Summary

Established in 1996, Oanda was one of the largest American forex and CFD broker in the world. It is highly regulated by top-tier financial authorities such as the UK FCA and the Australian ASIC.

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.

Features

Pros

  • User friendly trading platform
  • Fuss free account opening
  • Great API offer

Cons

  • Only FX, and some CFDs
  • Poor customer service
  • Pricey withdrawal

Account Types

Oanda offers a single, standard no minimum deposit account. It is great for regular traders who gets to benefit from more than 70 currency and precious metal pairs offerings and trades of any size. The account can be disappointing for seasoned high volume traders as it does lack extra perks for this group of traders, which are offered by its other competitors.

Demo Account

For traders who wants to practice their trading skills, Oanda offers a demo account with an impressive perk – Oanda’s FxTrader demo account is available for as long as a trader needs to improve his strategy and build his confidence. This is unlike many forex brokers who offer a practice download for a limited time only.

Once you sign up for an account, you have almost all of the functionality as live account holders. Funded with virtual money, Oanda’s practice account will help you to get familiar with market conditions and trial Oanda’s product and services.

You can then choose to upgrade to a live account anytime with ease when your confidence has grown with the volume indicators, currency heat maps and backtesting that are all offered in the demo account.

Additional Features

Oanda is also widely known for their extensive range of research and trading tools which makes them one of the best brokers around. Their offering can surpass many retail trading platforms.

They provide access to historical average exchange rates for account holders. It is also quick and easy to view open and long-short positions, monthly and yearly averages and historical classic interest rates to help you conduct your own research easily.

Margin and leverage calculators are available to help you calculate potential profit and loss.

Their education resource, Oanda’s academy offers:

  • Free Webinars – Series of videos that cover a wide range of subjects for different levels of traders; from beginner courses such as ‘Getting Started in Trading’ to more advanced topics, such as ‘Fibonacci Retracements and Clusters: An Advanced Look at Trend Formation.’
  • Interviews – Learn from experienced traders as they discuss trading plans, strategy and everything that’s going on in the trading circle.
  • Articles – Detailed, comprehensive articles for traders of all experience levels.
  • Tutorials – Step by step tutorials that guides you to start your first scalping and compare recent live spreads. Tutorials also cover functional topics such as reading data feeds, identifying correlations and how to trade bitcoin.

You can also find breaking news, trend analysis and market commentaries from sources such as MarketPulse, 4Cast, Dow Jones FX Select etc on Oanda platform.

Margin and leverage calculators are available to help you calculate potential profit and loss.

The only downside is that it might be difficult to find them all on the platform due to a confusing UX experience.

Platform

With an Oanda account, you can access the standard MT4 platform and their own proprietary platform, FxTrade. FxTrade offers a multitude of tools and analytics and is well designed and user-friendly. You can also get access to the FxTrader API library, Oanda’s main core offering.

FxTrade

FxTrade offers a multitude of tools and analytics and is well designed and user-friendly. It is a platform that will be able to cater to the needs of all traders as you have the tools needed to trade in a few clicks.

Advantages

  • Trade directly from the chart
  • Able to process complex order types (i.e. buy, sell and trailing stops)
  • Easy access to account analytics to understand your trading pattern
  • Create advanced and sophisticated charts with MultiCharts
  • Straightforward access to historical and live exchange rates

Disadvantages

  • UX design is not modern
  • Some functions awkward to use (i.e. instead of being able to open news, forums and economic analysis in one platform, the open as web pages in separate browsers), preventing a smooth trading experience

FxTrade API Libraries

Oanda account holders can also leverage on their API libraries to explore automated trading, executing more trades than you could manually. This also means that with automated trading, you can be active in a number of markets at once and reduce the manual process.

Using Algo labs, you can pre-programme your criteria and set notifications for when you enter and exit positions. This will free up more time for you to work on your analysis and draft effective strategies.

The FxTrade API libraries can also help do all of the following for experienced traders and techies:

  • Access current and historical market data
  • Stop-loss, take-profit or entry orders
  • Access past trading transactions
  • Risk-free testing
  • Trade requests

MetaTrader 4

If you don’t find Oanda’s platform appealing, you can still use MetaTrader 4 (MT4) and access the industry standard tools such as advanced charting, watch lists and trade automation via an “expert advisor”(EA) plugin. You are also able to save layouts and chart profiles and draw up swap rates, as well as live and monthly exchange rates charts from within the platform.

On the negatives, creating or amending EAs can be challenging, especially for new traders who may be unfamiliar with the programming language.

Other fantastic trading tools available at Oanda:

  • MotiveWave – A professional charting and technical analysis platform that offers more than 250 built-in studies/indicators and 30 built-in trading strategies. This high-performance and user-friendly software will be a great companion on your trading journey.
  • Oanda Market Reports – Powered by Autochartist, this tool provides a brief summary of the markets. Daily market report emails will be sent to traders before they start their analysis. The reports provide a technical outlook of the forex markets for the next 48 hours.

Drawing up a forex order book, indicators and potential strategy are also quick and easy. For those wanting to hedge, it is not prohibited. You can view both long and short positions for the same product on the MT4 platform.

Note traders will also find additional platforms are available in the Oanda Marketplace. These include third-party apps, plus algorithmic trading platforms, such as the Seer trading system.

Note: Oanda does not offer Metatrader 5 (MT5).

Pricing

Oanda pricing and spreads are highly competitive regardless of your location and are comparable to other big firms like FXCM and FxPro.

Oanda offers traders the best prices by using an automated machine to monitor global prices with their spreads responding to market liquidity and volatility. Their transparency with spreads meant that both current and historical average spreads are clearly outlined, which can quell some traders’ concerns over hidden fees.

Leverage

For those looking to trade on margin, you will find leverage offerings at Oanda. For retail clients, maximum leverage is decided by regulators in your geographic region, however, all Oanda users can further reduce their leverage limit.

It is also worth highlighting that whilst you could potentially increase earnings, trading on margin can also amplify losses. Therefore, utilising stop loss orders to limit potential losses with leverage is a technique employed by many.

Payment Methods

Credit cards (VISA, MasterCard, Debit)

Bank wire transfers

Paypal

China Union Pay

BPay

Conclusion

Highly raved by traders online, Oanda is a pretty good forex broker that offers a straightforward set-up, competitive pricing a good range of product offerings and a sophisticated trading platform. However, its key setback was its slow customer service as traders who prioritise fast and reliable support may be looking elsewhere.

Trade with a regulated broker