OANDA vs FOREX.com: Independent Comparison

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OANDA and FOREX.com are forex/CFD brokers, yet the two have essential differences. Compared to OANDA, FOREX.com’s high fees and subpar desktop technology are clear disadvantages. CFDs trading fees are quite exorbitant, but forex trading fees are significantly more reasonable. It’s reassuring to know that FOREX.com’s parent firm is traded publicly.

Both brokers are frequently compared to one another to determine who is superior. There’s nothing wrong with the fact that many traders don’t realize the optimal decision may vary from person to person.

The trading platform at FOREX.com is second to none. Several awards have been given to OANDA for its “next generation” platform. Among the many things it can do, market analysis, complicated charting, and trade management are all made easier with this program’s helpful tools.

Traders of all skill levels may use the platform’s welcoming and flexible trading environment. You may choose between a web-based version, a desktop version, or a mobile version.

There is a wide variety of high-quality trading platforms available at FOREX.com. These sites are made to meet the needs of merchants with a wide range of expertise.

When trading in a wide variety of assets, reputable brokerages like OANDA and FOREX.com provide the most excellent platform and service. Since both companies are trusted market makers and regulators, they are both reliable. Both provide top-notch resources for helping traders and offer similar spreads, tools, and ease of use. FOREX.com is a good choice for novice traders, whereas OANDA is more suitable for seasoned professionals.

 

OANDA Overview

OANDA was founded in 1996 and claims to be “all things currency,” providing not just currency conversion but also FX data services for corporations and an established worldwide online brokerage service for consumers looking to trade the retail FX and CFD markets.

The firm Olsen & Associates (OANDA) is based in the United States and provides a broad range of online trading services to traders all over the world. It has been around since 1996 and is presently governed by the law in four countries. The Financial Conduct Authority (FCA)  approved this broker

Depending on the client’s location, OANDA provides a range of account security options. Negative balance protection, as required by ESMA, is provided by OANDA Europe Limited. On the other hand, OANDA Asia Pacific Pte Ltd offers guaranteed stop loss orders. However, OANDA Corporation does not provide this security to its American customers’ accounts. According to the CFTC’s Retail Forex Obligation report, OANDA is one of the leading U.S. forex brokers. 

OANDA is among the best online forex brokers because of its transparent mission, focus on customer education and research, availability of different user interfaces, and worldwide regulatory monitoring.

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OANDA keeps up its own trading platform, including the Market Pulse research site and Dow Jones FX Select, 4CAST, TradingView, and Autochartist. With a robust charting package, manual traders have all they need to do in-depth market analysis. The favored retail trading platform MT4 will be used by traders employing automated solutions. OANDA provides its own API, OANDA MT4 Open Order, and supports other APIs used by third-party developers. Read also the full IG vs OANDA review.

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The teaching center is adequate for novice traders because it covers many topics. The value of the combined textual and video information is remarkable. Market Pulse also provides in-house research through written analyses and podcasts, packaged in a sleek offering that focuses on the financial markets.

FOREX.com Overview

For the foreign exchange market, FOREX.com is a powerhouse. 180 countries and regions. A proper amount of rules and regulations are applied where they should. Close odds. Innovative financial tools. FOREX.com, which has been around since 2001 and is owned entirely by Gain Capital Holdings, a company listed on the New York Stock Exchange, has a large and dedicated customer base. Since its inception in 2001, FOREX.com has worked tirelessly to maintain its position as a frontrunner in the volatile foreign exchange market.

One theory puts the blame on the fact that FOREX.com refers to the most volatile type of investment possible. It’s not limited to only currency pairings that traders may access.

In 2004, FOREX.com became a member of the National Futures Association (NFA) and the Commodity Futures Trading Commission (CFTC) in the United States.

forex.com

Regarding the foreign exchange industry, FOREX.com is among the best brokerages. More than 180 equities, commodities, FX pairs, and cryptocurrencies are available for trading. The company was founded in 1999 and held authorization from authorities in several countries, including the US, UK, Canada, Australia, and Japan. 

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FOREX.com is a publicly listed firm on the NASDAQ and a worldwide broker in the United States that specializes in providing Contracts for Difference (CFDs) based on commodities, currencies, indices, stocks, ETFs, shares, bonds, and cryptocurrencies.

