Existing since the 1990s, OANDA is one of the early pioneers of online forex brokers. The company was co-founded by Dr. Michael Stumm, a professor of Computer Engineering at the University of Toronto, and Dr. Richard Olsen of The Olsen Ltd., a leading econometric research and development firm.
When the online trading platform FXTrade was launched in 2001, it was the first fully automated forex trading platform. Since then, OANDA has grown to become a powerful broker, capable to handle more than a million queries a day. It is estimated that about 20 percent of the global spot forex trades goes through OANDA’s servers.
The company has been the recipient of several international awards including Best Forex Provider 2012, Highest Client Satisfaction 2012 and more. OANDA is based in the New York and is available for traders in the USA, Asia, Canada and Europe.
The company’s main products are: electronic trading platform (fxTrade), currency conversion tools, a foreign exchange wire service (fxGlobalTransfer), a corporate hedging consulting service (FXConsulting), discussion forums, tables of historical currency data, along with forex news and analysis.
OANDA has two basic types of trading platforms, the MetaTrader4 (MT4) trading platform and the FXTrade WebTrader. The MT4 trading platform is highly appreciated among online trading community members, primarily because of its advanced features and sophisticated trading tools. Considering FXTrade WebTrader, it requires JAVA to run. Because it is web based, traders can access the platform from anywhere in the world, the only condition necessary is an internet connection.
Both versions of trading platform are also available as mobile versions. For tech savvy traders, there is a possibility to use the OANDA FXTrade API libraries to build their own automated trading system to accommodate trading actions like:
• Access to Current and Historical Market Data
• Access to Historical Trading transactions
• Risk-Free Testing
• Trade Requests
OANDA does not distinguish between different types of traders. As such, there is only one standard type of trading account at OANDA. The good news is they also don’t have a minimum deposit requirement as well. Trades of any sizes are permitted without any minimum lot size requirement.
During online registration, users need to provide data including account currency type and personal and financial information, as well as answering regulatory compliance questions. As soon as the account is confirmed, login information will be provided and you will be asked to wire funds to open your account.
Considering Demo accounts, it is called FXGame, and it is available to all potential traders free of cost, with no time limits or expiration dates. Users interact with the same features as are available with active accounts, including the same user interface features.
It is necessary to emphasize that, like most online forex brokers, Oanda does not charge any commission for its trading services. The thing that traders do pay is a spread, which is based on real-time market values. Depending on the currency traded, spreads starts from as low as 1.1 pips. Spreads for indices are even lower, starting from 0.5 pips.
Customer service through Oanda is available 24 hours a day, five days a week. Oanda is known to have excellent support with multilingual representatives who can be contacted by phone, email, live chat, or fax, but only on weekdays, when the market is open.
Traders who want to find answers online quickly can use their additional resources as:
• Technical requirements
• Quick Start guide
• Test to verify that their PCs or devices meet the minimal specifications
• Troubleshooting – This function is especially for those who are having trouble logging in for reasons such as forgetting their password or using the incorrect login page
• Feedback – As Oanda seeks input on how they can improve their operations, customers are free to report bugs or verify a funding transaction they made
• Frequently asked questions or FAQs
Oanda offers an easy-to-use platform with powerful analytical tools and are leaders in the news market feeds. Once you sign up for an account with them, you can benefit from low spreads, immediate execution and instant settlement with no dealer desk intervention as per what they claim.
Although some people have complained that Oanda is a market maker that may widen spreads, many other people also report that Oanda’s makes the most profit for its clients. Higher profits do not directly mean you will make money, but it does mean that people are making money with Oanda.