How to open a Forex account with OANDA?

1. Go to OANDA’s Official Website;
2. Click on “Start Trading” button to register;
3. Submit documents to verify the documents;
4. Make a deposit and start trading.

You can go directly to OANDA’s account opening page from here.

In this article, you can find more information you need to start trading with OANDA.

You can also go to OANDA’s Official Website to find out more.

Go to OANDA’s Official Website

How to make a deposit to OANDA’s account?

To start the first deposit to your OANDA login account, just log in to your OANDA platform website, and then on the right side of the homepage, click [Funding Account].

This will take you to the menu where you can choose a deposit method or add a new bank account to the available deposit methods.

When you add funds for the first time, OANDA will create your first trading account.

Make a deposit to OANDA

How to withdraw funds from OANDA’s account?

You can transfer funds from a trading account to a capital account and then apply for a withdrawal.

You can withdraw money in various ways, such as debit cards, credit cards, and bank wire transfers.

Please note that the order of withdrawal must be implemented in accordance with OANDA’s prioritized rules.

If you have used multiple methods to deposit funds, you must withdraw the total amount in the order you set, for example, first debit card, then a credit card, then electronic wallet (such as Skrill and Neteller), and finally bank wire transfer.

Go to OANDA’s Official Website

What you can trade with OANDA?

OANDA provides quotes for many CFD (Contracts for Difference) products around the world, including foreign exchange, indices, commodities, and precious metals.

OANDA’s German DAX index spreads from 1.1 pips, the UK FTSE 100 index spreads from 1.0 pips, USD/JPY and EUR/USD spreads from 1.0 pips, Brent crude oil spreads from 3.3 pips, and gold spreads are 30 points.

Foreign exchange

OANDA provides quotes for 38 major and minor currency pairs, including EUR/USD and GBP/USD.

Stock Index CFDs

Open positions in major global indexes, including the UK FTSE 100 Index, Dow Jones Industrial Index, German DAX Index and French CAC40 Index. The spreads between OANDA’s German DAX index and the UK FTSE 100 index are as low as 1.1 points and 1.0 points, respectively.

Commodity

With a commodity position, OANDA’s spread is very competitive, and the spread for Brent crude oil is as low as 3.3 points.

Precious metals

Use OANDA’s trading account to go long or short mainstream precious metals, including gold and silver. Gold/USD spreads are as low as 30 cents per ounce.

OANDA’s Tier 1 banks have extremely competitive pricing, combined with advanced bridging technology and powerful operating functions, to bring you an unparalleled trading experience.

Make the most of MetaTrader 4.

Start trading CFDs with OANDA

1. Stock Index CFDs

OANDA provides highly competitive trading spreads for major global indexes.

Through OANDA, you can open positions in major global indexes, including the UK Index 100, the US Wall Street Index 30, the German Index 30 and the French Index 40.

The spreads between OANDA’s German index 30 and the UK index 100 are as low as 1.1 points and 1.0 points, respectively.

You cannot buy or sell the index directly, but you can trade the index as a CFD (contract for difference) through OANDA.

OANDA’s index CFD (contract for difference) products are directly taken from the real index price.

The index trading spreads OANDA provides are extremely competitive.

For example, you can open positions on the UK Index 100 and Germany Index 30 through OANDA, with spreads starting from 1.1 points and 1.0 points, respectively.

Start Trading Stock Indices with OANDA

What is a Stock Index?

An index (also called a stock index) represents the value of a group of assets or stocks.

Major stock indexes include the Dow Jones Industrial Index, the Australian S&P Index 200, the Hong Kong Hang Seng HK Index 33, the FTSE China Index A50, and the Singapore Index 30.

The constituent stocks and setting standards of different indexes are different.

For example, the Dow Jones Index represents 30 large listed companies listed in the United States, and their weights are determined by their stock prices; while the UK FTSE 100 Index represents the 100 largest listed companies in the UK by market capitalization, and their weights are determined by their market capitalization.

OANDA provides CFDs for most major global indexes, including Australia S&P Index 200, Hong Kong Hang Seng HK Index 33, FTSE China Index A50, and Singapore Index 30.

When the price of the constituent stocks of an index rises, the price of the index generally rises.

When the price of the constituent stocks of an index falls, the price of the index generally falls.

Go to OANDA’s Official Website

2. Precious Metal CFDs

Precious metal CFD (contract for difference) transactions through MetaTrader4.

