OANDA

Is Oanda safe or scam broker for forex traders? What is account types and its spreads offered by Oanda? How much is minimum deposit and maximum leverage?
5.9/10 (Expert Score)
Product is rated as #38 in category Forex Brokers

With over 25 years of experience in trading in the forex and CFDs market, Oanda forex broker is one of the founders over the years when it comes to the biggest market in the world the forex market. With innovative trading, educational materials, and transparent pricing, the broker has built a proper reputation considering their multinational base of clients from different parts of the world.

Partnered with the best in the market like Google, Airbnb, Tesla, Twitter, and more. All these partnerships only prove the reliance of the broker and their reputation in not only the forex market but also in the global market.

The website of Oanda is provided in almost most of the spoken languages in the world as well as different languages from almost every corner globally. These include English, French, Deutsch, Spanish, Portuguese, and more.

Oanda is very popular in the US as one of the pioneer of forex brokers.

Is the Oanda safe? What needs to be known about Oanda account types, licenses, spreads and deposit & wihdrawal methods? In this Oanda review you will find the answer to these questions.

5.9Expert Score
Average

I reviewed OANDA based on the following criteria.

TRUST
8.5
COMMISSIONS AND FEES
5
CUSTOMER SERVICE
5.5
PLATFORM & TOOLS
5.5
PRODUCT PORTFOLIO
5
PROS
  • Strong regulation with 6 different regulator include FCA and ASIC
  • Minimum deposit is $1
CONS
  • Maximum leverage is 1:50
  • Cryptos are not available
  • Account types are limited
  • Payment methods are limited
  • Withdrawal fees are higher

Regulation

Regulation & Protection in Oanda

Oanda is regulated by several regulators in the market which not only proves the broker is one to be trusted and counted on but also shows that so many different financial regulatory jurisdictions are watching over the activities and terms of the broker and hence the traders and their funds and accounts are ensured by so many organizations.

These regulatory organization include some of the best and most strict in regard of the rules in the market which are:

  • 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 Asia Pacific Pte. Ltd. is regulated and licensed in Singapore by the Monetary Authority of Singapore (CMS License No: CMS100122-4) and the International Enterprise Singapore (Commodity Brokers License No: OAP/CBL/2012) to trade commodity CFDs.
  • OANDA Europe Limited is authorized and regulated by the Financial Conduct Authority in the UK, No: 542574
  • OANDA (Canada) Corporation ULC is regulated in Canada by the Investment Industry Regulatory Organization of Canada (IIROC)
  • 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).

All these regulatory organizations ensures so many important security points to be covered with regular updates in the terms and conditions to make sure the brokers is keepping up with the regulation and so worthy of sustaining the license.

Some of these terms include the fact that the traders’ accounts are to be kept in segregated accounts away from the operational funds and the capital of the broker. In addition to the possibility of providing a compensation scheme as it ensures extra securities for the client’s funds against any financial crisis that might include theft or scams or else, considering how vast and fluid the forex market is.

Brokers should keep at least $20 million in capital in their bank account. This guarantees clients funding and provides extra security. The same security prevention is also available on FCA-regulated brokers. However, the net capital requirement on FCA regulated brokers is 730,000 euros.

Account Types

Oanda Account Types

There are 2 different account types offered by Oanda with different features and different characteristics to allow space for choice for traders who wish to trade with the broker.

These accounts are:

The Standard account: there are no premium services offered on these accounts. Premium account services include free VPS, wire transfer, relationship manager, priority service queues, and curated loyalty rewards. A referral program and the ability to trade with 120 CFDs including forex, indices, cryptocurrencies, metals, and bonds are available. Automation, back testing, and partner programs are all available within the API support.

The Premium account: one of the main differences between the 2 account types is that premium services are offered here and they’re available for use which includes Dedicated relationship manager, Priority services queues, Curated loyalty rewards, Free VPS, and Free wire transfer. In addition to having a smaller time range to refresh the platform that includes being refreshed every 5 minutes.

Both the account types share the Trading platform and tools as well as Order management and account management support. API support and referral program are common points for both accounts.

The standard and the premium accounts can be used on the MT4 trading platform.

The spreads for both accounts are the variable type meaning they depend on the traded product. You would have 0.6 pips of spread on the forex currency pairs CFDs like EUR/USD, and if you’re trading indices like US SPX 500, the spread can reach 0.3 pips. And in case of trading bonds like US Wall St 30, the spreads can reach to 1.5 pips.

The nano account type is also not available. The nano account is missing, which is a suitable account type for investors who want to try trading strategies or forex robot.

The option for a demo account to be opened with Oanda is possible where traders can open a demo account for trial and testing purposes and at the same time, new forex beginners can test out their knowledge and techniques before getting into the real work and market of forex.

The demo account represents a helping hand for traders to risk-free trading yet the whole process within the demo accounts is virtual, so no real funds are used and hence the profits or losses only show the direction the trading process should take.

Oanda is offering 1:30 as a Oanda max leverage amount on all account types.

Deposit and Withdrawal

Oanda Deposit and Withdrawal

Oanda is offering different ways to fund and deposit into your account and they ways include

  • Bank wire transfer
  • Cheques ( accepted in USD and SGD, and processed in 5 business days)
  • E-wallet options that include Pay Now/ QR Pay ( takes 2 business to process and it’s the fastest way to deposit for Singapore residents)
  • PayPal (1 business day for processing the transaction)
  • Fast ( takes 1-2 working days to process SGD  deposits)
  • NETS ( it’s actual hand-to-hand funding in the offices of the broker yet due to Covid pandemic, this option is no longer available)
  • DBS Bill Pay ( only available for SGD, where it takes 1-2 business days to process)

Withdrawals can happen through different channels which are PayPal, bank wire transfers, and through Cheques. The one condition mentioned and needed to be considered with having a withdrawal process done so that any withdrawal method used must be done towards the same entity that the deposit was done from. In case the withdrawal is done towards a different entity, it needs to be in the case country jurisdiction.

