Forex.com vs Oanda
Want to get the scoop without reading all of our research? We've got you covered! While both Forex.com and OANDA offer exception trader services, Forex.com offers Forex trading to a wider audience of users, while OANDA's services are geographically limited. We recommend traders check out Forex.com due to its respectable geographic inclusivity, top-notch trading platform, and excellent charting tools.
Today’s broker comparison examines Forex.com and Oanda. The former is owned by GAIN Capital Holdings, which is a publicly listed company traded on the New York Stock Exchange under ticker symbol GCAP. Regulated in several global markets, it has catered to traders since 2001 and established itself as a market leader in online Forex trading. The latter is incorporated in the US, and governed by a framework of global regulators. Gaining operational experience since 1997, it is one of the original online brokerages active in today’s industry, and a popular choice in North American markets. At Forex.com 72.0% of retail traders operate their portfolios at a loss vs 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
- Forex.com vs Oanda Verdict
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Headquarters | United States | British Virgin Islands |
Regulators | ASIC, CFTC, CIMA, FCA, FSA, IIROC, NFA | ASIC, BVIFSC, CFTC, FCA, FSA, IIROC, MAS, MFSA |
Tier 1 Regulator(s)? | ||
Owned by Public Company? | ||
Year Established | 2001 | 1996 |
Execution Type(s) | Market Maker | ECN/STP, Market Maker, Matched Principal Broker |
Minimum Deposit | $100 | $0 |
Negative Balance Protection | ||
Trading Platform(s) | MetaTrader 4, MetaTrader 5, Proprietary platform, Trading View | MetaTrader 4, Proprietary platform |
Average Trading Cost EUR/USD | 1.1 pips | 0.9 pips |
Average Trading Cost GBP/USD | 1.3 pips | 1.3 pips |
Average Trading Cost WTI Crude Oil | $0.035 | $0.03 |
Average Trading Cost Gold | $0.63 | $0.30 |
Retail Loss Rate | 73.00% | 78.3% |
Minimum Raw Spreads | 0.0 pips | 0.0 pips |
Minimum Standard Spreads | 0.8 pips | 0.6 pips |
Minimum Commission for Forex | $5 per $100K | $5.00 per round lot |
Islamic Account | ||
Signals | ||
US Persons Accepted? | ||
Managed Accounts | ||
| Get Started | Get Started |
Forex.com
As of April 2019, and based on active servers per broker, Forex.com claims to be the largest MT4 broker. It provides an upgraded trading experience with third-party plugins from Reuters for live news, Autochartist Trade Ideas for automated pattern recognition, and technical analysis from Trading Central. The proprietary Advanced Trading Platform offers a genuine alternative to the MT4, equipped with over 100 predefined indicators. Both platforms support automated trading solutions, and a webtrader completes an excellent choice of trading platforms.
A direct market access account caters to professional traders who demand access to deep liquidity pools. New traders have access to an excellent educational course, divided into beginner, intermediate, and advanced learning. Completing auxiliary trading services is an outstanding in-house research team. MT4 VPS Hosting, available for accounts exceeding $5,000, enhances automated trading.
Oanda
Oanda maintains its proprietary trading platform, featuring its in-house Market Pulse research portal, Dow Jones FX Select, 4CAST, TradingView, and Autochartist. A comprehensive charting package offers manual traders the required tools to conduct proper market analytics. Traders using automated solutions will manage portfolios from the retail favorite MT4 trading platform. Several APIs support third-party developers, though Oanda also offers its own, including Oanda MT4 Open Order.
New traders will find the educational section to be acceptable as it covers a broad range of topics. The combination of written content and videos provides exceptional value. Research is also generated in-house, delivered under the Market Pulse division; it consists of written analytics and podcasts, in a well-designed product which covers financial markets.
Oanda is a well-managed brokerage with over 23 years of experience.
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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 |
Available Markets
Traders at Forex.com have over 330 assets to choose from, spread across Forex, equity, and index CFDs, commodities, and cryptocurrencies. Over 80 currency pairs offer pure Forex traders prominent exposure. Comparatively, Oanda features over 70 currency pairs and an acceptable selection of commodity CFDs. Index CFDs allow an introduction to equity markets, but individual assets are unavailable. Bond CFDs provide an additional means of cross-asset diversification. The overall choice at both brokers is suitable for most retail traders.
