Forex, which is also known as foreign exchange is the part of developing, the financial industry. It is the excellent option to earn extra money and learn something new. Therefore, many companies all over the world are born every year. It says a lot about the success of this business. Unfortunately, like all businesses this one also brings certain risks which are not unable to overcome, but it is necessary to be careful. Primarily, if you decide to join the Forex market, you should learn about it. Then, you need to find the company which is regulated and therefore, safe for you to invest your money. And finally, you should be aware not to invest more money than you can allow yourself to lose. However, if you are not following these three simple rules, you can end up losing more than you gained. Many clients lose the money because they don´t know how the market functions because they invest in an unregulated company which does not let them withdraw their funds or they deposit all of their money and lose it. Since many companies are decentralized, and trading goes all around the world during different business hours, the Forex market is the market which never sleeps. All transactions are transferred 25 hours a day, five days a week. One of the regulated companies of Forex market is OANDA, which had the first completely automated, online, retail trading platform.
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Background and Regulation
OANDA was established back in 1996 by Dr. Michael Stumm, a computer scientist, and Dr. Richard Olsen, an economist. The two engaged their interests and developed a platform which became one of the first steps of today´s Forex market. Since then this company made its way from start-up to one of the leading global corporations with clients in more than 195 countries around the globe, eight primary financial centers and membership with five great regulators. Oanda became one of the companies that everyone should emulate. They have amazing regulatory records, and they work according to the law. Further, Oanda is the only Forex broker operating in the USA which was never fined by the CFTC or NFA. Oanda is an NFA member with ID number 0325821, and the following bodies also regulate it:
- Financial Conduct Authority (FCA) in the United Kingdom under number 542574
- Australian Securities & Investments Commission (ASIC) with AFSL license number 412981
- Financial Futures Association of Japan (FFAJ) with subscription number 1571
- Monetary Authority of Singapore (MAS) with CMS Licence No: CMS100122-4
OANDA Trading Platform
As we already mentioned, OANDA takes the honor of being the first online, retail forex trading platform on the market. From 2001, their platform fxTrade has frequently been upgraded and included new innovative features. OANDA also offers the use of MetaTrader 4 and its systems like mobile applications for iPad, iPhone, and Android. Most importantly, all trading activities and personal info are encrypted using the latest technology for security purposes. You are able at any time to set the price alerts, have the most recent news of the market, and change your portfolio data.
OANDA Account Types
OANDA gives no possibility to choose from different account types – all the customers are equal. There is only a standard account which does not even have a minimum deposit requirement. You can equally deposit $1 and $1000. Minimum lot size is also not required. OANDA offers permanent free demo accounts, which is one of the best characteristics of this company. This option is particularly relevant to new traders who need a lot of practice before they decide to open a standard account.
Bonus Policy
However, OANDA does not provide any particular offers when it comes to bonuses or promotions, which may be considered as a disadvantage, but with all the other positive sides, this setback is a minor issue.
Banking Options
When it comes to the fund transfers, there are available options like checks, Credit cards, Debit cards or wire transfers. Withdrawals have fast processing time, and there is an option of one free PayPal or check withdrawal per month. You should note that PayPal charges PayPal deposits a 2.5% of service fee, so it is for the best to use this option only for the smallest deposits. It is only important to provide your right data on personal identity. On the other hand check deposits have the longer processing time, and OANDA does not give the option for ACH funding. On the plus side, OANDA does not charge commissions. The only expenses you can make are the bid and ask spreads. Spreads vary a lot and change quickly, so you must be aware that the numbers listed may not be up to the minute. It is possible to trade more than 70 currency pairs, including the major pairs and minor pairs, such as the Norwegian Krone, the Turkish Lira, and the South African Rand. Finally, OANDA provides their customers with the possibility to open the subaccounts in different currencies.
Customer Service
The support team is available five days a week from Sunday 1 pm EST to Friday 6 pm EST in 9 different languages. They offer the possible contacts like live chat, e-mail address, fax and phone numbers, on their well-organized website. Besides, they offer education materials and webinars which can probably help you solve some possible problems that occur. Wherever you are, you can find a precise location in which you can look for help, since OANDA has offices in Bayfront, Singapore; Chicago, USA; London, UK; Tokyo, Japan; and Toronto, Canada.