Forex.com vs Oanda
Forex.com and Oanda, two renowned online Forex brokers, are under the spotlight today. Both have impressive histories, being operational since 2001 and 1997 respectively. Owned by GAIN Capital Holdings, Forex.com is a publicly traded company on NYSE, bearing the ticker symbol GCAP. Oanda, on the other hand, is a US entity operating within a robust regulatory framework.
Forex.com vs Oanda Review
Forex.com enjoys a significant standing in the market of online Forex trading. The company has broadened its reach over various international markets. Oanda, a veteran online brokerage, continues to be a preferred choice in North America. A noteworthy fact is that 72% of retail traders on Forex.com and 73.5% on Oanda operate at a loss.
Forex.com is the largest MT4 broker as of April 2019, based on active server counts. The broker offers enhanced trading with plugins from Reuters, Autochartist Trade Ideas, and Trading Central. A proprietary Advanced Trading Platform complements the MT4, providing more than 100 predefined indicators. Both platforms are suitable for automated trading and a webtrader rounds off the platform selection.
In the case of Oanda, its proprietary trading platform is replete with research tools. Market Pulse, Dow Jones FX Select, 4CAST, TradingView, and Autochartist feature prominently. The MT4 platform is also available for those preferring automated solutions. Numerous APIs, including Oanda MT4 Open Order, are on offer for third-party developers.
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Forex.com caters to professional traders with a direct market access account, granting access to deep liquidity pools. An exceptional educational course is available to new traders, divided into beginner, intermediate, and advanced learning stages. Further complementing its offerings is an outstanding in-house research team. MT4 VPS Hosting is available for accounts exceeding $5,000.
Oanda also provides an educational section, covering a broad range of topics. It comprises written content and videos, offering substantial value. The broker's in-house research, delivered under the Market Pulse division, includes written analytics and podcasts.
Regarding spreads, Forex.com's EUR/USD spread can go as low as 0.8 pips, but averages at 1.1 pips. In comparison, Oanda's minimum spread for EUR/USD stands at 0.6 pips. The DMA account of Forex.com grants access to raw spreads for a commission, which is volume-based. Forex.com presents a superior cost structure for active traders, professionals, and high-frequency operations.
Swap rates on overnight leveraged positions apply at both brokers. Both pass on the impacts of corporate actions such as dividends and mergers to traders. Forex.com charges an inactivity fee of £12 per month, whereas Oanda charges $10 per month. Both brokers charge third-party deposit and withdrawal fees, but Oanda permits one free monthly withdrawal to a credit/debit card.
Both Forex.com and Oanda offer an excellent trading environment to retail Forex traders. Forex.com's DMA account surpasses what Oanda offers its professional traders. Each broker maintains its proprietary trading platform alongside the MT4 platform. Both also support automated trading solutions and offer educational services to improve traders' knowledge base. Each broker has partnered with leading third-party research and analytics firms. Forex.com has enjoyed international success, while Oanda has been more US and Canada-centric.
