Australia
Canada
United Kingdom
Claire Maumo has experience in investment banking, strategic consultancy, and journalism. She has a Bachelor’s degree in Business Management and a Master’s in finance. She has a knack for making complex concepts easy to understand. Her primary focus is on crypto, blockchain, and financial instruments. Follow her for expert insights on trading and investment.
Fact checked
Advertising Disclosure
We may receive compensation from our partners for placement of their products or services, which helps to maintain our site. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn’t influence our assessment of those products.
OANDA is an award-winning forex, spread betting, and CFD trading brokerage firm that has been around for over 25 years. It has built a stellar reputation among traders due to its transparent pricing and cutting-edge technology. Plus, many users highly rate this broker and recommend it to both new and professional traders.
As professional traders and investors who strive to make unbiased and accurate recommendations, we decided to explore OANDA. Our OANDA review below is based on multiple tests and analyses. Our goal is to ensure our readers fully understand its offerings and determine if it fits their trading requirements.
In This Guide
Our Opinion about OANDA
We find OANDA to be an excellent pick for any trader looking to explore the currency, stock, spread betting, and CFD markets. We like that this US-based broker features fully automated platforms for desktop and mobile devices. These include Web, MT4, MT5, and TradingView. Moreover, OANDA fees are among the lowest, and we recommend it to any low-budget or active day trader.
While there are many reasons to trade with OANDA, a few elements make it fall short. For instance, there is no buying and taking ownership of the underlying asset. Its product offerings are also not as comprehensive as most of its peers.
OANDA
✔Offers a negative balance protection
✔Customizable trading platform
Pros & Cons
Pros
- Low forex, CFD trading, and spread betting fees
- Free deposits when transacting using credit/debit cards and bank transfers
- Excellent selection of market analysis and risk management control tools on its MT4, MT5, and TradingView platforms
- Offers a negative balance protection to its clients
- Allows users to invest in global shares
- Licensed and regulated by multiple world-class authorities
- A highly rated mobile app with an excellent search function
- A user-friendly and customizable trading platform
Cons
- It does not support the buying and selling of the featured assets
- OANDA is not listed on any exchange and does not have a banking background
- Has an inactivity fee of $10 monthly should your account remain inactive for over 12 months
Note: 76.6% of retail investor accounts lose money when trading CFDs with this provider.
Fees
OANDA broker has a clear fee structure with no hidden charges. This makes it easier for you to know how much you will be paying once you make a commitment. Some of the fees to incur at OANDA include the following:
| Trading and Non-Trading Charges | Details |
|---|---|
| Account Opening | $0 |
| Management Fee | $0 |
| Minimum Deposit Requirement | From $0, depending on your jurisdiction |
| Commission | From 0% on US-listed shares |
| Spreads | From 0.6 points |
| Deposits and Withdrawals | Free deposits. Withdrawal fees apply based on the payment method used |
| Inactivity | $10 after 12 months |
| Overnight Funding | Varies based on global market conditions |
| Currency Conversion Fee | Calculated by applying a 0.5% mark-up or mark-down |
Available Assets
From our analysis, we discovered over 8,000 trading instruments at OANDA. The assets are spread across various classes, including forex, shares, commodities, cryptos, indices, ETFs, and more. Note that some asset availability is limited to specific regions. For instance, while the broker mostly focuses on CFD trading and spread betting, real stock investing is offered to clients within the EU. You can invest in real shares from Germany, France, Spain, and the United Kingdom.
The best element about trading at OANDA is an opportunity to apply leverage in CFD and spread betting trades. Retail traders are given favorable limits up to 30:1. In contrast, professionals get 200:1. This makes it easier for you to manage larger positions with a small capital, thus increasing your chances of earning good returns.
Here is a breakdown of the assets offered at OANDA for informed decisions:
| Asset Class | Number Offered |
|---|---|
| Forex | 70+ currency pairs |
| Shares | 2200+ |
| Indices | 14+ |
| Commodities | 14+ |
| Cryptocurrencies | 30+ |
| ETFs | 40+ |
| Bonds | 6+ |
Disclaimer: CFD assets are complex, and carry the risk of losing money due to leverage. While many traders have earned good returns from the activity, more than 76% of retail clients lose their money. Therefore, consider whether you understand how CFD trading works and if you can afford to manage the risk of losing your money before venturing into such assets.
Security
OANDA broker has implemented robust security measures to ensure the online trading platform remains safe and its users can have an exciting experience. Besides being highly encrypted, the broker offers users a $50,000 virtually funded demo account to get started with. This account is risk-free, and you will not need to use your real cash.
Additionally, OANDA goes the extra mile to ensure users secure their accounts with passwords and biometrics IDs. With these, your account is free from unauthorized access, as your personal data will be safe. And when it comes to licenses, we like that OANDA has multiple from tier-one global authorities. You can confirm the broker’s regulatory status at the bottom of its homepage.
Having multiple licenses means your funds are secured in segregated accounts only accessible to you. Moreover, you will benefit from investor protection, but the amount varies based on your jurisdiction. For instance, traders in the UK will enjoy an investor protection amount of £85,000, while those in other EU countries up to €20,000.
Let’s find out below the top financial regulators overseeing OANDA’s activities across various global regions.
| Financial Regulator | Legal Entity |
|---|---|
| Malta Financial Services Authority (FSA) | OANDA Europe Markets Ltd |
| Financial Conduct Authority (FCA) in the UK | OANDA Europe Ltd |
| Commodity Trading Futures Commission (CFTC)National Futures Association (NFA) in the US | OANDA Corporation |
| Australian Securities and Investments Commission (ASIC) in Australia | OANDA Australia Pty Ltd |
| Canadian Investment Regulatory Organization (CIRO) | OANDA (Canada) Corporation |
| Financial Futures Association of Japan (FFAJ) | OANDA Japan Co., Ltd. |
| British Virgin Islands Financial Services Commission | OANDA Global Markets Ltd |
Conclusion
It’s a no-brainer that OANDA is one of the top brokers that continues to adjust to the advancing technology. With a main focus on providing superior services, it has won the hearts of many. However, understand that OANDA may not be suitable for you, considering its unique features across various jurisdictions. Taking advantage of its virtually funded demo account will help you understand how it operates and decide whether it fits your needs. Moreover, the OANDA demo account hosts quality learning and research materials. You should use them to analyze the markets and advance your skills before trading or investing using real money.
BrokerRaters Rating:
✔Offers a negative balance protection
✔Customizable trading platform
Visit site
Risk Warning
72% of retail investor accounts lose money when trading CFDs with OANDA TMS Brokers S.A. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
-
5
Customer Support
-
4
Commissions & Fees
-
4
Platforms & Tools
-
5
Educational Resources