Features & Services
Overall rating    
Education & Research    
Account Types    
Fees & Costs    
Customer Support    
Range of Investments    
Trading platform    
Mobile App    
Other Accounts    
Safety & Security    

OANDA vs. FOREX.com Service & Feature Comparison

Costs

Traders benefit from a reduced spread since they pay less of a trading cost. However, not all brokers make their spread data publicly available, making it challenging to compare spreads across different brokers.

Traders may still choose the best brokers for them based on the types of spreads they provide. Spreads can either be fixed or variable, although both are common. Both spreads have benefits and drawbacks that may differ for different traders. Here, OANDA gives its prices with a Fixed spread, whereas FOREX.com provides a Variable spread.

The typical spread on the EUR/USD at FOREX.com is 1.1 pips, but it may be as low as 0.8. When compared to other brokers, OANDA’s trading environment is more cost-effective. The EUR/USD pair has a minimum spread of 0.6 pips. This is true across all asset classes; however, traders with a FOREX.com DMA account may access raw spreads for a commission that drops with increased trading volume. FOREX.com has a better cost structure for high-frequency traders and active investors.

Overnight leveraged holdings are subject to the applicable swap rates at both brokerages. The effects of corporate activities, such as dividends and mergers, on stock and index CFDs, are passed on to investors. The inactivity cost charged by FOREX.com is $12, while OANDA’s is just $10. Withdrawal and deposit fees imposed by a third party apply in both cases. One free monthly withdrawal to a credit or debit card is available on OANDA. Regarding fees, OANDA is now more affordable for retail traders. The FOREX.com DMA account is ideal for high-frequency trading and expert traders.

Range of Investments

Over 330 assets, including Forex, equities, index CFDs, commodities, and cryptocurrencies, are available to traders on FOREX.com. Market participants in the pure Forex market have access to over 80 currency pairings. In contrast, OANDA offers trading in more than 70 different currency pairings in addition to a wide range of commodities CFDs. The stock market can be introduced using index CFDs, but specific assets cannot be traded. Bond contracts for difference (CFDs) offer an alternative route to diversification across different asset classes. For the most part, most retail traders can do well with either broker.

Traders have a higher potential for success when they have access to a wide range of CFD instruments and a large number of CFDs within each category of instruments. The finest brokers will provide hundreds of options across these categories regarding trading CFDs. According to our research, FOREX.com has a broader and deeper selection of trading instruments than OANDA. There are 91 available currency pairings on FOREX.com, whereas 45 are available on OANDA.

Compared to OANDA’s approximately 70 available currency pairings, FOREX.com offers a far more comprehensive selection. OANDA may not excel in this area, but it does provide a wide selection of commodities CFDs, so it is not terrible. Even if you can’t get your hands on specific assets, you may still diversify your portfolio by buying and selling bond CFDs. OANDA also provides a venue for trading index CFDs on the equities markets.

Account Types

OANDA provides two distinct types of accounts—standard and premium—and a large variety of Contracts for Difference (CFDs) and spreads betting opportunities across several asset classes. Unfortunately, not all of them are offered in every area it serves. It’s not just foreign exchange that this broker facilitates trading in; indexes, metals, commodities, and bonds are also on the table.

FOREX.com allows traders to choose between accounts with spread and commission pricing. Spread-based OANDA accounts are the norm. There are two tiers of accounts, Standard and Premium, with Premium offering more excellent rates. A demo trading account can be opened with either Broker without cost.

Education and Research

Traders are typically left to rely on third-party resources or their own research because brokers provide little training. Traders just starting out need accessible, well-organized resources that can be accessed in various ways. Expert-led webinars and advanced trading technique sections provide fresh perspectives for seasoned investors.

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Both FOREX.com and OANDA offer some degree of tutorial assistance. For advanced traders, both FOREX.com and OANDA provide resources and guidance.

Traders will require access to systematic market research and analysis to correctly anticipate an instrument’s price fluctuations. Research and market analysis are always superior when done in-house and routinely updated. We place a premium on regular in-house updates because other sources don’t demonstrate the same mastery of trade concepts. Traders who sign up with certain brokers can also participate in educational webinars by industry pros.

Customer Service

In forex trading, customer service is very much alive and well. Even in uncompetitive businesses like forex, providing customer service to your clientele is a must.

In a market where clients will sue you for anything, the value of fast and courteous service can’t be overstated.

