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OANDA

OANDA Review
Trader's rating 2.9
Editor's rating 3.8

Trading Accounts

 

Account type Minimum deposit Minimum trade size Maximum leverage Avg.Spread 
Standard $ $1 - 1:50  1.4 pips on EUR/USD, variable

 

There is only one standard type of trading account at OANDA. On the one hand, this limits clients’ choice; on the other, it means that all account holders are treated equally.


To make things even better, this broker doesn’t require any minimum deposit, nor minimum trade size. However, you need to have at least $1 in your account balance in order to initiate a trade.


The Company


OANDA is one of the pioneer online forex brokers. Established back in 1996, It is now a large group with offices in Toronto, San Francisco, New York, London, Singapore, Tokyo, and Sydney. ALL group companies are duly regulated by the relevant authorities in the US, Singapore, Canada, the UK, Japan and Australia.


OANDA offers Internet-based forex trading and currency information services to both retail and institutional customers. The broker is a market maker, having one of the largest currency databases in the world. Its product portfolio includes forex, index, commodity & bond CFDs, as well as precious metals.


Security of Funds


OANDA Corporation is a registered Futures Commission Merchant and Retail Foreign Exchange Dealer with the Commodity Futures Trading Commission and is a member of the National Futures Association.


Brokers that are registered with the NFA are obliged to comply with an extensive set of rules. Unfortunately, these rules are often limiting from traders' point of view, but there is no way around them. For instance, hedging is not allowed and leverage is limited to 1:50, while European brokers are free to provide leverages up to 1:1000 or even higher than that.


Besides, NFA-registered brokers are required to maintain a net capital of at least $20 million to guarantee customers’ positions, which makes them super safe to invest with. Similar minimum capital requirements apply in most jurisdictions, for instance UK-based brokers are obliged to hold at least 730 000 EUR in order to prove their financial stability, and Australian ones must possess a minimum of $ 1 million in order to operate legitimately.


All OANDA Subsidiaries, including OANDA Asia Pacific Pte. Ltd. (Singapore), OANDA (Canada) Corporation ULC (Canada), OANDA Europe Limited (UK), OANDA Japan Inc. (Japan) and OANDA Australia Pty Ltd. (Australia) are duly licensed and regulated by the respective bodies.


Trading Conditions


Minimum Initial Deposit

OANDA has no minimum deposit requirements for opening an account. This makes it attractive for risk averse or inexperienced traders who are not willing to invest a large amount of money.


Most brokers require a certain minimum initial deposit in order to cover the costs related to opening a new account. For instance, Forex.com demands $250 from its clients to start with, and FXCM - $50.


Average spreads & Commissions
This broker offers variable spreads, the average ones on EUR/USD amounting to 1.4 pips, which is on the upper end of average. Clients, however, take advantage of commission-free trading, as OANDA doesn’t charge any commission for their trading services, nor any account maintenance fees. Instead, the broker gets its remuneration through the spread.


In comparison, FOREX.com, also a global FSA-regulated broker and market maker, offers average spread of 1.8 pips on EUR/USD and also charges no commission fees. You may look up real-time spread of 15 leading brokers here.


Maximum Leverage
OANDA offers a maximum leverage level of 1:50 on FX products, which is quite low, however, the broker has no choice, since US regulator has set a limitation on leverage ratios. CFTC limits leverage available to retail forex traders in the United States to 1:50 on major currency pairs and 20:1 for all others.


If you need higher leverage, you can pick a broker, who offers leverage ratios of 1:500 and exceeding 1:500 from this list. We advise traders to exercise caution when using higher leverage levels, for such rates may not only multiply their earnings on a small deposit, but also lead to heavy losses in excess of the initial investments made.


Trading Platforms


Oanda provides its clients with a choice of threetrading platforms: its custom-made fxTrade, Protrader Multi-Connect (PTMC) and the popular MetaTrader 4.


fxTrade comes in desktop, web and mobile versions. It has a simple, yet effective interface, and what is more important – superb execution speed. According to OANDA`s website, this platform executes 98% of trades within 0.057 seconds or less, which is super-fast.


