OANDA, a prominent name in online currency conversion, is also a renowned Forex and CFD broker. Offering a wide range of markets and exceptional trading environments, OANDA stands as one of the largest Forex brokers in the United States, with a global presence in Forex and CFD trading field.
OANDA History & Regultion
Established in 1996, OANDA was the first fintech company to share real-time currency exchange rates on the internet as early as 1997. Starting in 2000, OANDA began offering physical forex exchange services. In 2001, OANDA launched online leveraged Forex trading in the United States and remains one of the largest Forex brokers in the country.
The company entered the Asian market by opening an office in Singapore in 2007. In 2010, it expanded its presence to both the UK and Japan. Two years later, OANDA added CFDs to its range of market offerings alongside Forex. In 2024, it obtained an Australian Financial Services License and established an office in Sydney.
| Regulator | License Number | Regulator | License Number |
|---|---|---|---|
| Australian ASIC | AFSL412981 | American NFA | 0325821 |
| UK FCA | FRN921481 | Singapore MAS | 200704926K |
| Japan FSA | 2137 | Canadian IIROC | 09-0280 |
2018 marked a new chapter for OANDA, it was fully acquired by CVC Capital Partners, a leading private equity firm. Today, OANDA has offices in nine countries, holding six licenses from top-tier financial regulators, as well as two offshore licenses in the British Virgin Islands and Malta.
OANDA Trading Platform
Before the emergence of MT4 and MT5, OANDA had pioneered Forex margin trading with its proprietary platform, FxTrade. However, FxTrade only offers a mobile app for Asian traders, whereas desktop, web, and mobile app options are available for both MT4 and MT5. Consequently, traders in Asia are advised to opt for OANDA’s MT4 and MT5 platforms.
While OANDA is renowned for its Forex trading services, it also provides CFDs on a wide range of popular financial assets, including:
- Forex: 50 currency pairs
- Precious Metals: Gold and silver
- Cryptocurrencies: 27 digital currencies
- Futures: 7 major equity index futures and crude oil futures
- Commodities: 8 popular commodities such as WTI and BRENT crude oil
- Indices: 18 global indices, encompassing equity indices, the USD Index, and VIX
- Equity CFDs: Over 1000 equity CFDs spanning the US, Europe, Hong Kong, and Australia markets.
888x High Leverage Account
1). Introduction of 888x Leverage
It is not public available on its English website, however, Oanda offers a special 888x high leverage account to traders from Taiwan, Hong Kong, Malaysia, Thailand, Vietnam and Philippines.
Applicable Instrument for 1:888 Leverage
Forex: AUDUSD | EURUSD | GBPUSD | USDJPY | EURGBP | EURJPY | AUDJPY | GBPAUD | GBPJPY | EURAUD
Metal: XAUUSD
Indices: US30 | US100 | US500
Important Note: OANDA employs tiered margin, with the highest leverage of 888x applying only to the first $500,000 USD of the net position. This equates to approximately 5 standard lots in Forex, which is typically sufficient for most individual traders. Further details regarding tiered margin will be provided later in this article.
For gold traders, a net position of $500,000 is approximately equivalent to 2.17 lots when gold is traded at $2,300 per ounce. Given that gold is one of the most volatile financial instruments, 2.17 lots represent a substantial position size for retail traders. A $10 movement in the gold price would result in a profit or loss of $2,170.
2). Benefits of 888x Leverage
Compared to other account types with leverage capped at 200x, the benefits of this high leverage account are very straightforward. For the same position, it requires only one-fourth of the margin, thereby lowering the trading threshold. Below is the margin comparison for trading one lot of USD/JPY between 200x and 888x leverage:
- 200x leverage: margin for 1 lot USDJPY = 100K/200 = $500
- 888x leverage: margin for 1 lot USDJPY = 100K/888 = $113
3). Disadvanges of High Leverage Account
There are also some downsides to the 888x leverage account, primarily involving higher trading costs for Forex and Gold products. For Forex pairs, the spread in the high leverage account is roughly 0.2 pips higher than OANDA’s standard account, which amounts to approximately $2 more per one lot traded.
However, even with the additional 0.2 pips markup, the Forex spread in the 888x leverage account remains very competitive, given the low spread level in the standard account.
Gold traders will need to find a balance between high leverage and low spread, as the gold spread nearly doubles in the 888x leverage account. The regular gold spread in the standard account is 0.2 pips, while it often increases to 0.4 pips in the 888x leverage account.
