OANDA Prop Trader, a proprietary trading program offered by forex broker OANDA, has attracted significant attention in the trading community. However, a closer look reveals a range of concerns that could make traders think twice before committing to the program. Below, we’ll explore the red flags associated with OANDA Prop Trader and explain why it might not be the trustworthy prop trading firm you’re looking for.
1. Strict Risk Management Rules: A Recipe for Frustration
One of the standout issues with OANDA Prop Trader is its overly stringent risk management rules, which many traders find unreasonably restrictive.
Trailing Drawdown
- What It Means: The trailing drawdown applies not just to realized profits but also to unrealized gains. If your trade temporarily moves into profit and then retraces slightly, it could still reduce your allowable drawdown.
- Why It’s a Problem: This penalizes traders for letting their trades run to full potential, effectively discouraging strategies that rely on holding trades for maximum profit. Swing traders and those targeting larger market moves may find it nearly impossible to operate under these conditions.
Low Drawdown Thresholds
- Details: The 4% overall drawdown and 3% daily loss limits are among the strictest in the industry.
- Impact: These tight limits leave almost no room for recovery after a losing streak, even if you’re trading with proper risk management. Traders have reported being disqualified for minor deviations, even during high-volatility periods.
Conclusion on Risk Rules:
The combination of trailing drawdown and low thresholds creates a trading environment that feels more punishing than supportive. For many traders, these rules are a dealbreaker.
2. Limited Instrument Availability: Not for Diverse Traders
OANDA Prop Trader restricts its offerings to forex, indices, and commodities, completely excluding asset classes like stocks and cryptocurrencies.
Forex-Centric Approach
- What It Means: While forex is a popular market, many traders seek diversification across multiple asset classes.
- Why It’s a Problem: The absence of stocks and cryptocurrencies limits trading opportunities and could be a major disadvantage for traders looking to apply multi-asset strategies.
Global Market Trends Ignored
- Details: With the rise of crypto and tech-focused stock markets, the lack of access to these instruments makes OANDA Prop Trader feel outdated and overly focused on a narrow segment of the market.
- Impact: Traders may need to look elsewhere for a firm that accommodates modern, diversified trading strategies.
3. Non-Refundable Evaluation Fees: A Costly Gamble
OANDA Prop Trader charges an upfront fee for its evaluation process, and this fee is non-refundable regardless of whether you pass or fail.
The Cost of Retrying
- What It Means: Each attempt to pass the evaluation requires a new payment, which can quickly add up, especially for traders who are still refining their strategies.
- Why It’s a Problem: Many competitors offer free retries or reduced fees for subsequent attempts, making OANDA’s policy feel unnecessarily punitive.
Transparency Issues
- Details: Traders have reported confusion over additional charges, such as platform fees or hidden costs, which are not clearly communicated upfront.
- Impact: This lack of transparency erodes trust and makes the program feel more like a cash grab than a genuine trading opportunity.
4. Payout Delays: A Frustrating Experience
Getting paid should be a straightforward process, but OANDA Prop Trader has been criticized for its payout system.
Processing Time
- What It Means: Withdrawals are processed only once a month, and the funds can take up to a week to reach traders.
- Why It’s a Problem: For traders relying on quick access to profits for reinvestment or personal expenses, this delay is inconvenient and undermines the flexibility needed in fast-paced trading.
Missed Expectations
- Details: Traders have reported instances where payouts were delayed even further due to administrative reviews or unclear requirements.
- Impact: These delays damage the credibility of the firm and raise questions about its operational efficiency.
5. Customer Support Concerns: When You Need Help, It’s Hard to Get It
Strong customer support is essential for any trading firm, but OANDA Prop Trader falls short in this area.
Responsiveness Issues
- What It Means: Traders have reported long wait times for responses, especially during critical periods such as the evaluation phase or payout requests.
- Why It’s a Problem: Delayed or unhelpful responses can result in unresolved issues, potentially leading to disqualifications or missed trading opportunities.
Knowledge Gaps
- Details: Some traders have noted that support staff lack detailed knowledge about the program’s rules or technical aspects, leading to inconsistent advice.
- Impact: Poor communication and inconsistent answers erode confidence in the firm’s professionalism.
6. Lack of Flexibility: A One-Size-Fits-All Approach
OANDA Prop Trader’s rigid structure may not suit all trading styles.
Account Scaling and Restrictions
- What It Means: The program’s scaling opportunities are tied to strict profit milestones and risk rules, leaving little room for traders to grow at their own pace.
- Why It’s a Problem: Traders who excel in high-risk, high-reward environments may feel stifled by the overly conservative approach.
No Weekend Positions
- What It Means: Traders must close all positions before the weekend, limiting strategies that require holding trades for longer periods.
- Why It’s a Problem: Swing traders and those relying on longer-term analysis will find this rule restrictive and counterproductive.
Final Thoughts: Is OANDA Prop Trader Worth It?
While OANDA’s reputation as a forex broker lends credibility to its prop trading program, the numerous red flags make it a questionable choice for many traders. From strict drawdown rules to limited instruments and payout delays, the program feels more restrictive than supportive.
Traders should carefully evaluate these issues before committing, especially when other prop firms offer more flexible and trader-friendly options. If you value transparency, diverse trading opportunities, and responsive support, OANDA Prop Trader may not be the right fit for you.