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Attachments: I think Oanda FXTrade is unreliable
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I think Oanda FXTrade is unreliable

  • Post #1
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  • First Post: May 5, 2010 8:56am May 5, 2010 8:56am
I have come to my own conclusion that Oanda fxtrade is a scam.

1. They do not offer charts of a satisfactory standard, which makes it doubly hard to prove where their price was in any given moment.

2. They sell the 0.9 pips spread as some sort of mega deal but the reality is -

3. I have found i am experiencing non-beneficial slippage a hell of a lot when it comes to market orders. Slippage should work both ways - 50/50 for & against. But i only ever seem to experience loss making slippage with Oanda - coming out of a trade with less profit/more loss than i should have - based on the fact that the price i got filled at was NOT the price i clicked on.

4. The deal tickets text is so small, it makes it difficult to read what the price is anyway, even with a super large magnifying glass.

5. When the 2nd bubble bursts within the coming months, & we experience the 2nd wave of the financial crisis - that is much more severe than this first wave. If Oanda become bankrupt, your own personal trading funds are NOT protected, as they are NOT held in segregated accounts with another bank. You will join the back of a long queue of Creditors, looking to claim back what is yours from the Administrators. Which may well be impossible.


My advice, based on my experience with Oanda is - Brilliant Marketing. On the surface, the package they offer appears really competitive.
In reality, the package does not live up to expectations & they have all sorts of ways of getting back pips from the client to make up for their low spreads.

Id much rather be with a broker that is honest & reliable, so that you know exactly where you stand in all eventualities. With Oanda this is not the case.

I closed my account yesterday & withdrew all my funds.

STAY CLEAR of this bucket shop! Thats my advice!
I never experienced such issue with fxcentral and i too closed my old Oanda account due to disconnection problem we faced some a year back
Quoting jimbil

STAY CLEAR of this bucket shop! Thats my advice!
I think you have to weigh up the pros and cons.

Sure, it's highly unlikely you're paying 0.9 pip spread on Eur/Usd, it's probably more in the region of 2 by the time you take into account slippage, tenths of pips off in/out, interest calculated by the second at some unfavourable rates, plus their wild quotes and spreads across news......but then on the plus side is interest on free margin (no lower limit), instant fills up to 10m per ticket even at the most volatile illiquid times, the option to open/close/adjust trades over the weekend if necessary, plus the biggest benefit for small accounts is the flexibility of trade size right down to one unit which allows for sensible money management no matter how small the account, that's extremely important and as far as I know Oanda are the only ones to offer it.

Agreed their charts aren't very refined but like the platform itself it's functional and adequate for a beginner, although stability and as amarfx mentioned connectivity have been major issues in the past.

Safety of funds is always an issue for brokers outside FSA regulation but Oanda seem like a solid company with a good client base and external investment as well as relatively low overhead by the look of it.

Overall you could do worse, but it depends on an individual's requirements.

By the way I think text size can be adjusted can't it. and as regards slippage I believe you can set 'bounds'.
Quote
I think you have to weigh up the pros and cons.

Sure, it's highly unlikely you're paying 0.9 pip spread on Eur/Usd, it's probably more in the region of 2 by the time you take into account slippage, tenths of pips off in/out, interest calculated by the second at some unfavourable rates,

I have concluded that in real terms, their EURUSD spread is actually closer to 2.5 -3 pips on average, when everything is taken into into account. This is under normal market conditions, & does not include news times.

I wouldnt dream of trading news with Oanda as the spreads are usually 10 pips.

Quote
plus the biggest benefit for small accounts is the flexibility of trade size right down to one unit which allows for sensible money management no matter how small the account, that's extremely important and as far as I know Oanda are the only ones to offer it.

Yes but you are still paying roughly a EURUSD 2.5 - 3 pip spread, sometimes 2, sometimes 1 pip, but on average i come out 1.5-2 pips worse off than i should have done.

Quote
Agreed their charts aren't very refined but like the platform itself it's functional and adequate for a beginner, although stability and as amarfx mentioned connectivity have been major issues in the past.

"arent very refined" is a big understatement. They are sub-standard in terms of features & customisability & very unstable in connectivity. They are neither fit for a beginner or an expert.

Quote
Safety of funds is always an issue for brokers outside FSA regulation but Oanda seem like a solid company with a good client base and external investment as well as relatively low overhead by the look of it.

The same could have been said about Refco, Enron, Goldman Sachs etc etc. Look what happened.

Quote
Overall you could do worse, but it depends on an individual's requirements.
Possibly. But the point is, oanda marketing leads you to believe you will like their innovative platform. The reality is they screw you from every angle on the spreads.
I have also experienced some dodgy connectivity issues from time to time. But overall the connection was not bad.
I've been scalping with Oanda for about 4 years, have a mid-high 5 figure account with them and scalp using nothing but market orders all day.