In OANDA, you can open positions on gold, silver, and copper, with gold trading spreads as low as 30 cents per ounce.

Gold

Gold is a safe-haven asset that is often used to hedge against fluctuations in the U.S. dollar. It is also one of the most widely traded commodities in the world. OANDA’s gold trading spreads are extremely competitive, as low as 30 cents per ounce.

Silver

Silver is another precious metal that is widely traded. It is now increasingly being used by commodity traders to hedge against fluctuations in the foreign exchange market. OANDA’s silver trading spreads only start at 150 points.

Copper

From construction to the manufacture of computer components, copper is an indispensable raw material. Copper is a basic precious metal, and its price is often regarded as an indicator of industrial activity.

Invest in Precious Metals with OANDA

How to trade Precious Metals with OANDA?

Precious metals are a category of commodity trading and are often traded on metal exchanges.

You can trade precious metals throughout the day.

As precious metals, gold and silver have become popular products for derivatives trading in recent years.

You can access MetaTrader 4 through your computer, or you can use the MT4 mobile application to trade OANDA’s precious metals through your smartphone or tablet.

You will also get a series of advanced technical tools, including the MT4 Advanced Toolkit and AutoChartist’s chart analysis tools.

There are a variety of trading indicators and trading plug-ins in the MT4 Advanced Toolkit, such as Chasing Returns (a behavior analysis tool that helps traders improve trading patterns).

Visit OANDA’s Official Website

3. Commodity CFDs

A variety of commodity CFD (contracts for difference) transactions.

OANDA’s spreads are extremely competitive, among which Brent crude oil trading spreads are as low as 3.3 points.

OANDA also provides quotations for many commodities including natural gas.

Commodities refer to any tangible commodities that can be bought and sold in the bulk commodity market, and their trading methods are similar to other financial products.

The price of bulk commodities is often affected by changes in supply and demand, and bulk commodities can be traded in kind or as derivatives.

The first step in trading bulk commodities is to determine the commodity you want to trade.

The characteristics of the commodity and the external factors that may affect its price are all points worth considering.

Commodities are often traded as financial derivatives.

If you think that the price of a certain commodity will rise, you buy it; otherwise, you sell it.

Start trading Commodity CFDs with OANDA

Why OANDA is a popular choice among traders?

Since its foundation in 1996, OANDA has been dedicating its time and effort to provide traders all over the world with optimal trading conditions.

Quotations and liquidity providers

OANDA’s quotation engine can instantly aggregate the real-time prices of various liquidity providers and calculate the midpoint price. The quotation algorithm developed by OANDA can automatically calculate the symmetrical spread of the midpoint price of each tradable product. As the market price changes, the midpoint price fluctuates in real-time throughout the day.

Transaction execution

The MetaTrader 4 platform is designed for speed and reliability, which is especially important when prices fluctuate sharply. You can install the MT4 platform on your computer desktop, or you can access the MT4 mobile application through your phone or tablet.

Transaction cost

Fairness and transparency are at the core of all OANDA’s work. OANDA will inform you of the relevant fees in advance so that you know the exact transaction costs. Please refer to OANDA’s Fees and Fees page to learn about fees such as deposits, withdrawals, bank wire transfers, spreads, and idle fees.

Trade 60 kinds of CFD (Contracts for Difference) financial products

OANDA provides quotations for CFDs (Contracts for Difference) for indices, currency pairs, commodities, and precious metals. OANDA’s USD/JPY and EUR/USD spread only start at 1.0 pips.

Two trading methods

You can use the desktop MetaTrader 4 to trade on your computer, and you can also trade through the MetaTrader 4 mobile application on your mobile phone and tablet.

Powerful trading tools

Many powerful tools from OANDA and OANDA’s partners can provide you with an unparalleled trading experience. You can trade through charts, VPS (Virtual Private Server) services, technical analysis, etc.

VPS service

OANDA’s VPS (Virtual Private Server) partners can reduce the latency of the trading platform, allowing you to continue to execute intelligent automated trading systems or trading strategies on the MT4 platform.

Go to OANDA’s Official Website

Conditions of Leverage and Margin on OANDA MT4

OANDA provides highly competitive spreads for many CFD (Contracts for Difference) products including indices, foreign exchange, commodities and precious metals.

OANDA adopts some form of collateral (or deposit) to prevent you from incurring major losses in leveraged transactions.

