Cryptocurrencies have been a mainstream trading instrument for about a decade now. They are so popular that even the most traditional brokers with many years of experience have started adding crypto tokens as their trading tools. Oanda is one of such brokers: now it lists crypto as a viable trading instrument, but is it really worth your time? Let’s find out.
For those who haven’t heard about OANDA at all, this broker has been around since 1996. Yes, that means more than 25 years of experience, and the company has been able to gain quite a reputation over these years. Now it has more than a million users from all over the world, but it’s especially popular in the US, Canada, India, and major European countries, including Germany, Italy, and the UK.
Oanda is known as a heavily regulated broker that offers its clients almost unmatched safety and security. The company and its transactions are closely monitored by four major national regulators, including the Financial Conduct Authority of the UK (FCA), the Investment Industry Regulatory Organization of Canada (IIROC), and the central bank of Singapore (MAS). This means that your funds are well protected, no matter what assets you’re buying or selling.
Alright, let’s check out what assets Oanda has to offer and how wide its range of crypto trading options is.
Crypto and other trading options
Oanda has a decent choice of available trading tools. Here you can find currency pairs as well as many popular indices, including US SPX, UK 100, and Japan 225. You can also use the platform to trade metals and commodities, both hard and soft. But today we want to focus more on the Oanda crypto trading options. The broker supports a couple of the most popular tokens: Bitcoin, Bitcoin Cash, Ethereum, and Litecoin.
However, you don’t actually get to purchase or sell those coins. Instead, you trade cryptocurrency CFDs, or contracts for difference. Basically, that means that you place a bet on their price movements, and your profits (or losses) depend on how the price changes over the time of that contract. Such derivatives have a couple of advantages: first of all, you don’t need to exchange the actual asset, so you don’t have to pay any transaction fees.
CFDs also allow you to trade with leverage. While that is quite risky, experienced traders can multiply their potential earnings by using leverage wisely, and Oanda allows you to go up to 1:200.
©2022 Programming Insider