Is OANDA Regulated? Is it safe? - TU Expert review
License is the most important document you have to consider when choosing a broker. Many traders, who would like to start working with OANDA try to check whether it is regulated. Traders Union experts have already done that. In this article, you will learn whether OANDA is regulated, what regulatory authorities supervise the broker and whether it is safe to work with the company in general.
Short summary about the broker OANDA
The name OANDA is an acronym for “Olsen & Associates” or “Olsen AND Associates”. It is registered in the United States and provides its clients with a wide range of financial services in most countries of the world. The company was founded in 1996 and is currently regulated in four jurisdictions. The main regulator of the broker is the UK Financial Conduct Authority (FCA). Oanda Canada is licensed by IIROC. The company has several significant awards to its credit, including a victory in the category "Best Forex Trading Technologies" from the UK Forex Awards, "Best Trading Platform" from FX Week, as well as "Best Customer Service" from the US Foreign Exchange Report.
| 💰 Account currency: | USD, EUR, HKD, SGD |
|---|---|
| 🚀 Minimum deposit: | No |
| ⚖️ Leverage: | Up to 1:200 |
| 💱 Spread: | From 0 p for currency pairs |
| 🔧 Instruments: | FX, Indices, Bullion, Commodities, Crypto |
| 💹 Margin Call / Stop Out: | Stop Out - 50% |
Pros and cons of OANDA
👍 Advantages of trading with OANDA:
•Minimum deposit from 1 dollar.
•A large selection of the most popular trading instruments.
•Several reliable and reputable financial regulators.
👎 Disadvantages of OANDA:
•Inconvenient and poorly functioning site.
•Lack of cent accounts.
•Lack of bonus programs.
Why is it important to work with a regulated broker?
License is a document that certifies that a broker operates legally and guarantees fulfillment of its obligations to the traders. A financial license is issued by a financial regulatory authority of a country (the National Bank) or a specialized authority (for example, Securities Commission, Futures Trading Commission, etc.). It is important to choose licensed brokers for the following reasons:
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A license guarantees that the broker operates in compliance with the rules of the financial regulator that issued the document.
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In order to obtain the license, a broker must comply with certain requirements, for example, the size of the authorized capital or personnel qualification. It is simply not lucrative for scammers to comply with such requirements.
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A broker’s license provides access to real markets, and you can be sure that the quotes are real and up-to-date.
The best option is to work with a broker that holds the license of the jurisdiction, where the trader resides. You can also choose a company with a financial license of another reliable jurisdiction, for example, the U.S. or the European Union.
Is OANDA Regulated? Broker’s license
Security (Protection for Investors)
Information
The OANDA is legit and trusted broker is licensed by four financial regulators.
The main regulator is the UK Financial Conduct Authority (FCA), the license number is 542574. Other OANDA regulators include FSC - BVI (2026433), the Australian Securities and Investments Commission (ASIC, ACN: 603 856 551), and the Investment Industry Regulatory Organization of Canada (IIROC).
👍 Advantages
- Regulations and rules for the provision of financial services of a broker are available on the official website for free.
- The broker has licenses from four financial regulators
- Relations between market participants are monitored and regulated by the most reputable regulator FCA
👎 Disadvantages
- The process, from the moment of acceptance of the complaint to its consideration, takes at least six months
- Claims of traders with small amounts are not considered
- Complex and lengthy complaint procedure
- Claims that relate to compensation for moral damage are not considered
Brokerage fees
Broker’s regulation is the most important choice criterion. However, before you start working with the broker, it is also important to analyze its commissions and fees. TU analysts have studied the commissions and fees charged by OANDA, which you can see below.
Traders Union experts analyzed the OANDA broker for hidden fees. When withdrawing money to a debit card, no commission is charged. When withdrawing funds to a credit card (once a month), a commission is not charged either, but if funds are withdrawn to a credit card more than once a month, then the commission is from $15 for each withdrawal. Withdrawals via PayPal payment system are possible only in US dollars, Euros, and British pounds.
| Account type | Spread (minimum value) | Withdrawal commission |
| Standard | From $11 | When withdrawing to a debit card - no. When withdrawing to a credit card (once a month) - no. When withdrawing to a credit card (more than once a month) - from USD 15. Withdrawal via PayPal - no. |
| Premium | From $11 | When withdrawing to a debit card - no. When withdrawing to a credit card (once a month) - no. When withdrawing to a credit card (more than once a month) - from USD 15. Withdrawal via PayPal - no. |
Brokers that are similar to OANDA
Many brokers operate legally, obtaining relevant licenses and permissions. However, when choosing a broker, it is important to compare their trading conditions. TU experts have prepared a comparative analysis of OANDA conditions with its closest competitors.
