For traders in Forex, if you’re looking for an best online broker to utilize, Oanda is one of many options available online. But, is Oanda the right option for you? Here we’ll review some of the features, usability, and Forex-specific tools, to help you decide if it is the top choice for you as a trader in Forex.
Like every other trading platform, Oanda is regulated. It is regulated in
- The US
- The UK
So, regardless of which of these world markets you’re trading in, you know your funds are safe with Oanda. You’re backed by several world regulating markets including
- CFTC and NFA US
- FCA UK
- The Australian Securities & Investments Market (ASIC)
- Monetary Authority of Singapore (MAS)
If you’re new to trading, you want to know that your trades are being regulated and properly monitored. With Oanda, you’re secure in multiple countries, and in trades you’re making with various world currencies.
OANDA Trading Platform
Oanda offers one of three platform options for traders to utilize
All three of the platforms are user-friendly, feature good search functions, and customization features. Depending on your level of comfort as a trader, when and where you like to make transactions, and your familiarity with these platforms, you can utilize one or all to your liking. Which one’s right for you as a trader?
With the web platform a simple drop-down menu makes search parameters a breeze. A two-step authentication ensures your information is safeguarded and doesn’t get into the wrong hands. Graphs, charts, and other graphic representation make it easy for you to see the ebb and flow of your financials. You can utilize one of four order types which are
- Stop tailing
It does lack a till cancel feature, however. Another drawback is the lack of being able to set up alerts on Oanda. Tracking losses and gains, and other portfolio and fee tracking, also comes at a premium, as you have to pay additional fees.
Like the web platform, you can set alerts with Oanda mobile. It features a safe two-step authentication login feature as well, so your finances are secure. You can utilize the app on both iOS and Android. Set alerts, use the chart graph function, and compare side-by-side graphics, for a full view of your transactions.
It’s similar to most mobile apps, but limited on the actual trading functions.
This is probably the worse of the three and is the least user-friendly of Oanda’s platforms. It does offer good customization for charts and graph functions and spreads. It also features the two-step authentication. A poor search feature lacks the drop-down menu, so you will have to do some digging when looking for different trades, values, or currencies on the desktop platform with Oanda.
You can set alerts and portfolio report reminders. Search makes it hard to find items and it does lag a bit after entering search terms. There’s also a lag when typing searches into the window, which further slows down the process.
Oanda features core pricing and spread only pricing. With spread-only, the commission is based on the spread offered, meaning that is the only cost you pay as a trader. With core pricing, a reduce spread price is available, and users only pay a fixed commission per trade. Depending on trends and events in the Forex market, spreads can be wider with Oanda as opposed to other trading platforms and broker fees. So, traders should keep this in mind in deciding to use the platform or not. International events, market open/closing rates, geopolitical events, and other world events, can cause fluctuations in the price for spread-based trading which users should know about.
Depositing and Withdraw Options for Traders
There are many options for both deposit and withdrawals; when using a card, the first deposit is free (no fees). Withdrawals do take long, and processing fees are higher than competitor platforms. Some pros of Oanda include
- Several currency options
- EG, Wallets, PayPal, etc.
- Currency conversion rates aren’t charged.
There are some drawbacks on this front as well to include
- Long processing times for withdrawals
- High withdrawal fees
- Slow funding (more than 3 days)
Limits are in place for withdrawals as well. For example, no credit/debit withdrawal, and no e-wallet. You can only deposit to a bank account. Estimated time for withdrawals is 1-6 days, with an average speed of 3 days for most transactions, regardless of the world currency you are trading.
One of the great features with Oanda is that it allows you to set your leverage levels. So, you’re minimizing risk, and maximizing utilization of your broker’s funds. If you choose a 1:1 leverage, gains aren’t immense, but you can minimize losses. If you have money to spend, going with a higher margin will allow you to capitalize on that.
The fact that users have the option to set their leverage, which most other platforms don’t allow for, is a great selling point for those who are considering Oanda as a newbie to mid-level trader in the Forex market.
For those who like freedom in trading, and a broad leverage base, look no further. It’s highly regulated in multiple countries. It does offer a reasonable fee structure. Oanda has three trading platform options, allowing you to trade from virtually anywhere, at any time. Deposits and withdraws are easy to make. One major drawback is the inactivity fee it charges, but it’s low. The platforms are lacking a bit, making it pedestrian in that sense. And, the desktop platform, is virtually useless for some more advanced traders. The web platform is the best of the three options available. High withdrawal fees is another drawback for those considering Oanda for trading.
If you’re new to Forex and want to wet your feet in the market, Oanda is a good option. For mid to advanced traders, you might want to look elsewhere for a more complex system, that offers more ability to earn and trade at higher price points, when working with a broker and online trading platform.