eToro vs Oanda

eToro and Oanda have established themselves as prominent players in the forex brokerage industry. When faced with the decision of choosing between these two platforms for your forex trading needs, you may find yourself navigating a complex decision-making process.

In this in-depth analysis, we will thoroughly evaluate their trading tools, platform usability, and other relevant factors. Our objective is to provide you with valuable insights that will assist you in determining which broker is best suited to meet your specific requirements. By the end of this article, you will possess a comprehensive understanding of eToro and Oanda, enabling you to make a well-informed decision and confidently select the ideal forex trading platform that aligns perfectly with your needs.

Background Information

Established in 2007, eToro has emerged as a prominent social trading and investment network. With its comprehensive platform, eToro enables users to engage in trading across various financial instruments, encompassing currencies, commodities, indices, cryptocurrencies, and stocks.

eToro's innovative approach to online trading has garnered widespread recognition. The platform introduced groundbreaking features such as social trading, facilitating connections and knowledge sharing among traders. Additionally, eToro pioneered copy trading, allowing users to automatically replicate the successful trades of experienced traders.

Over the years, eToro has consistently expanded and evolved. In 2013, the platform broadened its offerings to include stock trading, granting users access to European, Asian, and Australian markets in addition to commodities and currencies. Recognizing the surge in popularity of cryptocurrencies, eToro also introduced Bitcoin trading in the same year.

OANDA, established in 1997, initially began by providing free online currency exchange information. However, it quickly transformed into a leading global trading enterprise, earning recognition for its inventive strategies and unwavering dedication to customer satisfaction.

Driven by a steadfast commitment to technology, OANDA has consistently introduced pioneering features and services over the years. In 1999, the company unveiled its WAP service, paving the way for a subsequent release of an internet-based currency trading platform in 2001. These advancements aimed to offer traders a seamless and technologically advanced trading experience.

When it comes to currency markets, OANDA provides an extensive array of tools and resources to assist traders. Notably, the Historical Currency Converter stands out as an invaluable tool that grants access to accurate and authoritative historical exchange rates for a variety of currencies, metals, and cryptocurrencies. This resource is particularly beneficial for professionals such as auditors, CPAs, and tax experts seeking reliable foreign exchange data.

Key Features Comparison

When evaluating the key features of eToro and OANDA, it is important to consider various aspects. For novice traders, the available platforms and tools hold significant importance.

OANDA recognizes the diverse needs of traders and offers a diverse range of trading platforms to cater to different preferences and requirements. They provide an extensive selection of platforms, including the widely popular MT4 and their proprietary platform, fxTrade, along with the TradingView charting platform.

Conversely, eToro does not offer the advanced MetaQuotes product. Instead, eToro solely maintains its proprietary webtrader and mobile versions.
Both OANDA and eToro provide customers with an extensive range of financial instruments and markets to choose from, each with its own unique focus and specialty. 

At eToro, forex traders can access a wide range of opportunities, including 47 currency pairs and 17 cryptocurrencies. The platform also offers diversification options through 13 commodities, 13 index CFDs, and 145 ETFs. Furthermore, the majority of the over 2,000 available assets on eToro are equity CFDs. On the other hand, while Oanda does not provide equity CFDs, it offers a broader exposure to the forex market with 70 currency pairs and supports 12 core commodities.

Overall, when it comes to cryptocurrency trading, eToro stands out as the top choice among our best forex brokers. On the other hand, OANDA excels in providing a wider range of currency pairs for traders.

Advantages and Disadvantages

When evaluating eToro and OANDA, it's important to consider the advantages and disadvantages of each platform.

Advantages of eToro:

Cryptocurrency trading: eToro is highly regarded as a leading forex broker for cryptocurrency trading, making it an appealing choice for those interested in this market segment.

Copy trading: eToro offers an advanced copy trading feature, enabling traders to replicate the successful trades of experienced investors.

Wide range of assets: eToro provides a diverse selection of financial instruments, including cryptocurrencies, commodities, index CFDs, and ETFs, giving traders a broad array of options.

