Broker of the Week Oanda - Read Full Review

Best broker for Low-cost trading

Summary

Recommended for forex traders who value a user-friendly platform and great research tools

73.5% of retail CFD accounts lose money

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Oanda is an American forex broker founded in 1996.

It is considered safe because it has a long track record, discloses its financials, and is regulated by top-tier authorities, such as the US Retail Foreign Exchange Dealer (RFED) and the UK’s Financial Conduct Authority (FCA).

Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73.5% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Best mobile trading platform best broker for API trading

We selected Oanda as the Best mobile trading platform and Best broker for API trading for 2020, based on an in-depth analysis of 57 online brokers that included testing their live accounts.

Overall Rating
Trading Features
Accounts Offered
Funding Methods
Client Supports

Oanda pros and cons

With just a few exceptions, Oanda's fees are low. It offers a great and easy-to-use web trading platform, and a quick and user-friendly account opening process with no minimum deposit. Its research tools are powerful, with numerous technical indicators and a great API offer.On the downside, Oanda has a limited product portfolio, as you can trade with forex and CFDs only. The bank withdrawal fee is high, while customer support could be improved as it is slow and not available 24/7.

PROS:
  • • Generally low fees
  • • Easy-to-use web trading platform
  • • Easy and digital account opening
CONS:
  • • Only FX and some CFDs
  • • Poor customer service
  • • High bank withdrawal fee

Fees

4

Oanda charges low CFD and low forex fees. Non-trading fees are low, though the withdrawal fee is quite high for bank transfers.

ProsCons
 Low trading fees High withdrawal fee for bank transfers
 Low forex fees
 No withdrawal fee
 No withdrawal fee in most cases
Oanda fees snapshot
AssetsFee levelFee terms
EURUSDLowThe fees are built into spread, 1.2 pips is the average spread cost.
GBPUSDLowThe fees are built into spread, 1.6 pips is the average spread cost.
S&P 500 CFDLowThe fees are built into spread, 0.5 is the average spread cost.
Inactivity feeLow$10 per month after 2 years of inactivity

How we ranked fees

We ranked Oanda’s fee levels as low, average or high based on how they compare to those of all reviewed brokers.

To get things rolling, let’s go over some lingo related to broker fees. What you need to keep an eye on are trading fees, and non-trading fees.

In the sections below, you will find the most relevant fees of Oanda for each asset class. For example, in the case of forex and stock index trading, spreads, commissions and financing rates are the most important fees.

We also compared Oanda’s fees with those of two similar brokers we selected, Pepperstone and FXCM. This selection is based on objective factors such as products offered, client profile, fee structure, etc. See a more detailed rundown of Oanda alternatives.

To have a clear overview of Oanda, let’s start with the trading fees.

Oanda trading fees

Oanda trading fees are generally low.

We know it’s hard to compare trading fees for forex brokers. So what we did was we compared brokers by calculating all the fees of a typical trade for selected products.

We picked popular instruments within each asset class usually offered by forex brokers:

  • Forex: EURUSD, GBPUSD, AUDUSD, EURCHF and EURGBP
  • Stock index CFDs: SPX and EUSTX50

A typical trade means buying a leveraged product, holding it for one week and then selling it. For volume, we chose a $20,000 position for forex and a $2,000 position for stock index and stock CFD transactions. The leverage we used was:

  • 30:1 for forex
  • 20:1 for stock index CFDs

These catch-all benchmark fees include spreads, commissions and financing costs for all brokers. Let’s see the verdict for Oanda fees.

Forex fees

Oanda forex fees are low. The EURUSD fee is a bit higher than the average. 

Oanda forex benchmark fees of a $20,000 30:1 long position held for one week
$15.9$14.9$16.5
GBPUSD benchmark fee$11.9$12.5$13.0
AUDUSD benchmark fee$8.3$11.9$17.3

CFD fees

Oanda has generally low CFD trading fees. Compared to Pepperstone and FXCM, Oanda’s fees are lower.

Oanda CFD fees for a $2,000 long position held for one week
S&P 500 index CFD fee$1.0$2.0$2.2
Europe 50 index CFD fee$0.9$1.6$1.6

Non-trading fees

Oanda has average non-trading fees. There is no deposit fee. The withdrawal fee is low for credit/debit cards and PayPal, but the bank withdrawal fee is high. Oanda charges a reasonable $10 per month after 2 years of inactivity.

Oanda non-trading fees
Deposit fee
$0

Account Opening

What is the minimum deposit at Oanda?

There is no minimum deposit at Oanda.

Account types

There is only one type of trading account at Oanda (in addition to a demo account). However, you can open up to 19 sub-accounts. These are great if you want to have different base currencies under one account. E.g. you can have a USD account with EUR and GBP subaccounts.

How to open your account

 

Oanda review - Account opening

Oanda review – Account opening

From start to finish, you can calculate with less than 10 minutes. Account approval, though, can take multiple days, as we were asked to send some of our verification documents in email; but it’s still quick if you respond to their emails in time.

It takes four steps to complete Oanda account opening:

  1. Contact details: set your username and password.
  2. Personal information: submit basic personal information, like your employment status or income estimate.
  3. Appropriateness test: fill out a competence test with questions like “What are margins?”
  4. Verify your identity: upload a copy of your ID/passport to verify your identity, and a bank statement / utility bill to verify your residency.

Can you open an account?

Select your country of residence to see if you can open an account at Oanda!

