XM Vs Oanda

Category: Broker Guides | Author: Trading Brokers | Date: July 26, 2023

In the world of trading, selecting the right broker is paramount to success. The choice of broker can significantly impact trading outcomes, ranging from order execution speed to available trading instruments and customer support. In this article, we will explore the comparison between XM and Oanda, two prominent forex and CFD brokers. Our objective is to shed light on the key aspects that traders should consider when choosing a broker, including regulation, trading platforms, pricing, account types, leverage options, asset selection, research and education resources, and customer support. By understanding the importance of selecting the right broker and delving into the specifics of XM and Oanda, traders can make an informed decision that aligns with their individual trading goals and preferences.

XM Overview

XM

XM

XM is a reputable forex and CFD broker that has been providing trading services since 2009. Regulated by well-known financial authorities such as CySEC, ASIC, and the FCA, XM ensures a high level of trustworthiness and compliance with industry standards. Traders can access a wide range of trading instruments, including forex currency pairs, CFDs on stocks, indices, commodities, precious metals, energies, and cryptocurrencies. XM offers various account types to suit different trading needs, each with its own fee structure. With competitive trading conditions, advanced trading tools, and a strong focus on customer support, XM strives to provide a seamless and rewarding trading experience for its clients. Additionally, the availability of educational resources and multilingual support further enhances the accessibility and convenience for traders.

Pros and Cons of XM

Pros

  • Reliable and trustworthy broker.
  • Wide range of leverage options.
  • Minimal time delay in trade execution.
  • Multilingual 24-hour customer support, 5 days a week.
  • Reliable trading platforms.
  • Instant deposit and withdrawal process.

Cons :

  • Forex and stock index fees are average.
  • Inactivity fee charged for dormant accounts.
XM Logo

XM Group is a multi-award winning globally established and regulated broker that offers tight spreads, fast execution speeds and low commission fees, for trading over 1,000 instruments on user-friendly platforms. They also provide education, market analysis tools and convenient funding options.

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

Oanda Overview

Oanda

Oanda

Oanda is an established online broker that offers competitive forex and CFD trading services. With its user-friendly web-based trading platform and high trust score, Oanda provides traders with a reliable and accessible trading experience. The broker is regulated by reputable financial authorities, ensuring a secure trading environment. Oanda offers a wide range of trading instruments, including forex, CFDs, commodities, indices, bonds, metals, and cryptocurrencies. Traders can choose from two account types with flexible deposit requirements.

Oanda has no deposit or withdrawal fees, making it convenient for traders to manage their funds. The broker also stands out for its extensive research and educational resources, which empower traders with valuable market insights and educational materials. Additionally, Oanda offers round-the-clock customer support, ensuring that traders receive prompt assistance whenever needed. Overall, Oanda’s combination of competitive trading conditions, reliable platform, and robust support services make it a popular choice among traders.

Pros and Cons of Oanda

Pros:

  • Oanda is a reliable broker with a strong establishment, an excellent reputation, and numerous regulations.
  • Oanda has no minimum deposit requirement and professional education section, making it great for beginning traders.
  •  Oanda offers powerful and intuitive trading platforms with flexible interfaces.
  • Oanda provides industry-leading educational resources such as webinars, video tutorials, articles, news feeds, market analysis tools, economic calendars, etc.
  • Oanda doesn’t charge any deposit or withdrawal fee and the account opening process is comparatively straightforward.

Cons:

  • Oanda’s spreads are below average.
  • Oanda offers fewer video market updates than its peers.
  • Though the educational material is good, Oanda’s video content is not comprehensive and mostly takes the form of platform tutorials.
  • Oanda has a limited number of assets and few base currencies
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 of XM and Oanda

In this comprehensive comparison, we will examine various aspects of these brokers to help you make an informed decision.

Regulation and Trustworthiness:

XM is regulated by multiple authorities, including the Cyprus Securities and Exchange Commission (CySEC), the Financial Conduct Authority (FCA) in the UK, and the Australian Securities and Investments Commission (ASIC). These stringent regulatory bodies ensure that XM adheres to strict financial standards and provides a secure trading environment for its clients. Oanda, on the other hand, is regulated by CFTC and NFA in the US, FCA in the UK, ASIC in Australia, IIROC in Canada, MAS in Singapore, and others. Oanda has an edge over XM in terms of the number and reputation of its regulators, as well as the amount of investor protection it offers to clients from different regions

Trading Platforms:

XM offers the MetaTrader 4 and 5 platforms, which are widely recognized for their user-friendly interfaces, advanced charting tools, and extensive range of trading features. The MetaTrader platforms provide traders with a robust and reliable trading environment, allowing for seamless order execution, real-time market analysis, and the ability to automate trading strategies. Oanda provides a web-based trading platform that is accessible from any browser, offering advanced features, customizable layouts, and a user-friendly interface. The platform is designed to provide a smooth and efficient trading experience, enabling traders to analyze the markets and execute trades with ease.

