FXTM Vs Oanda

Category: Broker Guides | Author: Trading Brokers | Date: June 27, 2023

In the vast world of online trading, finding the right forex broker is crucial for achieving your trading goals. In this article, we will compare two renowned brokers, FXTM and Oanda, to help you make an informed decision. Both brokers offer a wide range of trading opportunities and features, but they have their own unique strengths and characteristics. By exploring their the key aspects and features, we aim to provide you with valuable insights into which broker may be the better fit for your trading preferences and requirements. Whether you are a beginner or an experienced trader, understanding these factors will empower you to make an informed choice and embark on your trading journey with confidence.

FXTM Overview

FXTM

FXTM

FXTM is a well-regulated broker that offers traders access to a range of financial markets. With its regulation by the FCA, CySEC, and FSC, FXTM ensures a high level of client protection and adherence to regulatory standards. Traders can benefit from using popular trading platforms such as MetaTrader 4 and 5, which provide advanced charting tools and a user-friendly interface. FXTM offers competitive pricing with tight spreads and no commissions on forex trades. With leverage up to 1:2000, traders have the potential to amplify their trading positions. Additionally, FXTM provides a diverse selection of assets including forex, commodities, indices, shares, and cryptocurrencies, allowing traders to access a wide range of investment opportunities. Traders who value social trading can also participate in the FXTM Invest program, which enables them to follow and copy the trades of successful traders. With a minimum deposit requirement of just $10 and multiple deposit and withdrawal methods available, FXTM offers flexibility and accessibility to traders of all levels.

Pros of FXTM

  • Strong regulation by top-tier authorities.
  • Competitive pricing with tight spreads and no commissions on forex trades.
  • Wide range of trading instruments, including forex, commodities, indices, shares, and cryptocurrencies.
  • High leverage up to 1:2000 for increased trading opportunities.
  • Social trading feature through the FXTM Invest program.

Cons of FXTM

  • Limited social trading options compared to some other brokers.
  • Higher minimum deposit requirement compared to Oanda.
FXTM Logo

FXTM is an award-winning broker with strict regulation in multiple jurisdictions. They have user-friendly trading platforms, various account types and funding methods, along with a vast range of educational materials and trading tools to help you make informed trade decisions.

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

Oanda Overview

Oanda

Oanda

Oanda is a reputable broker known for its strong regulation and user-friendly trading platform. As a regulated broker under the FCA, ASIC, IIROC, and MAS, Oanda provides a secure trading environment for traders. Traders can utilize the Oanda Trade platform, which offers a range of advanced features and customizable tools. Oanda offers competitive pricing with tight spreads and no commissions on forex trades. Although its leverage is lower compared to FXTM, with a maximum of 1:50, Oanda still provides traders with the opportunity to magnify their trading positions. Similar to FXTM, Oanda offers a diverse range of trading instruments including forex, commodities, indices, shares, and cryptocurrencies. However, it does not have a dedicated social trading feature. One notable advantage of Oanda is its zero minimum deposit requirement, allowing traders to start trading with any amount they prefer. Additionally, Oanda supports multiple deposit and withdrawal methods, providing traders with convenient options to manage their funds.

Pros of Oanda

  • Strong regulation by reputable financial authorities.
  • User-friendly Oanda Trade platform with advanced features.
  • Competitive pricing with tight spreads and no commissions on forex trades.
  • Diverse range of trading instruments, including forex, commodities, indices, shares, and cryptocurrencies.
  • Zero minimum deposit requirement for account opening.

Cons of Oanda

  • Lower leverage compared to FXTM.
  • Lack of dedicated social trading feature.
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 FXTM and Oanda

Discovering the right broker for your trading journey can be a crucial decision. Below is a comparison between FXTM and Oanda, providing you with valuable insights to help you make an informed choice.

Regulation

Both FXTM and Oanda operate under the regulation of top-tier financial authorities, ensuring a level of trust and security for traders. FXTM is regulated by the Financial Conduct Authority (FCA) in the UK, the Cyprus Securities and Exchange Commission (CySEC) in Cyprus, and the Financial Services Commission (FSC) in Mauritius. On the other hand, Oanda is regulated by the Financial Conduct Authority (FCA) in the UK, the Australian Securities and Investments Commission (ASIC), the Investment Industry Regulatory Organization of Canada (IIROC), and the Monetary Authority of Singapore (MAS). These regulatory bodies set strict standards and provide oversight to ensure fair trading practices and the protection of client funds.

