Avatrade Vs Oanda

Category: Broker Guides | Author: Trading Brokers | Date: June 28, 2023

In the world of online trading, choosing the right broker is essential for achieving your financial goals. This article presents a detailed comparison between two prominent brokerage platforms, AvaTrade and Oanda. Both Avatrade and Oanda have established themselves as reputable players in the industry, catering to traders with diverse needs and preferences. By examining their features, tools, and offerings, we aim to provide you with valuable insights that can assist you in making an informed decision. So, let’s dive into this comprehensive comparison and explore the strengths and weaknesses of these platforms to help you determine which one aligns best with your trading objectives.

Overview of AvaTrade

AvaTrade

AvaTrade

AvaTrade is a highly reputable and globally recognized online brokerage platform that caters to both beginner and experienced traders. With over 14 years of industry experience, AvaTrade offers a diverse range of trading instruments, including forex, stocks, commodities, cryptocurrencies, and more. Traders can access a wide variety of markets through Avatrade’s user-friendly interface and multiple trading platforms.

One of its standout features is the AvaTradeGO platform, which is specifically designed for seamless trading on mobile devices, allowing traders to stay connected and manage their positions on the go. AvaTrade provides a comprehensive suite of educational resources to support traders in their journey, including webinars, tutorials, and market analysis. This ensures that traders have access to the necessary tools and knowledge to make informed trading decisions.

Additionally, Avatrade offers various account types tailored to individual preferences, allowing traders to choose the one that best suits their trading style and objectives. The platform also boasts competitive spreads and low trading fees, providing cost-effective trading opportunities.

Pros of Avatrade

  • Wide range of tradable instruments, including forex, stocks, commodities, and cryptocurrencies.
  • User-friendly interface and intuitive trading platforms, such as AvaTradeGO.
  • Comprehensive educational resources, including webinars, tutorials, and market analysis.
  • Multiple account types cater to different trading needs.
  • Competitive spreads and low trading fees.

Cons of Avatrade

  • Limited options for social trading and copy trading compared to some other platforms.
  • Customer support response time could be improved in certain cases.
AvaTrade Logo

Our #1 Broker 2023

AvaTrade is an award-winning and multi-regulated broker offering a great selection of trading instruments including Forex, Cryptos, Stocks and Commodities. You can trade on all of your devices via user-friendly platforms with excellent trading conditions and no commission fees.

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.

Overview of Oanda

Oanda

Oanda

Oanda is a well-established and respected brokerage platform that has been serving traders for over two decades. It has earned a strong reputation for its reliable and feature-rich trading environment. Oanda offers a wide range of trading instruments, including forex, indices, commodities, and bonds, enabling traders to access diverse markets.

The platform is equipped with a powerful trading interface and advanced charting tools that provide in-depth analysis and customization options, catering to the needs of both technical and fundamental traders. One of the key advantages of Oanda is its access to extensive historical data, allowing traders to conduct thorough market research and analysis.

Additionally, Oanda offers advanced trading features, such as algorithmic trading and customizable trading strategies, empowering traders to automate their trading decisions and implement their unique trading approaches. The platform follows a transparent pricing model, providing competitive spreads and ensuring fair execution of trades.

Pros of Oanda

  • Wide range of trading instruments, including forex, indices, commodities, and bonds.
  • Powerful trading platform with advanced charting tools and customizable features.
  • Access to historical data and extensive market analysis tools.
  • Transparent pricing and competitive spreads.
  • Strong regulatory oversight and trusted reputation in the industry.

Cons of Oanda

  • Limited options for social trading and copy trading compared to some other platforms.
  • Some users may find the platform interface less intuitive initially.
Oanda Logo

Oanda is a multi-regulated and established online broker offering an excellent range of financial instruments via powerful and user-friendly trading platforms with industry leading trading conditions and a superb selection of premium trading tools for comprehensive market analysis.

Leveraged trading in foreign currency contracts or other off-exchange products on margin carries a high level of risk and may not be suitable for everyone.

Comparison Between Avatrade and Oanda

When comparing Avatrade and Oanda, understanding the intricate details is crucial. Some differences between them may affect your trading experience and preferences. Let’s compare AvaTrade and Oanda based on these features:

Regulation:

Both brokers are regulated by multiple authorities, but Oanda has more tier-1 licenses than AvaTrade. Oanda holds 6 global tier-1 licenses, while AvaTrade holds 4. Oanda also holds 1 global tier-3 license, while AvaTrade holds 4 global tier-2 licenses and 1 global tier-3 license. Tier-1 licenses are considered the most trustworthy and reputable in the industry, while tier-3 licenses are considered the least trustworthy and reputable. Therefore, Oanda has a higher trust score than AvaTrade.

