Even now, in this turbulent new crypto era, stocks remain one of the most popular trading instruments. Millions of traders specialize in stock trading, and there are so many online platforms that offer you stocks as one of their main trading tools. But it is still difficult to find a good one: you have to consider many factors at once. In this article, we explain how you can trade stocks with Oanda and whether you can trust it.
Oanda is an international broker headquartered in the United States. The company has been around since 1996 and has a strong reputation for providing stable access to financial markets to over one million customers. Oanda is heavily regulated: all of its merchant relationships are overseen by four national regulators at once, including the UK’s Financial Conduct Authority (FCA) and the Central Bank of Singapore (MAS). When it comes to safety and security, Oanda customers have nothing to worry about.
But what about the conditions? Although they are quite favorable, many users claim that the platform is not very user-friendly for complete beginners in trading: the website is difficult to navigate and there is almost no educational material, you so you’ll have to figure it all out on your own. When it comes to available instruments, the selection is also quite narrow: the company lists currency pairs, indices, and even cryptos, but how can you trade real stocks? Let’s understand that.
Stock trading options
Oanda Action trading options are limited to indices, meaning you can only access stocks as a predefined basket, so you’re essentially investing in many stocks at once through a single instrument. However, Oanda only allows indices to be traded as CFDs (Contract for Difference). This means that you don’t actually buy or sell stocks – rather you bet on their price movements and earn (or lose) the difference. Think of it as an addition to a basic instrument. You cannot trade options with this broker.
Oanda offers CFDs for many primary indices, including US SPX, US Wall St. 30, UK 100 and Japan 225. All index spreads are quite competitive. Other CFDs the trading options offered by this broker include 70 different currency pairs, a wide range of hard and soft commodities and metals. All in all, there are more than enough trading instruments to choose from, if you don’t focus too much on stocks.