eToro vs OANDA Forex Broker Comparison

How Your Trading Costs and Fees Compare

At Compare Forex Brokers, we believe that trading costs and fees alone shouldn’t be the sole determinant of your choice of broker. That said, we want to ensure you’re getting the best value for money.

Standard Account Spreads

When we look at the average standard account spreads for eToro and OANDA across various forex pairs, we see some interesting patterns. eToro has a consistent spread of 1 for EUR/USD and USD/JPY, but it increases to 2 for GBP/USD, EUR/JPY, and AUD/JPY. On the other hand, OANDA maintains a lower spread, with 0.6 for EUR/USD and USD/JPY, and slightly higher for GBP/USD at 0.9. Unfortunately, we don’t have data for OANDA’s AUD/JPY spread.

In my opinion, OANDA seems to offer more competitive spreads, especially for the major currency pairs like EUR/USD and USD/JPY. This could mean lower trading costs for you if these are the pairs you frequently trade. However, eToro’s consistent spreads across different pairs might be more appealing if you prefer predictability.

Standard Account Analysis Updated September 2023[1]September 2023 Published And Tested Data

Comparing these to the industry average, both eToro and OANDA have their strengths. While eToro’s spreads are generally higher, they are still within a reasonable range. OANDA, on the other hand, consistently beats the industry average, offering more cost-effective trading. As always, it’s crucial to consider these costs in the context of your specific trading strategy and volume.

Our Verdict

eToro has its strong points, but look elsewhere if you’re a trader on a budget. In addition to an average spread of 4.2 pips, the administrative charges add up. From a $50 minimum deposit to a $5 withdrawal fee, some traders might feel nickel-and-dimed.

OANDA doesn’t require a minimum deposit, charges no withdrawal fee, and boasts a respectable average spread of 1.5 pips. According to Ross, our Head of Analytics who tested the spreads of over 15 brokers, that translates into an average spread cost of USD 14.23.
OANDA ReviewVisit OANDA

Choosing a Trading Platform – What Type of Trader Are You?

Tempting though it might be to focus primarily – even exclusively – on trading costs when choosing a broker, we think new traders should pay close attention to available platforms and tools (more on those later). Why? Because tight spreads and low fees might save you a few pennies, but they won’t generate profits like the right charting tools.

Our Verdict

If you’re a casual trader looking for straightforward social and copy trading support, eToro will likely meet your needs. For anything more complex, including even basic technical analysis, you’ll want to look elsewhere.

In addition to its proprietary platform, fxTrade, OANDA supports MetaTrader 4, as well as the TradingView charting platform and social network. Numbers don’t lie. With more than double the points, OANDA takes the top spot in this category.

View OANDA ReviewVisit OANDA

The Trading Accounts for CFD Trading the Brokers’ Offer

While we wouldn’t hesitate to recommend both eToro and OANDA to beginner traders, that’s where the similarities end. Designed for casual traders or hobbyists, eToro just doesn’t have the same ‘power under the hood’ as OANDA – and higher trading costs, too.

Our Verdict

eToro’s published minimum spread of 1.0 pip seems reasonable when compared with other brokers. Our tests told a different story, however. eToro’s average spread for a Standard account: 4.3 pips. Yep, a full 3.3 pips higher than the minimum. OANDA also came in a bit higher than the published minimum – 1.5 pips – but there’s really no competition between 3.3 and .4 pips, is there?

OANDA also scored high marks both for offering a low-spread, commission-based account and for the size of the commission. To trade a standard lot with OANDA will set you back USD 5. eToro, on the other hand, has no commission-free account option, which likely won’t appeal to more experienced traders.

View OANDA ReviewVisit OANDA

Which Broker Has Superior Tradeable Products?

Both OANDA and eToro offer customers a comprehensive selection of financial instruments and markets from which to choose, though each has its own particular niche. eToro tops our best forex brokers for cryptocurrency trading, while OANDA has more to offer when it comes to currency pairs.

Our Verdict

Both eToro and OANDA have something for everyone, but eToro consistently outperformed OANDA in terms of breadth of markets available. Our crypto enthusiasts especially preferred the Israeli broker for its 79 pairs and 14 crosses, but our trading team also appreciated the extensive range of ETF CFDs available.

eToro ReviewVisit eToro

Trading Tools For Better Trading Experience

After your trading platform, we believe you should pay the most attention to the trading tools a broker offers. If you have a specific strategy in mind or know you prefer a specific style, it’s important to choose an online broker with the appropriate resources.

Our Verdict

As you might’ve predicted, given the wider variety of trading platforms, OANDA surpassed eToro by a significant margin – more than 30 points. With more indicators, order types, and drawing tools, as well as the possibility of automation, OANDA gets our vote for the best broker in this category.

OANDA ReviewVisit OANDA

Which Broker Has Greater Trust and Better Reputation?

Trading via an online broker carries two types of risk. Putting your money in the market can lead to big wins if you predict movements correctly – but equally significant losses when you don’t. That’s normal and an inevitable possibility when trading CFDs, stocks, or forex.

Fortunately, you can virtually eliminate the other major risk by trading with a broker licensed by a Tier 1 regulator, such as the UK’s Financial Conduct Authority or the Commodities Futures Trading Commission and National Futures Association in the US. These government-run oversight agencies place strict requirements on brokers and other financial service providers designed to protect customer funds and prevent fraud.

Our Verdict

While we’d definitely rate eToro a safe and trustworthy broker, we’re impressed with the scope of OANDA’s regulatory coverage – virtually every major forex market.

What is the Account Opening Experience Like with eToro or OANDA?

When opening an account, you want a smooth, seamless experience. Some brokers have more steps to set up an account than others and some require you to make a deposit before you can use your account, even if it is a demo account.

Our Verdict

While we appreciate that OANDA does its due diligence, the three-day wait to open an account and limited funding methods proved off-putting to some of our team. That said, the dedicated account manager and personalised customer support gave the broker a slight edge over eToro.

Read more about our founder Justin’s attempt to open an account with every major forex broker and learn which one tops his list for user experience. (20 and counting.)

eToro vs OANDA: Our Final Verdict

OANDA’s more extensive offering of comprehensive support for forex trading pushed it to the top in this head-to-head matchup. OANDA can’t compete with eToro for spreads or a variety of trading platforms. But even eToro’s main selling point, social trading, is somewhat negated by the fact you can social trade with OANDA using MetaTrader Signals.

OANDA ReviewVisit OANDA