Are you saying I'm living in a dream world...that when I place a market order and my platform says I'm -0.9 I'm actually 2-3 pips in the hole?
[quote=bugscoe;3699014]I've been scalping with Oanda for about 4 years, have a mid-high 5 figure account with them and scalp using nothing but market orders all day.

Are you saying I'm living in a dream world...that when I place a market order and my platform says I'm -0.9 I'm actually 2-3 pips in the hole?[/quote]

I'm saying that if you were to exit by clicking on a price 0.9 pips from your entry (lets say in your favour) you are very unlikely to get out at break-even, and are very likely to have incurred a loss of between 1.6 - 2.1 pips.
Why has the title of my thread been changed from my original title of

"I think Oanda FXTrade is a scam"

to

"I think Oanda FXTrade is unreliable"
I've got alive Oanda account which I opened to try and then kinda forgot about.
I've looked at it again recently and their spreads seem to crush any of the basic MT4 offerings out there.

People complain about slippage and requotes on all the brokers as far as I can see. So if all else is equal why not go with lower basic spread?
Quoting Ted1983
I've got alive Oanda account which I opened to try and then kinda forgot about.
I've looked at it again recently and their spreads seem to crush any of the basic MT4 offerings out there.

People complain about slippage and requotes on all the brokers as far as I can see. So if all else is equal why not go with lower basic spread?
I prefer a broker with wider spreads, where you are sure the price you click on is the price you get filled at. At least you know where you stand.

As opposed to a broker who brags about 0.9 pip spreads, but usually does not fill you at a price you clicked on, & virtually always fills you at a worse price for you, a better price for oanda.
Quoting jimbil
I have come to my own conclusion that Oanda fxtrade is a scam.

1. They do not offer charts of a satisfactory standard, which makes it doubly hard to prove where their price was in any given moment.

2. They sell the 0.9 pips spread as some sort of mega deal but the reality is -

3. I have found i am experiencing non-beneficial slippage a hell of a lot when it comes to market orders. Slippage should work both ways - 50/50 for & against. But i only ever seem to experience loss making slippage with Oanda - coming out of a trade with less profit/more...

Many years ago when I used Oanda , they had the same problems.
Many years and looks that all is the same...
Maybe you're right...
RUN!!!
Quoting bugscoe
I've been scalping with Oanda for about 4 years, have a mid-high 5 figure account with them and scalp using nothing but market orders all day.

Are you saying I'm living in a dream world...that when I place a market order and my platform says I'm -0.9 I'm actually 2-3 pips in the hole?
blah blah blah...
Quoting jimbil
I prefer a broker with wider spreads, where you are sure the price you click on is the price you get filled at. At least you know where you stand.

As opposed to a broker who brags about 0.9 pip spreads, but usually does not fill you at a price you clicked on, & virtually always fills you at a worse price for you, a better price for oanda.
That's the thing, nearly every major retail broker has threads on here about the requotes and slippage. I don't doubt your complaints are valid, but I dont think you'll get better service elsewhere.
Quoting futures
blah blah blah...
Yes, It's much easier to avoid reality when laying crap everywhere.
Quoting futures
Many years ago when I used Oanda , they had the same problems.
Many years and looks that all is the same...
Maybe you're right...
RUN!!!
Thanks futures. Its good to hear someone who agrees.

Yes it seems like these "problems" are possibly left in place because they serve oanda profits well.

Why the hell else would they not address such problems in 7 years?!

Oandas answer to the slippage problem is "use limit orders". A limit order is not only time consuming, but while it may help prevent you getting into a trade at a bad price, it will also keep you in a trade you want to get out of, so limit orders are of no use for exiting a trade you no longer wish to be in - oanda will still screw you on the exits.
You guys are hilarious. Please do tell who the magic broker is?
Quoting bugscoe
Yes, It's much easier to avoid reality when laying crap everywhere.
Quoting bugscoe
Yes, It's much easier to avoid reality when laying crap everywhere.
Well judging from your previous posts, you are full of excrement!
Quoting futures
17, maybe 18? And under $1k in capital.
Quoting jimbil
Thanks futures. Its good to hear someone who agrees.

Yes it seems like these "problems" are possibly left in place because they serve oanda profits well.

Why the hell else would they not address such problems in 7 years?!
How about one of you who is making scam claims, actually post some screen shots to highlight the scam being perpetrated by Oanda? Kinda like in the court system when trying to prove someone guilty. It helps to have the proof.

Or will that reality thingy get in the way...
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