de | cn | ru
  VS.    

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 

Crypto Facilities

Crypto Facilities Review
Trader's rating 5
Editor's rating 3.8

Trading accounts

 

Account type Minimum deposit Leverage Maker Fee Taker Fee
Standard Undisclosed 1:50* -0.03% (rebate) 0.05%

* Trading conditions at this exchange are more specific due to the nature of the products available for trading. For more details check the full review.

 

Crypto Facilities is a platform for cryptocurrency futures trading. This makes them one of the options for miners, looking to hedge their exposure. The most well-known other similar platform is BitMEX

Warning: Several other companies have used Crypto Facilities' FCA registration number. As far as we know, their original website is the only one at which they operate. Here is proof of their disagreement and frustration with these scammers:



 

 

The company, security of funds

 

Company Country Regulation
CRYPTO FACILITIES LTD UK FCA

 

Crypto Facilities is registered in the United Kingdom and more importantly overseen by the Financial Conduct Authority (FCA). This is very unusual as the British watchdog usually doesn’t look at companies dealing in the crypto-space. That being said, this is derivatives trading company, and the crypotocurrencies are only the underlying asset.

 

While the FCA oversees a lot of companies (like forex brokers) and enforces a lot of rules, there are a few specifics in regards to Crypto Facilities. You are probably familiar with the Financial Services Compensation Scheme (FSCS), especially if you have read some of our reviews on forex brokers. This is a mechanism, which guarantees client funds, in case their brokerage goes bankrupt. As point 3.2 of the Membership Agreement at Crypto Facilities states, the FSCS does not apply, as your account balance is kept in cryptocurrencies, which are not yet defined as either “money” nor a “Specified Investment”. 

 

That being said, all of the client accounts are held in segregated cold-storage wallets, backed by Elliptic, an industry-leading crypto-security company. Additionally the blockchain settlement is insured by an “A-rated, Fortune 100 underwriter”. Given the fact the company is based in the UK, you probably have a pretty good idea of which insurer they are referring to, presuming you have any knowledge of that market. 

 

With such major security claims, it probably wouldn’t surprise you to hear that Crypto Facilities has not been hacked yet. In general, this company appears to be much more secure than a lot of the traditional cryptocurrency exchanges.

 

Crypto Facilities partnered with the CME group in order to provide two Ethereum indices. They are the CME CF Ether-Dollar Reference Rate (Ether Reference Rate), which will provide a daily benchmark price in U.S. dollars at 4 pm London time, and the CME CF Ether-Dollar Real Time Index (Ether Real Time Index), which will allow users access to a real-time Ether price in U.S. dollars. Price data is gathered from two of the most reputable exchanges: Kraken and Bitstamp.  Being connected with such an established derivatives trading institution, like the CME Group is a positive sign.

 

There aren’t that many user reviews on Crypto Facilities, which is understandable, given the relatively complicated nature of their offering. The few comments we found were all positive.

 

We feel the need to reiterate, trading on this venue is very different from other cryptocurrency exchanges. The company has even set-up a questionarie, which one must fill before being allowed to trade. This is done in order to protect unsophisticated enthusiasts from loosing their funds due to not understanding the nature of margin trading.

 

Trading conditions

 

Account types (cash and margin)

Before we begin discussing the trading conditions at Crypto Facilities, we must mention the accounts are only kept in Bitcoin, Ethereum and Ripple. Additionally, before you begin trading, you must transfer coins (internally) between your main (cash) account and one of your margin accounts. The latter vary by trading instrument. While all of this seems very complicated, in reality it isn’t. Here is how the wallet interface looks:

 

 

Each of your secondary wallets serves as your trading balance for that particular futures contract. This provides a form of risk management, which is always appreciated. 

 

Trading instruments (cryptocurrencies)

Crypto Facilities supports Bitcoin (with the newly agreed upon symbol XBT, instead of the more traditional BTC), Ethereum (ETH) and Ripple (XRP) futures trading. 

 

The currently available crosses can be seen in the previous screenshot, where three coins are traded against the USD and there is an XRP:XBT pair. 

 

In terms of maturity, contracts are weekly, monthly and quarterly (for some instruments).

 

Leverage

The maximum leverage ratio offered by Crypto Facilities is 1:50 for Bitcoin to USD trading. The conditions vary for different instruments and are a bit more complicated than the ones offered by other companies. Here is a preview:

 

 

Be sure to fully understand the meaning of all the terms listed here before you start trading. 

 

Margin netting, between long and short positions is available, presuming you trade from the same margin portfolio. 

 

We must mention, that there are other derivatives based on digital assets. These are the spot CFDs, available at some forex brokers. While Bitcoin and Ethereum are the most popular, Litecoin is also occasionally being offered. While these CFDs are linked to the current price of the asset in question and not the future value, they do have some further specifics. You can read all about them here, if you are interested.

 

Fees

The fees at Crypto Facilities are charged in XBT, ETH and XRP, in accord with the specific contracts. Here are the details:

 

We have to compare these fees with ones charged by the major competitor offering a similar service. The taker fee at BitMEX is 0.075%, while market makers get a 0.025% rebate, which makes Crypto Facilities the cheaper trading venue.

 

Summary 

 

While the above description of the trading conditions may appear complicated, here is a table, summarizing it all:

 

 

 

Trading platform

 

The trading platform at Crypto Facilities is web-based. While this shouldn’t come as a surprise to anyone familiar with cryptocurrencies, there is an argument to be made for desktop solutions.  The platform was updated to feature charting by TradignView (which is a top-tier third party provider) and have an interface which is generally cleaner.

 

 

The order book is arranged in two columns, which traders versed in traditional markets will prefer to the single column approach, used by many exchanges. 

 

Update: This section of the Crypto Facilities website is apparently taken down, but we will keep the following text. 

 

The “analytics” section off the website offers some extra features.. Here is how the index charting looks (The overall index allows comparison to the quotes provided by Bitstamp, Bitfinex, BTC-E, Coinbase and ItBit.):

 

 

And here is a preview of the futures curves, which allow one to see if the market is in a contango or backwardatiwon:

 

 

Our opinion of the Crypto Facilities platform is neutral. While it offers some futures-specific elements, the main trading window is less than ideal. Additional tools will probably needed for serious trading.

  

Methods of payment

 

The only way of transferring funds in and out of Crypto Facilities is the blockchain. Once you register an account, you are given Bitcoin, Etherum and Ripple wallets, to facilitate your trading. As mentioned above the control to specify how much to put into each margin wallet and how much to leave as “cash” is a neat feature.

 

Conclusion

 

Crypto Facilities is a London-based cryptocurrency futures trading platform, overseen by the FCA. While the they do not participate in the FSCS, they still follow other major rulings. The company’s overall security appears to be much higher than what is currently offered by other exchanges. That being said, trading at Crypto Facilities is not for everybody. The mere concept of futures trading is somewhat more complicated than the ordinary crypto trading. Add the volatility of cryptocurrencies on top of that and you get a potentially explosive combination. More experienced traders, as well as miners looking to hedge their “virtual crops” may find this to be one of their best options. Here are the pros and cons of Crypto Facilities:

 

Pros Cons
FCA-regulated (FSCS doesn’t apply) Complicated trading environment
Top-tier security features Accounts held in crypto
Blockchain settlement insured Only accepts blockchain transfers
Charts by TradingView  
Two-factor Authentication
 

 

de | cn | ru