Oanda is a forex broker established in 1996. Regulated by the FCA (license number 542574) and CONSOB (license n. 11055365 of 20/06/2011), Oanda is authorized to operate in the eurozone as well as in the USA, Canada, Asia, South Africa and Australia.
It is headquartered in Toronto (Canada) and is regulated by the Canadian Investment Industry Regulatory Organization.
In the United States, Oanda is headquartered in the state of Delaware, is a Retail Foreign Exchange Dealer registered with the U.S. Commodity Futures Trading Commission and a member of the Forex Dealer.
This Broker is also a member of the National Futures Association, the monetary authority of Singapore that regulates its Asian branch.
Oanda also holds the Type 1 Financial Instruments license from the Japanese Financial Services Agency and is a member of the Financial Futures Association of Japan.
Certification by all these authorities means that the individual national authorities take care of registering the brokers, making sure that they comply with the regulations periodically passed by each country.
These international authorities ensure the security of the financial sector through limitations that lower the risks for novice investors, thus making online trading as user-friendly as possible.
Being certified by various authorities, is a testament to the broker’s reliability as are the 35 international awards that the platform has won over the years.
What Oanda Offers
Oanda’s platform is set up around its inclination to offer itself as an ideal solution for beginners, including the facility of a demo account to all its subscribers. That’s just the beginning though, so let’s see in detail the main characteristics of the Oanda Forex Platform.
The Oanda demo account has no expiration date of any kind, which means you can keep using it until you feel comfortable enough in your abilities to try out the real money account. It can also be used in contemporary in order to test out your Currency Trading strategies before trying them out with real funds.
Overall, this is a very useful trading simulation to learn the fundamental principles of financial investments. With the demo account, thanks to a virtual capital provided by the broker that periodically regenerates, you can experiment without any risk in real market conditions.
Opening a demo account with Oanda is extremely simple: just fill in a registration form with your personal data (Name, Surname, Username to be adopted, e-mail, telephone and, of course, password). There is no need to make a deposit at this stage, so opening a demo account does not commit you to opening a real account.
If you find that this currency trading platform is not for you, you can just close your Demo account and move on to one of the other recommended Forex brokers on our list (insert link).
Oanda Real Money Account
The Standard real money account is the only real account available on Oanda broker Platform. In other words they do not have the VIP account which some platforms offer for those who wish to deposit and trade with larger amounts.
One good thing about this account is that it does not require any minimum deposit and allows you to trade on the Forex Market and with CFDs with as little money as you wish.
Unlike most Forex brokers that do not have a minimum deposit, Oanda’s trading offer is specially designed for this type of operation.
In fact, if you consider that most brokers without minimum deposit allow you to trade at most with 0.1 Micro lots (equivalent of 100 units of base currency), it is clear that opening a position on Forex with 30: 1 leverage involves an initial margin of at least € 3.33.
Oanda, on the other hand, allows an operation to be carried out even with a single unit of base currency. This makes a deposit of as little as € 10 sufficient to have some flexibility. To obtain such flexibility by trading on Micro lots (i.e. the most popular option), it is necessary to refer to the minimum deposit of brokers such as eToro, of €200.
Obviously, the lower the amount invested and the more negligible the profits will be, but having said this the profits are the last thing a beginner must worry about.
With the Oanda Standard account you will have 70 Forex pairs with variable Spread starting from 1pip, and another 50 CFD assets to invest in.
Trading platform: Offers, advantages and benefits:
Regarding Oanda’s trading platform, Oanda distributes its platform in four different options: the MetaTrader 4 option, the WebTrader Online option, the desktop option and the application option for mobile phones
Furthermore, a very interesting point of Oanda is that it offers an API library service, so that developers and specialized operators can access the transaction history and many other data to be included in their automated trading.
For the rest, we can say that it is a very comfortable tool to use, easily navigable and the fact that it is specialized, especially in Forex, it allows you to find everything with maximum comfort.
It is true that it can be a little chaotic when starting out, but after spending a couple of days fiddling here and there, you will be surprised at how much everything is at your fingertips and you won’t have any problems managing it.
Oanda: deposits, withdrawals and fines
Let’s start with the good news: unlike some other brokers, Oanda does not charge commission on deposits.
The deposit can be made by bank transfer (be careful because the bank may charge commissions), VISA, MasterCard or Paypal.
The bad news is that Oanda provides withdrawal fees:
If you use bank transfer, the first withdrawal per month has a commission of € 20. From the second withdrawal onwards, however, the commission rises to € 35. To this is added the commission that your bank could impose on the transaction;
If you use VISA or MasterCard, the first withdrawal per month is free, while from the second month onwards a commission of 20 € is applied;
If you use Paypal, however, there are no commission costs;
Did we mention a fine?
Yes. Well, to put it clearly Oanda states in their terms and conditions that they may impose a fine for inactive accounts. So, if you do not log in to your account and trade for more than 12 months, the broker will impose a penalty of € 10 per month until the next log-in.
In the event that the funds in the account are insufficient to pay the penalty, the account will be closed.
In general this is a strategy that the vast majority of forex brokers use to avoid having to deal with the problem of having accounts parked on their servers for too long.
In conclusion, we can say that Oanda give advantageous offers for beginners. Being able to trade with just one base currency unit is an excellent starting point if you have little or no experience in the sector.
We recommend, as for all brokers, to take advantage of the demo account and not to deposit money until you have enough experience and you really feel ready to trade with real money on the real market.
A further advantage of Oanda is the fact that, when you feel ready, you will not have to deposit a large sum of money to leave, nor worry about the size of the minimum trading lot.
On the other hand, the lack of features on the platforms beyond these aspects make it a broker that could be a little tight for those who already know how to move.
Furthermore, by not presenting a range of different languages on its platform, Oanda alienates those that are not English speaking and therefore those investors who are much more comfortable in their mother tongue.
Opinion: Not the perfect broker in the long run. Ideal when starting out to practice your Forex Trading strategies with little funds but definitely not to good for those who want to expand their investments and continue with regular trading once they feel ready to operate more seriously.