OANDA broker operates in the United States under a subsidiary called OANDA USA which exclusively offers forex trading services to US citizens only. The OANDA USA is managed by OANDA Corporation, which is authorized and regulated to operate in the US.
The US financial market is highly regulated and financial brokers are required to register with relevant regulatory bodies for them to be allowed to issue financial brokerage services to US residents. To that end, OANDA Corporation is authorized and regulated by both the National Futures Association (NFA) and the Commodity Futures Trading Commission (CFTC).
How it works
OANDA USA works as a Market Maker broker and it only offers forex trading. It however offers a limited selection of currency pairs since it offers about 68 forex pairs including majors and minors.
Interestingly, OANDA does not have a limit as to the minimum amount you are required to deposit to start trading. All you require is to create an account and fund it with whichever amount you wish to. There is also a wide selection of payment options to use in making your deposit and withdrawals which the broker has also not set a minimum amount.
If you feel you need to learn how the broker’s trading platform feels, learn how to trade, or test your new trading strategies, the broker offers a Demo account where you can practice for free using virtual money.
Other than the demo account, OANDA offers two types of real accounts; the OANDA Trade account which is designed for individual traders and the OANDA Corporate/Trust Account which is designed for institutions.
Key features
Trading platforms
It allows traders to choose from a variety of trading platforms including its award-winning OANDA Trade platform, OANDA Trade web, TradingView, the popular MetaTrader and the OANDA Trade mobile and tablet app.
Demo account
The broker allows you to open a demo account thus offering beginners a good platform to practice and learn how to trade forex. A demo account is also a great tool for experienced traders looking for a platform where they can test new trading strategies before using them on their real trading accounts.
Charting tools
Irrespective of the trading platform that you choose to use, you will access world-class advanced charting solutions, including technical indicators for analyzing markets, and drawing tools like Pitchforks, Gann Fans, Elliott Waves and more for analyzing market trends.
OANDA USA Pros and Cons
Pros
It has received several awards for its services including the Most Popular Broker 2021 award and Best Forex and CFD Broker 2021 award in the TradingView Broker Awards 2021. It was also awarded the Best Trading Tools winner in Online Personal Wealth Awards 2021.
It has a demo account which makes it easy for beginners to onboard.
The broker also offers a wide variety of training materials on its website making it easy for traders to learn how to get started, use the available trading tools and strategies, and how manage capital.
It does not have a minimum deposit amount making it possible for anyone to open an account with whichever amount they wish to trade with.
It also has no minimum withdrawal limit thus allowing traders to withdraw any amount they wish no matter how little the amount is.
It allows automated trading meaning traders can use expert advisers and trading robots to reduce the hustle involved with market analysis and trading.
It allows traders to use a wide variety of payment options including Visa debit cards, Mastercard debit cards, ACH deposits, and Bank transfers in depositing and withdrawing funds.
Besides its web and desktop trading platforms, OANDA has a mobile trading app that allows for trading on the go.
It also allows traders to trade using whichever trading strategy they feel best suits them including hedging.
It has live chat customer support which makes it faster for customers to get their concerns addressed by the broker.
Cons
OANDA does not have a negative balance protection measure in place which means the accounts of traders especially if inexperienced can go to the negative meaning they would be left indebted to the broker in case their market predictions are not right.
It does not allow social trading, which is a great feature, especially for those who do not know how to trade or do not want to tire themselves analyzing the market for trades.
It offers a very limited number of currency pairs (68) for trading.
Apart from forex, OANDA USA does not offer indices, shares CFDs, or commodities for trading.
OANDA does not offer managed accounts, which would be a game changer for those who do not have the time to manage their trading account for themselves but want to invest in forex using the broker.
Why you should use OANDA USA
If you are living in the USA, you want to get a forex broker that is trustworthy and fully compliant with the regulations that are set in place. OANDA is authorized and regulated by both the NFA and CFTC meaning it is a broker that you can trust. The broker has also been operating in the US for quite a long time and has earned several awards for its good services.
OANDA also has several products including a demo account and educational material that makes it easy for you to learn forex trading. This is not only beneficial for forex beginners but also for experienced traders who want to gain more knowledge.
The broker also does not have a limit on the amount you should deposit to start trading or the amount you can withdraw. Therefore you can choose to invest as little or as much as you want and also withdraw any amount whenever you feel you need to.
The only thing you will have to contend with is not trading anything else other than foreign currencies and being extra careful not to lose all your investment due to the lack of negative balance protection.
Final verdict
While OANDA offers limited financial instruments for trading, it stands out in offering forex trading services besides being compliant with all the requirements of the local regulator in the US.
It could be a good choice for both newbies and experienced traders. It offers a variety of trading tools ranging from a demo account and educational material to advanced charting tools.
The post OANDA review: is it a good broker for USA traders? appeared first on CoinJournal.
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