Trading platforms:

Both brokers offer MetaTrader 4 (MT4) and MetaTrader 5 (MT5), which are the most popular and widely used platforms in the forex industry. However, AvaTrade also offers its proprietary platform, which is user-friendly and packed with advanced tools and features. AvaTrade’s platform also supports automated trading, social trading, and robo-advisor services. Oanda does not have its proprietary platform, but it offers a web-based platform that is fast, reliable, and customizable.

Pricing and fees:

Both brokers charge no commissions on most trades, but instead, apply a spread or a margin to the market price. The spreads vary depending on the instrument, market conditions, and account type. AvaTrade offers lower spreads than Oanda on average. For example, AvaTrade offers an average spread of 0.92 pips on EUR/USD, while Oanda offers an average spread of 1.26 pips on EUR/USD. Both brokers also charge overnight funding fees for holding positions open past a certain time, as well as inactivity fees for dormant accounts.

Broker type:

Both brokers are market makers, which means they act as counterparties to their clients’ trades and may have a conflict of interest with them. However, both brokers also offer STP (straight-through processing) or ECN (electronic communication network) accounts for some instruments or markets, which means they pass their clients’ orders to external liquidity providers and do not take the opposite side of their trades. STP or ECN accounts usually have tighter spreads but higher commissions than market-maker accounts.

Leverage:

Both brokers offer different leverage levels depending on the instrument, market, and account type. However, AvaTrade offers higher leverage than Oanda on average. For example, AvaTrade offers up to 400:1 leverage for professional clients in Australia or Europe, while Oanda offers up to 100:1 leverage for professional clients in Australia or Europe. Leverage is a double-edged sword that can magnify both profits and losses.

Asset selection:

Both brokers offer a wide range of instruments on various markets, such as forex, shares, indices, commodities, cryptocurrencies, and more. However, AvaTrade offers more instruments than Oanda on average. For example, AvaTrade offers over 1,200 financial instruments on offer, while Oanda offers over 120 financial instruments on offer.

Social trading:

Both brokers support social trading or copy trading services, which allow you to follow or copy other traders’ strategies and performance. However, AvaTrade supports multiple third-party platforms for social trading, such as ZuluTrade, DupliTrade, and MQL5 Signals. Oanda only supports social trading within its platform or MT4’s integrated solution.

Minimum deposit:

Both brokers have different minimum deposit requirements depending on the account type. However, AvaTrade has a lower minimum deposit requirement than Oanda on average. For example, AvaTrade requires a minimum deposit of $100 for its standard account, while Oanda requires no minimum deposit for its standard account.

Withdrawal and deposit methods:

Both brokers offer various withdrawal and deposit methods for their client’s convenience and security. However, Oanda offers more methods than AvaTrade on average. For example, Oanda offers 16+ payment methods including credit cards, debit cards, PayPal, wire transfer, etc., while AvaTrade offers 10+ payment methods including credit cards, debit cards, Neteller, Skrill, etc.

Which is Better For You?

Avatrade might be a better option for you if you value a wide range of trading instruments and want access to a user-friendly trading platform. With AvaTrade, you can trade forex, stocks, commodities, cryptocurrencies, and more, allowing you to diversify your investment portfolio. Their intuitive and feature-rich trading platform, along with advanced charting tools, can assist both novice and experienced traders in making informed trading decisions. Additionally, Avatrade offers various account types, including Islamic accounts, for traders with specific needs or preferences.

On the other hand, Oanda might be a better option for you if you prioritize competitive pricing and flexible trading options. Oanda’s transparent pricing model and tight spreads ensure that you can execute trades at lower costs, which can be especially beneficial for frequent traders. Moreover, Oanda provides access to a variety of trading platforms, including its proprietary platform and the popular MetaTrader 4 (MT4), offering flexibility and convenience. Additionally, Oanda is known for its robust research and educational resources, empowering traders with market insights and analysis to enhance their trading strategies.

Conclusion

In conclusion, both Avatrade and Oanda are reputable brokers with their strengths and advantages. AvaTrade offers a wide range of trading instruments and a user-friendly platform, while Oanda excels in competitive pricing and flexible trading options. The decision between the two ultimately depends on your personal preferences, trading objectives, and specific requirements. It is essential to evaluate the features, services, and offerings of each broker to make an informed choice that suits your individual needs.


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