4). How to Apply 888x Leverage Account
There is no account type option in OANDA’s live account application form, Asian traders will be defaulted to MT5 standard accounts. If you are a resident of Taiwan, Hong Kong, Malaysia, Vietnam, or the Philippines, you can apply for an 888x leverage account after your live account application is approved. Simply email front@oanda.com using the format below:
=============
Apply for an additional account:
Account holder name: Your Name
Account type: 1:888 leverage account
==============
For residents of other countries/regions, you can also try sending the same email request, but there is no guarantee that OANDA will approve it.
Oanda Account Types & Spreads
Apart from the 888x leverage account, OANDA offers four other account types available to most countries and regions. For these four account types, the trading conditions, including maximum leverage, minimum trading lot, and stop-out level, are the same as follows:
Maximum leverage: 200x on FX, Gold & Index | 100x on Cruide oil | 10x on BTC | 20x on equities
Mininum Trading Lot: FX 0.01 lots | Gold 0.01 lots(1 oz) | Crude oil 0.01 lots(10 barrels) | Indices 0.01 lots
Stop-out level: 50%
OANDA doesn’t have a minimum deposit requirement for its Standard and Core accounts. However, a mininum $20,000 USD deposit is required for the Premium and Premium Core accounts.
1). Standard Account & Premium Account
| Oanda Standard Account Spread | ||
|---|---|---|
| Instrument | Average spread | Commission |
| EURUSD | 0.8 | 0 |
| USDJPY | 1 | |
| GBPUSD | 1.2 | |
| XAUUSD | 0.2 | |
| WTI | 0.033 | |
| BRENT | 0.035 | |
| US30 | 4.0 | |
| US500 | 0.7 | |
| US100 | 3.4 | |
Platform: MT4 | MT5 | FxTrade
Minimum Deposit: No requirement
Trading Fees: Spread only
OANDA’s standard account, the basic account type, is quite impressive due to its competitive spreads. For instance, a typical spread of 0.8 pip is common on EUR/USD.
Asian traders will be setup on MT5 standard account by default. To access other account types, traders need to apply for them as additional accounts.
OANDA offers a Premium account with the spread 0.3 pips lower than the Standard account, available exclusively on the MT5 and FxTrade platforms. To qualify for the Premium account, traders must maintain a minimum equity of $20,000 and achieve a monthly trading volume of $10 million. Additional benefits of the Premium account include:
- Dedicated account manager
- Priority support
- Free VPN
- Fee-free deposits and withdrawals via bank wire
2). Core Account & Premium Core Account
| Oanda Core Account Spread | ||
|---|---|---|
| Instrument | Average spread | Commission |
| EURUSD | 0.1 | $40 per million |
| USDJPY | 0.4 | |
| GBPUSD | 0.3 | |
| XAUUSD | 0.2 | 0 |
| WTI | 0.033 | |
| BRENT | 0.035 | |
| US30 | 4.0 | |
| US500 | 0.7 | |
| US100 | 3.4 | |
Platform: MT4 | MT5 | FxTrade
Minimum Deposit: No requirement
Trading Fees: Core spread + $40 commission / million
In its Core account, OANDA’s trading fees consist of two parts: the core spread plus a $40 commission per million in trading volume. The trading volume is calculated in USD. For example, the trading volume of 1 lot USD/JPY is 100K USD, while 1 lot EUR/USD is 100K EUR.
The overall trading cost in Oanda’s Core Account for USDJPY is only $6.6 per lot, and $4.7 per lot on EURUSD.
There is also a Premium Core account where the spread remains the same, but the commission is reduced to $35 per million. The criteria and additional benefits are identical to those of the Premium account.
Oanda Tiered Margin
As we have introduced OANDA’s account types and their corresponding maximum leverage, it is important to note that OANDA employs a tiered margin system for all account types. This means the maximum leverage decreases dynamically by tiers as the position size increases. We will explain how tiered margin works with the example of USD/JPY below:
Positions | 888x Leverage Account | Other Accounts | ||
| Leverage tier | Leverage | Leverage tier | Leverage | |
| < 0.5m | 1st tier | 888x | 1st tier | 200x |
| 0.5m - 2m | 2nd tier | 200x | ||
| 2m - 5m | 3rd tier | 100x | 2nd tier | 100x |
| 5m - 20m | 4th tier | 20x | 3rd tier | 20x |
| > 20m | 5th tier | 5x | 4th tier | 5x |
The USD volume for 1 lot of USD/JPY equals 100,000 USD. Assuming we open a 25 lots position on USD/JPY in the 888x leverage account, here are the margin calculation steps based on the tiered margin:
- Tier 1: The leverage for the first 5 lots is 888x, margin requirement: (5 * 100K / 888) = $563.06.
