobile. the platform is easy-to-use and offers the essentials tools to trade the FX and CFD market including market news and trading from the chart, however, the platform is not advanced and the interface lacks the creativity that other trading platforms provide.

Oanda FXtrade

The mobile app is similar to the web and desktop platform and again does not offer a modern interface like other platforms. We recommend Coinbase trading platform as one of the most advanced web and mobile trading platform.

Meta Trader 4

Oanda also offers the popular MetaTrader 4 with most MT4 features including automated trading and the option to reduce latency by setting up Oanda VPS provider. You can also download OANDA’s technical analysis plugin that includes intraday market scanning, automatic chart pattern, automated alerts, and the ability to execute trades directly inside the interface.

Oanda, however, offers a leverage ratio of 1:50 which is less than the leverage ratio offered by other forex brokers that provides up to 1:500.

Fees and Limits

Score: 5/10

Trading and Non-Trading Fees

💳 Overnight fees – Oanda charges overnight fees for FX and CFDs.

💳 Inactivity fee – If there has been no trading activity for 2 years or more, Oanda charges GBP/$/Euro 12 every month, however, your account will not go into a negative balance.

Deposit and Withdrawal fees

Oanda offers a range of payment methods based on different regions and for most countries, charges a deposit fee so you must check with the support team before you fund the account. Withdrawal fees depend on the location and account currency but are around 20 USD. Unfortunately, we found many user reviews complaining about Oanda hidden fees and additional charges.

Spreads

Oanda spreads are competitive in relation to other brokers in the industry. Although the broker is not an ECN/STP broker, Oanda offers low spreads, for example, 1.1 pips for the EUR/USD and 1.7 pips for the GBP/USD.

Minimum Deposit

Score: 6/10

Oanda does not require any minimum deposit in order to open a live trading account. You do need, however, enough funds to open a position and to cover the margin requirements. You can start trading with $1 in your account. Take note that low minimum deposit is not necessarily positive as you can lose your funds faster.

Account Types

Score: 5/10

Oanda offers two account types, the Standard and Premium. The broker does not offer much information about the differences and the benefits for high trading volume traders. There is no minimum deposit and the broker does not support a swap-free (Islamic) account.

Oanda offers unlimited use of the demo account, however, the selection of Oanda account types is disappointing and does not meet all traders needs.

As a conclusion, the broker offers limited account types compared to other brokers in the industry and does present enough information about its account types.

How to Sign Up and Trade on Oanda

Open a trading account at Oanda should be a simple process. Follow the next steps:

  1. Login to Oanda’s website and click the ‘Open Trading Account’.
  2. Choose the type of account. Oanda account
  3. Then, you have to fill in all the details that include 5 steps – Contact details, personal information, appropriateness assessment verify identity, and submit an application. Then, the support team will contact you once they approve your account.
  4. Fund your account through one of the payment methods (note that Oanda payment methods vary depending on your location).
  5. Start trading

How to Configure Your Oanda Account

Following opening your account, you need to download one of the trading platforms and set up all the trading tools before you start trading. Note that you can use a demonstration account before you risk real money. Here’s how to sett up the basic configuration of each of the trading platforms.

Meta Trader 4

Once you download the platform, you need to set up all the available trading tools: MarketWatch (instruments quotes), trading charts and the terminal (positions, orders, account balance).

metatrader_4

MetaTrader 4 configuration is easy and you can find a lot of information and guides about MT4 trading setup online.

Oanda FxTrade

The Oanda FxTrade is an outdated trading platform comparing to other trading platforms in the industry. You probably need the assistance of the support team to configure all the necessary tools, however, it should be an easy-to-use trading platform in terms of market execution and orders.

Oanda FxTrade

As you can see in the image above, you need to set up all your preferred instruments, charts, and locate the account summery where you can follow the data. Then, you need to master the market order box and additional features such as news, forums, and analysis.

Security and Regulation

Score: 7/10

Regulation

Oanda is highly regulated in six different region across the globe including U.S. Commodity Futures Trading Commission (CFTC), Investment Industry Regulatory Organization of Canada (IIROC), the Financial Conduct Authority (FCA) in the UK (No: 542574), the Monetary Authority of Singapore (CMS Licence No: CMS100122-4), the International Enterprise Singapore and Australia by the Australian Securities and Investment Commission (ASIC).

Security

With the increasing cyber hacking, Oanda offers the two-factor authentication for the web platform only. The two-factor authentication can be used by the Google Authenticator app. Apart from the two-factor authentication, we did not find any additional security features.

Deposit and Withdrawal Process

Score: 5/10

Deposit

The terms and conditions to funding your account at Oanda vary depending on your location which we find confusing and complicated. Here are the payment methods at Oanda based on different regions:

Europe

  • Debit Cards
  • Bank wire transfer
  • Checks – USD accounts only
  • Automated clearing house (ACH)

United States

  • Credit card
  • Debit card – Visa or Mastercard
  • PayPal
  • Internet banking – Only GBP
  • Chaps wire transfer – Only GBP
  • Swift wire transfer
  • SEPA credit transfer – Only EUR

Canada

  • Bank wire transfer
  • PayPal – Only CAD

Asia Pacific

  • DBS Bill Pay
  • Pay now
  • Internet banking transfer
  • Bank wire transfer
  • PayPal – Only SGD
  • Cheques – Only SGD and HKD

