Not many privately held online brokers made a name for themselves as big as the one Oanda has managed. This US based broker can trace their past to 1995. Two co-founders Michael Stumm and Richard Olsen created a unique company, with a priority put on transparency and great trade experience and execution.
Oanda is made for Forex and CFD traders, with their own proprietary platform created specifically to fit the needs of their traders who are trading on their list of 124 instruments. With over 70 currency pairs to trade you will be spoiled for options. This company isn’t backed by a bank, but don’t think they aren’t playing by the same rules, Oanda is regulated in six major jurisdictions and are serving traders from 196 countries.
Oanda owners wanted to make traders experience hassle-free and unique, so they only have one type of live account, and it comes with no minimum deposit requirement, which is unheard of for online brokers. This live account also differs from its competitors in the lack of high-volume incentives, that have become quite standard within the industry. As the industry always provided people with more funds with lower spreads, extra tools and assistance, and 0 commission trades, it is nice to see a company put all traders equally.
Oanda has created a proprietary trading platform of their own called FxTrade, this platform is ready for users of all levels of knowledge in the world of Forex trading. While some functions like the search are difficult to find and use, the rest of the site runs smoothly and provides a fast and easy platform for their users. The look is due for an update, but the functionality of the system is unquestionable. With FxTrade you will have access to numerous tools, studies, and charts, including ones from MultiCharts. With lots of customization ability you will have the choice to setup your screen the way you want. Chart tool gives you the ability to view the market in your terms with 60+ indicators.
Oanda also offers their users with a second platform that is now the most popular trading platform in the world by the name of MetaTrader 4. This platform is the most commonly used platform across the industry and deservedly so. From allowing automated trades with EAs, to offering countless charting and advanced charting options makes MetaTrader the go to platform regardless of which company you go with.
On top of a FxTrade API subscription which will allow you to set up automatic trading with the FxTrade platform, you also have a variety of other platforms available for traders of Oanda. These third-party apps and plus algorithmic trading platforms provide an option for all traders of all tastes and strategies.
As good as it is to have multiple options on web-based or computer-based platforms, it is even better to have a great mobile application on top of that. Oanda’s offering for traders on their mobile phones and iPad’s surprises most users with its functionality and resourcefulness. FxTrade mobile, offers great charting options, along with a sleek design, and seamless control. Even funding your account through the app is easy and instant, which is a wonderful change from most mobile apps in the industry. Use the app for your “on the go” trading needs or as a companion while trading on your computer.
Once your account is setup and you pick the platform you wish to use, it’s time to fund your account. Oanda provides three methods for depositing money, Debit/Credit Cards, Wire Transfers and PayPal. Debit/Credit funding will be immediate while wire transfer might take a few days. For certain users, other options are available based on their location.
When it comes to getting your money from Oanda to your account, you will have the option to use all three of the deposit methods. We do however recommend that you use the Debit/Credit Card option to avoid a withdrawal fee of $20, as you get one free card withdrawal per month. PayPal would also work fee-free.
Spreads & Commissions
In terms of spreads, Oanda has managed to stay competitive across the board with their nearest rivals. With a responsive system monitoring the market, the spreads you get are current, which is vital when making trades. Most comparable to Forex.com and FxPro, Oanda has spreads of 1.2 pips for EUR/USD, and since you pay no commissions or hidden fees you actually end up making more than you think. While several companies offer commission free trades, they are usually followed by higher commissions to balance out their earnings.
A key distinction is Oanda’s ability to offer execution as a market-maker, rather than using the agency broker model, where your ability to deal at a price relies on third parties.
This is what takes that 1.2 pip to 0.6 to 0.7 pip.
Leverage is a desirable thing in the trading market, as your chances of profits increases greatly with the leverage you are given. While there is nothing wrong with trading on a margin, it is a good idea to know what you are doing before you start, when a trade goes bad the same leverage you loved and cherished can become your worst enemy.
With Oanda your leverage will depend on your graphic location. Each regulator sets their own limits, and this broker abides by all the rules. The ability to reset a 100,000-unit starting balance or profit/loss at any time will come in handy.
Regulations & Security
Being headquartered in USA has a great deal of advantages and one of them is the ability to earn your traders trust and provide them with a peace of mind by obeying the rigorous regulations of the CFTC. Outside of the United States, Oanda is also complies by 5 other major regulatory authorities such as FCA in UK, ASIC in Australia, IIROC in Canada and FSA in Japan. No matter what part of the world you are trading from you will always be in good hands with Oanda. This company puts transparency first and that’s a hard thing to do if you are out to scam people.