ODL Markets Review

WHO IS ODL MARKETS?

According to research in South Africa ODL Markets is a web-based currency trading company that offers both spot and forward currency trading.

The brokerage was established in 2004 but as from 2009 ODL Markets operates as a subsidiary of Forex Capital Markets. They are now headquartered in London in the UK and have offices in Japan, Canada, Australia, Turkey and several other countries.

SAFE OR SCAM?

One of the best benchmarks to measure the safety of a broker like ODL Markets, is to establish which regulating authorities are watchdogs over its actions.

ODL Markets is regulated by the FSA (Financial Services Authority).

PROS AND CONS

LEVERAGE

Leverage is a facility that enables you to get a much larger exposure to the market you are trading than the amount you deposited to open the trade. Leveraged products, such as forex trading, magnify your potential profit – but also increase your potential loss.

Leverage amount is expressed as a ratio, for instance 50:1, 100:1, or 500:1. Assuming that you have $1,000 in your trading account and you trade ticket sizes of 500,000 USD/JPY, your leverage will equate 500:1.

Margin is the amount of collateral to cover any credit risks that may arise during your trading operations. It is expressed as the percentage of position size (e.g. 5% or 1%), and you have to have funds in your trading account to ensure sufficient margin.

For example, on a 1% margin a position of $1,000,000 will require a deposit of $10,000. The margin level in a trading account needs to be equal or more than 100% to be able to open new trades, otherwise your trading account will be fully hedged.

ODL Markets offers a maximum leverage ratio of 1:500.

ACCOUNTS

A forex account at ODL Markets is a trading account that you will hold and that will work similarly to your bank account, but with the difference that it is primarily issued with the purpose of trading on currencies.

Forex Islamic accounts are also known as swap-free accounts as they imply no swap or rollover interest on overnight positions, which is against Islamic faith.

Often, the number and type of accounts that a trader can open with a broker company differs depending on the country in which it operates and the regulation authorities under whose jurisdiction it falls.

ODL Markets offers the following types of accounts:

• Discover Account – This account is aimed at beginners; it has a guaranteed stop-loss which is placed free of charge on each trade. The account losses are limited to the funds the customer has deposited.
• Explore Direct Account – This account type is aimed at traders with a little more experience, it comes with an automated stop-loss but it’s not guaranteed.

This allows any bet size as long as your account balance is able to cover your potential losses.

• Premium Account – This account is aimed at advanced traders who are comfortable with trading forex as it does not come with the same protection as the Discover and the Explore Direct accounts.

There are no minimum deposit requirements on these accounts.

MARKET INSTRUMENTS

The most popular market instruments available from most brokers for trading include:

Forex

Forex trading describes the currency exchange market which refers to the global, decentralised marketplace where individuals, companies and financial institutions exchange currencies for one another at floating rates.

Commodities

Commodity markets offer many investment opportunities for traders. Soft commodities have been traded for centuries and plays a major role in portfolio diversification and risk management.

Investing in contract-based tradable goods is a reliable way to mitigate risk during times of economic uncertainty.

Indices

Equity, or stock indices, are actual stock market indexes which measure the value of a specific section of a stock market. They can represent a specific stock market or a specific set of the largest companies of a nation.

Precious metals

The trading of gold and other precious metals, along with crude oil, copper or petroleum, are hard commodities that play a major role in the commodities market and are contract-based tradable goods.

Energy

The typical feature of energy prices is high volatility due to the influence of political and environmental factors, supply and demand, extreme weather conditions and global economic growth.

ODL Markets offers the following of the above:

• Stocks
• Options
• Futures
• Forex
• Oil
• Gold
• Indices

FEES

Cost depends on different factors, like spread and margins, and clients may also experience different fee structures according to their country or place of residence.

The spread of a currency pair is the difference between the bid and the ask rate. A pip represents the smallest increment that an exchange rate can move.

Margin is the amount of money required in your account in order to open a position. Margin is calculated based on the current price of the base currency against USD, the size (volume) of the position and the leverage applied to your trading account.

ODL Markets offers 1-3pip spreads on majors.

DEPOSIT AND WITHDRAWAL

Accounts usually requires a certain minimum initial deposit, which can be paid in several ways. Withdrawals can usually be done with the same ways, but sometimes differ.

In the case of ODL Markets the following methods and minimum deposits are required:

• Visa
• Mastercard
• Wire Transfer
• Web Money

There are no minimum deposit requirements for any of the accounts.

TRADING PLATFORMS

The forex trading platform provided by ODL Markets to its clients is in essence the software to carry out their trades. Some brokers provide only one, others quite a few platforms.

A multi-asset trading platform is one that allows clients to trade forex as well as other asset classes. The decision about which platform to choose will usually depend on what a client would like to trade.

