Review about Oanda, a broker with multiple regulations and accepts US clients

Oanda broker logo best US brokerage
Oanda broker logo

Oanda is one pioneer of online forex brokers based in San Francisco, United States. At present, Oanda offers forex, index and CFD trading services with permission from various bona fide regulators.

Oanda is a market maker broker that provides quotes with 5 digit accuracy. Oanda founded in 1996 under the main company Oanda Corporation, headquartered in San Francisco, United States.

It locates Oanda branch offices in developed countries, such as England, Singapore, Japan, Canada, etc. Oanda's regulatory guarantees are very complete. Noted on its website, Oanda already has the following license:
  • Oanda Corporation registered with the CFTC and NFA (NFA # 0325821)
  • Oanda Canada Corporation ULC registered with the Investment Industry Regulatory Organization of Canada (IIROC)
  • Oanda Europe Limited has regulated by the FCA UK (# 542574)
  • Oanda Japan Inc. has a license from JFSA Japan and is a member of the Japanese FFA (# 1571)
  • Oanda Asia Pacific Pte. Ltd. regulated in the Monetary Authority of Singapore (MAS) (License No:100122-4) and holds a commodity trading license in Singapore (Commodity Brokers License No: OAP / CBL / 2012)
  • Oanda Australia Pty Ltd has also regulated by ASIC Australia (ABN 26 152 088 349, AFSL No. 412981)

History of OANDA Brokers

Oanda broker founded in 1996 in the United States by Dr. Michael Stumm and Dr. Richard Olsen as the first company to provide free exchange rate information on the internet. Oanda Currency Converter's automatic rate calculator published sometime later.

In 2001, Oanda launched the first online trading platform in the world that allows anyone to trade forex with only $1 capital.

Subsequently, in 2003, Oanda released an API for the fxTrade platform which allows clients to automate forex trading systems, indices, and various other financial assets.

Oanda broker continues to offer low-cost trading services with reliable accuracy and credibility. It's expert trading analysis, Market Pulse followed by traders and investors from all over the world and often quoted by leading media such as Reuters and Bloomberg.

Oanda Currency Converter tool also widely accessed and used in various countries through websites and mobile applications.


Is Oanda a reliable broker?

The Oanda broker is also famous because of its strong regulatory guarantees. As seen above, Oanda has held regulations from well-known authorities such as the CFTC and NFA from the United States, the UK FCA, and Australia's ASIC.

But these advantages make their trading rules more stringent than most brokers. Regarding leverage, for example, Oanda only allows leverage up to 1:50 because the rules in the US and Japan do not allow leverage above that. For Oanda Asia Pacific in Singapore, the leverage offered to 1: 100.

For registration procedures also become more complex with the existence of various additional requirements that not submitted by forex brokers.

We cannot do hedging strategies in one trading account, Oanda clients must open additional accounts to hedge because US trading regulations prohibit hedging.


Facilities offered by Oanda

Oanda only provides two types of trading accounts for retail traders, namely demo trading accounts and live accounts. Novice traders can use demo trading accounts to practice without having to pay a fee. Whereas we can open a real trading account with at least any initial capital. That means you can even trade with a 1 USD deposit. Overall, real trading account facilities at the OANDA broker include:
  • There is no minimum deposit requirement, so you can start trading with any initial capital.
  • Customer service supports 24 x 6 days a week via Live Chat and email through the website.
  • Floating Spreads start at 1.3 pips for the most popular EUR / USD pairs.
  • Maximum leverage of 1:50 for the US, but could be higher for Oanda Asia-Pacific or other regions.
  • Choice of trading platforms, namely Metatrader and Oanda fxTrade.
  • Free commission trading.
  • Integrated with TradingView so you can trade directly.
  • There is no minimum trading volume size. You can trade forex starting from Nano lot sizes (equivalent to 100 USD per lot) or even smaller.
  • Options for depositing and withdrawing funds through bank transfers, credit cards, PayPal and China Union Pay.
  • There are special fees for withdrawing funds with varying amounts depending on the account currency and payment method, totaling between 20-35 USD.
  • Oanda broker offers a credible and high-tech forex trading concept with low transaction costs.

Strengths and Weaknesses of Oanda

Oanda is one of the best forex brokers in the world and has got permits from various countries. With a capital of only 1 USD, you can enjoy a sophisticated trading platform and accurate expert analysis. 

Beginner traders who domiciled in the US, Canada, Britain, and Japan will probably consider it a favorite forex broker because of its various conveniences. However, forex traders from outside the US should think twice about signing up for Oanda. Traders from outside the US will experience several obstacles, including:
  • Oanda broker does not provide Swap-Free and Zero Spread options which preferred by Asian traders. This broker only provides trading accounts with Swaps and Floating Spreads.
  • They may not allow traders who domiciled in certain countries to use hedging techniques in one currency pair. In fact, many forex brokers allow trading with any technique without restrictions.
  • We can consider the method of depositing and withdrawing funds at Oanda more complex than other brokers because traders must meet the "Know Your Customer" and "Anti-Money Laundry" requirements according to very stringent United States standards.
To register this broker is practically the same as other forex brokers. You only need to open the official Oanda site, then select the Open An Account option. Next, select the Live Trading Account option (for real accounts) or Demo Trading Accounts.

Then fill out the registration form, and you must complete it in full and they will ask you to upload an identity verification document in the form of identification and also a document stating the residence.

Documents uploaded must translated into English (it requires sworn translation) because I have an experience that the document they rejected the document several times because it was not in English.

After filling out the form and uploading the document, you can log in to the Client Area. However, you cannot make a Deposit before being fully verified. If you have received a verified email, you can make a deposit.


Conclusion:

Oanda broker offers the best conditions with high security where this broker is suitable for those of you who want to trade with large capital. With these strict rules, you need not hesitate with this broker, because whatever profit you make, you can withdraw it.
The trading platform is fxTrade one of the complete platform options compared to other trading platforms.

One weakness of this broker is that it is not friendly with clients in small countries, where there are few payment options available such as via e-wallet such as Neteller or Skrill or directly via local / internet banking.
It's for extra security but it is a weakness, so this broker is less reach for small traders (although there is no minimum deposit).

For trading this broker is good, but for some cases, sometimes the spread of this broker can widen or can say to very wide compared to other brokers. Besides that, because there is no free swap option, for those of you who are Muslims this is disappointing.

One more thing, Oanda CS is not responsive, because it takes a lot of time to drain the time for document verification. But all that is still within tolerance. So basically this broker is a recommended broker for you.

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