Oanda Vs Trading 212

Category: Broker Guides | Author: Trading Brokers | Date: July 24, 2023

Ready to take your trading to the next level with an online broker? You’ve probably encountered two prominent names in the field: Oanda and Trading 212. These reputable and popular brokers offer a range of features and services to their clients, but the question remains: which one is the ideal choice for you? In this article, we will compare Oanda and Trading 212 based on their regulation, trading platform, pricing and fees, leverage, asset selection, social trading, minimum deposit, withdrawal, and deposit methods. We will also help you decide which broker suits your trading style and goals better.

Overview of Oanda

Oanda

Oanda

Oanda is a global forex broker that was founded in 1996 and has offices in Canada, the US, the UK, Japan, Singapore, and Australia. Oanda is regulated by several authorities, including the Investment Industry Regulatory Organization of Canada (IIROC), the US Commodity Futures Trading Commission (CFTC), the UK Financial Conduct Authority (FCA), the Japanese Financial Services Agency (FSA), and the Australian Securities and Investments Commission (ASIC). Oanda offers over 68 forex pairs, as well as CFDs on indices, commodities, metals, bonds, and crypto through its partnership with Paxos.

Oanda has a proprietary web-based trading platform called OANDA Trade, as well as the popular MetaTrader 4 (MT4) platform. Oanda also provides powerful analysis tools, such as advanced charts powered by TradingView, technical analysis from Autochartist, and an economic overlay. Oanda has a currency converter tool that allows you to check the latest foreign exchange rates and convert all major world currencies. Oanda also offers FX data API for developers who want to integrate Forex data into their applications.

Pros of Oanda

  • Regulated by multiple authorities in different jurisdictions
  • Low spreads on forex pairs
  • No minimum deposit requirement
  • Access to crypto trading through Paxos
  • Variety of analysis tools and educational resources

Cons of Oanda

  • Limited asset selection compared to other brokers
  • High fees for CFDs and crypto trading
  • No social trading or copy trading features
  • No phone support available
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 Trading 212

Trading 212

Trading 212

Trading 212 is a UK-based fintech company that was founded in 2004 and is headquartered in London. Trading 212 is regulated by the UK Financial Conduct Authority (FCA) and the Bulgarian Financial Supervision Commission (FSC). Trading 212 offers commission-free trading on stocks, ETFs, forex, commodities, crypto and more. Trading 212 offers a user-friendly web-based trading platform known as Trading 212 Platform, providing a seamless trading experience. Additionally, Trading 212 provides a mobile app that allows traders to access the markets and manage their portfolios on the go. Understanding the importance of comprehensive tools and research, Trading 212 equips traders with various features to enhance their trading activities. These features include market data packages, customizable watchlists, real-time alerts, powerful screeners, comprehensive news feeds, and insightful reports. By providing these resources, Trading 212 empowers traders with the information they need to make well-informed decisions.

Pros of Trading 212

  • Regulated by the FCA in the UK and the FSC in Bulgaria
  • Commission-free trading on stocks, ETFs and more
  • Access to a wide range of trading products and services
  • User-friendly and customizable trading platform
  • Excellent customer service and support

Cons of Trading 212

  • High spreads on forex pairs
  • High fees for crypto trading
  • A limited set of ETFs to invest in
  • Cannot transfer shares out of the broker
Trading 212 Logo

Trading 212 is a popular mobile trading platform offering flexible zero commission trading on 2,000+ instruments including stocks, forex and cryptos. They provide a powerful and user-friendly platform suitable for traders of all skill levels.

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

Comparison between Oanda and Trading 212

In this section, we will compare Oanda and Trading 212 based on the following features:

Regulation

Based on their regulation, both Oanda and Trading 212 are regulated by the Financial Conduct Authority (FCA) in the UK, providing up to £85k coverage to UK clients. However, Oanda offers additional regulatory coverage for clients in other countries, including the Investment Industry Regulatory Organization of Canada (IIROC) in Canada with CAD 1mn protection, the Australian Securities and Investments Commission (ASIC) in Australia, and the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) in the US, both covering up to $500k for US clients. On the other hand, Trading 212 is regulated by the Financial Supervision Commission (FSC) in Bulgaria, providing up to €20k coverage to other clients.

Trading Platform

Both Oanda and Trading 212 offer the MT4 platform and have their own web-based trading platforms that are user-friendly and customizable. Oanda’s platform is called OANDA Trade while Trading 212’s platform is called Trading 212 Platform. Both platforms allow you to trade forex, CFDs, and crypto, as well as access various analysis tools and market data. However, Oanda’s platform has some features that Trading 212’s platform lacks, such as advanced charts powered by TradingView, technical analysis from Autochartist, and an economic overlay. Trading 212’s platform, on the other hand, has some features that Oanda’s platform lacks, such as watchlists, alerts, screeners, and news feeds.

