CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
76.6% of retail investor accounts lose money when trading CFDs with this provider.
You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Sub-account differences

Each OANDA account type (‘v20’ and ‘v20 MT4’) operates differently. At OANDA, we want all of our clients to understand these important operational differences clearly. This page summarises the notable differences between our different sub-account types and the user interfaces chosen to access them.

The MT4 User Interfaces (UIs) operate as a front-end system intended for user convenience, enabling order placement and chart viewing.

OANDA endeavours to mirror the v20 account in the linked account in MT4 to the best extent possible. But, it is critical to note that the definitive system of record and the ultimate source for Order Monitoring and Execution, Marked to Market Open Positions, Margin Utilization, and Margin Close-Out processes is the v20 account (accessible via the proprietary OANDA UIs)- not the MT4 account that is linked to the v20 account.

What are the notable differences between the various sub-accounts?

Each OANDA account type (‘v20’, and ‘v20 MT4’, and ‘OANDA One’) operates somewhat differently. We want all clients to understand the important operational differences clearly. We summarize the notable differences between sub-account types and the user interfaces chosen to access them. 

Which products, trading platforms, or UIs are supported? 

Which CFD products are available?

  • v20: CFDs on forex, metals, indices, commodities and bonds.
  • v20 MT4*: CFDs on forex, metals, indices, commodities and bonds.
  • OANDA One: CFDs on forex, metals, indices, commodities and shares.

* The MT4 User Interfaces (UIs) operate primarily as a front-end system intended for user convenience to facilitate order placement and chart viewing. OANDA endeavours to mirror the v20 account in the linked account in MT4 to the best extent possible, but it is critical to note that the definitive system of record and the ultimate source for Order Monitoring and Execution, Marked to Market Open Positions, Margin Utilisation, and Margin Close Out processes is the v20 account (accessible via the proprietary OANDA UIs); it is not the MT4 account that is linked to the v20 account.

What are the main terminology differences?

The sum of cash balance and unrealised profit or loss.

  • v20: Net Asset Value (NAV).
  • v20 MT4: 
OANDA UIs: – Net Asset Value
  • MT4 native UIs: – Equity.
  • OANDA One: Equity.
What are the margin related differences?

Differences in the: a) calculation of Margin needed to open a position, b) trigger point of a Margin Close-Out (MCO) event, and c) action resulting from a MCO event when a client has insufficient funds available to support open positions are very interrelated and critical functional aspects for clients to understand fully.

See our website for more detail on margin related calculations and differences between the Account types.

How is the margin used calculated?

What is the formula for the calculation of the initial margin amount needed to open a position?

  • v20: Margin_Used = Margin_Rate * Trade_Quantity * Instrument_To_Home _Currency_Conversio n_Rate.
  • v20 MT4: 

    OANDA UIs: – As per v20.

    MT4 native UIs: – OANDA endeavours to periodically synchronise the values displayed for Margin, Equity, Free Margin, Margin Level %, and Balance to be approximately equivalent to the system of record values displayed in OANDA UIs.
  • OANDA One: Margin = Margin_Rate * Trade_Quantity * Instrument_To_Hom e_Currency_Conver sion_Rate
Why do the displayed margin percentage values appear so different?

Are the Unrealised Profit/Loss and NAV/Equity calculations used for margin determination purposes the same as the UPL and NAV/Equity elsewhere in the platform?

(Note: please also refer to the FAQ below re “What mark-to-market price is used to calculate the estimated Unrealised Profit/Loss (UPL) as displayed?”)
v20: No, only mid-prices are used in the margin calculations, with the rationale being that the margin requirements do not change if only the bid/ask spread changes.

  • v20 MT4: 

    OANDA UIs: – As per v20.

    MT4 native UIs: – OANDA endeavours to periodically synchronise the values displayed for Margin, Equity, Free Margin, Margin Level %, and Balance to be approximately equivalent to the system of record values displayed in OANDA UIs.
  • OANDA One: Yes, the appropriately sided Top of Book bid/ask prices that will be traded on to close a position are used, i.e., bid for long positions and ask for short positions.
What happens to positions and pending orders when a Margin Close-Out event is triggered?

Are all open positions in the Account closed?

  • v20: Yes, a Margin Close-Out (MCO) event triggers full liquidation except for positions where the market in the underlying Instrument is closed or halted.
  • v20 MT4: As per v20.
  • OANDA One: No, an MCO event triggers partial liquidation. 
Deals are closed, starting with the Deal with the largest unrealised loss. This process immediately continues for each of as many Deals as necessary until the Margin Coverage Percentage returns to above 50%.
How is margin calculated on offsetting (aka hedged) positions?

When you concurrently hold both open long and short positions in the same instrument on the same account, how is margin calculated?

  • v20: Normal/full margin is calculated for the larger leg trades (whichever buy or sell trade has the larger quantity) or for the long leg if the long and short trade quantities exactly offset.
  • v20 MT4: As per v20.
  • OANDA One: Half of the normal margin is calculated for deals on each side (long and short) of the hedged/offsetting position, and the normal/full margin is calculated for any residual unhedged portion of a larger leg.
How is the unrealised profit/loss value calculated?

What current price is used to calculate the estimated Unrealised Profit/Loss (UPL) as displayed?

(Note: please also refer to the FAQ above re “Are the Unrealised Profit/Loss and NAV/Equity calculations used for margin determination purposes the same as the UPL and NAV/Equity elsewhere in the platform?”)

  • v20: The sided price used to calculate the UPL differs when looking at trades or at positions. 
The UPL for trades is calculated based on the sided price for the notional amount of each trade. Therefore, this UPL calculation assumes that each trade would be closed/liquidated separately in its entirety as one exit trade. 
The UPL for the aggregated open position is calculated based on the sided price for the total aggregated notional amount of that position. This UPL calculation assumes that the total position would be closed/liquidated in its entirety as one exit trade. 

