- Highly regulated
- Competitive fees
- Excellent trading platforms
- Great reputation
- Slow customer support
- Somewhat limited investment product selection
OANDA is a well-respected and established online trading brokerage offering trading services in the forex and CFD markets. OANDA is owned and operated by two venture capitalist firms; Index Ventures and New Enterprise Associates and is headquartered at 185 Berry Street Suite 4700 San Francisco, CA 94107, USA. The brokerage is somewhat of a pioneer in online forex and CFD trading as it was founded in 1996. Since then, OANDA has built up an excellent reputation and is a respected broker who offers their services to traders from all around the world, including the U.S., U.K., Singapore, Canada and Australia. OANDA can confidently service these countries in which many other online trading brokerages cannot, because OANDA is regulated by the Commodities Futures Trading Commission (CFTC), the Investment Industry Regulatory Organization of Canada (IIROC), the Financial Conduct Authority (FCA), the Australian Securities and Investments Commission (ASIC), and the Monetary Authority of Singapore. Due to OANDA’s global presence, they offer their services in 8 different languages and have 7 head offices located around the world. OANDA is obviously a well-established and respected trading brokerage, but is it right for you? In the following review we’ll delve deep into the aspects that make up this online trading brokerage and see what sets OANDA apart from the competition and whether or not they can be trusted.
OANDA features two main types of trading platforms, the ever popular MetaTrader 4 (MT4) trading platform and the FXTrade WebTrader platform. Both platforms are highly sophisticated and feature a complete range of tools and features for competent online trading. The MT4 platform is available for download on desktop computers, while the WebTrader platform can be used via the internet on desktop computers. Both these platforms are also available on mobile devices through their downloadable applications found on the Apple App store and the Google Play Store. Both trading platforms come with a complete charting package with loads of technical indicators and drawing and analysis tools. The platform a trader uses is solely dependent on their personal preference, as both platforms are excellent options. Some of the key features of these platforms that stood out to us include; the ability to trade directly from the chart, customizable watch lists, news feeds, various display styles, and economic analysis.
OANDA offers traders a vast array of tradable products spread across numerous markets including the foreign exchange market (forex) and CFD markets including bonds, commodities, indices, and precious metals. For the forex market, traders can participate in the trading of over 70 currency pairs which include majors, minors, and exotics. Leverage of up to 100:1 can be used when trading forex with OANDA. As for the CFD markets, traders can trade with leverage of up to 100:1 and the markets include; 16 index CFDs, 8 commodity CFDs, 23 precious metal CFDs, and 6 government bond CFDs.
Fees and Commission
OANDA uses a spread only fee structure except for their U.S. clients, who have the option to incur fees through spread + commission. OANDA utilizes an automated algorithm to accurately follow pricing on a global scale which allows them to offer competitive spreads. However, spreads are still subject to market volatility and liquidity. The average spread for common financial instruments can be seen below.
- EUR/USD = 1.2 pips
- GBP/USD = 1.9 pips
- USD/JPY = 1.3 pips
- S&P 500 CFD = $0.50
- Japan 225 CFD = $10.00
- Oil CFD = $0.03
- US 10-Y Note = $0.026
- Gold = $0.267
Security and Fairness
As mentioned before, OANDA is a highly secure and trusted online trading brokerage as they are regulated by 5 regulatory agencies from around the world. Not many online trading brokerages can serve U.S. clients legally, but OANDA can because they are regulated by the CFTC and hold a National Futures Association (NFA) membership. In the event that OANDA goes default, UK accounts are covered for up to EUR 50,000. Unfortunately, there is limited protection for investors outside of UK accounts. However, OANDA has maintained an excellent reputation and have received awards for best customer satisfaction. All in all, OANDA is a very safe and secure trading brokerage. They treat their clients fairly by being transparent with all the services they provide and clearly state the fees and rules that go along with them.
OANDA excels in the area of customer support and has been awarded numerous awards for customer satisfaction. Support representatives can be reached 24/7 via email and live chat and can be reached Monday – Friday from 1:00 pm – 6:00 pm ET via telephone. While live chat and email support is relatively quick, we found that telephone support can be fairly slow with long wait times. However, customers can receive support via a variety of other methods such as the websites extensive FAQ page and education center. Customers are strongly advised to seek the website for answers to any questions they might have before contacting support so that representatives are not bogged down with requests. Overall, support can be slow to respond, but is of good quality when received.
OANDA stands out from the competition largely due to their extensive regulatory compliances and reputation in the industry. Traders can rest assured they are well protected and dealing with a competent and professional trading brokerage with OANDA. The platforms offered by OANDA are top of the line and include all the necessary tools and features both beginner and experienced traders need. A couple downsides of OANDA is their somewhat limited product offerings compared to other online trading brokerages and relatively slow customer support. However, the support is very good when received and OANDA provides very competitive spreads and commissions. Overall, we highly recommend OANDA to forex and CFD traders from around the world.
The following are the common questions that customers inquired about OANDA.
Is OANDA regulated?
Yes, it is regulated by the Commodities Futures Trading Commission (CFTC), the Investment Industry Regulatory Organization of Canada (IIROC), the Financial Conduct Authority (FCA), the Australian Securities and Investments Commission (ASIC), and the Monetary Authority of Singapore
Is OANDA a scam?
No, OANDA is a legit broker with a great reputation.
Where is OANDA?
OANDA is based at at 185 Berry Street Suite 4700 San Francisco, CA 94107, USA.