Comparison of OANDA with other Brokers
| OANDA | RoboForex | Pocket Option | Exness | FreshForex | Forex4you | |
|---|---|---|---|---|---|---|
Trading platform |
WebTrader, MetaTrader4, Mobile platforms, MetaTrader5 |
MT4, MT5, R MobileTrader, R StocksTrader, R WebTrader |
Pocket Option, MT5, MT4 |
Exness Trade App (mobile), Exness Terminal (web), MetaTrader5, MetaTrader4 |
MT4, MobileTrading |
MT4, MobileTrading, MT5 |
Min deposit |
No |
$10 |
$5 |
$10 |
No |
No |
Leverage |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:10 |
Trust management |
No |
No |
No |
No |
No |
No |
Accrual of % on the balance |
No |
No |
No |
No |
No |
No |
Spread |
From 0 points |
From 0 points |
From 1.2 point |
From 1 point |
From 0 points |
From 0.1 points |
Level of margin call / stop out |
No |
No |
No |
No |
No |
No |
Execution of orders |
Market Execution |
Market Execution, Instant Execution |
Market Execution |
Market Execution, Instant Execution |
Market Execution, Instant Execution |
Market Execution, Instant Execution |
No deposit bonus |
No |
No |
No |
No |
$30 |
No |
Cent accounts |
No |
Yes |
No |
No |
Yes |
Yes |
OANDA is the optimal broker for experienced traders and professionals. However, it should be noted that the broker focuses primarily on English-speaking clients.
The minimum deposit in RoboForex is $10. Leverage up to 1:2000. Traders choose RoboForex for reliability, favorable trading conditions, minimum spreads, and commission fees. The company is recommended for beginner traders and experienced investors.
Pocket Option offers a wide range of trading instruments and copy trading services. It constantly improves its service quality and expands the list of assets and trading platforms. The broker is suitable even for novice traders without significant capital due to the low initial deposit. Experienced traders who work with CFDs and binary options can also use Pocket Option’s services.
Exness broker is a trusted broker partner that is compliant with all relevant terms. Exness complies with all payment obligations and pays money earned.
FreshForex is a reliable Forex broker providing a standard set of trading tools. The company is a good option for traders of all levels, from beginner to professional traders. It is mid-range in terms of size and number of registered traders and they are reliable based on our research and analysis.
Forex4you is an all-in-one broker for active and passive trading, rates well for both novice traders and professional level traders.
Conclusions
OANDA is a quite reliable broker for trading. OANDA operates on the license of a reliable jurisdiction and its operation is regularly monitored. However, the company does not offer the best trading conditions compared to competitors. You can choose this broker and not worry about the safety of your funds, but there are better options in terms of trading conditions.
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FAQ
How difficult is it to obtain a brokerage license?
The procedure for obtaining a license differs depending on the jurisdiction, but it is very difficult and expensive to get the document in a reliable jurisdiction. This is why only reliable brokers obtain licenses.
Why is it not recommended to work with offshore brokers?
Offshore brokers have to meet minimum requirements for obtaining a license and reporting, which is why often scammers get such licenses.
Can an offshore broker be reliable?
Yes, although there are not many of such brokers. There are brokers with a good reputation, but with an offshore license. You still need to be very cautious when working with such companies.
How do I check a broker’s reputation?
In order to check a broker’s reputation, you need to read user reviews. However, it is recommended to only use independent websites for that.
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Team that worked on the article
Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.
Olga Shendetskaya has been a part of the Traders Union team as an author, editor and proofreader since 2017. Since 2020, Shendetskaya has been the assistant chief editor of the website of Traders Union, an international association of traders. She has over 10 years of experience of working with economic and financial texts. In the period of 2017-2020, Olga has worked as a journalist and editor of laftNews news agency, economic and financial news sections. At the moment, Olga is a part of the team of top industry experts involved in creation of educational articles in finance and investment, overseeing their writing and publication on the Traders Union website.