OANDA and FOREX.com are among the rare brokers that support US traders.
When you’re choosing between OANDA and FOREX.com, you must think about what matters most to you. Are you a beginner looking for a broker with no minimum deposit and competitive spreads? OANDA might be your best bet. Or are you an active trader seeking a wide range of trading instruments and first-rate educational tools? FOREX.com could be the way to go.
The truth is, each broker has its unique strengths, and the better choice depends on your specific forex trading needs. Let’s break down the key differences to find out which one is better suited to you.
OANDA VS FOREX.com: Pros and cons
OANDA Pros:
- No minimum deposit requirement, great for beginners.
- Lower inactivity fee ($10/month after 12 months).
- Lower average spreads on EUR/USD (1.61 pips).
- User-friendly mobile app with high user ratings (4.7 stars).
- Advanced trading tools and webinars for experienced traders.
- Simple and straightforward account opening process.
OANDA Cons:
- Fewer trading instruments (3,928 symbols vs. 5,500 on FOREX.com).
- Limited number of currency pairs (71 vs. 84 on FOREX.com).
- Inactivity fees still apply after 12 months.
- Less comprehensive educational resources compared to FOREX.com.
- Not publicly traded, potentially less transparency.
FOREX.com Pros:
- Offers over 5,500 tradeable symbols, including more currency pairs (84 vs. 71 on OANDA).
- Lower average spreads on EUR/USD (1.4 pips).
- Extensive educational resources suitable for traders of all levels.
- Direct Market Access (DMA) account for professional traders.
- Higher customer satisfaction rating (4.7 stars on Trustpilot).
- Regulated by seven Tier-1 authorities and publicly traded, offering transparency.
FOREX.com Cons:
- Minimum deposit of $100 to start trading.
- Higher inactivity fee ($15/month after 12 months for accounts under $10,000).
- More complex fee structure, which can be overwhelming for beginners.
- Mobile app rated lower than OANDA’s (4.1 stars).
Company background
OANDA and FOREX.com are some of the best forex brokers in the industry, with distinct backgrounds that set them apart. OANDA was founded in 1996, marking its territory as a pioneer in forex trading, while FOREX.com was established in 2001 as part of Gain Capital Group LLC, with a more extensive portfolio of tradable assets.
OANDA operates under multiple regulatory authorities, including the CFTC, FCA, and ASIC.
FOREX.com is regulated and publicly traded, but it has had two recorded citations in its regulatory history, whereas OANDA has maintained a clean record.
This difference in regulatory history can be an important factor for traders, particularly those prioritizing security and reliability. OANDA’s long-standing reputation and spotless regulatory record may appeal to traders seeking a trustworthy broker.
Winner: OANDA
Trading fees, spreads and commissions
Both brokers offer competitive pricing, but there are differences that could impact your trading expenses.
Key points to reflect upon:
- Average Spreads: OANDA offers an average spread of 1.61 pips for EUR/USD, while FOREX.com averages 1.4 pips.
- Commission Structures: OANDA charges $5 per round lot, whereas FOREX.com has a flat rate of $5 per $100K traded.
- Inactivity Fees: OANDA charges $10 per month after 12 months of inactivity, while FOREX.com charges $15 per month for accounts under $10,000.
- Withdrawal Fees: OANDA offers one free monthly withdrawal to credit/debit cards, while FOREX.com imposes fees on withdrawals.
Regarding total trading costs, which factor in spreads and commissions, FOREX.com tends to be more favorable for active traders due to its lower overall costs. So, if you’re on the lookout for low spread forex brokers, FOREX.com might be a better choice for you.
Winner: FOREX.com
Trading platforms and tools
| Feature | OANDA | FOREX.com |
|---|---|---|
| Trading Platforms | MT4, MT5, FxTrade | MT4, MT5, Advanced Trading Platform, WebTrader |
| Advanced Tools | Thorough economic calendar, advanced mobile app | Reuters news feed, integrated fund management option |
| Educational Resources | Advanced trading tutorials, market analysis | Extensive research tools, Trading Central for market insights |
Key Differences:
- OANDA enhances MT4 with 28 additional advanced trading tools for more sophisticated trading strategies.
- FOREX.com offers a broader range of platforms, including the Advanced Trading Platform and WebTrader, which provide more versatility and flexibility.
Both brokers guarantee that traders have the necessary tools to analyze and execute trades efficiently, making them suitable for both novice and experienced traders. Ultimately, the choice between OANDA and FOREX.com depends on your specific trading needs and preferences.
Winner: Tie
Trading instruments and available assets
The selection of trading instruments and assets is obviously a huge factor for a trader who’s looking for the right broker. Let’s take a look at the differences in OANDA’s and FOREX.com’s offerings.
- Diverse Asset Classes: FOREX.com offers over 5,500 tradeable symbols, including 80+ currency pairs, 4,500+ CFDs, stocks, indices, commodities, and cryptocurrencies. OANDA, on the other hand, provides around 3,928 tradeable symbols, primarily focusing on forex and CFD trading with limited additional asset options.
- Currency Pairs: FOREX.com offers more currency pairs (84) compared to OANDA (around 71).
- CFD Options: FOREX.com has a broader selection of CFDs, totaling over 4,500, whereas OANDA’s CFD offerings are more limited.
- Multi-Asset Platform: FOREX.com includes MT5 for multiple asset classes, while OANDA supports MT4 but doesn’t offer MT5 for its U.S. clients.
FOREX.com’s extensive range of trading instruments and assets makes it more appealing for traders looking for diversity in their investment portfolio.
Winner: FOREX.com
Educational tools and support
Both brokers offer extensive educational resources, including guides and courses tailored for beginner traders entering the forex market.
