There are numerous advantages in OANDA for beginners. Here are some of the most important aspects to prove it.
OANDA is one of the most popular brokers in the US and the whole world. As a pioneer of online trading, OANDA has enough clout to attract novice traders. However, is OANDA a good broker for beginners?
Yes, OANDA is good for beginners. OANDA is completely legal, has popular trading terminals, cheap trading fees, 24-hour support, easy deposit and withdrawal, and plenty of educational resources. Here are the details on how OANDA ticks all the right boxes to jump-start your trading experience.
What is A Good Broker for Beginners?
A growing number of people want to participate in the financial markets as investors or traders. However, it is easy to feel swamped by the wealth of knowledge available online while exploring the basics. As such, we have to first examine what constitutes a good broker for beginners.
There are numerous factors to consider while evaluating a broker's services. But a novice-friendly broker ought to have at the very least these seven (7) characteristics:
- Official licenses from the country in which the broker operates.
- Handy trading platform for mobile and desktop.
- Cheap fees.
- Excellent client services.
- Low deposit requirement and easy withdrawal processes.
- Straightforward registration processes.
- Superb educational resources.
Following the seven standards we established above, let's examine OANDA deeper.
7 Reasons Why OANDA is Good (and Highly Trusted!)
Some folks might be searching for other specifications like the availability of autotrading and a wide range of instruments. A novice trader, though, shouldn't focus on those. Instead, here are the things that should be put as priorities.
OANDA is regulated by a number of prestigious agencies, including the US National Futures Association (NFA), the US Commodity Trading Futures Commission (FCA), and the Financial Conduct Authority of the UK. To support its global activities, OANDA also owns licenses from regulatory bodies in Singapore, Canada, Malta, Japan, and British Virgin Islands. Legally speaking, we can unequivocally say that OANDA is a good broker.
2. Trading Platforms
Three types of trading platforms are available: Metatrader4, Metatrader5, and OANDA's proprietary fxTrade app. The popular Metatrader4 and Metatrader5 are available on all device, with all the tools needed for beginners and experienced traders alike.
OANDA's fxTrade app provides access to all your accounts in one place with one key login, and works seamlessly with Metatrader5. Investment Trends US FX Report 2020 awarded the Highest Mobile App Satisfaction and Third-Party Integrations for this particular app, and traders are full of praise. You can get it on both PlayStore and AppStore.
3. Trading Fees
OANDA excels in some areas, but it also has some rare fees that may make it more expensive than its peers. You have to take note of it carefully to avoid drawbacks and optimize your withdrawals.
OANDA has cheap forex trading fees --core pricing spreads start from 0.1 pips, with $40 commission per million USD traded. It means OANDA is suitable for scalping and day trading. And they charge zero dollars for the first card withdrawal each month, so you can take your profits out regularly.
On the downside, OANDA imposes higher fees for CFD trading and bank transfer. There is also an inactivity fee that may eat up your balance if you are away for 12 months or more.
4. Customer Services
OANDA has done well in terms of client services. There are multiple contacts, including but not limited to web, phone, email, and live chat. The customer support team is available 24 hours a day from Sunday at 1 pm EST to Friday at 6 pm EST.
5. Deposit and Withdrawal
OANDA does not demand a certain sum of money as the minimum deposit. You simply have to top up your balance in accordance with the amount of trades you intend to do. Theoretically, you can even deposit $1. It is surely a very good term from OANDA for beginners.
There are a number of ways to fund your account and withdraw your money, including:
- Credit and debit card
- Bank wire and bank transfer
- Alternative payment methods for specific South East Asia, Latin America and African countries.
Withdrawal rules are not dissimilar to other online brokers. OANDA returns all funds to source, meaning if you deposit via bank transfer then you have to withdraw through bank transfer as well. Procedures and fees may vary depending on your jurisdiction and preferred method of payments --sign in to your client portal or contact support team for further info.
OANDA management themselves may wish to simplify their registration processes. However, US law requires them to set up a fairly rigorous registration procedure (AML, KYC, and a whole load of other stuff). You may open an account in less than 10 minutes from beginning to end, but account approval usually takes days. You also have to send some verification documents through email instead of uploading everything on the web.
Here is a step-by-step guide to open an account on OANDA:
- Apply for an account via OANDA website. You must be at least 18 years old and a citizen of the country from which you are applying in order to be eligible.
- Verify your identity and address by scanning several original documents, including but not limited to: passport (preferred) or national ID card (front and back), and bank statement of the account you are planning to use to fund your account. Additional documents may be required in certain cases.
- Wait for approvals. It usually takes time between an hour or up to three business days.
7. Educational Resources
OANDA provides all the necessary resources to launch a successful trading career; including a demo account, trading platform tutorials, and educational content. They also run seminars, premium webinars, and live market analyses frequently. Visit OANDA website to register for upcoming events.
Registration processes may give you some headache if you happen to live in certain countries, but once approved, you will be able to enjoy unparalleled features. If you're still unsure, open OANDA demo account to try them out first.
OANDA is an award-winning broker with an outstanding reputation for more than 25 years in the trading industry. The broker supports excellent customer care and transparent pricing on state-of-the-art platforms.