Trading Platforms

Oanda Trading Platforms

The options to trade with Oanda via desktop, mobile or web are all available using the broker’s platform. which is a good advantage to consider in this Oanda review since having the freedom and option to access the platform anytime anywhere is crucial to traders in forex and CFDs markets.

In addition, the world’s most popular and most used platform in the forex market is available for use with Oanda, which is MT4. Developed by the mother company, MetaQuotes, MT4, represents the most preferred platform for traders, whether they were forex and CFDs beginners or algorithmic traders.

MT4 offers charting analysis tools that enable the trader to follow and track prices as well as the ability to trade at the ultimate time and make profits on the rise and fall of prices. Additional indicators and expert advisors (EAs) such as mini charts, OCO orders, tick-chart, keyboard trading, chart-ladder order entry, five-minute order book and alert trading are all features offered by MT4 to make the trading process easier for the traders.

MT4 offers market depth pricing with a mini terminal so you can take advantage of 0.6 pips spreads and on forex pairs. And you can trade large sizes in one transaction. Automated trading strategies are also present as well as open order indicators and more features to make the trading process easier and more efficient.

Trading Instruments

Oanda Trading Instruments

There are different trading products and instruments offered by the broker since it’s a great way to diversify the trading portfolio of the traders as well as having different channels of profits in different aspects of the market.

These trading instruments include:

Forex: with over 70+ forex pairs including all majors, minors, and exotics, Oanda offers great experience in trading forex with competitive spreads and a globally renowned trading platform, MT4.

Indices: US Wall St 30, UK 100, China A50, Singapore 30, Australia 200, and Hong Kong 33 are all examples of the available indices present for trade with the broker. the spreads are quite appealing to as they range from 0.8 pips for Australia to 200 and 5 pips for Hong Kong 33.

Metals: gold and silver are the main big examples of the kind of metals you can trade with Oanda, as the gold XAU/USD can be offered for 25 cents. Gold is known to be a haven commodity as it’s used to hedge against volatility in the US dollar. Silver too is being increasingly used by commodity traders as a form of hedging against volatility in the currency markets. Spreads are competitive and start from 150 cents for silver.

Commodities: Copper, Wheat, Natural Gas, and Oil are all options for the types of commodities that can be traded within the broker’s platform. Brent Crude Oil is offered with 3 pips spread for trading as well as the availability to trade using West Texas Oil as well. Commodities are often affected by changes in the supply and demand of the goods being traded.

Cryptocurrencies: Bitcoin, Bitcoin Cash, Litecoin, and Ether are the different types of cryptocurrencies that can be traded. The value of cryptocurrencies is determined by supply and demand, which makes them highly speculative and unpredictable.

Bonds: bonds like the UK 10-Y Gilt, US 10-Y T-Note, US 2-Y T-Note, US 5-Y T-Note, and US T-Bond can be traded with OANDA which represents a form of financial derivative trading. Where it gives you space as a trader to guess if trading will go up in value, you would take a long position and if you feel the value of the bond would fall, you would take a short position.

Awards

Oanda Awards

Awarded highest overall client satisfaction (Investment Trends 2021 Singapore Leverage Trading Report, Industry Analysis). Awarded highest client satisfaction for telephone customer service (Investment Trends 2021 Singapore Leverage Trading Report, Industry Analysis).

Awarded highest client satisfaction for online chat customer service (Investment Trends 2021 Singapore Leverage Trading Report, Industry Analysis). Awarded highest client satisfaction for email customer service (Investment Trends 2021 Singapore Leverage Trading Report, Industry Analysis).

Voted Most Popular Broker 2021 (TradingView Broker Awards 2021)Voted Best Forex and CFD Broker 2021 (TradingView Broker Awards 2021). Best Trading Tools winner (Online Personal Wealth Awards 2021).

Conclusion

Conclusion

Throughout this Oanda review we’ve managed to check some main points that has proves the accountability and reputation of the broker within the forex market and other brokers.

Oanda minimum deposit is zero, meaning you can start trading with any amount you’d like to have without any restrictions or conditions. Oanda spreads are quite competitive and can reach 0.6 pips. Oanda account types are two which include the standard and the premium accounts. The lack of a nano account makes it difficult to trade with nano lots with Oanda. Demo accounts are available for use and it allows the space for risk-free trials.

The world-renowned MT4 is offered as a trading platform that can be installed on any device you’re using whether that was a desktop, mobile or web. In addition to multiple selections of channels for funding the accounts along with withdrawal means to make things easier for traders. Bank wire transfers along with Cheques and e-wallet options. Credit and debit cards are not funding options in this Oanda forex broker review.

Regulated by multiple watchdogs in the markers including great names like ASIC in Australia and FCA in the UK and more.

I believe it’s safe to say that trading with the broker here is a good idea. Make sure to leave any extra replies in the comments sections below.

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Hello to everyone. Forexbrokerslab is my personal blog where I compare reliable forex brokers. I’ve been in forex trading since 2009 and I’m still learning. I have traded with the most popular forex brokers, including the most unknown ones in any regulation and many different account types. So I think I have enough knowledge to compare brokers. You can learn about forex brokers by reviewing my blog.

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