This type of collateral is usually called margin.

The margin ratio and maximum leverage ratio vary for different financial products.

OANDA allows clients to conduct leveraged transactions.

In other words, you can conduct transactions larger than your account balance without depositing the full amount of the transaction.

One of the advantages of leveraged trading is that you only need to invest a small amount of principal, and you may get high profits.

On the other hand, leveraged trading may also cause you to suffer significant capital losses quickly. The loss may exceed the margin.

OANDA adopts some form of collateral (or deposit) to prevent you from incurring major losses in leveraged transactions. This type of collateral is usually called margin.

The margin ratio and maximum leverage ratio vary for different financial products.

Learn more about OANDA’s Leverage and Margin

Margin rate grading of OANDA

If a financial instrument has a margin level, this usually means that after a certain size, the larger the position you hold, the higher the applicable margin rate.

For example, the margin rate classification for USD/JPY is:

The margin required for the position of 3.5 million USD/JPY is 25,000 USD.

The calculation formula is: (Unit: Tier 1 x Tier 1 Margin Interest Rate) + (Unit: Tier 2 x Tier 2 Margin Interest Rate) + (Unit: Tier 3 x Tier 3 Margin Interest Rate).

Learn more about Margin Rate Grading of OANDA

What are the effects of market events and weekends?

Price fluctuations and changes in global market liquidity may lead to a significant increase in spreads before and after the market opens and closes, after news announcements, and during uncertain times.

In this case, OANDA’s spreads are usually expanded to reflect market conditions.

However, in some cases, OANDA may implement fixed spreads to prevent spreads from expanding.

If you have not closed your position during the weekend or before the market closes, or if trading is suspended in a particular market, you cannot close your position until the market reopens.

Please note that when trading resumes, prices may change significantly or appear “gap”.

If the price is not good for you, and your account funds are insufficient to support the transaction, when the transaction resumes, it may trigger a forced liquidation.

The spread (the difference between the buying price and the selling price) usually widens before the market closes and when the market opens to reflect the decline in global market liquidity.

If there is a position at this time, the expanded spread may trigger a stop-loss order or force a liquidation.

Go to OANDA’s Official Website

What are margin calls and stop out?

In order to maintain a position, you need to ensure that the net value of the trading account is higher than the minimum requirement, which is called the margin requirement. The net value is your cash balance, plus any transaction credit limit and total unrealized gains and losses.

The MT4 margin ratio (%) is calculated as follows:

(Equity/Used Margin) x 100

If your trading account margin ratio is less than 100%, OANDA will notify you by email.

If this happens, you will not be able to open new positions.

You can also consider adding more funds to your account or closing some positions to reduce the required margin.

If the margin ratio drops to 50%, you will no longer meet the margin requirements, and OANDA will trigger a forced liquidation and automatically close one or more of your positions, starting from the position with the largest loss on the opening market.

Learn more about margin call and stop out

Transaction Costs and Other Fees of OANDA

Learn about OANDA’s fee information so that you can know accurate transaction costs.

1. Overnight interest/financing expenses

OANDA charges or pay overnight interest/financing fees (credit or debit) for open positions as of 5pm Eastern Time.

You can find out the details of these fees and how to calculate them on OANDA’s financing cost page

2. Inactivy Fees (Dormant Accounts)

The inactivity fee refers to the monthly fee charged for accounts that have no transaction activity within 12 months.

There is no transaction in the deposit for one year, and an inactivity fee of $10 will be charged every month.

Please note that if there is an open position, no idle fee will be charged.

The inactivity fee will not result in a negative balance in any of your trading accounts.

When one of the following conditions is met, your trading account will not be charged:

• You close your account
• You resume trading in your account
• Your account balance drops to zero

If you resume trading after being charged for the inactivity fee, you can apply for a refund of up to 3 months of inactivity fee based on the number of months in which the fee has been collected.

If you want to deposit and continue trading, please visit the deposit page.

3. Deposit fee

OANDA does not charge any form of deposit fee, but your bank card issuer or payment service provider may charge you a fee.

For more information about deposits, please visit the page about deposits.

Credit Card

Your credit card bank may charge you transaction fees and overseas credit card fees. Please check with your credit card bank to determine the required fee.

Debit Card

When you use a debit card to deposit into your OANDA account, the bank of the debit card may charge you a service fee.