  • Recommended for forex traders who value a user-friendly platform and great research tools

    73.5% of retail CFD accounts lose money

  • Oanda is an American forex broker founded in 1996.

    It is considered safe because it has a long track record, discloses its financials, and is regulated by top-tier authorities, such as the US Retail Foreign Exchange Dealer (RFED) and the UK's Financial Conduct Authority (FCA).

    Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73.5% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

    Best mobile trading platform best broker for API trading

    We selected Oanda as the Best mobile trading platform and Best broker for API trading for 2020, based on an in-depth analysis of 57 online brokers that included testing their live accounts.

  • Oanda charges low CFD and low forex fees. Non-trading fees are low, though the withdrawal fee is quite high for bank transfers.

    ProsCons
     Low trading fees High withdrawal fee for bank transfers
     Low forex fees
     No withdrawal fee
     No withdrawal fee in most cases
    Oanda fees snapshot
    AssetsFee levelFee terms
    EURUSDLowThe fees are built into spread, 1.2 pips is the average spread cost.
    GBPUSDLowThe fees are built into spread, 1.6 pips is the average spread cost.
    S&P 500 CFDLowThe fees are built into spread, 0.5 is the average spread cost.
    Inactivity feeLow$10 per month after 2 years of inactivity

    How we ranked fees

    We ranked Oanda's fee levels as low, average or high based on how they compare to those of all reviewed brokers.

    To get things rolling, let's go over some lingo related to broker fees. What you need to keep an eye on are trading fees, and non-trading fees.

    In the sections below, you will find the most relevant fees of Oanda for each asset class. For example, in the case of forex and stock index trading, spreads, commissions and financing rates are the most important fees.

    We also compared Oanda's fees with those of two similar brokers we selected, Pepperstone and FXCM. This selection is based on objective factors such as products offered, client profile, fee structure, etc. See a more detailed rundown of Oanda alternatives.

    To have a clear overview of Oanda, let's start with the trading fees.

    Oanda trading fees

    Oanda trading fees are generally low.

    We know it's hard to compare trading fees for forex brokers. So what we did was we compared brokers by calculating all the fees of a typical trade for selected products.

    We picked popular instruments within each asset class usually offered by forex brokers:

    • Forex: EURUSD, GBPUSD, AUDUSD, EURCHF and EURGBP
    • Stock index CFDs: SPX and EUSTX50

    A typical trade means buying a leveraged product, holding it for one week and then selling it. For volume, we chose a $20,000 position for forex and a $2,000 position for stock index and stock CFD transactions. The leverage we used was:

    • 30:1 for forex
    • 20:1 for stock index CFDs

    These catch-all benchmark fees include spreads, commissions and financing costs for all brokers. Let's see the verdict for Oanda fees.

    Forex fees

    Oanda forex fees are low. The EURUSD fee is a bit higher than the average. 

    Oanda forex benchmark fees of a $20,000 30:1 long position held for one week
    OandaPepperstoneFXCM
    EURUSD benchmark fee$15.9$14.9$16.5
    GBPUSD benchmark fee$11.9$12.5$13.0
    AUDUSD benchmark fee$8.3$11.9$17.3

    CFD fees

    Oanda has generally low CFD trading fees. Compared to Pepperstone and FXCM, Oanda's fees are lower.

    Oanda CFD fees for a $2,000 long position held for one week
    OandaPepperstoneFXCM
    S&P 500 index CFD fee$1.0$2.0$2.2
    Europe 50 index CFD fee$0.9$1.6$1.6

    Non-trading fees

    Oanda has average non-trading fees. There is no deposit fee. The withdrawal fee is low for credit/debit cards and PayPal, but the bank withdrawal fee is high. Oanda charges a reasonable $10 per month after 2 years of inactivity.

    Oanda non-trading fees
    OandaPepperstoneFXCM
    Account feeNoNoNo
    Inactivity feeYesNoYes
    Deposit fee$0$0$0
    Withdrawal fee$0$0$0
  • 4
  • What is the minimum deposit at Oanda?

    There is no minimum deposit at Oanda.

    Account types

    There is only one type of trading account at Oanda (in addition to a demo account). However, you can open up to 19 sub-accounts. These are great if you want to have different base currencies under one account. E.g. you can have a USD account with EUR and GBP subaccounts.

    How to open your account

     

    Oanda review - Account opening

    Oanda review - Account opening

    From start to finish, you can calculate with less than 10 minutes. Account approval, though, can take multiple days, as we were asked to send some of our verification documents in email; but it's still quick if you respond to their emails in time.

    It takes four steps to complete Oanda account opening:

    1. Contact details: set your username and password.
    2. Personal information: submit basic personal information, like your employment status or income estimate.
    3. Appropriateness test: fill out a competence test with questions like "What are margins?"
    4. Verify your identity: upload a copy of your ID/passport to verify your identity, and a bank statement / utility bill to verify your residency.
  • Low-cost trading
  • https://go.oanda.com/visit/?bta=35071&brand=oanda
  • • Generally low fees
    • Easy-to-use web trading platform
    • Easy and digital account opening

  • • Only FX and some CFDs
    • Poor customer service
    • High bank withdrawal fee

Specification: Oanda

Connectivity ASIC, CySEC, FCA

Videos: Oanda

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Trading foreign exchange on margin carries a HIGH LEVEL OF RISK, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. You could sustain a loss of some or all of your initial investment and should not invest money that you cannot afford to lose.

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