Oanda Vs Plus500

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

Are you looking to dive into the exciting world of online trading? With numerous brokers to choose from, it’s essential to find one that suits your trading style and meets your requirements. In this article, we will explore two popular platforms, Oanda and Plus500, and provide you with a comprehensive comparison to help you make an informed decision. Whether you’re a beginner or an experienced trader, understanding the pros and cons of each platform, along with their features and offerings, will empower you to select the one that aligns with your goals. So let’s delve into the details and find out which platform could be your gateway to success in the financial markets.

What is Oanda?

Oanda

Oanda

Oanda is a well-established online trading broker that has been in operation for over two decades. It provides a comprehensive platform for forex and CFD trading, catering to both beginner and experienced traders. Oanda is known for its user-friendly interface and cutting-edge technology, making it an attractive choice for those entering the trading world. Oanda’s platform provides real-time charts, analysis tools, and order execution capabilities, empowering you to make informed trading decisions.

Pros of Oanda

  • Established reputation and trusted in the industry.
  • User-friendly platform with customizable features.
  • Wide range of forex pairs and CFDs available.
  • Multiple regulatory licenses for enhanced safety and reliability.
  • Supports third-party social trading platforms.

Cons of Oanda

  • Limited asset selection compared to Plus500.
  • Higher spreads compared to some other brokers.
  • Inactivity fees after 12 months of account inactivity.
  • Withdrawal fees for small withdrawal amounts.
  • Limited educational resources for traders.
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.

What is Plus500?

Plus500

Plus500

Plus500 is another prominent player in the online trading industry. It provides a platform that caters to traders worldwide. Plus500’s platform offers access to a wide range of instruments, including forex, stocks, indices, commodities, and cryptocurrencies, making it suitable for diverse trading strategies and preferences. Plus500’s platform provides real-time price charts, risk management tools, and order execution capabilities to facilitate seamless trading experiences.

Pros of Plus500

  • Competitive fixed spreads for transparent trading costs.
  • Diverse portfolio of over 2,700 CFDs.
  • Multiple regulatory licenses for trustworthiness.
  • Fast withdrawal processing times.

Cons of Plus500

  • Limited social trading features.
  • Inactivity fees after 3 months of account inactivity.
  • Relatively lower leverage ratios in certain regions.
  • Limited educational resources for traders.
  • Minimum deposit requirement of $100.
Plus500 Logo

Founded in 2008, Plus500 is a regulated and leading online trading broker providing a large range of 2,000+ CFD instruments for trading on their proprietary trading platforms with very competitive trading conditions.

81% 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.

Comparison Between Oanda and Plus500

To determine which platform is more suitable for you, let’s compare Oanda and Plus500 across various factors:

Regulation

Both Oanda and Plus500 are regulated by multiple authorities in different jurisdictions, which enhances their trustworthiness and safety. Oanda holds 6 global Tier-1 licenses, while Plus500 holds 4. Oanda is authorized by the U.S. CFTC, the U.K. FCA, the Australian ASIC, the Canadian IIROC, the Japanese FSA and the Singapore MAS. Plus500 is authorized by the U.K. FCA, the Australian ASIC, the Singapore MAS, the Israeli ISA, the Cyprus CySEC and the UAE DFSA. Both brokers also offer investor protection schemes for their clients in certain regions. Oanda provides up to £85,000 in the U.K., €20,000 in the EU and CAD 1,000,000 in Canada. Plus500 provides up to £85,000 in the U.K. and €20,000 in other EU countries.

Trading Platform

Oanda 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. Plus500 also has its own web-based platform. The platform has a clear and intuitive design that allows traders to access over 2,800 instruments across various markets. The platform also offers advanced charting, risk management tools, alerts and notifications and a demo account.

Both brokers also have mobile 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 Oanda and Plus500 charge low fees for forex and CFD trading. Oanda 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. Plus500 also does not charge any commissions but only spreads and overnight fees. The spreads are fixed and depend on the instrument and market volatility. For example, the fixed spread for EUR/USD is 0.6 pips. Both brokers also charge non-trading fees such as withdrawal fees, inactivity fees and currency conversion fees. Oanda charges $20 for withdrawals below $100 in some regions and $10 per month after 12 months of inactivity. Plus500 charges $10 for withdrawals below $100 or equivalent in all regions and $10 per quarter after 3 months of inactivity.

Leverage

Both Oanda and Plus500 offer leverage for forex and CFD trading, but the maximum leverage depends on the instrument, the account type and the regulatory jurisdiction. 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. and EU, up to 400:1 leverage for forex trading in other regions, up to 20:1 leverage for CFD trading in all regions except Canada where it is prohibited. Plus500 offers up to 30:1 leverage for forex trading in the U.K. and EU, up to 300:1 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. Trading with high leverage can amplify both profits and losses, so traders should use it with caution and risk management.

Asset Selection

Both Oanda and Plus500 offer a wide range of instruments for forex and CFD trading, but Plus500 has a larger and more diverse portfolio. Oanda offers 71 forex pairs and 53 CFDs on indices, commodities, metals, bonds and cryptocurrencies. Plus500 offers 65 forex pairs and over 2,700 CFDs on stocks, indices, commodities, metals, ETFs, options and cryptocurrencies. Both brokers also offer some unique instruments that are not commonly found elsewhere. Oanda offers CFDs on the Volatility Index (VIX) and the US Dollar Index (USDX). Plus500 offers CFDs on IPOs, cannabis stocks and thematic portfolios.

Social Trading

Social trading is a feature that allows traders to copy or follow the trades of other traders or experts. 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. Plus500 also does not offer any social trading features on its platform, but it does have a feature called Traders’ Sentiments. This feature shows the percentage of Plus500 clients who are buying or selling a specific instrument at any given time. This can help traders to gauge the market sentiment and identify potential trading opportunities.

Minimum Deposit

The minimum deposit can vary depending on the broker, the account type and the payment method. 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. Plus500 has a minimum deposit requirement of $100 for its accounts, which is relatively low compared to some other brokers. However, the minimum deposit can be higher depending on the payment method. For example, the minimum deposit for bank transfers is $500 and the minimum deposit for PayPal is $200.

Withdrawal and Deposit Methods

Both Oanda and Plus500 offer various withdrawal and deposit methods for their clients, but Plus500 has more options and faster processing times. 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. Plus500 supports bank transfers, credit/debit cards, PayPal, Skrill, Trustly and Klarna 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 7 days.

Which Should You Choose: Oanda or Plus500?

The choice between Oanda and Plus500 ultimately depends on your individual trading preferences and requirements. If you value an established reputation, a wide range of instruments, and greater flexibility in leverage options, Oanda may be the better choice for you. On the other hand, if you prioritize a platform, competitive fixed spreads, and a more diverse asset selection, Plus500 may be more suitable. It is crucial to consider factors such as regulation, trading platform features, pricing, available instruments, and any specific needs or preferences you have before making a decision.

Conclusion

Oanda and Plus500 are both reputable and regulated brokers that offer forex and CFD trading to investors and traders globally. However, they have some differences in terms of their features and services that may suit different types of traders. Oanda boasts a long-standing reputation, a user-friendly interface, and a wide range of forex pairs and CFDs. Plus500, on the other hand, stands out with its competitive fixed spreads, and an extensive selection of instruments across various markets. 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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