An old and quite reputable American broker, OANDA provides access to trading for more than a million users all over the world, and it’s known to have competitive trading conditions. Many people claim it to be their favorite broker, but that doesn’t mean much for complete beginners. In this article, we briefly explain whether Oanda is a good choice for novice traders and why.
When it comes to trading instruments, the selection Oanda offers to its clients isn’t too wide. Of course, you can trade currency pairs (there are about 70 of them available). Other options include indices, metals, commodities, and a little bit of crypto. There are no options, and indices are traded as CFDs. That means you don’t actually buy or sell any stocks; you just place bets on them expecting their price to rise or fall. There are many indices available, including US SPX, China A50, Europe 50, and Japan 225.
Oanda’s trading conditions are favorable. There is no minimum deposit for Standard accounts, so you can start trading with just about $0. The spreads offered by the broker are also pretty attractive; the exact value depends on the instrument you’re using: for example, your spread for currency pairs may be as low as 0 pips. The minimum trade volume is just 0.01, and the leverage is all the way up to 1:200. All these conditions make Oanda a pretty interesting and convenient choice for every novice trader.
But is Oanda good for beginners in terms of security? In short, yes. Oanda is a well-known and reputable company that operates in many countries under supervision of several regulators, including the UK FCA (Financial Conduct Authority). Your account will be protected from any threats, and if anything goes wrong, you can always file a complaint with a good chance of receiving your money back. Just don’t expect any moral damage compensations.
Commissions and fees
Possible fees are one of the most crucial things to consider when choosing a broker. Oanda features no fees for deposits, and if you want to withdraw your money, the broker charges you $15+ only for withdrawals to credit cards (however, you can make a free transaction to your credit card once a month). Other withdrawal methods are completely free, too. There are no hidden or confusing fees, but Oanda has a commission for moving your trading positions to the next day (also known as swap).