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?
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. And then, let's consider whether OANDA ticks all the right boxes.
What is 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.
- Straightforward registration processes.
- Superb educational resources.
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 these.
Is OANDA Good?
Following the standards we established above, let's examine each of its services individually.
- Legal: 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 good.
- Trading platform: OANDA's online platform might be appropriate for beginners' needs, available on web and mobile. It is easy to use, with a transparent fee report and secure two-step login. Overall, this platform is a good option for novice traders who are looking for excellent research tools.
- Trading fees: OANDA excels in some areas, but it also has some rare fees that may make it more expensive than its peers. OANDA has cheap forex trading fees, and it charges zero dollars for the first card withdrawal each month. 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.
- Client 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 service team is available 24 hours a day from Sunday at 1 pm EST to Friday at 6 pm EST.
- Initial deposit requirements: 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. Undoubtedly, it is a very good term from OANDA for beginners.
- Registration: 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.
- Educational resources: OANDA provides all the necessary complement for a good beginning; including a demo account, trading platform tutorials, and educational content. They also run seminars, webinars, and live market analyses quite frequently.
So, is OANDA good for beginners? At a rate of 5 of 7, yes, OANDA is good for beginners. If you're still unsure, the following table offers a more thorough overview of OANDA.