Pricing and Fees:

Both Oanda and XM offer competitive pricing with transparent spreads, making them cost-effective choices for traders. Oanda charges a commission fee of $5 per $100,000 traded for its core pricing option, requiring a minimum deposit of $10,000, while XM charges a commission fee of $3.5 per $100,000 traded for its Zero account type, requiring a minimum deposit of $100. Both brokers also charge overnight funding fees and currency conversion charges, and XM charges an inactivity fee after one year of no trading activity.

Account Types:

XM offers multiple account types, including Micro, Standard, and XM Zero accounts, catering to the diverse needs of traders. The Micro and Standard accounts have no commission charges, while the XM Zero account offers tighter spreads but charges a commission per trade. This variety of account types allows traders to choose an option that aligns with their trading preferences and strategies. Oanda, on the other hand, provides a single account type with competitive pricing and no commission charges. The simplicity of account types offered by Oanda may appeal to traders who prefer a straightforward approach.

Leverage Options:

XM offers high-leverage options up to 1000:1, allowing traders to amplify their trading positions and potentially increase their profit potential. This high leverage can be advantageous for experienced traders who understand the risks involved and have effective risk management strategies in place. Oanda, on the other hand, provides leverage options up to 50:1. While the leverage offered by Oanda is relatively lower compared to XM, it still provides ample opportunities for traders to take advantage of market movements.

Asset Selection:

Oanda offers a wider range of currency pairs, with 71 available pairs, including major, minor, and exotic currencies. This extensive selection allows traders to diversify their portfolios and explore various currency pair opportunities. XM provides access to 55 currency pairs, covering the major and minor pairs. Additionally, both brokers offer other trading instruments such as CFDs on indices, commodities, precious metals, and energies, providing further opportunities for diversification and trading strategies.

Research and Education Resources:

Both XM and Oanda prioritize the education and development of their traders by offering comprehensive research and education resources. XM provides a comprehensive learning center with educational materials, webinars, video tutorials, and market analysis tools. Oanda provides industry-leading educational resources, including webinars, video tutorials, articles, market analysis tools, and economic calendars. These resources are designed to equip traders with the necessary knowledge and skills to make informed trading decisions and improve their overall trading performance.

Minimum Deposit:

Oanda has no minimum deposit requirement, making it accessible for traders with varying capital levels. This feature is particularly beneficial for new traders or those who want to start with smaller initial investments. XM requires a minimum deposit of $5 for its Micro account, providing traders with a low entry point to start their trading journey. The minimum deposit requirements of both brokers cater to different types of traders and their capital availability.

Minimum Withdrawal and Deposit Methods:

Both XM and Oanda offer multiple deposit and withdrawal methods to facilitate convenient and secure transactions for their clients. These methods include bank transfers, credit/debit cards, online payment systems such as Skrill and Neteller, and other popular payment options. The availability of various deposit and withdrawal methods allows traders to choose the most suitable and convenient option for their needs.

Which Should You Choose?

When deciding between XM and Oanda, it is crucial to assess individual trading preferences and needs. Traders should carefully consider factors such as regulatory oversight, trading platform features, pricing and fees, leverage options, asset selection, educational resources, and minimum deposit requirements. Oanda’s numerous Tier-1 licenses make it an attractive option for those seeking a high level of regulatory trustworthiness. On the other hand, XM provides a beginner-friendly trading experience with a comprehensive learning center. Traders looking for competitive pricing and below-average spreads may lean towards Oanda, while those seeking higher leverage options may be inclined towards XM. It is recommended that traders conduct thorough research and evaluate their specific requirements to make an informed decision on which broker, XM or Oanda, best aligns with their trading goals and preferences.

 Conclusion

In conclusion, the comparison between XM and Oanda highlights their respective strengths and advantages. XM offers a wide range of trading instruments, low spreads, and comprehensive research and education resources. Oanda, on the other hand, is highly regulated, provides a user-friendly platform, and offers industry-leading educational materials. Traders should carefully assess their own needs and preferences to make an informed decision when choosing between XM and Oanda for their trading activities.


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