In the world of forex trading, two major brokers stand out: Oanda and FOREX.com. Like a pair of formidable contenders in a ring, these brokers cater to clients from the United States, offering a range of services and features to meet their diverse needs. With their compliance to strict regulations, Oanda and FOREX.com have gained the trust of traders seeking reliable and secure platforms. Imagine a vast arena where traders gather, each seeking the best broker to navigate the complex forex market. Oanda provides two account options, while FOREX.com offers three.
Both brokers offer competitive costs and fees, ensuring transparency and fairness. Oanda’s proprietary trading platform, FxTrade, and the popular MetaTrader 4 are at your disposal, while FOREX.com supports both MT4 and MT5 platforms. Customer support is readily available, with Oanda offering multilingual assistance and FOREX.com providing round-the-clock support. With a wide range of currency pairs, CFDs, precious metals, and indices, Oanda and FOREX.com provide the tools necessary to seize opportunities in the forex market. Ultimately, the choice between these two brokers depends on individual preferences and needs.
Key Takeaways: Oanda Vs. Forex.com
- Oanda and FOREX.com are major global forex brokers that accept clients from the United States.
- Both brokers have comparable overall costs with respect to commissions and fees.
- Oanda offers 2 types of accounts: spread-only account and core pricing plus commission account.
- FOREX.com offers 3 types of accounts: standard account, commission account, and STP Pro account.
Oanda vs. FOREX.com
In comparing Oanda and FOREX.com, it is important to consider factors such as the types of accounts offered, customer support options, available platforms, trading costs, and the range of currency pairs and other financial instruments available. Both brokers offer a variety of account options to cater to different trading preferences. Oanda offers a spread-only account and a core pricing plus commission account, while FOREX.com offers a standard account, commission account, and STP Pro account.
| Features | Oanda | FOREX.com |
|---|---|---|
| Trading Platform | Proprietary | MetaTrader 4/5 |
| Spreads | Variable | Variable |
| Minimum Deposit | $0 | $50 |
| Commission | No | Yes |
| Demo Account | Yes | Yes |
| Tradable Assets | Forex, CFDs, Metals | Forex, CFDs, Crypto, Stocks |
| Regulation | Multiple | Multiple |
| Customer Support | 24/5 | 24/5 |
| Mobile App | Yes | Yes |
| Education | Extensive | Comprehensive |
When it comes to spreads and commissions, FOREX.com generally offers slightly better dealing spreads with its standard, commission, and STP Pro accounts compared to Oanda. In terms of mobile app features and functionality, both brokers provide advanced trading platforms, including Oanda’s proprietary FxTrade and the popular MetaTrader 4 (MT4), as well as FOREX.com’s mobile app which includes all advanced features including copy trading found on the MT4/5 platform.
Account Types of Forex.com and Oanda
The comparison between the two brokers involves an examination of their respective account types. Here are the differentiating features, advantages, and disadvantages of the account types offered by Oanda and FOREX.com:
- Oanda offers two types of accounts: spread-only account and core pricing plus commission account. This allows traders to choose between a fixed spread or a variable spread with a commission.
- FOREX.com offers three types of accounts: standard account, commission account, and STP Pro account. Each account type has its own advantages and disadvantages in terms of dealing spreads, commissions, and platform support.
- The advantage of Oanda’s account types is the flexibility to choose the pricing structure that suits the trader’s needs. However, the disadvantage is that the core pricing plus commission account may have higher overall costs due to the added commission.
- The advantage of FOREX.com’s account types is the variety of options available, including the ECN STP Pro account. This account type provides access to an ECN and Level II quotes. However, the disadvantage is that the commission account requires an additional commission per trade.
| Account Types | Oanda | FOREX.com |
|---|---|---|
| Standard | Yes | Yes |
| Premium | Yes | Yes |
| VIP | Yes | Yes |
| Islamic (Swap-free) | Yes | Yes |
| Managed | Yes | Yes |
| Demo | Yes | Yes |
| Micro/Lot | Yes | Yes |
| Mini/Lot | Yes | Yes |
| Standard/Lot | Yes | Yes |
| Commission-Free | Yes | Yes |
| ECN/STP | Yes | Yes |
Costs and Fees charged by Oanda & Forex.com
Costs and fees associated with forex trading can significantly impact a trader’s profitability and should be carefully considered before choosing a broker. When comparing Oanda and FOREX.com, both brokers have comparable overall costs with respect to commissions and fees. Oanda offers two types of accounts: a spread-only account and a core pricing plus commission account.
