It doesn’t matter if you’re a seasoned trader or a newcomer. Choosing between OANDA and FOREX.com may make all the difference in your experience and success in online foreign currency trading.
While OANDA and FOREX.com are nearly your only choices among foreign exchange brokers in the United States, they are true heavyweights in the forex trading space. So in the battle of OANDA vs. FOREX.com, you can’t go wrong with either broker, both within and outside the U.S.
Table of Contents
- Quick Overview of FOREX.com
- Is FOREX.com Safe?
- Quick Overview of OANDA
- See All 13 Items
Quick Overview of FOREX.com
Operating since 2001, FOREX.com is considered a top foreign currency trading broker. FOREX.com is a ‘dba’ (doing business as) of New Jersey-based Gain Capital Group LLC, a wholly owned subsidiary of StoneX Group Inc.
StoneX is a 100-year-old financial services company. FOREX.com is neither an electronic communications network (ECN) broker nor a market maker, so trades are routed to the market or a liquidity provider.
Is FOREX.com Safe?
In the U.S., FOREX.com is regulated by the Commodity Futures Trading Commission (CFTC) and is a National Futures Association (NFA) member. The main regulator for FOREX.com is the Financial Conduct Authority (FCA) in the United Kingdom.
However, FOREX.com is also regulated by these organizations:
- Australian Services and Investments Commission (ASIC)
- Canadian Investment Regulatory Organization (CIRO)
- Cayman Islands Monetary Authority (CIMA)
- Securities and Futures Commission (SFC) in Hong Kong
- Financial Services Authority (FSA) in Japan.
FOREX.com is highly trusted, with a Trustpilot rating of 4.7.
Quick Overview of OANDA
OANDA was founded in 1996. It launched its live feed in 1997 and is considered a pioneer in the foreign exchange industry. The multinational broker views its New York office as its headquarters.
OANDA was acquired by the private equity firm CVC Capital Partners in 2018. OANDA is a market maker, meaning it quotes its bid and ask prices. When you’re a client, you’re dealing directly with OANDA.
Is OANDA Safe?
In 2005, OANDA introduced the Forex Trader’s Bill of Rights to promote transparency, efficiency, and fairness in forex trading. Other brokers have adopted the Bill of Rights.
The main regulator for OANDA forex is the FCA in the U.K. Other foreign regulators include the:
- ASIC
- Financial Services Commission (FSC) in the British Virgin Islands
- Investment Industry Regulatory Organization of Canada (IIROC)
- FSA in Japan
- Polish Financial Supervision Authority (PFSA)
- Monetary Authority of Singapore (MAS).
In the U.S., the CFTC regulates OANDA, which is also a member of the NFA. OANDA is a highly trusted company with a 4.1 Trustpilot rating.
Comparing OANDA vs. FOREX.com
To compare OANDA vs. FOREX.com, here’s a closer look at the two powerhouse brokers.
Fees
OANDA spreads are lower than FOREX.com spreads, so OANDA provides less expensive trades. However, you will get a withdrawal fee later. Still, both platforms keep the fees to a minimum, although they charge clients who don’t trade for 12 months. The FOREX.com minimum deposit of $100 is a difference. OANDA has no minimum.
OANDA: Charges a bank withdrawal fee of $20 for the first withdrawal in a month and $35 for additional withdrawals. It also charges $10 per month for accounts that have been inactive for 12 months.
FOREX.com: The spreads can be significantly higher than OANDA, and FOREX.com charges $15 per month for accounts inactive for 12 months.
Winner: OANDA
Promotions
FOREX.com and OANDA both offer “welcome” bonuses, and FOREX.com offers additional promotions to entice traders to its platform. These promos are for U.S. traders.
OANDA: Effective Oct. 31, 2024, OANDA is offering a two-tier welcome bonus to new clients. Deposit between $1,500 and $49,999.99 with a trade volume of $100,000 for 30 days and receive $500. Alternatively, deposit $50,000 or more with a trade volume of $50,000,000 for 30 days and receive $10,000.
FOREX.com: FOREX.com is offering a 5% bonus up to $10,000. New clients must deposit a minimum of $1,000 and execute a required number of qualifying trades in the first 60 days to receive the bonus. FOREX.com offers a VIP program where new and existing clients can get up to 4.5% interest on their average daily available margin.
Winner: FOREX.com
Mobile App
OANDA and FOREX.com have apps to keep you trading wherever you are. Both apps are available for iOS and Android, but OANDA’s app is also available for tablets. The OANDA app has the same functionality as the browser-based platform. FOREX.com says its mobile app is as powerful as the web-based platform.
OANDA: You can set custom notifications and adjust chart sizes, react quickly to changes in the market, manage risks and keep up on market events.
FOREX.com: The FOREX.com app stands out for its integrated news, analysis and trade alerts.
Winner: OANDA
Accounts and Features
FOREX.com offers three main accounts: spread-only, raw pricing and MetaTrader. On OANDA, you can access a standard account and an elite trader account.
OANDA: Offers more than 70 currency pairs and 53 CFDs. OANDA commissions are $5 per round lot.
FOREX.com offers 84 currency pairs and 4,500 CFDs. It also offers stock trading and charges a $5 commission per $100,000.
Winner: FOREX.com
Ease of Use and Trading Platforms
OANDA’s fxTrade is considered user friendly and offers advanced charting tools. Traders hold the FOREX.com Advanced Trading Platform in high regard. When it comes to trading platforms, FOREX.com simply has more.
OANDA: OANDA offers MetaTrader 4 and TradingView to U.S. clients. MetaTrader 5 is a more advanced version used for contract-for-differential trading, which is not available to clients in the U.S.
FOREX.com: In addition to the same platforms available on OANDA, experienced traders can take advantage of the economic calendar, technical indicators, and analysis tools in MetaTrader 5 on FOREX.com.
Winner: FOREX.com
Customer Support
FOREX.com and OANDA offer similar customer support via live chat and multilingual support. They have both won awards for education or client satisfaction.
OANDA: Has won awards for client satisfaction and takes the edge in customer service knowledge.
FOREX.com: Has won awards for its educational offerings.
Winner: OANDA
Find the Forex Broker That Fits You
So, how do you choose between FOREX.com and OANDA? Both are considered world-class brokers in the forex market. Each offers something different that might align with your trading style and goals.
You can evaluate each by comparing fees, promotions, apps, accounts and features, trading platforms, and ease of use. These factors will assist you in determining which broker might be best for you.
Frequently Asked Questions
Q
Is OANDA legal in the USA?
A
OANDA, headquartered in New York, is registered with the Commodity Futures Trading Commission and is a member of the National Futures Association.
Q
Is FOREX.com a trusted broker?
A
FOREX.com is regulated by the Financial Conduct Authority in the United Kingdom and the Commodity Futures Trading Commission in the United States. It is also a member of the National Futures Association in the U.S.
Q
Does OANDA charge a monthly fee?
A
If you have an inactive account – no open trades – for 12 months, OANDA will charge you a monthly fee of 10 units of the denomination of your account. So if you’re trading in the U.S. dollar, you will be charged $10 per month.