Trading platforms

FXTM offers the popular MetaTrader 4 (MT4) and MetaTrader 5 (MT5) trading platforms, which are renowned for their user-friendly interface, advanced charting capabilities, and extensive range of trading tools. In addition, FXTM provides its proprietary trading platform called FXTM Trader, offering unique features and enhanced functionality. On the other hand, Oanda offers its own trading platform called Oanda Trade, which is designed to cater to the specific needs of Oanda’s clients, providing a seamless trading experience with intuitive navigation and customizable features.

Pricing and fees

When it comes to pricing and fees, both FXTM and Oanda offer competitive spreads and commission structures. FXTM provides competitive spreads starting from 0.1 pips on major currency pairs, ensuring cost-effective trading for its clients. Similarly, Oanda offers competitive spreads starting from 0.2 pips on major currency pairs, providing competitive pricing in the market. Moreover, both brokers do not charge commissions on forex trades, which can be advantageous for traders seeking to minimize trading costs.

Broker Type

FXTM operates as an Electronic Communication Network (ECN) broker, which means it directly connects traders to liquidity providers, promoting transparent and direct market access. On the other hand, Oanda operates as a market maker, which involves executing client trades internally, potentially leading to potential conflicts of interest. Understanding the broker type is crucial as it can influence factors such as trade execution, pricing, and order fulfillment.

Leverage

FXTM offers high leverage ratios up to 1:2000, allowing traders to amplify their trading positions and potentially increase their profit potential. This higher leverage can be attractive to experienced traders looking for greater exposure in the market. In contrast, Oanda offers leverage up to 1:50, which is comparatively lower and may be more suitable for conservative traders who prefer lower risk exposure.

Asset selection

Both FXTM and Oanda offer a diverse range of trading instruments, including forex, commodities, indices, shares, and cryptocurrencies. Traders have access to multiple markets and can diversify their portfolios with various asset classes, depending on their trading preferences and strategies.

Social Trading

FXTM provides social trading options through its FXTM Invest program, which allows traders to follow and copy the trades of successful traders, leveraging their expertise and potentially enhancing their trading performance. On the other hand, Oanda does not offer dedicated social trading features. Social trading can be beneficial for beginner traders or those seeking to automate their trading strategies.

Minimum Deposit

FXTM has a low minimum deposit requirement of $10, making it accessible to traders with limited initial capital. This lower barrier to entry enables traders to open an account and start trading with a relatively small investment. In contrast, Oanda has no minimum deposit requirement, providing flexibility for traders to deposit funds based on their individual preferences and financial circumstances.

Withdrawal and Deposit methods

Both FXTM and Oanda offer multiple deposit and withdrawal methods, including bank transfers, credit/debit cards, and popular e-wallets such as PayPal, Skrill, and Neteller. This variety of options allows traders to choose a convenient and secure method for funding their accounts and withdrawing their profits.

Which is Better For You?

Choosing between FXTM and Oanda depends on your trading preferences. FXTM excels in offering a wide range of trading platforms, including MT4, MT5, and their proprietary FXTM Trader platform. On the other hand, Oanda stands out with its diverse selection of financial instruments. Consider the broker type, with FXTM operating as an ECN broker and Oanda as a market maker. Leverage and minimum deposit requirements differ, with FXTM offering higher leverage and a low minimum deposit of $10, while Oanda provides leverage up to 1:50 and has no minimum deposit requirement. Lastly, FXTM offers social trading features through FXTM Invest, while Oanda does not have dedicated social trading options. Assess these factors to determine which broker aligns best with your trading style and priorities.

Conclusion

In conclusion, when comparing FXTM and Oanda, it is evident that both brokers have their own strengths and advantages. FXTM excels in providing a wide range of trading platforms, including the popular MT4 and MT5, as well as their proprietary FXTM Trader platform. On the other hand, Oanda stands out with its diverse selection of financial instruments, allowing traders to access multiple markets. Factors such as broker type, leverage, minimum deposit requirements, and social trading features also play a role in determining the best fit for individual traders. It is important to carefully evaluate these factors based on your trading preferences and goals in order to make an informed decision and choose the broker that aligns best with your needs.


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