Trouble taking money out of your checking account? Bring a lawsuit! Does it escape your attention that foreign exchange trading carries a high degree of danger? Time for court!

Without a doubt, some of these claims have merit. However, it’s important to remember that an angry or underserved customer is also far more likely to file a lawsuit.

Neither FOREX.com nor OANDA excels in this crucial area. FOREX.com, however, wins out as the best option because OANDA has had more time to perfect its service and plainly hasn’t.

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Trading Technology

In the foreign exchange market, how user-friendly your online trading interface is may make or break your success. When it comes to making a deal, it doesn’t matter how complete the other aspects of the system are if the interface is difficult to use. As far as web and desktop trading goes, FOREX.com is still miles ahead of the competition.

It’s easy to make money using FOREX.com’s trading platform. Numerous awards have been bestowed upon OANDA’s “next generation” platform. Market analysis, advanced charting, and trade management provide great tools.

FOREX.com’s trading platform is accessible via web, desktop, and mobile. Overall, their web and desktop trading interfaces are well regarded, with users giving them high marks for their ease of use, quickness, charting and analysis tools, and breadth of market indicators.

FOREX.com’s Advanced Trading Platform is based on the ubiquitous MetaTrader 4, but it features a streamlined interface designed specifically for FOREX.com (MT4). Other trading systems, such as Ninja Trader, Trading View, and Tradable, may be integrated for even more trading options.

FOREX.com provides its users access to a wide variety of high-quality trading platforms. These platforms are designed to meet the needs of traders of all experience levels.

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No matter how unique your trading requirements are, a platform is available to satisfy them. Each trading platform has been built to provide lightning-fast performance while also putting you in charge of your own trading experience.

Additionally, these enhancements guarantee that you will always be in command. Regarding trading platforms, FOREX.com and OANDA provide access to MetaTrader 4 and MetaTrader 5.

Mobile Apps

For mobile devices, OANDA offers two separate apps, one for iOS/Apple and another for Android.

There has been an unexpectedly positive response to the iOS app. Recent user evaluations are overwhelmingly positive, giving the app an average rating of 4.6 stars.

Because of this, it is painfully apparent that the OANDA app for Android is woefully inadequate. Only 3.7 stars out of 5, and the latest reviews are full of complaints about bugs, features missing in action, and general inconsistent performance.

When it comes to apps, FOREX.com does not do well. Forex trading on a mobile app with a small screen requires careful design to ensure consumers get the best possible experience.

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My Preference: OANDA Ties With FOREX.com

FOREX.com and OANDA are included on the short list of forex trading platforms that welcome customers from the United States. These are, therefore, the top two choices for any American interested in foreign exchange trading.

It will come down to personal taste for international traders to decide between OANDA and FOREX.com. Neither party loses many faces in this comparison. You won’t find significant differences when comparing spreads, fees, support, and resources. FOREX.com is a good option for beginners in the foreign exchange market. When it comes to seasoned traders, OANDA frequently looks to be a good fit.

In the end, you’ll probably be in excellent hands with either firm because they’re both dominant market makers in the forex trading industry and designed to stay.

FAQ

Is FOREX.com or OANDA safer for Forex and CFDs trading?

Over the previous decade, StoneX Group, of which FOREX.com is a part, has received more than a dozen regulatory fines in various countries. This broker had an impeccable record with its regulator and a solid reputation for reliability before its takeover in 2001. Based on the number of MT4 servers each broker uses, it was still the market leader in 2019. Since its inception in 1997, OANDA has been one of the most transparent and safe online Forex brokers. It has a stellar reputation with several worldwide regulators.

Which broker is better for beginner traders?

Both brokers have a comprehensive teaching center; however, FOREX.com stands out for its superior material. FOREX.com and OANDA both offer research, but OANDA gives you access to additional trading tools. Generally speaking, the prices of all available goods and services are comparable.

Which trading platform is better: FOREX.com or OANDA?

FOREX.com has a unique trading platform and the widely used MT4. DMA accounts can be opened as well. Charts are provided by Trading View, while trading signals are provided by Recognia. Traders may benefit from a more advanced solution than FOREX.com using OANDA's own trading platform. This broker provides an enhanced version of the MT4 trading platform that includes twenty-eight new features. Although FOREX.com offers a wide variety of products, OANDA has a better range.

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