Is Oanda Legit? Is Oanda a Scam or Safe Company?

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Before you open an account on a broker's website, it's essential to check if it is safe and legit. You need to check its legality, regulation, and safety. There are many ways to do this, but the most important thing is to check if it is registered with the US Securities and Exchange Commission (SEC).

You can also check if it is a member of the Financial Industry Regulatory Authority (FINRA) or other international financial regulatory authorities. Like every other broker, the security check is necessary for Oanda too. Is there an Oanda scam you should know about? Is Oanda safe for trading? You'll find the answers below.

Is Oanda Legit?

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Oanda is a member of the National Futures Association (NFA # 0325821) and is registered with the US Commodity Futures Trading Commission (CFTC). Thus, it's a legit broker.

Additionally, Oanda offers MT4 trading on its mobile and desktop apps. You can find these apps on Google Play Store and Apple App Store, making the broker even more legit. Plus, these are award-winning apps with thousands of legitimate users.

Additionally, the broker has been regulated in Tier-1 jurisdictions in the UK, US, Japan, Canada, Australia, and Europe, making it a trustworthy place to trade. Since Oanda has been around since 1996, it holds a good reputation in the online trading industry.

Is Oanda Legit in My Country?

Oanda has offices across the globe in North America, Europe, and Asia. The North American offices are in Toronto and New York, while the European offices are located in London, Frankfurt, Krakow, and Gzira.

In Asia, the broker has offices in Sydney, Singapore, and Tokyo. If you want to check whether Oanda accepts clients from your country, you can try to create an account on the platform.

If Oanda does not operate in your country, you'll see the message that the broker's services are not available in your region. In addition, Oanda has also blacklisted two countries from its platform, namely Iran and North Korea. Other restricted countries include Sierra Leone, Syria, and Belarus.

Is Oanda Regulated?

Oanda is a global company with offices in Toronto, New York, London, Singapore, and Tokyo. It is regulated by top-tier regulators, like the UK's Financial Conduct Authority (FCA) and the US Commodity Futures Trading Commission (CFTC).

This makes Oanda a safe and trustworthy choice for forex trading. Additionally, Oanda has a strong reputation for providing high-quality customer service.

The Investment Industry Regulatory Organization of Canada (IIROC) regulates Oanda in Canada. The IIROC is responsible for overseeing all Canadian investment dealers and protecting investors.

Oanda is also a member of the National Futures Association (NFA), the self-regulatory body for the US futures industry.

Is Oanda a Scam or Safe?

Oanda has several protective measures to keep your account and money safe. For example, they are a member of the National Futures Association (NFA) and are registered with the Commodity Futures Trading Commission (CFTC).

In addition, all customer accounts are segregated from Oanda's operating funds. So even if Oanda where to go bankrupt, your money would be protected.

Oanda is also one of the few forex brokers that allow you to trade on fractional pips. Thus, you can get tighter spreads and better use price movements.

Moreover, the broker partners with leading financial institutions and banks to provide its clients with global CFD and Forex liquidity. The broker uses risk management technologies to lower currency risk and exposure.

Most importantly, Oanda files financial reports with its regulators periodically. In addition, the broker works with internationally acclaimed accounting firms to audit their financial statements.

Oanda Pros and Cons

Since there's no risk of an Oanda scam, you can create an account on the broker's website and start trading. First, however, it's essential to know the pros and cons of trading on Oanda to determine if the broker is the right fit for your trading needs and experience level.

👍 Pros

Is one of the few global brokers to accept US clients

Registered with regulators around the world

Has several trading tools and resources

Provides TradingView, an advanced trading platform

Real-time financial news feed

MT4 trading platforms and advanced data analysis

👎 Cons

No negative balance protection for its US clients

Does not have ETFs and individual stocks

Has a monthly inactivity fee

Oanda Background

Oanda was founded by Dr. Richard Olsen and Dr. Michael Stumm. While Olsen was an economist, Stumm was a computer scientist. Both believed that technology and the Internet could open trading and currency data avenues.

Oanda's vision is to transform the world's interaction with currencies. It does so by making data accessible and transparent. The company is driven by the belief that technology can change how people interact with the financial markets.

Oanda has a unique history. It was one of the first companies to offer currency data and trading services on the Internet. The company was founded in 1996 and has grown significantly in the past few years, establishing offices worldwide.

CVC Capital Partners acquired Oanda in 2018. Being a well-known equity firm, CVC Capital Partners manages over $70 billion in assets worldwide. Oanda's leadership changed in 2019, with Gavin Bambury becoming the new CEO.

In 2020, Oanda acquired 100% of the shares of TMS Brokers, a Polish broker with multi-asset classes. In doing so, Oanda created a base for itself in the Eastern European market.

FAQ

Is Oanda Safe?

Oanda is a regulated broker by multiple top-tier regulatory bodies, such as the UK's Financial Conduct Authority (FCA), the US Commodity Futures Trading Commission (CFTC), and the Japanese Financial Services Agency (FSA). Holding multiple licenses from different jurisdictions gives Oanda an advantage over other brokers that are only licensed in one country.

Does Oanda Accept US Clients?

Yes, Oanda is one of the few brokers that accept US clients. Most other brokers don't allow US clients to open accounts because of the stricter regulations in the US. If you want to check which other countries Oanda takes clients from, you can look for your country on the account creation page.

How to Check if a Broker is Legit?

If you want to check the legitimacy and safety of an online trading broker, you can do a few key things. First, check the broker's licensing and regulation. All legitimate brokers will be licensed and regulated by a financial authority in their jurisdiction. You can check this information on the broker's website or by contacting them directly. Secondly, see what security measures the broker has to protect your personal and financial information. For example, a good broker will use SSL encryption to keep your data safe.

Who Owns Oanda Forex?

CVC Capital Partners acquired Oanda in 2018. The equity firm now owns and operates Oanda.

Team that worked on the article

Alamin Morshed
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Alamin Morshed is a contributor at Traders Union. He specializes in writing articles for businesses who want to improve their Google search rankings to compete with their competition.

Over the past four years, Alamin has been working independently and through online employment platforms such as Upwork and Fiverr, and also contributing to some reputable blogs. His goal is to balance informative content and provide an entertaining read to his readers.

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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.

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Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO). Mirjan is a cryptocurrency and stock trader. This deep understanding of the finance sector allows her to create informative and engaging content that helps readers easily navigate the complexities of the crypto world.