If you’ve been trading for some time now and you’ve been through some exciting times, you probably know OANDA.
OANDA is a quite a celebrity for forex traders, having a very long track record as it was founded in 1996, and is a very reputable trading service.
The fees are very appealing, the platforms are excellent, and the forex offerings are super attractive. However, celebrities are not perfect, and neither is OANDA. There are some things it needs to work out, but those things should be forgivable after you read this review.
Let’s get it on!
Regulation and Protection
As with many highly popular brokers, OANDA is regulated. This American forex broker is regulated by top-tier regulatory bodies, including the US Retail Foreign Exchange Dealer and the UK’s Financial Conduct Authority.
These are huge names in the regulation industry. And because OANDA is subject to its regulations, the broker also needs to ensure the protection of its traders.
It’s also registered with: • US Commodity Futures Trading Commission (CFTC) • Investment Industry Regulatory Organization of Canada (IIROC) • Australian Securities and Investment Commission (ASIC) • Monetary Authority of Singapore • International Enterprise Singapore
This list puts OANDA among the most trustworthy brokers out there. There are stellar reviews regarding its reputation and transparency in the market. It received the highest overall customer satisfaction award from Investment Trends magazine.
There are some things that you should remember when trading with OANDA, though. Not all investments are protected. Although OANDA has six legal entities, each of those entities have limited protection coverage for traders.
The good news is that many other instruments and tradings are protected. All you have to do is find out which investments and accounts receive the ideal protections. Overall, this is a flaw that is beyond the regulators’ control, but OANDA will probably fix this eventually.
OANDA has a wide variety of forex instruments, so it’s an ideal broker for forex traders who want to trade currencies. It also offers some other assets like bitcoin, bonds, metals, indices, and commodities. As you can see, trading products are pretty limited. This limitation can put off some traders, but traders who choose to trade with OANDA and their trading products often turn out satisfied with the service.
Amanda Bliss is our senior reporter writing about the politics and economy. Ms. Bliss is a Georgetown graduate specializing in economic and political sciences. Her Ph.D. concentrates on the market impact on the global economy.