When a broker is operating in the market for more than 20 years, what do you expect? That the broker will be highly reputable, trustworthy, reliable, offering most advanced functions and services on the platform. But that is no case with Oanda. Oanda is in the market since 1996. But most of its serviced and features still remain backwards and outdated. There are not many efforts witnessed by the broker to build customer satisfaction and loyalty. In this review, we will tell you every inch of Oanda in detail any whether the broker is worthy of your investment or not.
Oanda: Scam or safe?
The broker is authorised by the financial authority which is not up to to the mark and we can not assure the authenticity of the financial authority. Thus the broker is not considered as the safest platform. There are numerous traders which have experienced a bad experience with the broker. Apart from this, the broker is also not a member of the IMFD and broker also not uses the advanced level of encryption system. Thus all our valuable clients are advised to do the thorough investigation before opening an account with Oanda.
Account Types v
- Only one kind of account is available with Oanda. This does not leave traders with any choice of options. Most of the brokers like T1 Markets or HFTrading segregate their account types based on the trading volume and how complicated the services can be. Therefore, they have a different account set for beginners and another account for professional traders and so on. But with Oanda, there is only one account. Moreover, the services offered are minimal too.
- With a minimum deposit as high as 20,000 dollars, one can open a premium account with Oanda. The premium account seeps to offer more flexible spreads with high leverage opportunities. But most of the features are missing in the basic standard account.
- The maximum leverage offered by broker si 1:48, which is pretty less compared to other brokers in the market.
- Oanda offers MT4 trading platform for mobile and web trading. Yes, MT4 offers a wide range of functions, but when many platforms and financial service providers have moved to MetaTrader 5, why stick to an old, passed technology.
- At the same time, the interface of the mobile application seems very convoluted and difficult to decipher. There are numerous tabs placed one after the other without any structure or system. It all seems pretty confusing. Many new traders and beginners may find it pretty challenging to get accustomed to the trading operations offered by the broker.
- There are no price alerts and notifications offered on the web and mobile trading by the broker. The mobile application lacks the touch and face identification login for the users and traders.
The account opening process of Oanda seems quite complicated and time-consuming the broker will ask you to go through numerous steps which will include hefty questionnaires, competence tests, and more. Moreover, sometimes the verification of documents can take up to hours.
All of this is not mentioned on the website of Oanda. When you click on the “open an account” tab on the broker’s website, all you see is the pop-up page asking you to fill in your name, email, and create a password. But what happens next? The user does not know. This creates utter confusion and ambiguity on the potential clients’ part, and now they feel hesitant to go about the whole process. It would have been better if the broker laid out the structure of the process and how one must go about it. Being transparent and quick in account opening is not a forte of the broker.
Products and instruments for trading
Oanda offers trade only in CFDs and Forex. Moreover, there are very few currency pairs available to trade and assets under each CFD category are limited too. There are only three crypto CFDs, six bond CFDs, 16 stock index CFDs, and 31 commodity CFDs offered by the broker. No CFDs are offered on stocks, ETFs or futures. This whole count of assets seems pretty less compared to other brokers. Such a less number is unacceptable as traders would lose hands-on many profitable trading opportunities. At the same time, with such a small number, there are fewer chances of a sound diversification of the portfolio.
Commission, fees, and spreads
- Oanda charges high fees in terms of spreads and markups. The spreads are competitive and start from 0.6, and these spreads take up a hike during peak trading hours.
- The broker is equipped with high forex fees and extremely high financial rate.
- The inactivity fee is charged at 10 euros if the account is not active for a year or so.
- The trading fees for forex can go up to 15 dollars. The trading fees for CFDs can range up to 2 dollars.
Deposit and withdrawal
Oanda offers deposit and withdrawal of funds through credit/debit cards, wire and bank transfers, and PayPal. Other brokers are more advanced in the fund transfer process providing more technologically advanced options. Most of the choices of transfer offered by Oanda are falling out of the line and pose to be a significant drawback for many traders and investors. PayPal and wire transfers are pretty costly with Oanda.
The first withdrawal with bank transfer is about 25 dollars, and all subsequent withdrawals cost as high s 35 dollars. Similarly, the withdrawal via credit cards would cost you 15 dollars.
Oanda claims to offer 24/5 support to its customers via live chats, phone and email. But most of the times, the response can take up to days and is therefore quite prolonged. Thus, we can say that the broker does not care about solving queries and problems of customers and clients in the quickest way.
Research and educational tools
For research purpose, the broker offers tools like interactive charts, fundamental data on assets, and news. But many advanced tools like economic and season calendar, calculators are absent. We do not think the research tools are up to the par.
For education, videos and platform tutorials are available. Primary tools like blogs, ebooks, courses are not there. Moreover, the research and educational tools are not well maintained and organised. It seems that the education of traders and investors is not a priority of the broker.
Conclusion: Reasons to not trade with Oanda
With mentioning all the aspects in the review above, we have found plenty of reasons to advice you to not invest with Oanda.
- Even though the broker is well regulated, it does not hold a banking license and is not listed on any stock exchange. Also recently, it incurred a massive fine for its misconduct. Why yo go with such a broker when there are more fair and sound broker offering better services with utter safety.
- Limited securities are available for trade.
- Low leverage
- High forex fees, spreads, and commission.
- High withdrawal charges on credit cards and wire transfers.
- Poor user-interface
- Complicated account opening possess
- Lazy customer support and service
- No MT5 trading platform
- Minimal research and education tools
So, you can try PrimeFin, TradedWell, Brokereo and InvestLite for better services.
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