Few names in the retail financial markets are as recognizable as these two, and that is why we wanted to pit them against each other. eToro has been around since 2007, but Oanda has an even longer history dating back to 1995. Now, these two companies have come to dominate a major section of the retail customers around the world, and you must be curious to know the best of the two.
Platform ease of use
With eToro, you really have two choices – a web-based platform or mobile app. You will see a glimpse of the eToro trading platform below. Keep in mind that to access all trading tools, you would have to enter the main trading window. However, you can already see that the interface is not too crowded with objects, and this makes it very easy to use. Make no mistake, all trading tools are available, but the trading platform lets you focus on only what you need at that time.
Oanda also has a web trader, but in addition, the company also offers mobile apps, MetaTrader 4 and a proprietary Oanda Trade desktop platform. Below is a snapshot of what Oanda Trade looks like since we’re sure you already know what MT4 looks like. It too is very simple, but it has a lot more trading tools than the web-based platform.
Considering this, Oanda wins in the number of platforms.
eToro was started as a CFDs broker, and this is still its primary business. CFDs get charged a spread, which is how the broker makes its money. However, eToro spreads are known to be wide and trading fees higher than average in the industry. But the company also allows you to trade real assets such as crypto, stocks and ETFs. These do not get charged any spread or commission but only conversion fees. Withdrawals cost $5 with this broker regardless of the method.
Oanda does not offer real assets like eToro, only CFDs. The good news, though, is that the spreads charged are very tight going even below 1 pip/point for some currency pairs and assets. Withdrawals are charged depending on the method you prefer, but these can be quite high. For instance, you will get one free withdrawal by credit card, but subsequent withdrawals will be charged depending on your account currency. PayPal withdrawals are free, but bank transfer charges can be quite high.
Overall, Oanda still wins for having lower trading fees as the rest can be avoided or minimized.
- Bank transfer
- Credit Card (Visa, MasterCard, Diners Club, Maestro),
- Bank wire and electronic bank transfer
- Credit and debit card
Winner is eToro.
As already mentioned, eToro has both CFDs and real assets. CFDs cover assets such as Forex pairs, stocks, ETFs, indices, commodities and cryptocurrencies. Real assets are limited to stocks, ETFs and cryptocurrencies. When the total number of assets is counted, the number is very high as eToro has access to numerous exchanges around the world. Meanwhile, Oanda has only CFDs for Forex pairs, indices, commodities and bonds.
While the list of assets by Oanda is very impressive, eToro still wins by sheer numbers.
The thing that made eToro so popular was its offering of social trading. This feature allows traders from all over the world to share their ideas and even trades. Both amateurs and professionals use this feature to gain an edge in the markets, and it is the reason eToro is so popular. Oanda does not have any such special feature, instead choosing to bank on its good name. While it’s true Oanda has never been caught on the wrong side of the law, it doesn’t beat eToro’s social trading.
eToro wins this round too.