After a decline in the US Forex market, very few brokers have been left in the industry and Oanda is one of the few. Since it was founded in 1996, the broker has been a popular option for traders around the world, especially in North America.

Oanda

Meanwhile, eToro was first launched in 2007 after being incorporated in Tel Aviv, Israel to tap into the lucrative retail Forex and CFDs market. However, eToro had to leave the US Forex market since the Dodd-Frank Act was passed in 2010. Nevertheless, the broker has gone to become a global giant in the industry despite the setback.

eToro

This is a comparison between these two brokers to help you identify the better of the two since they both have excellent services and reputation.

Minimum deposit

At some point, you will have to make a deposit into your trading account, and the minimum requirement and fee charged is important to consider. On eToro, the broker requires first time clients to deposit at least $200 or a similar equivalent in another currency. Subsequent deposits need to be at least $50. On the other hand, there are no minimum deposit requirements for Oanda and clients are free to deposit as little as possible.

Fortunately, there are no charges on deposits on either Oanda or eToro on all avenues. These brokers allow deposits through electronic wallets, credit card and wire transfers. Withdrawals are charged, though, depending on the deposit method, where both brokers charge about $20 for withdrawals by wire transfer. The first withdrawal by other means is free the first time on Oanda, but subsequent withdrawals are charged.

These brokers are tied, because traders may prefer free withdrawals on Oanda the first time if they don’t regularly make withdrawals, but eToro allows for more deposit methods.

Security

eToro is one of the most highly regulated brokers with a license from CySEC, FCA and ASIC. The broker began with a license from CySEC in 2010 (license number 109/10) and got additional licenses from the FCA (FRN 583263) in 2013 and ASIC (Services License 491139). These licenses provide sufficient security to eToro customers through adequate regulation.

Oanda is also a secure broker with a license from the NFA, IIROC, FCA, MAS and ASIC. In the US, Oanda is registered by the CFTC and a member of the NFA as a Forex Dealer Member (FDM). In Canada, the company’s origin, Oanda is regulated by IIROC and by the FCA in Europe. The Singapore Monetary Authority (SMA) and ASIC in Australia also grant the company licenses, making this a very secure regardless of your location.

The clear winner here is Oanda thanks to regulation in the US and Asia-Pacific.

Trading platforms

Trading on eToro is mainly done through a web platform and downloads are only available on mobile devices. Oanda, however, have an app that can be downloaded to PC and Mac in addition to mobile apps. This makes Oanda superior because it is always better to have an installed app dedicated to the task of trading.

Available assets

The main business for eToro is in CFDs, which can be derived from currency pairs, stocks, indices, commodities, ETFs and even cryptocurrencies. Traders can also access real crypto, stocks and ETFs as long as they forego leverage and trade with available capital. For Oanda only CFDs for currency pairs, commodities, bonds, indices and metals are available.

This makes eToro a superior choice compared to Oanda.

Overall winner

All things considered, these brokers are tied in position, with none standing clearly above the other. Your decision will depend on your particular priorities in regard to your trading preferences.

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