| Costs and Fees | Oanda | FOREX.com |
|---|---|---|
| Spread | Variable – Starts from 0.6 pips | Variable – Starts from 1.0 pip |
| Commissions | None | Yes, for certain account types |
| Minimum Deposit | $0 | $50 |
| Inactivity Fee | $10 per month after 2 years of inactivity | $15 per month after 12 months of inactivity |
| Withdrawal Fee | None | None |
| Deposit Fee | None | None |
| Overnight Financing | Yes | Yes |
| Account Transfer Fee | Varies | Varies |
| Scalping Allowed | Yes | Yes |
| Hedging Allowed | Yes | Yes |
They charge a 10-base currency unit fee for inactive accounts and normal rollover fees for forex positions held overnight. On the other hand, FOREX.com offers three types of accounts: a standard account, a commission account, and an STP Pro account. While both brokers offer competitive dealing spreads, FOREX.com has slightly better-dealing spreads with its standard, commission, and STP Pro accounts compared to Oanda. It is important for traders to carefully consider the costs and fees associated with each broker to make an informed decision.
Trading Platforms
Trading Platforms play a vital role in the forex industry, serving as the digital battlegrounds where traders engage in the complex art of buying and selling currencies. Both Oanda and FOREX.com offer user-friendly and feature-rich trading platforms that cater to the needs of traders. Oanda’s platforms, including its proprietary FxTrade and MetaTrader 4 (MT4), provide excellent execution, advanced charting, and a wide range of technical analysis tools. Its historical spread calculator is a useful tool for traders.
On the other hand, FOREX.com’s platforms, including the popular MT4/5, are intuitive to use and offer all the advanced features, including copy trading. Additionally, FOREX.com’s mobile app has an integrated fund management option that Oanda lacks. While both platforms have their pros and cons, traders can choose the one that best suits their trading style and preferences.
Oanda Vs. Forex.com: Customer Support
Customer support plays a crucial role in ensuring a positive trading experience for forex traders. Both Oanda and FOREX.com offer various customer support options to assist their clients. Oanda provides support in 7 languages and can be reached via email, live chat, and phone. They have localized and multilingual phone support, which is a notable advantage. On the other hand, FOREX.com offers 24/7 customer support through email and live chat.
When it comes to mobile app features, Oanda’s app features its proprietary trading platform FxTrade and the popular MetaTrader 4 (MT4) platform. In contrast, FOREX.com’s mobile app includes advanced features, such as copy trading, found on the MT4/5 platform. Both brokers prioritize customer support, but Oanda’s localized phone support and FOREX.com’s advanced mobile app features give them an edge in this aspect.
| Oanda | FOREX.com | |
|---|---|---|
| Languages | Support in 7 languages | – |
| Contact | Email, live chat, phone | Email, live chat |
| Mobile App | FxTrade, MetaTrader 4 (MT4) | Advanced features, MT4/5 |
Available Instruments
Available Instruments include a wide range of currency pairs, CFDs, bonds, precious metals, and indices, providing traders with diverse options for investment. Oanda offers over 70 currency pairs, allowing traders to access major, minor, and exotic currency pairs. However, CFD and precious metals trading are not available to U.S. clients at Oanda. On the other hand, FOREX.com offers over 80 currency pairs, including spot gold and silver.
Additionally, FOREX.com provides the opportunity to trade futures and options on futures through its affiliate, FuturesOnline. This gives traders access to a broader range of markets and investment opportunities. While both brokers offer a variety of instruments, FOREX.com has a slight advantage with its wider selection of currency pairs and the inclusion of futures trading options. However, it is important for traders to consider their specific investment preferences and strategies when choosing between the two brokers.