FOREX.com is particularly recognized for its thorough educational offerings. They provide structured resources suitable for various trader levels. These resources include live webinars, tutorial videos, and advanced research tools like Trading Central and Delkos Research, which offer in-depth market insights and analysis.
Customer feedback suggests that FOREX.com has a higher level of satisfaction regarding its educational content compared to OANDA.
OANDA’s educational tools are more navigational, suited for experienced traders looking for advanced trading strategies. They offer volatility and pattern-matching analytical tools, which aren’t available at FOREX.com.
However, OANDA’s educational resources might require more navigation and effort to locate and utilize effectively. Both brokers include live webinars and tutorial videos to enhance trader knowledge and skills, but FOREX.com’s organized approach makes it more accessible for traders of all levels.
Winner: FOREX.com
Minimum deposit requirements
- OANDA has no minimum deposit requirement. Financially speaking, it’s literally as accessible as it can get.
- FOREX.com requires a minimum deposit of $100 to open an account.
In the context of forex trading platforms, this difference in minimum deposit requirements can greatly influence your choice. If you’re looking to start small or test the waters, OANDA’s no minimum deposit policy could be more enticing.
Winner: OANDA
Customer support quality
Frequently, traders face complex issues or need immediate clarification on certain trading aspects. Good customer support matters a lot. Both OANDA and FOREX.com recognize this importance, hence they offer multi-channel customer support. This includes live chat and quick response times, to guarantee traders receive assistance when needed.
Both brokers offer extended hours of support, operating 24/5 to cater to global forex traders.
OANDA has even received awards for customer support. On the flip side, FOREX.com has better ratings on some review sites like TrustPilot.
This one is really hard to pick, but we will give the slightest of edges to OANDA.
Winner: OANDA
Account types and features
| Broker | Account Type | Key Features | Minimum Deposit | Spreads | Commissions |
|---|---|---|---|---|---|
OANDA | Standard | No initial deposit, spread-only pricing | None | From 0.8 pips | None |
| Core | For high-frequency traders, tighter spreads | None | From 0.1 pips | $40 per million traded | |
| Premium | Lower spreads, no commissions, enhanced features | $10,000 or $10M trading | From 0.1 pips | None | |
| Premium Plus | For high-volume traders, priority support, no deposit fees | $50M monthly volume | From 0.1 pips | None | |
FOREX.com | Standard | Competitive spreads, no hidden fees | $100 | Competitive | None |
| Commission | Lower spreads, commission charged | $100 | Lower spreads | Based on trading volume | |
| DMA | Direct market access, advanced features for pros | $25,000 | Lower spreads | Based on trading volume |
Winner: Tie
Mobile app experience
Given the growing importance of mobile trading, both OANDA and FOREX.com have developed powerful and convenient mobile trading apps to cater to traders on the go.
OANDA’s app excels in ease of use, particularly on iOS devices, with a 4.7-star rating compared to FOREX.com’s 4.1 stars.
OANDA’s app provides real-time notifications and customizable chart adjustments, which enhance user engagement and responsiveness. It also allows for one-click trading, historical price history, and straightforward account management. Overall, it’s a very user-friendly platform.
FOREX.com’s app includes integrated news feeds and trade alert functionalities within its app. It offers thorough market insights to traders.
While FOREX.com’s mobile app supports both iOS and Android devices, its overall performance and user satisfaction are somewhat lower compared to OANDA’s mobile offering.
Winner: OANDA
Regulatory compliance
Regulatory compliance is an essential factor to take into account, especially for US traders. Both OANDA and FOREX.com are highly regulated, but let’s look at the specifics.
Regulatory authorities:
- OANDA: CFTC, FCA, ASIC, and others.
- FOREX.com: CFTC, FCA, IIROC, and seven Tier-1 authorities.
- Public Trading: FOREX.com is publicly traded, OANDA is not.
- Segregation of Funds: Both brokers segregate client funds to comply with regulatory requirements.
Both brokers are deemed highly trustworthy due to their strong adherence to regulatory standards. Neither of them present a risky and unsafe trading environment for their clients, though FOREX.com may get a small edge due to it being publicly traded.
Winner: FOREX.com
Ease of use for beginners
When comparing these two giants for ease of use for beginners, it’s clear that both brokers offer a supportive environment for new traders. However, there are key differences that can help you decide which one is more suitable for your needs.
FOREX.com stands out with its thorough educational resources. This might make it easier for beginners to grasp complex forex trading concepts. However, its complex fee structure can be overwhelming for complete novices.
OANDA, though not quite on par with FOREX.com in terms of educational resources, on the other hand, offers a highly user-friendly mobile app designed for easy navigation. This can be beneficial for those who prefer to trade on their mobile devices.
Both brokers allow for forex demo accounts, which let traders practice without risking real money.
Winner: Tie
The bottom line
Both OANDA and FOREX.com excel in different areas, making them ideal for distinct types of traders.
OANDA is great for beginners due to its no minimum deposit, user-friendly mobile app, and straightforward fee structure. Its low inactivity fees and simple account setup make it particularly appealing to those new to trading or those looking to start with smaller investments.
FOREX.com is better suited for more active and professional traders who seek a broader range of trading instruments and advanced educational resources. Its Direct Market Access (DMA) and extensive asset diversity make it a top choice for those focused on maximizing their trading strategies.
Ultimately, if you’re just starting out or value simplicity, OANDA is the better choice. However, for traders looking for a wide array of tools, assets, and advanced features, FOREX.com takes the edge.
If you’re interested in exploring new ways to tackle the forex markets, make sure to check out our list of the best forex trade copiers.
