IG Vs Oanda

Category: Broker Guides | Author: Trading Brokers | Date: April 9, 2024

In the fast-paced world of online trading, finding the right broker can make all the difference. With numerous options available, it’s important to understand the features and benefits offered by different platforms. In this article, we will explore two popular brokers, IG and Oanda, and provide a comprehensive comparison to help you make an informed decision. Whether you’re an experienced trader or just starting out, this guide will shed light on the pros and cons of each platform, their key features, and which one might be the better fit for your trading needs.

Overview of IG

IG

IG

IG is a leading global broker that offers online trading and investing services on various markets, such as forex, shares, indices, commodities, cryptocurrencies, and more. IG was founded in 1974 and is regulated by multiple authorities, such as the Financial Conduct Authority (FCA) in the UK, the Australian Securities and Investments Commission (ASIC) in Australia, and the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA) in the US. IG has over 17,000 financial instruments on offer, which is one of the highest numbers of tradeable assets offered by any CFD brokerage.


IG provides its clients with an award-winning trading platform that is fast, easy to use and packed with advanced tools and features. IG also supports MetaTrader 4 and various social and copy trading platforms. IG offers competitive pricing and fees, with no commissions on most CFDs and spread bets, but spreads and overnight funding fees apply. IG offers various types of accounts to suit different trading styles and preferences, with no minimum deposit requirement for the standard account. IG also offers comprehensive education, support and analysis to its clients, including free trading courses and webinars, online peer and staff support, up-to-the-minute news and insights, and various tools and indicators.

Pros of IG

  • Wide range of financial instruments for diversification.
  • User-friendly trading platforms with advanced features.
  • Superior design, functionality, and order types.
  • Access to a desktop trading platform for added convenience.
  • Comprehensive customer support options and educational resources.

Cons of IG

  • Requires a minimum deposit of £250.00 to open an account.
  • Market Maker broker, which can lead to conflicts of interest.
  • Limited availability of the desktop trading platform.
  • Advanced features may be overwhelming for beginners.
  • Inactivity fee for dormant accounts.
IG Logo

IG have an impressive selection of 18,000+ instruments including Forex, Stocks, Cryptos and Commodities. You can trade via easy to use platforms for desktop and mobile apps, with low trading costs and the peace of mind that you are using one of the most well-known brokers in the industry.

70% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Overview of Oanda

Oanda

Oanda

Oanda is a global broker that offers online trading and investing services on various markets, such as forex, shares, indices, commodities, cryptocurrencies, and more. Oanda was founded in 1996 and is regulated by multiple authorities, such as the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA) in the US, the Financial Conduct Authority (FCA) in the UK, the Australian Securities and Investments Commission (ASIC) in Australia, and the Investment Industry Regulatory Organization of Canada (IIROC) in Canada.

Oanda has over 70 currency pairs and 10 cryptos on offer, as well as CFDs on other instruments. Oanda provides its clients with a user-friendly trading platform that is fast, reliable, and packed with advanced tools and features. Oanda also supports MetaTrader 4 and MetaTrader 5. Oanda offers competitive pricing and fees, with no commissions on most trades, but spreads and overnight funding fees apply. Oanda offers various types of accounts to suit different trading styles and preferences, with no minimum deposit requirement for the standard account. Oanda also offers comprehensive education, support, and analysis to its clients.

Pros of Oanda

  • No minimum deposit requirement, making it accessible to a wider range of traders.
  • Transparent pricing model with no conflict of interest.
  • Access to a range of currency pairs and CFDs.
  • Reliable customer service and support.
  • Integration with third-party applications for copy trading and algorithmic trading.

Cons of Oanda

  • Limited product offering compared to IG.
  • Higher spreads compared to IG.
  • Live chat support only available 24/5.
  • Limited availability of order types.
  • Lack of social trading features.
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 IG and Oanda

To determine which approach is more suitable for you, let’s compare IG and Oanda across various factors:

Regulation

Both IG and Oanda are regulated by multiple authorities in different jurisdictions, which enhances their trustworthiness and safety. IG holds 7 global Tier-1 licenses, while Oanda holds 6. IG is authorized by the U.K. FCA, the Australian ASIC, the Singapore MAS, the U.S. CFTC/NFA, the Japanese FSA, the New Zealand FMA and the Bermuda BMA. Oanda is authorized by the U.S. CFTC/NFA, the U.K. FCA, the Australian ASIC, the Canadian IIROC, the Japanese FSA and the Singapore MAS. Both brokers also offer investor protection schemes for their clients in certain regions. IG provides up to £85,000 in the U.K., €20,000 in France and Germany and no protection in other countries. Oanda provides up to £85,000 in the U.K., €20,000 in the EU and CAD 1,000,000 in Canada.

Trading Platform

IG offers two main trading platforms: its proprietary web-based platform called IG Trading Platform and the popular MetaTrader 4 (MT4) platform. IG Trading Platform is a user-friendly and customizable platform that supports advanced charting, technical analysis, news feeds, economic calendars and social trading. Oanda also offers two main trading platforms: its proprietary web-based platform called Oanda Trade and the popular MetaTrader 4 (MT4) platform. Oanda Trade is a user-friendly and customizable platform that supports advanced charting, technical analysis, news feeds, economic calendars and automated trading. Both brokers also have mobile trading apps that are compatible with iOS and Android devices. The apps have similar features and functionalities as their web counterparts and allow traders to trade on the go.