ODL Markets provides the following trading platforms:

• Strategy Runner
• My Broker
• Currenex
• Integral
• Hot Spot
• Lava
• MetaTrader4

HOW TO OPEN AN ACCOUNT

Similarly to a bank, to register a forex trading account with ODL Markets for the first time, you will be required to go through a basic “know your customer” process.

This will allow ODL Markets to ascertain that your submitted details and ensure the safety of your funds and account details.

With ODL Markets the process entails logging onto their site, following the simple step by step guide, answering basic financial questions, providing documentation such as your ID and then waiting for your account to go live, very easy.

CUSTOMER SUPPORT

Potential traders need to make sure the broker company they chose will offer sufficient support whenever they need it.

In the case of ODL Markets customers can reach the support team via online chat and telephone, the customer service staff are friendly, knowledgeable and actually listen and answer your questions honestly, they don’t give you ‘canned responses’.

EDUCATION

Before starting to trade, potential clients of ODL Markets should avail themselves of all possible information and trading skills needed to be successful in the world of forex and commodity trading.

ODL Markets offers free education seminars by Sandy Jadeja, the chief market strategist at the company.

You are also able to log onto ODL Markets website and watch his analysis of key markets in video format. Sandy is a leading figure in technical analysis, especially Fibonacci trading.

RESEARCH

To be able to trade with confidence, traders should do as much as possible research about this kind of speculative trading before commencing, but also preceding every daring deal to ensure that they don’t lose money unnecessarily and trade as profitable as possible.

With ODL Markets they have access to charting software that is provided by a charting company called IT Finance, live streaming of multiple market data including technical analysis, as well as fundamental company data and news sources.

AWARDS

Although ODL Markets is acclaimed by customers, there is no indication of awards won on its homepage.

CONCLUSION

ODL Markets can be described as a company that provides its clients with a variety of trading opportunities and a variety of software platforms to facilitate those opportunities.

Being a member of the London Stock Exchange and NYSE Euronext is also a major plus for this brokerage.

DISCLAIMER

ODL Markets warns potential customers that Forex and CFDs trading always carries a high risk and may not be suitable for all investors.

Before deciding to trade with ODL Markets, potential traders are advised to carefully consider their investment objectives, financial situation, needs and level of experience before investing money they cannot afford to lose.

ODL Markets warns that margin trading involves the potential for profit as well as the risk of loss and that movements in the price of foreign exchange and commodities are very unpredictable.

ODL Markets cannot guarantee a maximum loss that a trader may suffer, according to research in South Africa.

FAQs

TRADING ENVIRONMENT

How many instruments can I trade with ODL Markets?

You can trade several different instruments with ODL Markets, which include the following:

• Stocks
• Options
• Futures
• Forex
• Oil
• Gold
• Indices

Which platforms are supported by ODL Markets?

ODL Markets provides the following popular trading platforms:

• Strategy Runner
• My Broker
• Currenex
• Integral
• Hot Spot
• Lava
• MetaTrader4

Does ODL Markets offer leverage?

Yes, ODL Markets offers a maximum leverage of 1:500

What spreads can I expect with ODL Markets?

ODL Markets offers 1-3pip spreads on majors.

If details on the website is not comprehensive, more information can be obtained from the customer support service.

Does ODL Markets charge commission?

Yes, more information on commissions can be obtained from the customer support service.

Is ODL Markets regulated?

Yes, ODL Markets is regulated by the FSA (Financial Services Authority)

Is ODL Markets a recommended forex trading broker for experts and beginners?

ODL Markets offers a fair-trading environment for all types of traders/beginners/experienced traders.

What is the overall rating out of 10 for ODL Markets?

8/10

ACCOUNTS

What is the difference between a demo and live trading account?

A demo account is offered by broker companies and funded with virtual money that enables a prospective customer to experiment with the company’s trading platforms and its features, before setting up a real account funded with the customers actual money.

Does ODL Markets offer a demo account?

Yes

How long is the demo account valid?

The demo account can be used for a maximum of 30 days

Which live trading accounts does ODL Markets offer?

• Discover Account
• Explore Direct Account
• Premium Account

What are the available deposit currencies for a live trading account?

USD, EUR, JPY, GBP

DEPOSITS AND WITHDRAWALS

What is the minimum deposit for ODL Markets?

There are no minimum deposit requirements

How do you make a deposit and withdrawal with ODL Markets?

ODL Markets offers the following deposit and withdrawal methods:

• Bank Transfer
• Visa
• Mastercard
• Web Money

Withdrawals can be done via:

• Bank Transfer
• Visa
• Mastercard
• Web Money

Does ODL Markets charge withdrawal fees?

No, but fees from financial institution may apply

How long does it take to make a withdrawal?

Depending on bank services it may take several days for the money to be available.