Bank Wire Transfer

When you deposit funds into your OANDA account by wire transfer, the bank of the wire transfer may charge you a service fee. Please consult your bank about the relevant fees.

Skrill

When you deposit into your OANDA account in this way, the supplier may charge you a service fee.

Neteller

When you deposit into your OANDA account in this way, the supplier may charge you a service fee.

4. Withdrawal fee

OANDA does not charge withdrawal fees from credit or debit cards.

Bank wire transfer requires payment of withdrawal fees.

Your withdrawal processor may charge you a fee.

For more information about withdrawals, please visit the page about withdrawals.

Credit and debit cards

OANDA will not charge a fee for withdrawals to your credit or debit card.

Bank wire transfer

For each withdrawal transaction, OANDA will charge a fee of $20. Banks or other payment intermediaries may also charge you fees.

Skrill

When you withdraw funds in this way, the supplier may charge you a service fee.

Neteller

When you withdraw funds in this way, the supplier may charge you a service fee.

Go to OANDA’s Official Website

OANDA’s Price Quotes (Spreads)

In OANDA, they provide two quotation methods: spread quotation and core quotation (commission + basic spread).

OANDA’s quotation model is clear and transparent.

You can choose the quotation method that only pays for the spread, or choose OANDA’s core quotation (commission model) to get a lower spread.

1. Spread quotation mode
   In this type of account, you only pay for the spread.
2. Core quotation model
   Compared to OANDA’s core quote account, you can get lower spreads. You only need to pay a fixed commission for each transaction. The total cost of each transaction is the sum of applicable basic spreads plus commissions. OANDA’s basic spread price can be as low as 0.1, and the commission for every one million dollar transaction is $40.

OANDA’s quotation method is:

Foreign exchange and precious metals:

Liquidity providers.

Commodities and copper:

Calculated by the prices of different futures (“near” and “forward” contracts) of related products.

Index:

Calculated by the different futures prices of related index products, and adjusted theoretical fair value at the same time to account for the impact of interest rates, dividends and the expiry time of the relevant futures contract prices.

Your order will be executed at OANDA’s best price.

Go to OANDA Official Website

How prices of OANDA are provided for eash market

1. Foreign exchange and precious metals CFD

CFD (Contracts for Difference) quotations for foreign exchange and precious metals come from OANDA’s liquidity providers-mainstream financial institutions that provide OANDA with currency pairs and precious metal spot quotations.

OANDA uses different liquidity providers to quote different products/financial instruments.

Start trading Forex and Precious Metals with OANDA

2. Index CFD

OANDA’s index CFD (contract for difference) quotation is calculated by combining the futures price of the relevant product and the “cash”/”spot” price.

OANDA will also adjust this, such as adding OANDA’s own spreads, and making adjustments based on external market liquidity, currency exchange rate differences and other related factors.

In addition, OANDA will make some adjustments to reflect the market fluctuations that the company’s dividend payments and company actions are expected to bring.

Invest in Stock Index CFDs with OANDA Official Website

3. Commodity CFD (including copper)

OANDA’s CFD (contracts for difference) quotations for commodities (including copper) are based on the futures contract prices of these products.

When these futures contracts are about to expire, OANDA will calculate the benchmark interest rate, that is, the futures contract that is about to expire and the next spread between futures contracts.

From this point on, the present value of the next futures contract (calculated using the benchmark interest rate) will become the price of the CFD (contract for difference).

These present values ​​are calculated continuously and second by second.

When the benchmark interest rate is positive, the CFD (Contract for Difference) price will move upward to approach the contract price.

When the benchmark interest rate is negative, the CFD (contract for difference) price will approach the contract price downward.

Trade Commodity CFDs with OANDA

Trading Hours on OANDA MT4

OANDA’s trading hours are synchronized with the global financial markets.

Trading hours are from 5 pm on Sunday to 5 pm on Friday (New York time).

1. You cannot close or open positions when the market is closed. However, you can submit or modify an entry, stop loss, take profit, or trailing stop-loss orders.
2. The spread (the difference between the buying price and the selling price) usually widens before the market closes and may trigger order execution and/or forced liquidation.
3. When the market resumes trading, there may be significant changes in market prices or “gap”. This change may trigger an order, causing the order to be executed at the current market price. For example, if the price trend is not good for you, the price that triggers the stop-loss order may be different from the price specified in the order. This may cause additional losses.