OANDA Review: Reputable CFD Brokerage With Top-quality Research

Alevin Chan

Alevin Chan

Last updated 20 December, 2023

 

Singapore-based OANDA Asia Pacific Pte. Ltd is an online Contract For Difference (CFD) brokerage that offers CFD trading on multiple asset classes. OANDA also provides resources such as high-quality market commentaries and educational materials that clients can tap to improve their trading capabilities. 

With a proven track record of over 25 years under the OANDA Group's belt, during which it managed to garner regulatory approval around the globe – including in Singapore and other tier-1 jurisdictions – the OANDA Group is a trusted online CFD brokerage preferred by traders.

Rather than attempting to cover every market sector, OANDA sticks to a limited, but well-diversified, list of popular markets. Investors can access CFDs on over 70 FX pairs, and some 55+ commodities, metals, bonds and indices. 

This quality-over-quantity philosophy carries over into its top-notch market commentaries and educational materials, which consist of a mix of news headlines, in-house content and premium resources from leading think-tanks.

What is there to expect with OANDA? Read on to find out. 

Table of contents

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SingSaver Exclusive Offer: Receive a S$150 voucher or S$120 cash via PayNow when you open a Webull account and fund a min. initial of USD2,000. Fund USD10,000 to get a S$280 voucher or S$250 cash. Plus, be one of the first 60 applicants to receive an additional S$100 cash via PayNow when you fund a min. of USD2,000. Stackable with Webull Welcome Offer. Valid till 31 July 2024.  T&Cs apply.

Webull Welcome Offer: Enjoy up to 7% USD Moneybull p.a. yield (capped at USD100k for 180 days), up to USD400 cash vouchers, and up to USD1,500 Trading vouchers when you complete additional requirements. Valid 31 July 2024.  T&Cs apply.

Overview of OANDA

Product summary:

What you can invest in: CFDs on multiple asset classes, such as FX, indices, commodities, metals, and bonds
Minimum balance required: $0
Deposit fees: 4.2% admin fee for PayPal, free for bank transfers, cheques and PayNow
Withdrawal fees: None for PayPal, cheque, and local Singaporean bank transfers, but international bank transfers incur fees
Withdrawal limits: None, however you must maintain sufficient balance to cover margin calls
Commission: spread-only pricing and commission + core spread pricing
Inactivity fee: S$10 per month after 12 months of continued account non-activity
Licensing status: holds a Capital Markets Services license under the Securities and Futures Act administered by the Monetary Authority of Singapore (MAS)

Here are the pros and cons of investing using OANDA.

Pros Cons
Globally recognised broker with over 2 decades of history No flat commission fee structure, must refer to daily rates
CFDs on multiple asset classes, such as commodities, bonds, metals and indices Relatively short grace period of 12 months before inactivity fee applies
Competitive spreads (1.5 points on US Wall Street 30) 4.2% admin fee for deposits via PayPal 
No deposit fees for bank transfers, cheques and PayNow  
No minimum withdrawal fee  
Low inactivity fee of just S$10 per month  
No fees for account opening, no minimum deposit  
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The Strengths of OANDA

#1: Internationally recognised CFD broker with over 20 years history

OANDA prides itself upon the strength of its pedigree as an internationally recognised broker, with more than 20 years of history. 

This is buoyed by several factors, including regulatory approval in six tier-1 financial jurisdictions (including in Singapore, Japan, Canada, the UK and Australia), a policy of maintaining 25 years of historical rates and spreads, low fees, and a lack of user fund lock-ins. 

In short, it is a reputable brokerage that does not engage in questionable practices like hidden fees or high commission charges. 

#2: Good selection of trading instruments

While OANDA does not have as many trading instruments as some of its competitors, it nevertheless offers a diverse selection for traders.

Besides the over 70 FX pairs (which should cover the needs of most retail investors anyway) you can also choose from asset classes such as bonds, commodities, metals and indices. 

There are plenty of trades to make within OANDA's modest but varied selection.

#3: Financing costs calculated daily according to market conditions

Instead of a flat commission structure, OANDA offers financing costs that are calculated on a daily basis for most of its trades. 

While beginners may find this system a bit obtuse when trying to estimate trading costs, traders are able to avoid overpaying for financing costs; you’ll be charged as market conditions fluctuate day to day.

OANDA also allows investors to look up daily rates on its website, and also publishes a trailing average of its average spread across all timeframes for greater transparency. 

#4: High-quality market commentaries and learning resources

Another of OANDA's strengths lies in its high-quality market commentaries and educational materials that traders can utilise to improve their chances of success.

The brokerage provides a steady stream of business and investing headlines from respected news sources such as Reuters, CNBC, MarketWatch and more through the MetaTrader4 platform. This is supplemented by MarketPulse, a mini-site run by OANDA’s own in-house editorial team focussing on macroeconomic analyses which provides and overview of market outlook and events that may have an influence on the markets.

Lastly, OANDA also offers premium content encompassing macroeconomic insights, news and forecasts from leading research houses such as UBS, as well as paid access to Dow Jones Select.

#5: Refreshingly low non-trading fees 

For the most part, OANDA does away with non-trading fees, allowing investors to focus a greater portion of their investment budget on, well, investing. 