Disadvantages of eToro:

Limited platforms: eToro's platform options are limited to its proprietary webtrader and mobile versions, which may be a drawback for those seeking more advanced trading platforms.

Lack of MetaQuotes product: Unlike OANDA, eToro does not offer the widely popular MetaQuotes product, which could be a disadvantage for traders who prefer or rely on its features.

Advantages of OANDA:

Currency pairs: OANDA surpasses eToro in terms of the number of currency pairs available, offering traders a greater variety of options for forex trading.

Ease of use: OANDA's trading platform and client dashboard are designed with user-friendliness in mind, making it particularly suitable for novice traders.

Research and education: OANDA stands out with its extensive research resources and educational materials, providing valuable insights and guidance for traders.

Disadvantages of OANDA:

Limited research organization: Some traders report that OANDA's research tools are poorly organized, potentially making it challenging to access information efficiently.

No 24/7 support: OANDA does not provide 24/7 customer support, which may be a drawback for traders in need of assistance outside of regular business hours.

Fees and Spreads

When it comes to trading, eToro and Oanda have different approaches to their cost structures. At eToro, zero-commission equity trades are only available for buy orders in non-leveraged portfolios. However, a 0.9% fee is applied to all other accounts and orders. On the other hand, Oanda offers more competitively priced assets across the board.

Both brokers have swap rates for overnight leveraged positions, ensuring that traders are aware of the associated costs. Additionally, corporate actions such as dividends, mergers, and changes in equity, along with index CFDs and ETFs, are passed on to traders by both eToro and Oanda.

In terms of fees, both platforms charge a $10 monthly inactivity fee. eToro imposes a flat fee of $5 on all withdrawals, while Oanda grants one free monthly withdrawal to credit/debit card users. Traders should also take into account that third-party processing fees apply, and eToro charges a currency conversion fee.

Overall, Oanda's cost structure leans more towards being trader-friendly, prioritizing the interests of traders. On the other hand, eToro seems to prioritize broker profitability. It's important to consider these factors and evaluate which cost structure aligns best with your individual trading goals and preferences.

Regulation and Security

eToro and Oanda are reputable brokers that place a strong emphasis on the security and trust of their clients.

eToro has obtained regulatory authorization from various respected entities. eToro (UK) Ltd is authorized and regulated by the Financial Conduct Authority (FCA). eToro (Europe) Ltd is authorized and regulated by the Cyprus Securities Exchange Commission (CySEC), listed in the public register of De Nederlandsche Bank N.V. (DNB) as a crypto service provider, and registered with the French Financial Markets Authority (AMF) as a digital assets services provider (DASP).

eToro Money Malta Ltd is authorized and regulated by the Malta Financial Services Authority (MFSA). eToro AUS Capital Limited (eToro Australia) is regulated by the Australian Securities & Investments Commission (ASIC) for the provision of financial services and products.

eToro (Seychelles) Ltd. is licensed by the Financial Services Authority Seychelles (FSAS). eToro USA LLC is a registered Money Services Business (MSB) with the Financial Crimes Enforcement Network (FinCEN) in the United States. Additionally, eToroX is authorized and regulated by the Gibraltar Financial Services Commission as a distributed ledger technology provider.

Oanda has taken the necessary steps to ensure regulatory compliance and maintain a high level of trust with its clients. It is registered as a Retail Foreign Exchange Dealer (RFED) with the U.S. Commodity Futures Trading Commission (CFTC), signifying its commitment to operating in accordance with established regulations.

In Canada, Oanda is regulated by the Canadian Securities Administrators (CSA), further demonstrating its adherence to regulatory standards. Moreover, Oanda has obtained exclusive rights to operate in Australia under the Australian Securities and Investment Commission (ASIC) regulations, solidifying its position as a trusted broker in the country.

Conclusion

The decision between eToro and Oanda ultimately relies on the unique preferences and trading priorities of individuals. While eToro may provide a bit more market access, Oanda's appeal lies in its lower pricing and beginner-friendly features. It is crucial for individuals to carefully evaluate their specific requirements and objectives when selecting between these two brokers. By considering their personal needs, traders can make an informed decision that aligns with their goals in the trading world.