Australia

  • Credit card
  • Debit card – Visa or Mastercard
  • Internet bankin transfer
  • Bank wire transfer
  • Bpay
  • China payment

Withdrawal

Similarly to deposit payment methods, withdrawal policies vary based on the OANDA division with which you hold your account. Oanda charges high withdrawal fees. For example, for those who are located in the United States, there are no fees for debit card withdrawal, however, bank wire fees are high compared to other brokers in the industry like Pepperstone and Coinbase:

Account currency First withdrawal processed within calendar month
Additional withdrawals processed within calendar month
CAD CAD $20 CAD $40
AUD AUD $20 AUD $40
EUR EUR €20 EUR €35
CHF CHF 20 CHF 40
GBP GBP £10 GBP £20
HKD HKD $150 HKD $300
JPY JPY ¥2,000 JPY ¥4,000
SGD No fee No fee
USD USD $20 USD $35

Overall, deposit and withdrawal process at Oanda is complicated and varies based on your location. The fees are relatively high and the deposit and withdrawal is a long process that takes several days.

Education and Resources

Score: 6/10

Oanda offers two sections on their website for market analysis and education as well as webinars and events. The broker integrates market news in the in-house trading platform, however, the education material is not organized and, difficult to follow and requires a trader to enter Oanda’s website.

In conclusion, although the broker provides basic and advanced material for traders, the educational material is not organized and the access is not user-friendly compared to other brokers in the industry.

☎️Customer Service

Oanda’s customer support is available from Sunday to Friday via phone, email, chatbot and live chat. The support team response time was slow and we also found that the Oanda customer support did not provide answers for all of our questions. The Live Chat was the best way to communicate with the support team and FAQ support is informative.

📱Mobile App

Oanda provides a mobile app for both trading platforms, the MT4, and the in-house Oanda FxTrade. The MT4 mobile app is one of the best in the industry and can provide traders with a great interface and trading tools. The Oanda FxTrade is a bit disappointing as it has an average interface and is not an advanced mobile trading app.

Pros and Cons

Pros

  • Offers Gold/Silver
  • High regulated broker
  • Offers easy-to-use in house trading platform and MT4
  • Offers live chat
  • Offers high leverage of 1:500

Cons

  • Oanda does not offer cryptocurrencies
  • A limited selection of financial instruments
  • Low credibility among users
  • Customer support is not available 24/7
  • Long withdrawal process between 3-5 days
  • High trading and no-trading fees
  • Oanda does not offer stocks and ETF’s
  • Offers low leverage compared to other brokers in the industry
  • Limited account types

Conclusion

Oanda operates in the forex and CFD industry for more than two decades and established a reputation among traders and investors. Following our review, we can agree that Oanda offers the most basic tools and features for traders and investors, however, the broker does not provide the extra tool or feature to make the difference for your trading. The broker offers limited account types, low leverage ratio, a limited selection of financial instruments and relatively high fees.

We do recommend other brokers like Coinbase which provides a wider selection of financial instruments including stocks, and ETF’s and offer one of the most innovative and advanced trading platforms. 

FAQs

What is the leverage ratio offered by Oanda?

Oanda leverage ratio varies depending on the geographic location and is limited to 1:50 for currency pairs and 1:20 on the all other financial assets as the broker complies with The Commodity Futures Trading Commission (CFTC) regulation.

What is the minimum deposit to open a forex/CFD account at Oanda?

Oanda does not have a minimum deposit requirement in order to open a live trading account. In order to start trading, you need to have enough funds to cover margin requirements.

Is Oanda a regulated broker?

Yes, Oanda is regulated in six different region across the globe including U.S. Commodity Futures Trading Commission (CFTC), Investment Industry Regulatory Organization of Canada (IIROC), the Financial Conduct Authority (FCA) in the UK (No: 542574), the Monetary Authority of Singapore (CMS Licence No: CMS100122-4), the International Enterprise Singapore and Australia by the Australian Securities and Investment Commission (ASIC).

Is Oanda a scam broker?

No, Oanda is not a scam broker, the broker is regulated by six major regulators including CFTC, IIROC, FCA, ASIC, Monetary Authority of Singapore and International Enterprise Singapore and operates as a forex and CFD broker since 1996, however, we have found users’ complaints and accusation.

How Many Instruments are available on Oanda?

Oanda offers a limited selection of financial products of around 100 instruments which is low compared to other brokers in the industry.

Can I use Automated Trading with Oanda?

Yes, Oanda offers automated trading via both trading platform, the Oanda FXTrade platform and the popular MetaTrader 4 EA (Expert Advisor). You can also backtest your trading strategy before you open a live account and set up automated trading that is based on statistics and algorithms.

Is Oanda available in the US?

Yes, Oanda is based in the United States and offers online trading services for US residents as the broker is regulated by the Commodity Futures Trading Commission (CFTC).

Has Oanda got a mobile app?

Yes, Oanda offers a proprietary trading platform which is available as a web-based, desktop, and mobile app and the popular MT4 which is available on desktop, tablet, and mobile app.  

Does Oanda support MetaTrader4?

Yes, Oanda offers traders and investors the popular MetaTrader4 trading platform available on desktop, mobile, and tablet in addition to the in house FxTrade platform.

Remember, all trading carries risk. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.

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