OANDA review: Unveiling the Truth
This comprehensive OANDA review delves into the broker’s offerings, fees, and trading platforms to help you make an informed decision.
OANDA Trading Products and CFD Availability
The range of trading products available at OANDA can vary based on the regulatory entity governing your account. For example, CFD availability differs significantly between regions.
- In the U.S., CFDs are not offered.
- In Australia and the BVI, OANDA provides access to 124 symbols and 71 OANDA forex pairs, including cryptocurrency CFDs.
OANDA Cryptocurrency Offerings
OANDA offers cryptocurrency trading via CFDs, meaning you speculate on price movements rather than owning the underlying asset. It’s important to note that crypto CFDs are generally unavailable to retail traders in the U.K. (except for professional clients).
| Feature | Availability |
|---|---|
| Forex Trading (Spot or CFDs) | Yes |
| Tradeable Symbols (Total) | 124 |
| Forex Pairs (Total) | 71 |
| U.S. Stock Trading (Non CFD) | No |
| Int’l Stock Trading (Non CFD) | No |
| Social Trading / Copy Trading | Yes |
| Cryptocurrency (Physical) | No |
OANDA Fees and Spreads
Our OANDA review finds that the broker’s trading costs, particularly spreads, can be higher compared to some competitors. However, OANDA’s strength lies in its automated execution across all account types.
Understanding OANDA Spreads
OANDA’s bid/ask spreads are comparable to brokers like FOREX.com and FxPro. While the minimum advertised spread might be higher than some firms, OANDA provides transparent data.
- For instance, the average non-core pricing for EUR/USD was 1.2 pips during Q1 2019.
Core Pricing vs. Default Pricing
OANDA offers a core pricing model with lower spreads but includes a commission of $5 per $100,000 traded (approximately $10 per standard lot round trip). This option typically requires a $10,000 minimum deposit.
When commissions are factored in, the all-in cost for core pricing often mirrors the commission-free default pricing. For example, a 0.4-pip core spread with a 1-pip commission equivalent results in a 1.4-pip total cost, similar to a 1.4-pip default spread.
Micro Lots and Transparency
OANDA allows trading in extremely small increments, down to 1 unit or 0.001 micro lots. This flexibility is a notable advantage.
In terms of transparency, OANDA regularly publishes trailing average spreads across various timeframes. However, the lack of fixed-period average spread data can make direct comparisons with other brokers challenging.
| Feature | Details |
|---|---|
| Minimum Initial Deposit | $0 |
| Average Spread EUR/USD – Standard | 1.26 (5/22-5/27/22) |
| All-in Cost EUR/USD – Active | 1.26 (5/22-5/27/22) |
| Active Trader or VIP Discounts | Yes |
| Execution: Agency Broker | No |
| Execution: Market Maker | Yes |
OANDA Mobile Trading Apps
Our OANDA review highlights the excellence of its mobile trading platforms. OANDA’s flagship fxTrade mobile app is highly regarded for its user-friendliness, market research, and charting capabilities.
App Overview
OANDA provides two main mobile applications:
- The popular MetaTrader 4 (MT4) mobile app.
- Its proprietary fxTrade mobile app.
Ease of Use and Features
The fxTrade app is designed for intuitive navigation. Opening charts, setting up trades, and adding price alerts are straightforward processes.
Beyond its intuitive design, the fxTrade app integrates valuable features like research from Autochartist and live news headlines. A particularly useful feature is the seamless transition from charts to the trade ticket window, allowing for quick order entry and adjustment of stop-loss and limit levels directly from the chart.
Conclusion
This OANDA review reveals a broker with diverse OANDA trading products, particularly strong in OANDA forex pairs and OANDA CFD availability (where permitted). While OANDA fees, especially spreads, can be on the higher side, the broker excels in transparent execution and offers robust mobile trading platforms. OANDA cryptocurrency offerings are limited to CFDs, which is a consideration for crypto traders. Overall, OANDA presents a compelling option for traders seeking a well-rounded and reliable platform.
