Yes, this will be correct, with Oanda.
Manxx explains it well, above. It’s about anti-money-laundering regulations and laws. You only get a choice about where to withdraw to after “repaying” any original payments-in to the same source,
It can cause problems, especially if the bank account from which you paid in no longer exists. There are, of course, solutions to that issue, too, but they incur a lot of paperwork and delays.
I can’t myself see the point in using PayPal or any other third-party processor, for this purpose: it seems to me to be simply a way of increasing the expense and maybe creating a delay as well. You can’t trade without a bank account, and the easiest and best transfers are in and out of your bank account, generally. Even if they charge. Becuase if you add another third-party processor in to the process, you’re still going to end up paying the banking charges anyway, when you transfer from PayPal back to your bank, just as you would have done if transferring from the broker to the bank account. It’s easy to see why using PayPal has disadvantages. I can’t see so easily why it would ever help anyone, really.