- Tier 2: The leverage for positions between the 5th and 20th lots is 200x, margin requirement: (10 * 100K / 200) = $7,500.
- Tier 3: The leverage for positions between the 20th and 25th lots is 100x, margin requirement: (10 * 100K / 100) = $5,000.
Therefore, the total margin requirement is $15,563.06. The USD volume calculation for USD/JPY is straightforward, as its base currency is USD. However, for instruments with a trading volume not in USD, such as EUR/USD, the volume must be converted to USD using the exchange rate at the time the position is opened.
Additionally, the tiered margin varies depending on the instrument. Please refer to OANDA’s official tiered margin document for detailed information.
Oanda Deposit & Withdrawal
1). Oanda Deposit Method
(1). International Bank Wire
OANDA holds its clients’ funds in Standard Chartered Bank in Singapore. Traders can make deposits via bank wire to this bank.
Countries: All
Processing Time: 1 – 3 business days
Fees: Approximately $15 – $25
(2). Visa/Master Card
OANDA supports Visa and MasterCard for deposits. Traders will need to enable the online shopping function on their cards.
Countries: All
Processing Time: Instant
Fees: None
(3). Skrill/Neteller
Skrill and Neteller e-wallets are available among OANDA’s deposit options. Traders must ensure that the registered email addresses for their OANDA account and their e-wallet account match.
Countries: All
Processing Time: Instant
Fees: None
(4). Local Bank Transfer
For traders from specific countries, OANDA provides the option for local bank transfers in the local currency.
Countries: Malaysia, Philippines, Lao, Vietnam, Thailand, Indonesia, South Africa, Kenya, Brazil, Colombia, Chile, Costa Rica, Ecuador, Mexico, Peru
Processing Time: Instant
Fees: None
2). Oanda Withdrawal Method
For withdrawals, Oanda follows a specific protocol: funds are returned to the original source. Any amount exceeding the initial deposit must be withdrawn to the account holder’s bank via bank wire transfer.
- Visa/Mastercard withdrawal: Funds are credited back to the original card, typically within 1 – 3 days, with no charges from Oanda.
- Skrill/Neteller withdrawals: Funds are returned to the same E-wallet account, usually within a day, with no charges from Oanda.
- Bank wire withdrawal: Processing time for bank wires is typically 1 – 3 business days, with Oanda charging a $20 fee per withdrawal.
Withdrawals via Visa/Mastercard are processed as refunds, with processing times subject to the issuing bank’s policies. For bank wire withdrawals, please note that an additional fee of approximately $15 charged by intermediary banks may apply.
Is Oanda a good broker
Without a doubt, Oanda is one of the most established brands in the online trading industry and one of the best brokers in terms of trading costs and security. However, in areas such as non-English customer support and the diversity of deposit options, Oanda needs to catch up with the market. Additionally, there is significant room for improvement in its client portal to enhance the user experience.
Traders who can benefit most from Oanda
Experienced traders seeking low trading costs and high security, but with minimal demand for customer service, will find Oanda appealing. During active trading sessions, the trading costs in Oanda’s Core account for major currencies range from only $5 to $8 per lot.
Traders who might not be a good fit for Oanda
Oanda is not an option for traders who want to deposit and withdraw using the popular cryptocurrencies. Additionally, for non-English speaking traders who require quick response times from customer service, Oanda may not be the best choice.
Oanda Account Signup
Signing up for a live account with Oanda can be done entirely online in just 10 minutes, consisting of six simple steps. Once the application is submitted, Oanda typically reviews it within 1 – 2 days, after which live account credentials are sent to traders via email.
For accounts funded with less than $9,000 USD, traders are not required to provide any documentation after the live account is approved. However, to remove this funding limit, account verification through proof of identity and proof of residence is necessary.
The 1st step
The 2nd step
The 3rd step
The 4th step
The 5th step
The 6th step