Furthermore, fxTrade is equipped with intuitive and powerful charting features, multiple sub-accounts to test different trading strategies and financial news and market analysis from leading news providers.


We presume that fxTrade is aimed mostly at new traders, since it has all the usual functionalities, but more advanced features are missing.

 

Oanda`s proprietary  fxTrade. Click to enlarge.

 

Oanda recently added to its platforrms line up Protrader, developed by PFSOFT. Protrader offers everything regular forex trading platforms do: Advanced charts and technical analysis, indicators, various order types, customization options, and auto trading options. In fact, Protrader has created AlgoStudio - a professional algorithmic strategy development tool. It enables users to test different types of data aggregation: time, ticks, range, Renko, LineBreak, etc.

 

In addition, Oanda offers the powerful MetaTrader 4, which is highly regarded by the online trading community mostly because it allows users to fully automate their trades. By choosing from a wide range of Expert Advisors (EAs), traders may sit back, while the program does all the work. What is more, it offers a number of technical indicators, extensive back-testing environment and advanced charting package. Here is a list of more forex brokers offering MT4 platform.


In addition, fxTrade bridges directly to MetaTrader 4 using custom-built technology, which we find useful.


Methods of Payment


OANDA offers its clients various methods to deposit/withdraw funds to and from their accounts. They vary, depending on the OANDA division of registration, but the main payment modes are debit/credit card, bank wire, checks, PayPal and UnionPay.


Conclusion


OANDA is a leading global forex broker, offering online trading in a wide range of currency pairs, CFDs and precious metals under attractive conditions. To sum up the above, here are the advantages and disadvantages of this broker:

 

Pros  Cons
Variety of platforms offered  Market maker
Mt4 available Low maximum leverage
No initial deposit required  
No minimum trade size  
No commission and account maintenance fees  
Well-regulated  

 

Find Better Broker 

Headquarters:140 Broadway, 46th Floor, New York, NY 10005 

Country: United States

Regulated by: CFTC, NFA , MAS, FSA, IIROC, DFSA

Branches:
OANDA UK 
OANDA Japan 
OANDA Asia Pacific
OANDA Middle East 

bitFlyer

bitFlyer Review
Trader's rating 1
Editor's rating 4

Account type

 

Account type Minimum deposit Leverage Fee
Standard Undisclosed 1: 15 Max 0.15% for BTC

 

BitFlyer is one of the most popular cyptocurrency exchanges in the Far East. It is also among the world leaders, in terms of volume.

 

The company, security of funds

 

Company Country Regulation
bitFlyer, Inc. Japan JFSA, NY BitLicense

 

BitFlyer is based in Japan. The local regulators have made some changes in the way they treat cryptocurrencies in the past. Currently, they are treated as assets, upon which capital gains (profiting from the price movement) is taxed. BitFlyer was one of the first companies to received the JFSA (Japanese Financial Services Agency) license, along with the major competitors from QUOINEX

 

Update: BitFlyer also received has the regulatory approval of the New York Department of Financial Services (NYDFS) in November 2017. The company is set to start offering Bitcoin trading vs the USD, while adding altcoins in the future. We will update this review, when the service is fully implemented.

 

The company has been around since 2014 and has not had any hacking issues yet. The most important thing to note, from a western trader’s point of view is that trading is done (mostly) against the Japanese YEN (JPY), unlike most exchanges where you can trade cryptocurrencies against one another, the US Dollar and occasionally the Euro. You may need an account with a forex broker, such as FXTM, just to hedge your currency risk.

 

The user reviews on BitFlyer (written in English) are mostly positive. This is a good sign, as the company maintains multilingual support. 

