Oanda Vs Capital.Com

Category: Broker Guides | Author: Trading Brokers | Date: May 21, 2024

In the world of forex and CFD trading, Oanda and Capital.com stand out as prominent investment management companies offering a diverse range of investment products and services. While Oanda is based in the United States and Capital.com is headquartered in the United Kingdom, both companies share common traits such as competitive spreads, user-friendly platforms, and round-the-clock customer support. However, when deciding between Oanda and Capital.com, it’s crucial to delve deeper into factors such as regulation, trading platforms, asset selection, leverage, and other relevant factors to determine which platform aligns best with your trading needs and preferences.

Overview of Oanda

Oanda

Oanda

Oanda is a well-established investment management company based in the United States. It offers a comprehensive range of investment products, including forex and CFD trading. As a regulated broker, Oanda operates under the oversight of reputable financial authorities, including the US Commodity Futures Trading Commission (CFTC) and the UK Financial Conduct Authority (FCA). This regulatory framework ensures that Oanda adheres to strict standards of transparency, security, and client protection.


One of the standout features of Oanda is its competitive spreads, which are highly advantageous for forex traders. The platform provides a user-friendly trading interface, making it accessible for both novice and experienced traders. Oanda’s proprietary trading platform, along with the popular MetaTrader 4 (MT4) platform, offers advanced charting tools, technical analysis indicators, and customizable layouts. These features enable traders to conduct in-depth market analysis and execute trades with precision. Moreover, Oanda offers 24/7 customer support, ensuring that traders have access to assistance whenever they need it.

Pros of Oanda

  • Regulated by top-tier financial authorities.
  • Competitive spreads for forex trading.
  • User-friendly trading platform with advanced tools and indicators.
  • 24/7 customer support for prompt assistance.

Cons of Oanda

  • Limited investment products compared to some other brokers.
  • Higher trading fees for certain asset classes.
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.

Overview of Capital.com

Capital.Com

Capital.Com

Capital.com is a reputable investment management company headquartered in the United Kingdom. It specializes in forex and CFD trading, offering a wide range of investment products that include forex, CFDs, commodities, indices, and cryptocurrencies. As a regulated broker, Capital.com operates under the supervision of the Financial Conduct Authority (FCA), ensuring compliance with stringent regulatory standards and providing clients with a secure trading environment.

Capital.com is known for its user-friendly trading platform, which is designed to cater to the needs of traders at all experience levels. The platform offers a variety of charting tools, technical indicators, and educational resources, empowering traders to make informed decisions. Additionally, Capital.com provides a mobile app that allows traders to stay connected and trade on the go. The platform also offers a free demo account, enabling traders to practice and refine their strategies before committing to real funds. Another noteworthy feature of Capital.com is its negative balance protection, which safeguards traders from losing more than their account balance in volatile market conditions.

Pros of Capital.com

  • Regulated by a reputable financial authority.
  • User-friendly trading platform with advanced charting tools.
  • Free demo account for practice trading.
  • Negative balance protection for risk management.

Cons of Capital.com

  • Limited product offerings compared to some other brokers.
  • Spreads may be slightly higher for certain currency pairs.

Comparison Between Oanda and Capital.com

Let’s explore a comprehensive comparison between these two platforms to assist you in making an informed decision tailored to your trading needs.

Regulation

Oanda is regulated by multiple top-tier authorities, such as the FCA in the UK, the CFTC and NFA in the US, ASIC in Australia, and MAS in Singapore. Capital.com is also regulated by several reputable regulators, such as the FCA in the UK, CySEC in Cyprus, ASIC in Australia, and FSA in Seychelles. Both brokers offer investor protection to their clients depending on their region, such as £85k to UK clients and €20k to EU clients. However, Oanda does not offer negative balance protection or guaranteed stop-loss orders to US clients, while Capital.com does offer negative balance protection to all clients.

Trading platforms

Oanda offers a variety of trading platforms to cater to different client preferences. In addition to its proprietary platform, Oanda provides access to popular third-party platforms, MetaTrader 4 (MT4) and MetaTrader 5 (MT5). These platforms offer advanced trading tools, charting capabilities, and automated trading options, providing flexibility and choice for Oanda clients. On the other hand, Capital.com offers its own proprietary trading platform, which is designed to provide a user-friendly and intuitive trading experience. The platform integrates advanced trading features and analysis tools, empowering traders to make informed decisions.

Pricing and fees

Oanda and Capital.Com have different pricing and fee structures that impact trading costs and profitability. Oanda offers commission-free trading, with average to low spreads, making it competitive for most traders. However, an inactivity fee of $10 per month applies after 12 months of no trading. On the other hand, Oanda has no deposit or withdrawal fees, making fund transfers easy. Capital.Com also offers commission-free trading with low to average spreads, maintaining competitiveness. Notably, Capital.Com does not impose an inactivity fee, but it does charge deposit and withdrawal fees, varying by method and currency, potentially increasing overall trading costs and affecting profitability.

