Oanda Review 2021 – Is it Safe and Legit?
Oanda (short for Olsen & Associates) is a big and trusted name in the Forex and CFD trading domain. The company was born as a brainchild of Dr. Stumm and Dr. Olsen in 1996. This US-based forex broker has global operations in over 196 countries. It provides the clients with all types of “currency-related” and online brokerage services. As a leading multi-asset broker, Oanda offers services in over 100 financial instruments. It specializes in a range of FX and CFD products like currency pairs, commodities, indices, bonds, and metals.
Oanda is popular among traders for its powerful research tools and advanced charting interface and trading platform features. In addition to the trading instruments, it has expanded its realm to include corporate FX services, currency data solutions, and even Bitcoin. It is one of the first online forex brokers to leverage the power of the internet and technology to drive innovation in the forex market.
|Headquarters||New York, USA|
|Regulation||Commodity Futures Trading Commission (CFTC) and National Futures Association (NFA)
Europe: Financial Conduct Authority (FCA)
Japan: Financial Services Agency (FSA)
Asia (excluding Japan): Monetary Authority of Singapore (MAS)
Australia: Australian Securities and Investment Commission (ASIC)
Canada: Investment Industry Regulatory Organization of Canada (IIROC)
Malta: Malta Financial Services Agency (MFSA)
|Instruments Available||Forex, CFD, Cryptocurrency, Spreadbetting|
|Minimum Deposit||$0.00 (Standard Account)
$20,000 (Premium Account)
|Trading Platform (fxTrade):||MT4, Desktop, Web, Mobile (Android/iOS)|
|Payments Methods||Debit Cards, Bank Transfer, Cheque, Swift, Payoneer|
Pros and Cons of Oanda
The best thing about Oanda is its user-friendly trading platform and advanced research tools to guide investment decisions. It operates globally and abides by regional regulations such as CFTC, FCA, FSA, IIROC, ASIC, and MAS. These regulations add to the credibility and trustworthiness of Oanda. Its fxTrade platform comes with an impressive range of data visualization and analytical features, which is a rare thing in any retail trading platform.
One downside is that OANDA does not offer “negative balance protection” for its US traders. Even though it boasts to trade in over 100 instruments, those are limited to FX and CFD. Oanda is a private company and not listed on a stock exchange and has no banking background.
|User-friendly trading platform||Limited product portfolio (FX and CFDs)|
|Advanced research and analytical tools||No “negative balance protection” for US Traders|
|Licensed by trustworthy regulatory bodies (CFTC, FCA, FSA, ASIC, IIROC, MAS)||No banking background|
|Easy to get started with||Customer service|
|Offers over 100 trading instruments|
|Available in desktop, web, and mobile version|
|Accepts US Traders|
Comparing Oanda to Similar Brokers
As an intelligent investor, you should always consider different brokers before settling with the best one that matches your investment needs. As specified above, there are pros and cons to every broker. Each of them varies in terms of their cost structure, trading platform, data analytics, customer service, and other aspects. In this context, we conducted a detail research regarding the best alternatives to Oanda. You will find the following comparison table useful.
|Headquarters||New York||Poland||Tel Aviv, Israel||Tel Aviv, Israel|
|Regulation||CFTC/NFA, FCA, FSA, MAS, ASIC, IIROC, MFSA||FCA, Cyprus Securities and Exchange Commission (CySEC), Belize International Financial Services Commission (IFSC), Dubai Financial Services Authority (DFSA), Dubai International Financial Center (DIFC),Financial Sector Conduct Authority (FSCA)||FCA, CySEC, ASIC||ASIC, FCA, CySEC, FMA, MAS|
|Withdrawal Fees||Yes (varies with withdrawal method)||Yes (varies with withdrawal method)||Free for first 5 withdrawals/month then $5 withdrawal fee||No|
|Negative Balance Protection||No||Yes||Yes||Yes|
|Instruments Available||100+ (FX and CFDs)||4000+ (FX, Commodity CFDs, Indices, Stocks, Cryptocurrency)||2000+||2500+|
You should always conduct a background check of the broker company regarding their regulatory status before entrusting them with your hard-earned money. Since Oanda operates globally in more than 196 countries, it is authorized and licensed by a number of international regulatory bodies.
Oanda and its subsidiaries around the world hold a strong legitimate status based on their compliance with the following regulatory standards:
- Oanda Corporation is registered with the U.S. Commodity Futures Trading Commission (CFTC) as Retail Foreign Exchange Dealer (RFED) and the National Futures Association (NFA #0325821) as Forex Dealer Member (FDM).
- Oanda Asia Pacific Pte. Ltd. is authorized and regulated by the Monetary Authority of Singapore (CMS License No: CMS100122-4) for its legitimacy in that region, except for Japan. It is also licensed by the International Enterprise Singapore (Commodity Brokers License No: OAP/CBL/2012) to deal in commodity CFDs.
- Oanda Japan Inc. is authorized and licensed by the Japanese Financial Services Agency (FSA), registered with Kanto Local Finance Bureau #2137, to trade in Type 1 Financial Instruments. It is also a member of the Financial Futures Association of Japan #1571.
- Oanda (Canada) Corporation ULC is authorized and licensed by the Investment Industry Regulatory Organization of Canada (IIROC).
- Oanda Europe Ltd. is regulated and licensed by the Financial Conduct Authority in the UK, No: 542574.
- Oanda Australia Pty. Ltd. is authorized by the Australian Securities and Investment Commission (ASIC) ABN 26 152 088 349, AFSL No. 412981.
A trading platform is a gateway to forex and CFDs markets. Oanda provides the clients with fxTrade, its proprietary, award-winning trading platform suite, which can be safely accessed from anywhere on any device at any time. The clients can take advantage of its advanced charting interface and trade directly from there in real-time. It also offers MetaTrader 4(MT4) platform, which is taken as a de facto standard in forex trading platforms.
Oanda’s fxTrade desktop platform is probably the most powerful tool any aspiring forex trader could wish for. Besides its powerful charting tool, the traders can take advantage of Tradingview where they can compare multiple currency pairs at once. With over 50 drawing tools and more than 10 chart types, they can trade directly from the chart in real-time. Personalization is at the core of this platform to enhance the overall trading experience, guided by up-to-date market news and insight to manage risk.
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