Pricing and Fees

Both IG and Oanda charge low fees for forex and CFD trading. IG does not charge any commissions but only spreads and overnight fees. The spreads vary depending on the instrument and market conditions but are generally competitive. For example, the average spread for EUR/USD is 0.7 pips. Oanda also does not charge any commissions but only spreads and overnight fees. The spreads vary depending on the instrument and market conditions but are generally competitive. For example, the average spread for EUR/USD is 1.3 pips. Both brokers also charge non-trading fees such as withdrawal fees, inactivity fees and currency conversion fees. IG does not charge any withdrawal fees but charges £12 per month after 24 months of inactivity. Oanda charges $20 for withdrawals below $100 in some regions and $10 per month after 12 months of inactivity.

Leverage

Both IG and Oanda offer leverage for forex and CFD trading, but the maximum leverage depends on the instrument, the account type and the regulatory jurisdiction. IG offers up to 30:1 leverage for forex trading in the U.K., EU, Australia and New Zealand, up to 50:1 leverage for forex trading in Singapore, up to 200:1 leverage for forex trading in Bermuda and up to 20:1 leverage for CFD trading in all regions except Bermuda where it is limited to 10:1. Oanda offers up to 50:1 leverage for forex trading in the U.S., up to 30:1 leverage for forex trading in the U.K., EU, Australia and New Zealand, up to 400:1 leverage for forex trading in other regions except Singapore where it is limited to 50:1, up to 20:1 leverage for CFD trading in all regions except Canada where it is prohibited. Leverage can amplify both profits and losses, so traders should use it with caution and risk management.


Asset Selection

Both IG and Oanda offer a wide range of instruments for forex and CFD trading, but IG has a larger and more diverse portfolio. IG offers 99 forex pairs and over 19,000 CFDs on stocks, indices, commodities, metals, ETFs, bonds, options and cryptocurrencies. Oanda offers 71 forex pairs and 53 CFDs on indices, commodities, metals, bonds and cryptocurrencies. Both brokers also offer some unique instruments that are not commonly found elsewhere. IG offers CFDs on IPOs, cannabis stocks and thematic portfolios. Oanda offers CFDs on the Volatility Index (VIX) and the US Dollar Index (USDX).

Social Trading

Social trading is a feature that allows traders to copy or follow the trades of other traders or experts. IG offers a social trading feature called IG Community on its IG Trading Platform. This feature allows traders to interact with other traders, share ideas, strategies and market insights, follow the most popular trades and access live sentiment data. Oanda does not offer any social trading features on its platforms, but it does support third-party social trading platforms such as ZuluTrade and Myfxbook. These platforms allow Oanda clients to connect their accounts and access a variety of social trading services.

Minimum Deposit

The minimum deposit can vary depending on the broker, the account type and the payment method. IG has a minimum deposit requirement of £250 for its accounts, which is relatively high compared to some other brokers. However, the minimum deposit can be lower depending on the payment method. For example, the minimum deposit for cards is £100 and the minimum deposit for PayPal is £50. Oanda does not have any minimum deposit requirement for its accounts, which means that traders can start trading with any amount of money. However, Oanda recommends that traders deposit at least $100 to cover the margin requirements and fees.

Withdrawal and Deposit Methods

Both IG and Oanda offer various withdrawal and deposit methods for their clients, but IG has more options and faster processing times. IG supports bank transfers, credit/debit cards, PayPal and Payoneer for withdrawals and deposits. The processing time for withdrawals is up to 24 hours and the processing time for deposits is instant for all methods except bank transfers which can take up to 3 days. Oanda supports bank transfers, credit/debit cards and PayPal for withdrawals and deposits. The processing time for withdrawals is 1-3 business days and the processing time for deposits is instant for cards and PayPal and 1-3 business days for bank transfers.

Which Should You Choose: IG or Oanda?

The choice between IG and Oanda depends on your specific trading preferences and requirements. If you prioritize a diverse range of financial instruments, advanced trading platforms, and social trading features, IG may be the better option for you. On the other hand, if you prefer a user-friendly platform focused on forex trading, no minimum deposit requirement, and support for third-party social trading platforms, Oanda could be the more suitable choice. Consider your trading goals, preferred asset classes, trading style, and regulatory preferences when making your decision.


Conclusion

IG and Oanda are both reputable and regulated brokers that offer forex and CFD trading to investors and traders worldwide. However, they have some differences in terms of their features and services that may suit different types of traders. IG may be a better choice for traders who prefer a more extensive and diverse asset selection, a user-friendly and feature-rich platform with IG Trading Platform support, a social trading feature with IG Community, more withdrawal and deposit options and faster processing times. Oanda may be a better choice for traders who prefer a more flexible and customizable platform with MT4 support, a wider range of leverage options, no minimum deposit requirement and access to third-party social trading platforms. Ultimately, the best broker for you depends on your personal preferences, trading goals and risk appetite. You should always do your own research before choosing a broker and test their platforms with a demo account before trading with real money. Happy trading!


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