eToro versus Oanda

Today’s head-to-head broker comparison will features two key players in the industry, eToro and Oanda. Since its inception in 2007, eToro has been a leader in the social trading sub-sector and is currently home to over 11 million traders. Since the end of 2017, eToro has been actively expanding into cryptocurrencies with a pair of acquisitions. Squaring off against eToro is Oanda, which was incorporated in the US in 1997, and is one of the original online brokerages still active today. While Oanda enjoys a high degree of trust and popularity in North American markets it failed to duplicate that success elsewhere. At eToro, 78.0% of retail traders operate their portfolios at a loss as compared to 73.5% at Oanda.

This comparison will focus on the following four aspects plus an ultimate verdict:

• Features and Platforms
• Available Markets
• Typical Spreads and Fees
• Security and Trust
• eToro versus Oanda Verdict

Feature	eToro (visit site)	Oanda (visit site)
Headquarter:	Cyprus	US
Regulation:	CySEC, FCA, ASIC	CySEC, FCA, ASIC CFTC, NFA, IIROC, FCA, MAS, ASIC, FSA
Type of Broker:	Market Maker	Market Maker
U.S. Clients Allowed:
Minimum Deposit:	$50 - $10,000	No minimum deposit
Maximum Leverage:	1:30 (CySEC, FCA), 1:500 (ASIC)	1:30
Commissions / Spreads:	Spreads	Spreads
Account 1:	Standard	CFD Trading
Account 2:	Professional	Spread Betting
Account 3:
Demo Account:
Islamic Account:
Segregated Account:
Managed Accounts:
Institutional Accounts:
Website Languages:	English Chinese 18+	English Spanish 7+
Support Hours:	24/5	24/5
E-mail Support:
SMS Support:
Chat:
Broker Offers:	See what eToro offers 74.00% of retail CFD accounts lose money	See what Oanda offers.

Features and Platforms

With social trading well off its peak, eToro maintains a highly active community and represents an acceptable choice for traders who do not mind paying elevated costs for access to the in-house developed CopyTrader. eToro added CopyPortfolios in an attempt to add more diversification opportunities and decrease risk. The absence of the MT4 trading platform is notable, as eToro only maintains its proprietary version as a webtrader and mobile version. Third-party analytics provider, TipRanks, is the most valuable asset at this broker, where traders have access to market research added regularly by more than 15,000 analysts.

Manual traders are supported via the ProCharts charting package, and the Popular Investor Program compensates qualified signal providers with 2% of allocated assets annually. Social trading forms the core of operations, reducing the importance of generated in-house research and education, which are of lesser quality as compared to well-established brokers that cater to retail traders. eToro additionally buys and holds select physical assets for clients.

The proprietary trading platform at Oanda consists of the in-house Market Pulse research portal, Dow Jones FX Select, 4CAST, TradingView, and Autochartist. Through the comprehensive charting package, manual traders can conduct a proper analysis and identify trading opportunities. MT4 remains the go-to trading platform for automated solutions where this broker developed its Open Order add-on. Oanda additionally maintains numerous APIs in support of third-party developers.

An acceptable educational division, featuring written content and videos covering a broad range of topics, provides exceptional value to new traders. Market Pulse, the research division at Oanda, represents a well-designed product and delivers research and market commentary, while podcasts enhance the overall user experience.

Available Markets

Forex traders at eToro have access to 47 currency pairs and 17 cryptocurrencies. Diversification opportunities exist via 13 commodities, 13 index CFDs, and 145 ETFs. Equity CFDs represent the bulk of over 2,000 assets. While Oanda does not maintain equity CFDs, it offers a broader Forex market exposure with 70 currency pairs, supported by 12 core commodities. Numerous quote currency variations increase the count to 31, and 16 index CFDs, together with six bond CFDs, introduce additional assets. Overall, eToro has a superior asset choice.

Asset Choice Comparison

Typical Spreads and Fees

eToro is compensated through unacceptable mark-ups for access to its social trading platform. The EUR/USD carries a 3.0 pips spread, as compared to 0.6 pips at Oanda. Zero-commission equity trades at eToro only apply to buy orders in non-leveraged portfolios. A 0.9% fee applies to all other accounts and orders. All other assets remain more competitively priced at Oanda.

Swap rates on overnight leveraged positions exist at both brokers. Corporate actions such as dividends and mergers that impact equity, and index CFDs, together with ETFs, are passed on to traders. eToro and Oanda both charge a $10 monthly inactivity fee. The former levies a $5 flat-fee on all withdrawals, while the latter grants one free monthly withdrawal to a credit/debit card. Third-party processing fees apply, and eToro charges a currency conversion fee. Overall, Oanda implements a more trader-friendly cost structure, while eToro favors broker profitability.