Broker Type

Oanda is a market maker broker, which means that it acts as the counterparty to its clients’ trades and sets its own prices based on the market conditions. Oanda claims that it uses an automated system to hedge its net exposure with its liquidity providers and that it does not manipulate prices or trade against its clients. Capital.com is a no dealing desk (NDD) broker, which means that it does not take the opposite side of its clients’ trades and instead passes them to third-party liquidity providers. Capital.com claims that it uses artificial intelligence to provide transparent pricing and execution and that it does not have any conflicts of interest with its clients.


Leverage

Oanda and Capital.com offer different leverage options depending on the client’s classification. For retail clients, Oanda offers leverage up to 50:1, enabling traders to control larger positions with a smaller amount of capital. Professional clients can access higher leverage, up to 100:1 with Oanda. Similarly, Capital.com offers leverage up to 30:1 for retail clients and up to 200:1 for professional clients. It’s important to note that while leverage amplifies potential profits, it also increases the risk of losses, so traders should exercise caution and understand the implications of using high leverage before trading.

Asset selection

Both Oanda and Capital.com provide a diverse range of tradable assets, allowing clients to access multiple markets. Oanda offers a comprehensive selection of assets, including forex, shares, indices, commodities, cryptocurrencies, options, ETFs, bonds, and interest rates. This extensive offering provides traders with opportunities across different asset classes. Similarly, Capital.com covers a wide array of tradable assets, including forex, shares, indices, commodities, cryptocurrencies, options, ETFs, bonds, and interest rates. This asset selection enables clients to build diverse portfolios and take advantage of various market opportunities.

Social Trading

Oanda and Capital.Com differ in their social trading features. Both brokers lack in-house social or copy trading features but leverage third-party platforms to cater to traders interested in following or learning from others. Oanda provides social trading through ZuluTrade and supports TradingView for charting and social aspects. Capital.Com offers social trading and supports TradingView for charting and social capabilities.

Minimum Deposit

Oanda has no minimum deposit requirement for its standard account, offering accessibility for traders with any budget. They also don’t charge deposit or withdrawal fees, providing ease of fund movement. Conversely, Capital.Com has a minimum deposit requirement of $20 for its standard account, making it accessible for most traders. However, they do charge deposit and withdrawal fees, which may impact overall trading costs and profitability.

Withdrawal and Deposit methods

Both Oanda and Capital.com offer various methods for depositing and withdrawing funds, providing convenience and flexibility for their clients. Oanda accepts bank transfers, credit/debit cards, PayPal, and Skrill for both deposits and withdrawals. However, the availability of specific methods may vary depending on the client’s country of residence. Similarly, Capital.com supports bank transfers, credit/debit cards, PayPal, and Skrill for deposits, offering multiple options to fund trading accounts. Withdrawals from Capital.com can be made via bank transfer or e-wallets such as PayPal or Skrill, providing clients with different withdrawal alternatives.


Which is Better For You?

When considering which platform is better suited to your trading needs, it is essential to assess your individual preferences and priorities. Oanda is an excellent choice for traders who value regulatory compliance and a comprehensive range of investment products. With regulation from the US CFTC and UK FCA, Oanda provides a secure and transparent trading environment. Moreover, the platform’s extensive offering of forex, CFDs, commodities, bonds, and indices allows for diversified trading opportunities. If you prioritize access to advanced trading tools, Oanda’s platform upgrade with 28 additional trading tools can significantly enhance your analytical capabilities and provide a comprehensive market analysis experience.

On the other hand, Capital.com caters to traders who prioritize a user-friendly trading experience and simplicity. The platform’s intuitive navigation, charting tools, and technical indicators make it an ideal choice for traders seeking a streamlined and accessible trading environment. Additionally, the availability of a free demo account allows you to practice trading strategies risk-free, while the mobile app enables convenient trading on-the-go. If you are a beginner trader or value ease of use, Capital.com’s user-friendly platform and emphasis on simplicity make it a compelling option.

Conclusion

In conclusion, both Oanda and Capital.com offer competitive trading platforms with a wide range of investment products and 24/7 customer support. Oanda stands out with its strong regulatory oversight, comprehensive investment product offering, and advanced trading tools. On the other hand, Capital.com excels in user-friendliness, simplicity, and providing a free demo account for practice trading. Ultimately, the choice between the two platforms depends on individual preferences, trading strategies, and specific needs. It is important to carefully evaluate your priorities and requirements to make an informed decision that aligns with your trading goals.


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