Oanda is a global broker that provides access to global markets through a simple and easy to use platform. Traders and investors can take advantage of low-cost currency pairs, stocks, precious metals, commodities, indices, and cryptocurrencies.

The World Powerhouse was founded in 1997 by computer scientist, Dr. Stumm and economist, Dr. Olsen, as a company that published free currency conversion prices online.

Over the years, the company has grown to accomplish impressive feats like introducing fractional pips (called pipettes) and becoming the largest FX broker in Japan. Today, they market themselves as a multi-asset brokerage house that is plugged into global markets and offers its services to individuals and institutions around the world.

This review dives into Oanda’s trading platform, the assets it offers, and how individuals and institutions can benefit from them.

How it works

Oanda started as an FX trading platform, but has since expanded to trading around 7 types of assets. They understand

Forex currency pairs

Oanda offers 68 currency pairs, including majors like EUR/USD, minors like GBP/CAD, and exotic currencies like USD/MXN. Its spreads range from 1.4 pips on the major pairs to 4.1 pips on the more exotic ones.

The broker derives its FX prices from liquidity providers and aggregates them to find a midpoint. This average price is not fixed but fluctuates throughout the day, however, Oanda claims that its suppliers are top-tier banks and as such offer advantageous prices compared to its competitors.

Forex trading is available to users in all major geographic regions where trading currency pairs is legal.

Global indices

Oando offers a contract for differences (CFD) for 15 global indices that track markets in the United States, Great Britain, Europe, France, Germany, Russia, Singapore and China. Traders can take advantage of CFDs to go long when the market is up or short when the market is down.

Index prices are derived from the futures and spot prices of the underlying instruments. Raw prices are adjusted for broker spreads which start at 1 point for indices like the UK100 and Germany30 and go up to 30 points for indices like the US Russell Index. Note that a point in stocks and indices is a whole number, so a move from $20 to $21 is a 1 point move.

Goods

Oanda’s Commodity CFDs cover Natural Gas, Wheat, Corn, Crude Oil, Palladium, Platinum, Sugar and Copper and are available to all users worldwide where commodity trading is legal.

Similar to indices, the broker obtains its commodity CFD prices from aggregated futures contracts from its liquidity providers. The spreads start at 0.6 points for natural gas and go up to 200 points for more exotic commodities like palladium.

Metals

Oanda’s metal assets are limited to gold and silver, but CFDs are associated with major currencies like USD, GBP, JPY, AUD, CAD, CHF, EUR , HKD, NZD and SGD. Spreads start from 10.1 cents for a gold/silver pair, 25 cents for gold and 150 cents for silver.

Obligations

Traders can choose up to 7 bond CFDs such as the US 10Y bond, the US 2Y bond or the UK 10Y Gilt. The spreads range from 1.3 pips to 4.1 pips.

Shares

Oanda offers access to around 21 European stocks via CFDs with commissions as low as 0.1% for each side of a trade, i.e. opening and closing a position. This means that the total commission for a complete transaction is 0.20%.

The broker also charges for certain corporate actions that affect the value of the CFD. For example, a 23.67% fee is charged for dividend payments on long CFD positions in German stocks. The charge is 19% for Spanish stocks, 15% for Dutch stocks and 15% for French stocks.

Stock CFDs are not available to all traders, only those in the British Virgin Islands and specific regions have access.

Cryptocurrencies

Traders have access to 13 major crypto CFDs with spreads as low as $6 for Litecoin and up to $9,000 for Polkadot. Note that these spreads are for full lots, i.e. 100,000 units of currency and cryptos. For example, the spread for 100,000 units of Polkadot/USD is $9,045 at the time of writing.

Main characteristics

Cross-platform trader

Oanda’s trading terminal offers web, desktop and mobile versions for traders at home or on the go. The broker also integrates directly with popular charting software, TradingView, to allow traders to execute trades directly from their favorite trading software.

Flexible deposit and withdrawal options

Oanda accepts deposits in different currencies, depending on your region, through payment channels such as Wire Transfer, Wire Transfer, Visa, Mastercard, Neteller, and Skrill. However, some regions come with specific methods. For example, US merchants can also deposit via PayPal and SWIFT transfers.

Withdrawals are processed first by credit cards, then by e-wallets, then by bank transfer. However, this order may change with the region.

Algorithmic Trading Models

Traders can access sophisticated algorithms that execute trades on their behalf with the MetaTrader4 platform premium package or Oanda’s web trader that comes with an Algo Lab, a platform that helps traders create algorithms using predefined models.

Customer service

Oanda Assistant bot is available 24/7 via live chat to meet user needs. For those who prefer a personal touch, human agents are available via email 24/5.

Advantages and disadvantages of Oando

Advantages

  • Favorable spreads on CFDs

  • Available in several major geographic regions

  • An automated trading facility is available

  • Access to real-time news feed and expert technical analysis on the desktop trader

  • Compliant with operating region regulations

  • Tax Free Spread Betting Facilities

The inconvenients

Why should you use Oanda?

Oanda is home to traders who want low spreads, fast executions, expert tools and global support when trading assets in local and overseas markets.

Oando stands out in particular for its use of technology to improve the currency trading market. It first did this when it was founded, posting free forex quotes before developing a trading system that allowed investors to get started with as little as $1.

Now their cross-platform terminal supports algorithmic trading through a partnership with Algo Labs.

Their FX spreads are favorable, as low as 1.4 pips for major pairs and 4.1 for more exotic pairs. Their collection is large enough to meet the needs of traders who want multiple options on 68 currency pairs, 13 cryptos, 15 indices, 7 bonds, and 10 commodities.

The verdict

If you are looking for a globally recognized broker with an innovative technology platform with expert analytics, top-notch charting software and up-to-date news feeds, then Oando is a great option.

The broker has come a long way from being a tech startup to a global financial trading powerhouse. However, remember that even with sophisticated trading tools and robots, CFD trading is still a risky business where 76.6% of Oanda retail account holders lose money.

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