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
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Headquarters | Israel | British Virgin Islands |
Regulators | ASIC, CySEC, FCA, FSA | ASIC, BVIFSC, CFTC, FCA, FSA, IIROC, MAS, MFSA |
Tier 1 Regulator(s)? | ||
Owned by Public Company? | ||
Year Established | 2007 | 1996 |
Execution Type(s) | Market Maker | ECN/STP, Market Maker, Matched Principal Broker |
Minimum Deposit | $50 - $10,000 | $0 |
Negative Balance Protection | ||
Trading Platform(s) | Proprietary platform | MetaTrader 4, Proprietary platform |
Average Trading Cost EUR/USD | 1.0 pips | 0.9 pips |
Average Trading Cost GBP/USD | 2.2 pips | 1.3 pips |
Average Trading Cost WTI Crude Oil | $0.05 | $0.03 |
Average Trading Cost Gold | $0.45 | $0.30 |
Retail Loss Rate | 74% | 78.3% |
Minimum Raw Spreads | 0.8 pips | 0.0 pips |
Minimum Standard Spreads | 1.3 pips | 0.6 pips |
Minimum Commission for Forex | $0.00 | $5.00 per round lot |
Islamic Account | ||
Signals | ||
US Persons Accepted? | ||
Managed Accounts | ||
| Get Started | Get Started |
Features and Platforms
| | |
MT4 | ||
MT5 | ||
MT4/MT5 Add-Ons | ||
cTrader | ||
Proprietary Platform | ||
Automated Trading | ||
Social/Copy Trading | ||
DOM? | ||
Guaranteed Stop Loss | ||
Scalping | ||
Hedging | ||
One-Click Trading | ||
OCO Orders | ||
Interest on Margin | ||
| Get Started | Get Started |
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
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Currency Pairs | ||
Cryptocurrencies | ||
Commodities | ||
Crude Oil | ||
Gold | ||
Metals | ||
Equity Indices | ||
Stocks | ||
Stocks (non-CFDs) | ||
Bonds | ||
ETFs | ||
Options | ||
Futures | ||
Synthetics | ||
| Get Started | Get Started |
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.
| | |
Average Trading Cost EUR/USD | 1.0 pips | 0.9 pips |
Average Trading Cost GBP/USD | 2.2 pips | 1.3 pips |
Average Trading Cost WTI Crude Oil | $0.05 | $0.03 |
Average Trading Cost Gold | $0.45 | $0.30 |
Average Trading Cost Bitcoin | $574 | $62 |
Minimum Raw Spreads | 0.8 pips | 0.0 pips |
Minimum Standard Spreads | 1.3 pips | 0.6 pips |
Minimum Commission for Forex | $0.00 | $5.00 per round lot |
Deposit Fee | ||
Withdrawal Fee | ||
Inactivity Fee | $10 monthly after 12 monthd | $10 monhtly after 12 months |
| Get Started | Get Started |
Security and Trust
Regulatory oversight for eToro consists of the Cyprus Securities and Exchange Commission (CySEC), the UK Financial Conduct Authority (FCA), and the Australian Securities and Investments Commission (ASIC). MiFID II and the EU’s 5th Anti-Money Laundering Directive govern CySEC portfolios. Client deposits into accounts opened in Cyprus and the UK are protected by the Cypriot Investor Compensation Fund (CIF) and the UK Financial Services Compensation Scheme (FSCS), up to €20,000 and £85,000, respectively. eToro USA supervision exists through FinCEN, where this broker maintains registration as a Money Services Business.
The primary regulator of Oanda is the US Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA). Adding a global framework is the FCA in the UK, the IIROC in Canada, the MAS in Singapore, the ASIC in Australia, and the FSA in Japan.
Both brokers maintain a clean supervisory record with a competent list of authorities, and traders may trust eToro and Oanda alike with their personal information and deposits.
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Country of the Regulator | Australia, Cyprus, Seychelles, United Kingdom | Australia, Canada, Japan, Malta, Singapore, United Kingdom, United States, British Virgin Islands |
Name of the Regulator | ASIC, CySEC, FCA, FSA | ASIC, BVIFSC, CFTC, FCA, FSA, IIROC, MAS, MFSA |
Regulatory License Number | 491139, 109/10, 583263, SD076 | Undisclosed, 0325821, 542574, C95813, 412981, 2137, CMS100122-4, SIBA/L/20/1130 |
Regulatory Tier | N/A | 1, 1, 1, 1, 1, 1, 1, 4 |
| Get Started | Get Started |
eToro versus Oanda Verdict
eToro attempts to remain relevant in the social trading sub-sector through CopyTrader and CopyPortfolios and, more recently, has started to expand into cryptocurrencies. The pricing environment at eToro favors broker profitability, and the absence of the MT4 trading platform displays a key shortfall. Traders who seek a pure social trading broker where a third-party provider, TipRanks, represents the most significant asset, may determine that eToro is a suitable choice, provided they can overlook the overpriced assets. Oanda maintains an overall more competitive trading environment but offers significantly fewer assets. Research and education enhance auxiliary trading services, and partnerships with leading third-party research and analytics firms add value. The MT4 trading platform, which fully supports automated trading solutions, is offered alongside a proprietary trading platform that is superior to that offered at eToro. Genuine traders will identify a more competitive social trading experience through MT4, and the necessary yet free-of-charge add-ons required to enable it, at Oanda.
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FAQs
Between eToro or Oanda, which offers lower pricing?
Oanda maintains lower pricing with a focus on traders, whereas eToro favors broker profitability. For example, the EUR/USD spread commences is 0.6 pips at Oanda versus 3.0 pips at eToro; that disparity is generally repeated across assets.
Is eToro or Oanda safer for Forex and CFDs trading?
eToro and Oanda are equally safe. Each broker can claim full compliance with the respective global regulatory environment and a spotless record which has created a safe, transparent, and trustworthy trading environment. eToro regulation includes CySEC (Cyprus), FCA (UK), ASIC (Australia), and FinCEN registration (US). Oanda authorization consists of CFTC (US), NFA (US), FCA (UK), IIROC (Canada), MAS (Singapore), ASIC (Australia), and FSA (Japan).
Which trading platform is better: eToro or Oanda?
Though Oanda and eToro both provide traders with a proprietary trading platform, it is notably superior at Oanda, which also maintains the MT4 trading platform to support automated trading solutions. While eToro was developed primarily for social trading, committed traders can create a dominant social trading environment at Oanda through MT4 third-party plugins that enable it. Aside from asset choice, eToro has little ground to compete, especially considering the trader-friendly cost structure at Oanda.