Oanda is doing pretty well as a Forex broker. It is not highly inventive like Saxo bank or eToro perhaps. It might also have lesser leverage options than FXCM or dbFX but then it has its own strengths. It follows the time tested formula of mainstream forex. It has a large excess capital and is quite trustworthy.
It offers all kinds of currencies and also include CNY’s, gold, silver. It trades at quite low spreads though the spreads may vary with news and volatility in liquidity. Slippage is rare. It trades for 1 unit of base currency. Now this is a silent USP for the company.“Low level leverages”
Leverage on offer is quite low compared to industry standards. In fact, 50:1 is surprisingly feeble. It may be good for those who deal in occasional trading but punches the scalp traders and the day traders very hard. For trades that opens and closes once a day, it’s still okay to abide by the leverage on offer but for trades which work on an hourly basis, it is at least expected to be in the reach of 100:1. There are few online trading platforms which are providing as much as 500:1.
About the spread now: well the pip is quite tight for the top currency pairs and it is generally 0.9 under normal conditions of trading. Well! This stat is not quite up to the mark for poorer currency pairs though.
With the kind of graphics on the trading platform, it gives a lovable impression. The screenshots don’t seem too technical but don’t seem too fun-n-frolic either. Customer support is of quite high standards and the men behind the mike are quite pro-active.
Yes, it has its own loopholes; the Forex charts have its limitations. The indicators are not as frequently running as they should be. Further the time-frames are also missing. Forex automated trading pursued through Oanda loosens the purse strings quite a bit. It does not give trader leverage for hedging. Even the Forex trading platform is known to show signs of aberrations sometimes. So while it is great for carry trading and manual grid trading, it is not recommended for scalp and news trading; further it is a poor foil for automated Forex trading as well.
Overall, Oanda is doing quite well. May be it has some way to go to touch the top-notch ones but within its limitations, and existing tightly against its loopholes, it is silently making a mark in the mind of professional traders and amateurs alike.