|
This is a review of Oanda Forex Brokers based on the editors use of the platform.
We highly recomend Oanda for the new forex trader and would encourage one to use them instead of using a demo trading account. 100% automated - from market-making through trade execution.Real-time executable pricing - transparent pricing
Instant settlement, deal confirmation
Instant settlement, deal confirmationOne thing about oanda is that you rarely hear about re quotes on the platform. This may be due to the fact that their platform will change prices without the trader knowledge especially when the prices are moving fast. It will fill you at the price of the moment. This may be good or bad as unlike other platforms that tell you that there are re quotes happening, oanda just fills you at the price of the market.
It's good if it's in your favor and it's bad if not. Continuous interest payments on a second by second basis
This is one of the best things that oanda has. You are actually being paid interest as the market is progressing. Of course it also means you are paying interest if you are dealing in the lower interest  Currency.
Tight spreads (as low as 2-3 pips) on all major currencies offered - regardless of transaction size
It can be argued that oanda has the best spreads. They were the first to come up with even 1 pip and fractional pips spreads and are still better than anyone.
However word of caution. Do not trade during low market activity hours .The pip spread can be even 10 pips on the major currencies. So always watch the pip spread.
Smallest transaction sizes available on the Web - no trade minimum: Trade as little as $1 and receive tight spreads
This is the main reason we insist on not trading the demo account as from the article on the Top Reasons Forex Traders Fail.
You can trade with as low an account as $1 and no limit on how much you can trade with. So as a new trader or a trader testing a trading strategy, you do not have to test your trading with $1k but can do so with even $50 and trade off the fractional amounts.
There is even no minimum deposit required to start the account.
Multi-currency accounts: US dollar or Euro
One of the best features available with oanda. If you knew that the euro is going to appreciate in the long run against the dollar, why would you want to hold your account currency in dollars?
You will be able to profit in the long run by having your account in the currency that you think will be appreciating in the long run.
No commission
Of course there are commissions. But they put them in the spreads. But since the spreads are low it is not so bad.
Free access to proprietary, quantitative research tools
Unlike most brokers, they have a vibrant and active trader community in their forum. You will learn a lot from their forum.
Proprietary tools like the pivot point calculator and position management software are also available to their users.
Truly Internet-based, no software to download
For those who hate downloading forex trading software and also those in areas where uploading and downloading software is a hassle, this can be very useful.
However the software does crash sometimes and if their server is in conflict with your computer, it can be a bad experience if you cannot login when the market is moving against you.
User-friendly, intuitive trading interface
Their trading interface is easy to use. Simple tools are available and only the total new trader will be confused by it.
However their charting package leaves a lot to be desired.
You can always add to your platform if you wished and that is good.
All major spots and many exotic currency pairs
There is no currency I do not find on their platform. Just pick and choose your currency and there are too many to count.
Margin-trading - up to 2% (or 50:1 leverage)
Unlike most who will say this is a disadvantage, we think this is the best feature for traders. A true forex trader does not need more than 10:1 leverage to be profitable. Read more about this in our fixed fractional money management article.
Related Items:
|
