OANDA brokerage company is widely regarded as one of pioneers of online Forex brokers. OANDA was co-founded by Dr. Michael Stumm and Dr. Richard Olsen in 1996. The company has paid huge attention to technical and software support of online trading since its foundation. With the launch of FXTrade platform in 2001, OANDA was one of the first companies to offer fully automated online currency trading. Since then the company has become a leader among online Forex brokers. Nowadays about 20% of currency transactions (spot) are done with its participation.
The company’s clients can trade 61 currency pairs. Its trading tools also include precious metals and futures.
Such world-known companies as RBS, Fedex, The Times, British Airways, Deloitte, ArcelorMittal, United Continental are among the broker’s customers.
Deposits and Withdrawals
OANDA customers can open accounts in one of nine currencies, which along with US Dollar, Pound and Euro include such exotic currencies as Singapore Dollar and Hong Kong Dollar.
Clients can make a deposit or withdraw funds using one of the following methods:
- PayPal E-Wallet;
- Bank transfer;
- Bank cheque;
- Debit and credit cards (VISA, Mastercard).
OANDA works in close cooperation with Deutsche Bank, Royal Bank, JP Morgan Chase.
The broker’s financial activity is regulated by the following regulatory bodies:
- CFTC, USA;
- NFA, USA;
- FSA, UK;
- IIROC, Canada;
- FFAJ, Japan.
Apart from high level of regulation, different partner programs with participation of the world’s major brokers and market makers as well as international first-class banks ensure the company’s liquidity and reliability.
To protect the assets of its multiple customers, OANDA is using advanced trading, banking and information technologies. These include:
- segregated accounts allowing to keep customer funds separate from the broker funds;
- risk management technologies.
Bonuses and Promotions
Creating best trading environment is a priority for OANDA, like for most US brokers. This seems to be the reason for the company’s conservatism when it comes to marketing and different promotions.
The broker does not offer any additional bonuses to its clients and holds no contests and promotion actions. In one word, it’s “a serious company for serious customers”.
Trading Accounts Types
OANDA customers can trade using the only account type. To be more exact, there are two types: Demo and live accounts.
Live trading accounts have no deposit and transaction volume restrictions.
Spreads are floating from 1.1 pip. Spreads for metals and indices are even lower starting from 0.5 pip. The company charges no commission. Leverage ranges from 1:1 to 1:200.
Trading Platforms Types
As already mentioned, OANDA is a developer and owner of FXTrade platform. However, the company’s customers can also use MT4 trading platform.
FXTrade is professional currency trading software. It uses sophisticated computing techniques to calculate interbank exchange rates. The technology and efficiency of such calculations allow to provide extremely narrow spreads. With a wide use of advanced internet technologies, OANDA’s corporate trading platform has a number of advantages over other similar software programs:
- It is web based, so all clients with internet connection have a free access to the platform;
- Orders of all types are executed accurately and instantly. Execution time does not exceed one second. There are no requotes.
- When placing an order, customers can specify the maximum slippage.
- The platform provides an access to historical and analytical data;
- A wide range of indicators, some being unique. Free use of trading advisors.
OANDA customer support service is available 5 days a week. Customers can contact the support center via multi-line phones in the USA, Singapore, Canada, Japan and the UK.
Other means of communication are
- live chat on the company website.
The company has its accounts in social networks.
Irrespective of the means, you won’t have to wait for a response for more than 1-2 minutes.
Customers can communicate with support service representatives in one of the following languages:
Pros of Trading with Oanda
- Wide use of innovative trading and information technologies;
- No discrimination between customers (one type of account) ensuring good service of all trading accounts irrespective of deposit size and trading volume;
- Transparent pricing;
- Strict order execution;
- High-quality customer support;
- Good information support. News channel of the website provides immediate data.
No possibility of simultaneously opening different direction positions can be regarded as a disadvantage. To do that traders have to set up a separate sub-account.
Special mention should be made about spreads. Customers of the company and independent experts give different assessments, some considering them as an advantage, others – as a disadvantage. Aiming for transparent pricing, the broker is offering floating spreads. On one hand, this allows to make them very narrow, but on the other, spreads can unexpectedly grow in the period of high market volatility, which causes trouble to customers and arouses well-grounded complaint.
The fact that OANDA’s information flow (news) is not directly integrated to the terminal can also be counted as a disadvantage.
Nick Collins: It’s a great platform, more simple and powerful than MT4. A wide choice of trading tools, including such exotic currency pairs as US dollar/Indian rupee. Excellent execution. I can’t remember of any slippages over 2 years. Only few withdrawal options somewhat spoil general impression.
Andy Bores: The main virtue of OANDA is accurate order execution. But only in “flat” market.
Jilly: All US brokers are reliable and accurate. OANDA is no exception, it is too regulated even for US company. Surely, reliability and safety have their price. But a month and a half for registration – it’s too much.
It is quite clear why OANDA is so popular considering transparent pricing, automated trading and no minimum deposit and trade volume requirements. Democratic approach to its customers, accurate order execution, strong customer support speak well for the company.
Only spreads spoil the general picture considerably. Pricing transparency is certainly essential, but the possibility of planning profits (and even more so possible losses) is much more important for traders.