OANDA Reviews – Is Oanda good for beginners?

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Do you want to know my opinion about Oanda?

Oanda is a broker that I know well.

In fact I think it was the first Forex broker that I used many years ago.

As time goes.

Needless to say, I broke those first Forex accounts in my quest to dominate the currency markets.

Normal, when it starts it happens to everyone, especially in the quicksand of day trading .

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Risk warning!

Nothing to object to Oanda, of course.

What is Oanda?

Well, Oanda is one of the most famous Forex and CFD brokers in the world that has been working since 1996, although the Forex trading function was not put in until later.

This is so because Oanda is not only a broker but is a well-known exchange rate, business solutions and currency conversion company.

I know Oanda as a broker, which is what I basically did with the broker. However, its other services are very popular in international markets and in advanced countries such as the United States, Canada, United Kingdom, etc.

Oanda Market Maker

Let’s first see what the broker consists of.

For those who do not know Oanda is a broker market maker and has always put him ahead without any problem.

Is this bad

Not necessarily.

In fact Oanda was the broker in charge of proving that the bad reputation of the brokers market makers was unfounded, at least in the Forex market.

This is not what I say but the opinions of countless operators and clients over the years, who have always placed Oanda as one of the best brokers they have used, and one of the most reliable brokers in the Forex market.

And beware, we are talking about the wild Age of Forex, when the landslides, requotes and other wild things were the daily bread.

Oanda was characterized by offering fair and storyless trading.

It was not a broker that gave free bonuses or very low spreads or commissions, but everyone knew that trading with this Canadian broker could be done quite transparently.

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The regulation and security of this broker always lived up to it.

Today it is regulated in:

  • United States: NFA (0325821), CFTC
  • Europe: FCA (542574)
  • Canada: IIROC
  • Asia: Singapore (CMS100122-4)
  • Australia: ASIC

The offices have them in New York, San Francisco and Toronto.

The company remained independent until not long ago, but in 2018 the CVC Capital Partners group acquired it, becoming part of this large venture capital firm that manages more than 70 billion dollars.

 

Open account with Oanda

One of the best features of Oanda was the fact that it always allowed to open an account by just depositing one dollar.

But this had a reason: the one that the minimum size of operation is of a dollar also.

Note that the minimum size to operate in the vast majority of forex brokers in the world is 1,000 units.

Oanda introduced this flexibility in the Forex, in such a way that you can buy 1 dollar, 100 or 114, if you want.

This is a huge advantage for small traders and those who want to learn how to trade (more on that later).

On the other hand, opening an account is simple.

The typical of world Forex brokers.

Fill in the data, give it to register.

Send copies of our documents by email, and if they accept us, ready. We can now start operating.

Risk warning

Anyway, before opening a real account it is always good to open a free demo account, which will be very easy with Oanda too.

Deposit and withdrawal methods are few but more than enough: card, Paypal and bank transfer.

The amount of deposits and withdrawals that I made with Oanda is very large.

The ease they make makes putting money in and out very easy.

For example, there are no commissions to withdraw by card or Paypal .

To deposit there will be 2.8% in Paypal and a possible commission from the bank for the card.

But in general money management with Oanda is very safe.

What’s more, I would say that it is one of the safest Forex brokers in the world and where I have my quietest money.

What can go wrong?

Yes, but all brokers can fail too.

Oanda platform

The Oanda platform is one of the classics on the market.

Despite the fact that over the years they offered the Metatrader 4, whenever I used the broker I preferred its own platform.

At that time I did not need the use of robots so the MT4 was not necessary.

However, for those who want, you can use it together with the Expert Advisors you want.

Over time, the platform changed a bit as they introduced Tradingview technology for charts, although basically usability remains similar to before.

Oanda leverage and markets

The leverage that Oanda offers will depend on the jurisdiction we are in.

In the United States we will only be able to trade Forex pairs and with a maximum leverage of 50: 1.

In Europe we will be able to trade all the pairs of Forex and CFDs but the leverage will be a maximum of 30: 1. Let’s see the maximum we have in Europe:

  • Senior Forex pairs: 30: 1
  • Minor pairs: 20: 1
  • Gold and main indices: 20: 1
  • Raw materials and secondary ratios: 10: 1
  • Cryptocurrencies: 2: 1

In the case of Oanda there are no CFDs of shares.

If you live in Latin America, you can open an account with the American subsidiary and use the appropriate leverage.

If you are in Asia or Australia you can open an account with the respective subsidiaries and enjoy greater leverage, which can be up to 100: 1.

The instruments of Oanda are the markets mentioned before: Forex, commodities, metals, indices and bonds.

All of them in CFD format, of course.

In some of the raw material contracts we will be able to enjoy great flexibility, since they allow us to operate, for example, a barrel of oil. If the oil is at $ 65, that will be the size of the contract. In other brokers many times it will be 10 or 100 barrels minimum.

However, be careful with raw material swaps , which are usually high.

If you are going to operate that lasts more than a day, it is better to look at Oanda’s financing costs on its respective page.

Some raw materials that Oanda offers are: soy, Brent crude, WTI crude, copper, natural gas, sugar, wheat.

As for indices, it is one of the CFD brokers that I like the most, offering trading on typical stock exchanges on Wall Street and Europe but also in markets such as: Singapore, Hong Kong, India, Taiwan, Australia or China.

In pairs we have the possibility to trade the classics and a large number of exotic pairs, although just like in the case of raw materials do yourself well to look at the swap costs.

