Oanda: What is it and how does it work?
Oanda is a broker that has its origin in Canada and it has been operating since 1995. It is considered among the best positioned market makers all over the world. It reached this popularity because in this platform a policy of transparency and low spreads is applied, which has earned it the affection and trust of a large amount of Forex traders. Based on this policy, Oanda is one of the reduced groups of brokers who do not have any type of affiliate program and this is the part that most of Forex brokers acclaim for obtaining clients.
This broker is subdivided into five large companies that offer their services to almost every one, among them we have: Oanda Asia Pacific (located in Singapore), Oanda Corporation (located in Canada), Oanda Europe (located in the United Kingdom), Oanda Japan (located in Japan) and finally, Oanda Australia (located in Australia).
One of the greatest disadvantages that arise between the different brokers markets makers is the fact of having a lack of capital to face the margins, but according to Oanda, they claim to cover each and every one of the margins that are demanded, and they even go a little beyond the limits set by the regulators. But since you do not always have to fully trust in what the broker tells you, a great reason to do so is that Oanda belongs to the CIPF (Canadian Investor Protection Fund), which is in charge of protecting the funds of all those people who deposit an amount of up to one million Canadian dollars for all the accounts that are open in Canada. For accounts that are open in Europe, they are usually made through Oanda UK and for this case, the program that protects them is the FSCS, which is responsible of the compensation of the entire United Kingdom and the limit of protection of funds reaches 50,000 pounds. Another of the protection measures offered by Oanda to its clients is to keep separate accounts for their funds.
For many people, it is not a secret that all recognized big brokers have at least two trading platforms available to their clients. One of them is MetaTrader (Forex trading platform most recognized worldwide), and the second one is usually created by the same broker. In the case of Oanda, the second platform is about FXtrade, and both of them are fully available to be operated from a computer and even from mobile devices.
It is recommended that before proceeding to the opening of a real account with Oanda or with any other existing broker, a test account should be opened in order to have knowledge regarding operation spreads, benefits, disadvantages, among other important things.
Once this is done and if you are ready to open a real account, you can use debit or credit cards, make bank transfers, use PayPal or even checks to make income, but this last option is only possible from American banks. There is no minimum figure to proceed to open an account in Oanda; you can open one starting from 1 dollar, 1 pound, 1 euro, among other currencies.