There are no fees for account opening, no minimum balance to maintain, and no withdrawal fees. There are also no fees for deposits via bank transfer, cheques and PayNow (although there’s a 6% fee for PayPal, 4.2% by OANDA, 1.8% by PayPal). 

As for inactivity fee, your account will be debited a maximum of $10 per month, which is among the lowest we’ve seen. However, your grace period is relatively shorter; if your account goes without trading activity for more than 12 months, the inactivity fee will apply.   

For whom is OANDA best suited?

OANDA’s trading focus is on CFDs, and maintains a tightly curated but varied list of instruments. As such experienced traders and long-time investors who have already found their preferred trading focus will find the best use out of OANDA. 

Still, newcomers and less-experienced traders can benefit from an OANDA account for the top-quality market commentaries and educational materials, although they may find the lack of a flat trading fees structure challenging in the beginning. 

What charges or fees should you look out for?

OANDA charges daily spreads and rates that are closely tagged to market conditions, so you’ll be sacrificing some visibility in fees in exchange for a reduced likelihood of overpaying for trading fees (as can happen with flat fees that remain the same even when market fees drop). Daily rates are available on the website for traders to look up, which offers a degree of clarity.

As for non-trading fees, there are virtually none to take note of, except for the 6% PayPal deposit fee, and the inactivity fee of S$10 per month.

What are the promotions available for OANDA?

Sign up for OANDA and trade using the TradingView Pro Plan and get your annual subscription fee credited to your account after signing up. T&Cs apply. Offers ends on 31 December 2023.

 

 

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SingSaver Exclusive Offer: Receive a Dyson TP10 (worth S$599) or a Flujo BEA Ergonomic Office Chair worth (S$509) or S$200 Vouchers or S$160 cash via PayNow when you open a Tiger Brokers account and fund a minimum amount of USD 1,000. Valid till 14 July 2024.  T&Cs apply.

Plus, enjoy prizes worth USD 3,600 when you deposit and trade with your Tiger Brokers account. Valid till 15 July 2024. T&Cs apply.


 

How do you open and fund your OANDA account?

Opening an account with OANDA Asia Pacific Pte. Ltd

  1. Fill up and submit the application form here.
  2. Follow the on-screen prompts to complete and submit your application 
  3. Once your application is approved, your account will be created and you can start trading.

Opening a demo account with OANDA

If you prefer to open a demo account instead to determine if OANDA is right for you, you can do so by clicking on this link.

Follow the on-screen prompts to open a demo account, which you can use for practice trades while exploring the platform further. 

Funding your OANDA account

OANDA offers several ways to fund your investment account, and with the expectation of PayPal, does not charge fees on your deposits. However, do take note of possible bank fees. 

You may fund your account using any of the following methods:

Funding method Crediting lead time Fees
DBS bill pay 1 to 2 business days Bank fees may be charged
PayNow 1 to 2 business days None
Internet banking transfer 1 to 3 business days Bank fees may be charged
Bank wire (local) 1 to 3 business days Bank fees may be charged
PayPal 1 business day 1.8% PayPal fee + 4.2% admin fee
Cheques (local banks only) 7 business days No fees
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OANDA vs IG vs City Index vs Tiger Brokers vs IBKR vs TD Ameritrade

  OANDA IG City Index Tiger Brokers Interactive Brokers (IBKR) moomoo
Commission fee Daily rates and charges according to market conditions

S$10 minimum for equity  CFDs per open/close 0.08% or S$10 minimum for Singapore CFDs SGX stocks: 0.06% of trade value, min. S$1.99 per order (waived for 365 days for new users)
US stocks: US$0.005 per share, min. US$0.99 per order (waived for 180 days for new users)
SGX stocks: 0.08% of trade value, min. S$2.50 per order 
US stocks: US$0.005 per share, min. US$1 per order
SGX stocks: 0.06% of transaction amount, min. S$0.99 (1-year commission free)
US$0 (for US stocks: NIL, min. US$0.99 per order 
Min. deposit N/A N/A $150 N/A N/A N/A
Maintenance fee Inactivity fee of S$10 per month applies after 12 months without trading activity N/A N/A N/A Up to US$10 per month (less commission paid that month) N/A

 

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SingSaver Exclusive Promotion: Receive S$50 vouchers when you open a moomoo account and fund a minimum of S$100. Plus, get an additional S$100 vouchers when you fund S$2000. Be one of the first 100 applicants to open a Moomoo account and fund S$2000 to get an additional S$50 vouchers. Valid till 21 July 2024. T&Cs apply.

Plus, receive up to S$970 worth of welcome rewards and up to 6.8% p.a. returns when you complete additional actions with your moomoo account. Valid till 21 Jul 2024. T&Cs apply.

 

 

 

Read these next:
Interactive Brokers (IBKR) Review: Pros, Cons and Why They’re So Popular
Online Brokerage Comparison: IBKR vs Tiger Brokers vs TD Ameritrade
Investment Guide: SingSaver’s One-Stop Investment Shop
City Index Review: CFD & FX Online Brokerage With Wide Market Access
IG Review: Time-tested Online Brokerage For Forex & CFD Trading

 

An ex-Financial Planner with a curiosity about what makes people tick, Alevin’s mission is to help readers understand the psychology of money. He’s also on an ongoing quest to optimise happiness and enjoyment in his life.

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