Forex.com vs Oanda: Regulation and Security
Regulation and security are important factors to consider when choosing a forex broker. Both Oanda and FOREX.com prioritize regulatory compliance and investor protection. Here are three key points to consider:
- Regulatory Compliance: Oanda is regulated by multiple financial authorities, including the Financial Conduct Authority (FCA) in the UK and the Commodity Futures Trading Commission (CFTC) in the US. FOREX.com is also regulated by the FCA and the CFTC, ensuring compliance with strict industry standards.
- Investor Protection: Both brokers offer a high level of investor protection. Oanda provides negative balance protection, which means clients cannot lose more than their account balance. FOREX.com offers the Financial Services Compensation Scheme (FSCS) in the UK, which provides compensation to eligible clients in case of broker insolvency.
- Security Measures: Oanda and FOREX.com prioritize the security of client funds and personal information. They use industry-standard encryption protocols to safeguard data and have strict internal controls in place to prevent unauthorized access.
Overall, both Oanda and FOREX.com demonstrate a strong commitment to regulatory compliance and investor protection, ensuring a secure trading environment for their clients.
Comparison and Conclusion
In comparing Oanda and FOREX.com, it is evident that both brokers offer a range of features and services to cater to different trading needs. Oanda provides two types of accounts, with competitive overall costs and excellent execution. They also offer a wide range of technical analysis tools and customer support in multiple languages. On the other hand, FOREX.com offers three types of accounts, including an ECN option, and supports both MetaTrader 4 and 5 platforms.
They have slightly better dealing spreads, more currency pairs, and an integrated fund management option. However, they lack localized phone support and charge additional commissions for certain account types. Ultimately, the choice between Oanda and FOREX.com depends on individual preferences and requirements. Traders should carefully consider the pros and cons of each broker and compare them with other available options before making a decision.
Frequently Asked Questions
What are the minimum deposits required for each account type at Oanda and FOREX.com?
The minimum deposit requirements vary for each account type at Oanda and FOREX.com. Oanda offers two types of accounts: Standard and Premium. The Standard account does not have a minimum deposit requirement, while the Premium account requires a minimum deposit of $20,000. On the other hand, FOREX.com offers three types of accounts: Standard, Commission, and STP Pro. The Standard account does not have a minimum deposit requirement, the Commission account requires an additional $5 commission per 100,000 base currency units, and the STP Pro account requires a minimum deposit of $25,000.
Do both brokers offer demo accounts for testing and practice trading?
Demo accounts are valuable tools for new traders as they provide a risk-free environment to practice trading strategies and familiarize themselves with the broker’s platform. They allow traders to gain hands-on experience in the forex market without risking real money. When choosing a broker for demo trading, it is important to consider factors such as the availability of demo accounts, the range of trading instruments offered, the functionality of the trading platform, and the level of customer support provided.
Can U.S. clients trade CFDs and precious metals at Oanda?
US clients are restricted from trading CFDs and precious metals at Oanda. This limitation is due to strict regulations imposed by US laws. However, Oanda offers a wide range of other trading options such as over 70 currency pairs, bonds, and indices. It is important for US clients to be aware of these trading restrictions and consider alternative brokers that allow CFDs and precious metals trading if they are specifically interested in these instruments. Additionally, Oanda may charge normal rollover fees for forex positions held overnight.
Does FOREX.com support the MetaTrader 4 platform?
The MetaTrader 4 (MT4) platform is widely regarded as one of the most popular and reliable platforms for forex trading. It offers a user-friendly interface, advanced charting tools, and a wide range of technical analysis indicators. Some pros of using the MT4 platform include its versatility, ease of use, and the ability to automate trading strategies using Expert Advisors. However, it’s important to note that not all brokers, including Oanda and FOREX.com, support the MT4 platform. When comparing Oanda and FOREX.com, it’s essential to consider their trading features and tools beyond just the availability of the MT4 platform.
Are there any monthly cash rebates or special programs offered by Oanda?
Oanda offers special programs and monthly cash rebates to its clients. These programs provide additional benefits and incentives for traders. Oanda’s monthly cash rebates can be earned based on trading volume, allowing clients to receive a portion of their trading costs back. In addition, Oanda offers special programs such as its Active Trader Program, which provides enhanced trading conditions and dedicated customer support for high-volume traders. These programs aim to reward and support clients, enhancing their trading experience with Oanda.
