Interactive Brokers vs Oanda: Comparison and Analysis

Interactive Brokers vs Oanda: A Comprehensive Comparison

Interactive Brokers and Oanda are both popular brokers that offer various investment opportunities, trading tools, and platforms. In this comparison, we will evaluate and contrast these brokers in terms of security, demo, account opening, social-copy trading, markets, trading fees, platforms, education, and customer care.

Security

Interactive Brokers is regulated by several regulatory bodies, including FCA, CSSF, CBI, ASIC, HKSFC, SEBI, IIROC, FFAJ, MAS, SEC, and CFTC. It has a security rating of 95, which is excellent. On the other hand, Oanda is regulated by ASIC, MAS, FSA, FCA, NFA, IIROC, and BVI, and it has a security rating of 94. Both brokers offer high levels of security, which can give traders peace of mind when investing.

Demo

Interactive Brokers offers an unlimited demo account with virtual funds of $1,000,000. The virtual funds can be restored by contacting customer support. Oanda also offers an unlimited demo account with virtual funds of $100,000, which can be restored by contacting customer support. However, Interactive Brokers offers a higher amount of virtual funds, which can be beneficial for traders who want to practise and test their strategies extensively.

Account Opening

Interactive Brokers has no minimum deposit requirement, but it requires a minimum of $2,000 to trade with margin. The broker offers over 25 base currencies, including USD, EUR, AUD, and GBP, and several payment methods, such as wire transfers, credit/debit cards, eWallets, IRA transfers, checks, and local payment methods. Oanda has no minimum deposit requirement, and it offers USD, EUR, GBP, CZK, HKD, SGD, and JPY as account currencies. The broker offers payment methods such as wire transfers, credit/debit cards, and eWallets. Both brokers offer a range of account options, currencies, and payment methods, but Interactive Brokers has a wider range of base currencies, which can benefit traders who want to avoid currency conversion fees.

Social-Copy Trading

Interactive Brokers does not offer social or copy trading features. In contrast, Oanda allows traders to engage in social trading through a third-party platform such as Tradingview. Moreover, traders can use the EAs on the MT4 and MT5 platform to engage in copy trading. Oanda’s social-copy trading features can be beneficial for traders who prefer a social aspect in their investment approach.

Markets

Interactive Brokers offers a wide range of trading assets, including Forex, commodities, crypto assets, stocks, ETFs, futures, and options. The broker provides every asset via CFD, which makes it suitable for both short and long-term investing on every market. Oanda offers Forex, commodities, indices, crypto assets, stocks, ETFs, and bonds. European traders can access real stocks, while every asset is available via CFD. Both brokers offer a range of markets, but Interactive Brokers offers a higher number of trading assets.

Trading Fees

Interactive Brokers’ spreads are variable, starting from 0.1 pips on Forex, which is lower than the market average. The commissions per lot traded can be up to $7. Stock commissions are low, with financing rates from 0.75%, and no commissions on stocks and ETFs with the IBKR Lite Plan. With the IBKR Pro Plan, commissions start from $0.0005 per share or ETF. Oanda’s spreads are variable, starting from 1.2 pips on Forex, which is above the market average. The broker charges 0% commission on EUR accounts. Both brokers offer competitive trading fees, but Interactive Brokers offers lower spreads on Forex and lower commissions on stocks and ETFs.

Platforms

Interactive Brokers offers a proprietary trading platform available as desktop, webtrader, and mobile, which allows traders to engage in algo trading. The broker also offers VPS services, FIX API, and TWS API integration. Oanda offers the Oanda Trade Platform, which is available via desktop, web, and mobile, as well as MetaTrader 4 (MT4) and MetaTrader 5 (MT5) platforms. MT5 is only available via webtrader, desktop, and mobile in the European Union. Both brokers offer a range of platforms, but Interactive Brokers’ proprietary platform may be more suitable for traders who want to engage in algo trading.

Education/Customer Care

Interactive Brokers provides a wide range of educational materials, including tutorial videos, IBKR blog, trader’s academy, and much more. The broker’s customer care is easy to contact via email, telephone, and live chat, with 8 languages available. Oanda offers a range of technical and fundamental analysis tutorials, webinars, and events, and the broker’s customer care is easy to contact via phone, email, and live chat. Both brokers offer a range of educational materials and excellent customer care.

Conclusion

In conclusion, both Interactive Brokers and Oanda offer a range of investment opportunities, trading tools, and platforms. However, Interactive Brokers may be more suitable for traders who want a wider range of trading assets, lower trading fees, and access to a proprietary platform that allows algo trading. On the other hand, Oanda may be more suitable for traders who prefer social-copy trading features and a range of platforms, including MT4 and MT5. Ultimately, the choice between these brokers will depend on traders’ preferences and investment goals.