 

Trading conditions

 

Trading instruments (cryptocurrencies)

As mentioned above trading at BitFlyer is done against the Japanese Yen. This applies for the plethora of Bitcoin instruments, which include Spot BTC trading, Margin BTC trading, and BTC Futures (not to be confused with Bitcoin Cash Futures). Furthermore Etereum is available for trading, against Bitcoin.

 

Minimum initial deposit

BitFlyer does not give any guidelines about a minimum deposit level. Forex brokers, on the other hand usually announce their minimum entry barriers. For instance, you can open an account with XM, with only $5.

 

Leverage

BitFlyer offers a maximum leverage ratio of 1:15. However, in order to be allowed to trade on margin, one must go through a tougher verification process. This type of ratio may sound very small to someone who is used to forex trading, as lots of brokers provide 1:500 or even higher levels. 

 

Do keep in mind cryptocurrencies often move far more wildly than fiat currencies. While a major pair will rarel move more than 1.5 – 2% percent per day, the Bitcoin often has gains or losses exceeding 10%. This explains the lower leverage offering by BitFlyer, which by the way is one of the highest offers provided by crypto-exchanges. For a full comparison of trading Bitcoin with a forex broker and on an exchange click here.

 

Fees

Fees at BitFlyer vary slightly for the different services, which they provide. They offer directly exchanging JPY to BTC, the fees for which go as high as 0.15% for the lowest volume traders. As a comparisson, Bitfinex charges this type of fee only for the market "makers", while takers pay a slightly higher one. The maximum fee for ETH/BTC is 0.20%. Here is the full information, as provided by the company (click to zoom-in):

 

 

Lightning FX stands for the margin trading of BTC/JPY. Futures on the other hand are similar to exchange traded futures. However the liquidity in them appears to be far lower, which is to be expected. We would not recommend them to inexperienced traders.

 

 

Trading platform

 

BitFlyer provides two trading platforms. They are both web based, which is not unusual for cryptocurrency exchanges. One of them is the so called Bitcoin Easy Exchange, which serves, to facilitate direct JPY to BTC transfers. It is what people, who want to get their funds converted to Bitcoin, before transferring them would use. Albeit simple, it does the job. Here is a preview (click to zoom-in):

 

 

 

The company also offers the BitFlyer Lightning platform. It feels much more like a forex trading platform, as it is designed with the trader in mind. This is the platform where the 1:15 leverage ratio is provided. Here is what platform looks like (click to zoom-in):

 

 

There is a chart on the left, with lots pre-loaded indicators. The order book looks pretty solid (in the middle) and the tape is locate on the right. Several more fields are located below these, similarly to the MetaTrader 4 (MT4) terminal. Charting appears to be decent, with several technical indicators in place. Furthermore the charts can be set to full-screen mode.

 

There are multiple themes available, if you do not like the black and orange feel. One thing we must mention are the maddening sounds, which are turned on by default. Every time a transaction is made, more importantly, every time there is a movement of a bid/ask in the order book, play a sound. Luckily, these can be turned off quite easily.

 

Methods of payment

 

BitFlyer accepts Bank Transfers, Credit Cards issued in Japan and Bitcoin transfers. Although the company has a clear focus on its internal market, a foreigner can still use their services, albeit not with his credit card. Users of online payment systems, such as Skrill are also left out.

 

Conclusion

 

BitFlyer is the number one cryptocurrency exchange in Japan. It also rates pretty highly among the global volume charts. The most specific thing is that trading is done against the Japanese Yen (JPY). There are multiple platforms and services available, including margin trading. Despite being focused on its domestic market, the company appears to be reaching out to the rest of the world and with commission levels so low, customers will come. Here is a summary BitFlyer’s pros and cons:

 

Pros Cons
No major hacks yet Trading against JPY
Accepts Bank Transfer and Japanese Credit Card Does not accept Credit Card, from countries other than Japan
Competitive commissions No altcoins available (ex. ETH)
Relatively nice trading platform  
Allows margin trading and futures  

 

Forex
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