UK Broker:
OANDA Review 2023
OANDA UK stands out as a reputable choice for traders seeking low spreads, FCA regulated and a comprehensive and reliable trading experience.
Founded in 1996, the OANDA Group is an award-winning global trading business for FX pairs and CFDs. Regulated by the Financial Conduct Authority (FCA) in the UK, OANDA offers a high level of trust and reliability to its clients. In this in-depth review, we will explore the various aspects of OANDA’s trading services and features.
76.6% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Trading Overview
OANDA provides a wide range of trading options, catering to diverse investment needs. Traders from various countries including the UK, Switzerland, Norway, Guernsey, Jersey, Isle of Man, and Gibraltar are accepted.
With OANDA, traders can engage in forex, indices, metals, commodities, bonds, and CFD trading.
The broker offers competitive spreads starting at 1 point for popular instruments like the UK 100 and Germany 30, as well as 0.8 pips for currency pairs such as EUR/USD and EUR/GBP. OANDA'S provision of depth of market information for all forex pairs adds value to traders, enabling them to make well-informed decisions.
Customer Service
OANDA takes pride in its exceptional customer service, ensuring that clients receive prompt and reliable assistance whenever needed.
The support team is available 24 hours a day during market hours and can be reached through various channels. Traders can seek support via email, inbound telephone, live chat in multiple languages including English, Spanish, French, and Italian.
This wide range of support options demonstrates OANDA's commitment to delivering excellent customer service.
Trading Tools
OANDA provides a suite of powerful trading tools to enhance the trading experience of its clients. The platform offers advanced charts powered by TradingView, allowing traders to conduct in-depth technical analysis.
Additionally, OANDA offers Technical Analysis from Autochartist, which provides automated market analysis and trading signals.
Traders can also access the Economic overlay feature on the OANDA Trade platform, enabling them to stay updated on important economic and news events and their potential impact on the markets.
These tools equip traders with valuable insights and tools to make informed trading decisions.
Platform and Mobile Trading
OANDA'S trading platform is designed for speed and reliability, ensuring that traders can execute trades quickly and efficiently, even during fast-paced market movements.
The platform is complemented by user-friendly mobile apps for iOS and Android devices, enabling traders to stay connected and trade on the go.
The mobile apps offer over 50 technical tools, including indicators, drawing tools, and various chart types, allowing traders to analyse the markets and make informed trading decisions even when they are away from their desktop.
The availability of mobile trading options adds convenience and flexibility to OANDA'S services.
Account Features
OANDA offers a standard trading account with no minimum deposit or withdrawal requirements, making it accessible to traders of all levels.
The broker supports EA/Robotrading and hedging, providing flexibility for traders who prefer automated strategies or want to manage their risk effectively.
Additionally, OANDA offers a demo account, allowing traders to practice and test their strategies before trading with real money.
Notably, OANDA provides tax-free trading options through its sub-account, allowing eligible traders to engage in spread betting exempt from UK Capital Gains Tax and UK stamp duty, offering potential tax benefits.
Pricing Model
OANDA implements a transparent pricing model that ensures fairness and accuracy across different asset classes. Their pricing is derived from multiple sources, depending on the specific asset being traded.
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For forex and metals CFDs, OANDA relies on liquidity providers who supply them with spot pricing for FX pairs and metals.
These prices are analysed by OANDA'S automated pricing system to generate a midpoint price. By using different liquidity providers for various products, OANDA ensures competitive and precise pricing.
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When it comes to indices CFDs, OANDA calculates pricing by considering relevant futures prices and the cash or spot prices of the underlying instrument.
They make necessary adjustments, including adding their own spread and accounting for liquidity in external markets and currency exchange rate differentials.
These adjustments, along with other factors, guarantee that the pricing reflects market conditions and remains fair.
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For commodities, copper, and bonds CFDs, OANDA bases their prices on underlying futures contracts.
They calculate the basis rate, which represents the difference between the expiring futures contract and the next futures contract when the former is nearing expiry.
This continuous calculation enables them to determine the present value of the next futures contract accurately. The CFD price adjusts accordingly, moving closer to the contract price based on whether the basis rate is positive or negative.
This methodology ensures that the prices remain aligned with the underlying market.
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In addition to the asset pricing, OANDA also takes into consideration the financing aspect for certain CFD positions. If a trader holds an open position at the end of each trading day, it is considered an overnight position and may incur financing charges or credits.
These charges or credits reflect the cost of funding the position relative to the utilised margin. The financing cost is calculated on a per position basis, considering whether the trader holds a buy/long or sell/short position, as well as the impact of the admin fee.
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By implementing this comprehensive pricing model, OANDA ensures transparency and accuracy in their pricing, enabling traders to make informed decisions based on fair market conditions.
Fees and Commissions
Like any broker, OANDA has certain fees associated with its services. Traders should review the fee structure and terms provided by OANDA to make informed decisions.
OANDA has policies regarding financing fees and inactivity fees. Being aware of these fees allows traders to effectively manage their trading activities and account balance.
Despite these fees, OANDA stands out with its competitive spreads, starting as low as 0.8 pips for major currency pairs like EUR/USD and EUR/GBP, and 0.9 pips for GBP/USD.
These tight spreads enable traders to execute trades at favourable prices.
Awards
OANDA has received several prestigious awards, further highlighting its excellence in the industry. In 2021, OANDA was voted as the Best Forex and CFD Broker at the TradingView Broker Awards.
The broker also secured the title of Most Popular Broker in the same awards.
Additionally, OANDA received the Best Trading Tools award at the Online Personal Wealth Awards in 2021.
These awards serve as a testament to OANDA'S commitment to providing top-notch services and advanced trading tools to its clients.
Conclusion
OANDA UK is a trusted and reliable forex broker with a long-standing presence in the industry. Regulated by the FCA, OANDA offers a wide range of trading options, competitive spreads, and powerful trading tools.
The broker's commitment to exceptional customer service and its availability across various channels ensure that traders can easily access support whenever needed.
With user-friendly platforms and mobile apps, OANDA provides flexibility and convenience to traders who prefer to trade on the go.
The absence of minimum deposit or withdrawal requirements, as well as the availability of demo accounts, adds accessibility for traders of all levels.
Additionally, OANDA'S tax-free trading options offer potential tax benefits to eligible traders.
With its transparent pricing model and recognition through prestigious awards, OANDA UK Broker stands out as a reputable choice for traders seeking a comprehensive and reliable trading experience.
Disclaimer: Important Information for Traders
“CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76.6% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.”