As for bonds we have: bund, English gilts, T-notes and T-bonds.

In metals we have the classics of gold, silver, platinum and palladium, but we can also negotiate the price of gold with respect to the main currencies such as: pound, euro, yen, New Zealand dollar, Australian dollar, etc.

Oanda commissions

Oanda is a pure market maker that has no extra commissions in the operation of its CFDs, at least in the accounts for the Spanish market.

Different case is if we open an account from the United Kingdom or another jurisdiction, where we can use accounts with smaller spreads and commissions.

In addition, there is the possibility of opening a Premium account of $ 20,000.

First we see the typical account with the cost included in the spread.

Oanda spreads are variable, both during the day, the week and the months, so we can expect changes depending on market conditions.

In this sense, it has an excellent profit, which is to offer the spread of all its assets over time. (You can see the page here ).

It is good to consult to see the changes that usually occur to have a better idea of ​​the cost that we can expect.

Typical spreads during the main session are:

  • EURUSD: 1.2
  • USDJPY: 1.2
  • GBPUSD: 1.8
  • AUDUSD: 1.2
  • Gold: 0.25
  • SP500: 0.5
  • DAX 30: 1.3

If we want to pay commissions we can open a core pricing account.

With this account we can pay a commission of 5 USD per lot plus the relevant spread.

This account is offered to most international clients.

Depending on your trading, you may be interested in one account more than another.

Oanda currency converter and other services

Although it is a service that I did not use, I do know people who did.

The use is simple.

We can change our currency to another with the oanda system.

This service works more like a typical exchange office.

The spread we can expect from a pair like EURUSD is in the order of 6 to 10 pips.

Regardless, it’s a ridiculously low spread when compared to the old physical exchange houses.

Furthermore, Oanda is used by many companies such as Google, Deloitte, Airbnb or FedEx.

Among others, it provides services of:

  • Exchange rate API
  • Corporate Forex payments
  • Historical currency converter with up to 25 years of data that you can download in CSV

Oanda reviews

Let us now with the opinions of this broker.

As I said at the beginning we are facing one of the most emblematic brokers in the world of the world Forex. One of the pioneers that still stands.

Really, few brokers are going to find so many opinions over the years than with Oanda.

If we look for threads we can find some in the early 2000s on sites like Elitetrader, Trade2win and Forex Factory.

In Forex Factory there is a thread from 2004 that is updated and has more than 280 pages. Surely you will find many things there. Use the Spanish translator.

We can also find many threads on reddit. There, in particular we can see a thread in which they say that:

“A lot of people recommend oanda for beginners, why?”

This is related to what I said before about flexibility in the accounts and the issue of security.

In the trade2win forum we can see many queries from English and Australian traders.

At Babypips we also see a lot of opinions, especially from American traders. Here it must be borne in mind that after the strict rules of the NFA, very few Forex brokers continued to offer service in the market in that country, Oanda being one of them. In the face of reduced competition, Oanda’s market in that country increased considerably.

In the Spanish forums we can also find information about the broker.

Of course, in Rankia we can find the odd thread with people asking if it is a good broker or not. There we will find many opinions and few negatives. People are aware that it is difficult to win on the Forex, not so much because of Oanda but because of the difficulty of the activity.

We can also find threads in X-trader and tradingunited, although these are older in general.

A common theme in many of the forums is that people ask a lot about the possibility of scalping.

And yes, Oanda allows scalping .

The problem is not that, but you can make money doing it.

I already tell you that you will not be able to.

If you get it consistently for years you come and tell me.

Oanda’s Review

Now I’m going to give you my opinion.

Well, as we saw in the entry, I think it is clear that Oanda is a legit broker and also has very flexible conditions.

These flexible conditions make it an ideal broker for newbies in trading.

For example, if you think you have a very good system, the best thing you could do is try it before putting many thousands of euros or dollars in it.

Those “good” systems in theory end up with very different results in practice in most cases and always against the trader.

So I think Oanda gives us an opportunity to put those systems into practice with as little risk as possible.

I am always saying that the best thing we can do is open a demo account and practice there. But I know that there are people who have no patience and like to operate on real accounts.

So Oanda is a perfect alternative because you can open a $ 10 account and you can trade positions of 100 or 200 units.

That is more than enough to see if the strategy works after a few months.

Of course it is much better than setting up a $ 2,000 account operating contracts of 40 or 50,000 units, and then seeing how the account is approaching zero, and in the end you run out of money.

That is one of the reasons why I like Oanda.

Then, as for trading, it is not the broker with the best conditions in the world, of course, but neither is it the worst.

Although in truth it has a wide variety of assets that allows us to operate them with enough flexibility , being able to trade everything from the same account with ease.

A detail that has been unsolved for years is that it does not have the IBEX35 CFD, although it is also true that it is not a broker with many clients in Spain nor does it need the index to have a good range of products.

I have to say that sometimes I do not like how spreads increase in some instruments, but it is normal because it is usually at times of low liquidity, such as at night. In that case we would do well to make sure that we leave the positions with enough price margin so that we do not catch the stop.

One detail that they could improve on is if they added stock CFDs, at least from the United States, which would take the final step to become a more complete CFD broker.

Otherwise little to say.

In my experience a broker that has always worked well in terms of security and withdrawals and money deposits, which were always very simple and fast. The page of the personal account to do these procedures is excellent.

And you, what do you think of Oanda?

Greetings and good trading

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