Oanda Vs XTB

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

When it comes to forex and CFD trading, selecting the right broker is crucial for success in the financial markets. Among the numerous options available, Oanda and XTB have established themselves as reputable and trusted brokers. In this article, we will thoroughly examine the features, pros, and cons of both Oanda and XTB, allowing you to make an informed decision based on your specific trading requirements. By the end, you will have a comprehensive understanding of the similarities, differences, and unique offerings of these two brokers, enabling you to choose the one that best aligns with your trading goals. So, let’s delve into the world of Oanda and XTB and explore the factors that can shape your trading journey.

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 XTB?

XTB

XTB

XTB, short for X-Trade Brokers, is an established online trading broker that offers a comprehensive range of financial instruments to traders worldwide. With its headquarters in the United Kingdom, XTB has gained recognition for its reliable services and user-friendly platforms. XTB provides access to various markets, including forex, stocks, indices, commodities, metals, and cryptocurrencies, allowing traders to diversify their portfolios. The broker’s proprietary web-based platform, xStation 5, offers advanced charting tools, technical analysis capabilities, news feeds, economic calendars, and social trading features.

Pros of XTB

  • Advanced trading platforms with customizable features.
  • Competitive spreads and low fees.
  • Diverse asset selection, including stocks, cryptocurrencies, and thematic portfolios.
  • Strong regulatory oversight with licenses from the U.K., Poland, Cyprus, and Belize.
  • Social trading feature (xSocial) allowing traders to copy successful traders’ trades.

Cons of XTB

  • Withdrawal fees for certain regions.
  • Inactivity fees after 12 months of no trading.
  • Limited protection in some regions (e.g., no protection in Belize).
  • Lower maximum leverage compared to some other brokers.
  • Mobile app stability and performance could be improved.
XTB Logo

XTB offer superior execution on a reliable, award-winning platform, being one of the largest stock exchange-listed Forex and CFD brokers in the world - dedicated to helping you at every stage of your trading journey.

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

Comparison Between Oanda and XTB

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

Regulation

Both Oanda and XTB are regulated by multiple authorities in different jurisdictions, which enhances their trustworthiness and safety. XTB holds 1 global Tier-1 license, while Oanda holds 6. XTB is authorized by the U.K. FCA, the Polish KNF, the Cyprus CySEC and the Belize IFSC. 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. Both brokers also offer investor protection schemes for their clients in certain regions. XTB provides up to £85,000 in the U.K., €20,000 in Cyprus and Poland and no protection in Belize. Oanda provides up to £85,000 in the U.K., €20,000 in the EU and CAD 1,000,000 in Canada.

Trading Platform

XTB offers two main trading platforms: its proprietary web-based platform called xStation 5 and the popular MetaTrader 4 (MT4) platform. xStation 5 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 XTB and Oanda charge low fees for forex and CFD trading. XTB 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 0.9 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. XTB does not charge any withdrawal fees but charges €10 per month after 12 months of inactivity. Oanda charges $20 for withdrawals below $100 in some regions and $10 per month after 12 months of inactivity.

Leverage

Both XTB and Oanda offer leverage for forex and CFD trading, but the maximum leverage depends on the instrument, the account type and the regulatory jurisdiction. XTB offers up to 30:1 leverage for forex trading in the U.K. and EU, up to 500:1 leverage for forex trading in other regions except Belize where it is limited to 200:1, up to 20:1 leverage for CFD trading in all regions except Belize 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. and EU, 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. Trading with high leverage can amplify both profits and losses, so traders should use it with caution and risk management.

Asset Selection

Both XTB and Oanda offer a wide range of instruments for forex and CFD trading, but XTB has a larger and more diverse portfolio. XTB offers 57 forex pairs and over 2,000 CFDs on stocks, indices, commodities, metals, ETFs, cryptocurrencies and options. 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. XTB 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. XTB offers a social trading feature called xSocial on its xStation 5 platform. This feature allows traders to browse through a list of top-performing traders and copy their trades with a single click. Traders can also view the performance history, risk level and trading style of each trader before copying them. 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. XTB does not have any minimum deposit requirement for its accounts, which means that traders can start trading with any amount of money. However, XTB recommends that traders deposit at least $250 to cover the margin requirements and fees. 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 XTB and Oanda offer various withdrawal and deposit methods for their clients, but XTB has more options and faster processing times. XTB supports bank transfers, credit/debit cards, PayPal, Skrill, Neteller, Paysafecard and SafetyPay 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: Oanda or XTB?

The choice between Oanda and XTB depends on your specific trading preferences and priorities. If you value a diverse range of trading instruments, advanced social trading features, and a wider selection of withdrawal and deposit methods, XTB may be the better choice for you. On the other hand, if you prioritize reliability, strong regulatory oversight, competitive pricing, and extensive educational resources, Oanda could be the more suitable option. Consider your trading goals, preferred platforms, asset selection, and regulatory requirements to make an informed decision.

Conclusion

As we wrap up our comparison between Oanda and XTB, it’s clear that both brokers have their unique advantages and drawbacks. Oanda shines with its strong regulatory oversight, extensive licenses, and competitive pricing. On the other hand, XTB impresses with its diverse asset selection, advanced trading platforms, and comprehensive social trading features. Ultimately, the choice between Oanda and XTB depends on your personal preferences, trading goals, and priorities. It’s essential to consider factors such as regulation, trading platforms, pricing, leverage, asset selection, and social trading features. Take your time, do thorough research, and weigh the pros and cons to find the broker that aligns best with your needs. Remember, trading involves risks, and it’s crucial to practice responsible trading and risk management strategies regardless of the broker you choose. Happy trading!


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