    There can therefore be circumstances, when the position size exceeds the volume in the first band of the Depth of Market pricing ladder, in which the UPL for a position is different from the sum of the UPL for each trade that makes up that position. 

    Actual realised profit/loss in Home currency terms may also differ from the estimated unrealised profit/loss on open trades/positions due to changes in Quote to Home currency conversion rates (including any markup), which are finally determined at the point of trade/position closure.
  • v20 MT4: 

    OANDA UIs: – As per v20.

    MT4 native UIs: – The sided price used to calculate UPL for both trades and positions is always the sided Top of Book price, which is associated only with the volume available in the first band of the Depth of Market pricing ladder. Therefore, this UPL calculation assumes that trades and positions would be closed/liquidated in one or more trades, each with a size less than or equal to the Top of Book volume. 

    Actual realised profit/loss in Home currency terms may also differ from the estimated unrealised profit/loss on open trades/positions due to changes in Quote to Home currency conversion rates (including any markup), which are finally determined at the point of trade/position closure.
  • OANDA One: The sided price used to calculate UPL for both deals and positions is always the sided Top of Book price, which is associated only with the volume available in the first band of the Depth of Market pricing ladder. 

    Therefore, this UPL calculation assumes that deals and positions would be closed/liquidated in one or more deals, each with a size less than or equal to the Top of Book volume. 
Actual realised profit/loss in Home currency terms may also differ from the estimated unrealised profit/loss on open trades/positions due to changes in Quote to Home currency conversion rates (including any markup), which are finally determined at the point of trade/position closure.
What are the differences with respect to Financing Costs?

What is the method and timing of applying Financing Costs to reflect the client's cost of funding an open position?

  • v20: Financing Costs are credited/ debited to the account daily, i.e. the charges result in realised profit or loss. 
This cash posting to the sub-account usually happens on a daily basis as of the End of the Day (EOD Time). 
However, the cash posting may occur earlier for closed positions on an underlying Instrument that is a commodity or bond, where the financing calculation is performed on a continuous, rather than daily, basis.
  • v20 MT4: As per v20.
  • OANDA One: For positions in most instruments, Financing Costs are generally booked as Swaps on each Deal for which they accrue, i.e. the charges result in ongoing unrealised profit or loss. The cumulative Swaps accrued whilst a position is open, forms part of the realised profit or loss credited/debited to the account when a position is closed. 
This accumulating update to the Deals happens daily as of the EOD Time.
    However, for positions on an underlying commodity Instrument, Financing Costs are performed on a continuous, rather than daily, basis. to the account daily, i.e., the charges result in realised profit or loss that appear daily as cash balance adjustments. For these positions, postings to the account are calculated on the basis of the earlier of EOD Time or the time at which a position was closed intra-day.

See our website for more details on Financing Cost calculations.

Are there differences in how orders are placed?

Can Pending Orders be placed at any time of the day?

  • v20: Yes.
  • v20 MT4: 

    OANDA UIs: – Yes.

    MT4 native UIs: – No. 

    Orders can only be placed within the specified Trading Hours for a given Instrument as visible in the OANDA UIs.
  • OANDA One: No. 

    Orders can only be placed within the specified Trading Hours for a given Instrument as visible in the Trading Platform.
How are my orders executed?

There are differences in order processing depending on the Asset Class of the underlying Instrument, particularly for CFDs on Equity Shares where orders can be filled in partial quantities. Order and Execution Types are described in detail in our Order Execution Policy.

How can I see market depth, i.e. the prices that are relevant for larger size orders?

Full market depth is visible in all UIs. Details on seeing this within the Trading Platform can be found here.

Which time zone is used to show information on the platforms?

Which time zone is used for price lists and charts?

  • v20: Each client can select the time zone from the Tools menu (desktop/web) or settings (mobile).
  • v20 MT4: 

    OANDA UIs: – As per v20.

    MT4 native UIs: – Time is set such that midnight is always the end of the global trading day (5pm ET). This means that Daylight Savings Time changes applicable in New York will be reflected in the time displayed.
  • OANDA One: 

    OANDA UIs: – All clients see the time according to the time zone based on their location and device settings.

    MT5 native UIs: – Time is set such that midnight is always the end of the global trading day (5pm ET). This means that Daylight Savings Time changes applicable in New York will be reflected in the time displayed.
How is the transaction history different?

Is the history preserved for the lifetime of the account?

  • v20: Yes
  • v20 MT4: 

    OANDA UIs: – Yes

    MT4 native UIs: – No. Transaction history for closed positions is only retained for 90 days.
  • OANDA One: Yes
Is Two Factor Authentication (2FA) available?

Is 2FA available for login?

  • v20: Yes, 2FA can be configured to log in via OANDA UIs.
  • v20 MT4: 

    OANDA UIs: – Yes.

    MT4 native UIs: –No.
  • OANDA One: 

    OANDA UIs: – Yes.

    MT4 native UIs: – Yes.
Recognising that all prices displayed on all charts in all platforms for all accounts are indicative (not tradeable), how are the charts different?

Which prices appear on the charts?

  • v20: 

    OANDA UIs: – Mid, Bid, and Ask prices are all selectable. 

    TradingView UI: – Only the Mid prices are available.
  • v20 MT4: 

    OANDA UIs: – Mid, Bid, and Ask prices are all selectable.

    MT4 native UIs: – Only the Bid prices are available.

    TradingView UI: – Only the Mid prices are available.
  • OANDA One: Only last traded underlying instrument prices for Share CFDs and Mid prices for all other Instruments are available.