Pricing and Fees

Both Oanda and Trading 212 have competitive pricing and fees for forex trading. Oanda charges low spreads on forex pairs, starting from 0.6 pips for EUR/USD. Trading 212 charges variable spreads on forex pairs, starting from 0.9 pips for EUR/USD. However, Trading 212 also charges a commission of $0.0003 per unit traded on top of the spread. Therefore, Oanda has an edge over Trading 212 in terms of forex fees. For CFD and crypto trading, however, Trading 212 has lower fees than Oanda. Oanda charges high spreads on CFDs and crypto, starting from 2 pips for the US 500 index and 0.75% for Bitcoin. Trading 212 charges lower spreads on CFDs and crypto, starting from 0.5 pips for the US 500 index and 0.5% for Bitcoin. Trading 212 also charges a commission of $0.0003 per unit traded on CFDs and $1 per unit traded on crypto. Therefore, Trading 212 has an edge over Oanda in terms of CFD and crypto fees.

Broker Type

Oanda is a market maker broker, which means it executes trades internally and acts as a counterparty to its clients. Oanda is an NDD broker that uses a hybrid model of ECN and STP execution. Trading 212 is an agency broker, which means it routes trades to third-party liquidity providers and does not trade against its clients. This may result in better execution quality and lower slippage. Trading 212 is also an NDD broker that uses STP execution.

Leverage

When it comes to leverage, Oanda provides leverage up to 50:1 for major currency pairs and up to 20:1 for minor currency pairs, commodities, and indices. However, it’s essential to note that the leverage levels offered may vary depending on the regulatory requirements of the specific country where the trader is located. On the other hand, Trading 212 offers leverage up to 30:1 for major currency pairs and up to 10:1 for minor currency pairs, commodities, and indices. Like Oanda, Trading 212’s leverage may also be subject to variation based on the regulatory requirements in the trader’s country of residence.

Asset Selection

Both Oanda and Trading 212 offer a decent range of assets to trade with. Oanda offers over 68 forex pairs, as well as CFDs on indices, commodities, metals, bonds, and crypto through its partnership with Paxos. Trading 212 offers commission-free trading on stocks, ETFs, forex, commodities, crypto, and more. However, Trading 212 has more asset classes than Oanda, such as stocks and ETFs.

Social Trading

Trading 212 offers social trading through its Trading 212 Community feature, which enables traders to share their ideas, strategies, and performance with other users. Oanda does not offer social trading directly on its platform, but it supports third-party social trading services such as ZuluTrade and DupliTrade.

Minimum Deposit

Both brokers have low minimum deposit requirements for opening an account with them. Oanda has no minimum deposit requirement at all, which means you can start trading with any amount of money you want. Trading 212 has a minimum deposit requirement of $1 or equivalent for most accounts, which is also very affordable. However, you should also be aware of the fees and charges that may apply when you deposit or withdraw funds from your account, as well as the payment methods and processing times that are available for each broker.

Withdrawal and Deposit Methods

Oanda accepts debit cards, bank transfers, PayPal, Neteller, Skrill, and other methods based on your country of residence. Additionally, you can conveniently transfer money between your Oanda wallet and trading account at any time. On the other hand, Trading 212 offers a broader range of payment options, including credit cards, debit cards, bank transfers, PayPal, Skrill, Dotpay, Giropay, SafetyPay, Carte Bleue, Mister Cash, Direct eBanking, CashU, and UnionPay. Furthermore, you can directly deposit money into your Trading 212 trading account. Both brokers share the requirement that you must withdraw funds via the same method used to fund your account, ensuring consistency and security for traders.

Which Should You Choose: Oanda or Trading 212?

The answer to this question depends on your trading preferences and goals. Here are some factors to consider when choosing between Oanda and Trading 212: If you are looking for a global and regulated broker that offers low spreads on forex pairs and access to crypto trading, you might prefer Oanda. If you are looking for a UK-based and reputable broker that offers commission-free trading on stocks, ETFs, and more, you might prefer Trading 212. If you are looking for a broker that offers leverage for forex and CFD trading, you might prefer Oanda, especially if you are not based in the UK.

Also, If you are looking for a broker that offers more asset classes to trade with, such as stocks and ETFs, you might prefer Trading 212. If you are looking for a broker that offers social trading or copy trading features, you might be disappointed with both Oanda and Trading 212, as they do not offer these features on their platforms. If you are looking for a broker that has no minimum deposit requirement, you might prefer Oanda, as Trading 212 requires a minimum deposit of £100.

Conclusion

Oanda and Trading 212 are two reputable and popular online brokers that offer different features and services to their clients. They have their own strengths and weaknesses, and they cater to different types of traders. Therefore, it is important to compare them based on your trading preferences and goals before making a decision. We hope this article has helped you understand the differences between Oanda and Trading 212 and choose the best broker for you. Happy trading!


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