Oanda vs Trading 212: Comparison and Analysis

Oanda vs Trading 212: A Comprehensive Comparison

When it comes to choosing a broker, traders have to consider multiple factors such as security, fees, available markets, account types, and platforms. In this comparison, we will take a closer look at two popular brokers: Oanda and Trading 212.

Security

Both brokers have a high security rating of 94. However, Oanda has more regulatory bodies overseeing its operations, including ASIC, MAS, FSA, FCA, NFA, IIROC, and BVI. Oanda’s regulation by the NFA also makes it eligible for US traders.

Demo Account

Both brokers offer unlimited demo accounts with virtual funds. However, Oanda provides a higher amount of virtual funds at $100,000 compared to Trading 212’s $50,000. Moreover, Oanda allows for the restoration of virtual funds by contacting customer support.

Account Opening

Oanda has no minimum deposit requirement, making it accessible to all types of traders. It offers multiple account types, including Standard, Premium, Core, Spread Betting, and Professional accounts. Traders can also choose from a variety of payment methods, including wire transfers, credit/debit cards, and eWallets. Trading 212, on the other hand, requires a minimum deposit of $1 for the Invest account and $10 for the CFD account. It offers different account types, including CFD, Invest, ISA, and Professional accounts, and accepts wire transfers, credit/debit cards, and eWallets as payment methods.

Social-Copy Trading

Both brokers allow traders to engage in copy-social trading. Oanda offers third-party platforms like TradingView, while traders can use the EAs on the MT4 and MT5 platform for copy trading. Trading 212, on the other hand, offers the Autoinvest feature where traders can copy each other’s stock investing strategies.

Markets

Oanda offers 68 forex pairs, 31 commodities, 18 indices, 18 crypto assets, over 1600 stocks, 40 ETFs, and six bonds. Trading 212, on the other hand, offers 200 forex pairs, 23 commodities, over 1500 indices, 0 crypto assets, over 3000 stocks, 400+ ETFs, and 80+ futures and options. Trading 212 offers stocks and ETFs as both CFDs and real assets, making it a good option for long-term stock investing.

Trading Fees

Oanda’s spreads start from 1.2 pips on forex, which is slightly above the market average. It offers zero commission on EUR accounts for stocks. On the other hand, Trading 212’s spreads start from 1 pip, and Invest account holders pay zero commission for stocks.

Platforms

Both brokers offer proprietary platforms that are available via desktop, web, and mobile devices. Oanda offers its Oanda Trade Platform, as well as MT4 and MT5 platforms. MT5 is only available in the European Union. Trading 212 offers its proprietary platform, available via web and mobile devices.

Education/Customer Care

Oanda offers a range of technical and fundamental analysis tutorials, webinars, and events. Customer care is easy to contact via phone, email, and live chat. Trading 212 offers a basic academy section with standard information that is useful mainly to less experienced traders. Customer care is easy to contact via email and live chat. Trading 212 also offers an automated translator that allows traders to contact them in any language.

Conclusion

Both Oanda and Trading 212 are reputable brokers that offer a wide range of markets and account types. Oanda is a better option for forex traders, while Trading 212 is more suitable for long-term stock investors. Oanda offers a higher amount of virtual funds and provides more regulatory oversight, making it more secure. On the other hand, Trading 212 has a lower minimum deposit requirement and offers zero commissions for stocks on its Invest account. Ultimately, the choice between Oanda and Trading 212 will depend on the individual trader’s preferences and trading goals.