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Currency Pairs | ||
Cryptocurrencies | N/A | |
Commodities | ||
Crude Oil | ||
Gold | ||
Metals | ||
Equity Indices | ||
Stocks | N/A | |
Stocks (non-CFDs) | ||
Bonds | N/A | |
ETFs | ||
Options | N/A | |
Futures | ||
Synthetics | ||
| Get Started | Get Started |
Typical Spreads and Fees
Forex.com offers a spread as low as 0.8 pips in the EUR/USD, but the average is 1.1 pips. Oanda provides a more competitively priced trading environment; the EUR/USD carries a minimum spread of 0.6 pips. It is repeated across assets, but the Forex.com DMA account grants traders access to raw spreads for a commission, which is reduced based on trading volume. Active traders and high-frequency operations will find a superior cost structure at Forex.com.
Swap rates on overnight leveraged positions apply at both brokerages. Corporate actions such as dividends and mergers impact equity and index CFDs and are passed on to traders. Forex.com charges an inactivity fee of £12 per month vs $10 per month at Oanda. Third-party deposit and withdrawal fees apply at both, but Oanda allows one free monthly withdrawal to a credit/debit card. Retail traders will enjoy a more competitive cost structure at Oanda. Active traders, professionals, and high-frequency outlets will find the Forex.com DMA account superior.
The Forex.com DMA account offers a superior trading environment for active traders.
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Average Trading Cost EUR/USD | 1.1 pips | 0.9 pips |
Average Trading Cost GBP/USD | 1.3 pips | 1.3 pips |
Average Trading Cost WTI Crude Oil | $0.035 | $0.03 |
Average Trading Cost Gold | $0.63 | $0.30 |
Average Trading Cost Bitcoin | $60 | $62 |
Minimum Raw Spreads | 0.0 pips | 0.0 pips |
Minimum Standard Spreads | 0.8 pips | 0.6 pips |
Minimum Commission for Forex | $5 per $100K | $5.00 per round lot |
Deposit Fee | ||
Withdrawal Fee | ||
Inactivity Fee | $15 monthly after 12 months | $10 monhtly after 12 months |
| Get Started | Get Started |
Security and Trust
Forex.com is primarily regulated by the Financial Conduct Authority (FCA) in the UK. Client funds are fully segregated, and enjoy the protection of the Financial Services Compensation Scheme (FSCS) up to £85,000. The global regulatory framework additionally includes Canada’s IIROC, Japan’s FSA, Australia’s ASIC, the US CFTC and NFA, and the Cayman Island’s CIMA. Forex.com is fully compliant with all regulators and maintains a trustworthy, secure trading environment.
Oanda’s principal regulator is the US Commodity Futures Trading Commission (CFTC) and NFA. Completing regulatory oversight are the FCA in the UK, the IIROC in Canada, the MAS in Singapore, the ASIC in Australia, and the FSA in Japan. This broker has a clean supervisory record, and traders may fully trust Oanda with personal information and deposits. From a regulatory perspective, Forex.com and Oanda each provide an exemplary approach.
Forex.com has an outstanding record with Tier 1 regulators.
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Country of the Regulator | Australia, Canada, Japan, Cayman Islands, Singapore, United Kingdom, United States | Australia, Canada, Japan, Malta, Singapore, United Kingdom, United States, British Virgin Islands |
Name of the Regulator | ASIC, CFTC, CIMA, FCA, FSA, IIROC, NFA | ASIC, BVIFSC, CFTC, FCA, FSA, IIROC, MAS, MFSA |
Regulatory License Number | 0339826, Undisclosed, 446717, 400/21, 25033, 345646, Undisclosed, Undisclosed, Undisclosed | 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 |
Broker vs Broker Verdict
Retail Forex traders will find an outstanding trading environment at both Forex.com and Oanda. The Forex.com DMA account is superior to what is provided by Oanda to its professional traders. Both brokers are well-regulated and trustworthy, maintain their proprietary trading platform alongside the MT4 platform, and fully support automated trading solutions. Education at both brokers offers a genuine service to improve the knowledge base of traders, while in-house research regularly offers new trading ideas. Partnerships with leading third-party research and analytics firms enhance the trading environment at either brokerage. Forex.com experiences greater international success, while Oanda fails to make any significant entry into markets outside the US and Canada.
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