FXCM vs OANDA: Which One Is Best?

2. FXCM: Better Trading Platform

We found that FXCM and OANDA are close in this category, but FXCM edged out OANDA. Both offer modern platforms and tools.

FXCM offers its proprietary Trading Station platform, MetaTrader 4, and TradingView. These platforms support algorithmic trading and provide advanced charting tools.

Also satisfactory was FXCMs web trading platform; we appreciated that it is highly customisable and user-friendly. The platform offered us a wide range of order types and features a great search function. However, it lacks two-step authentication, which is an essential security feature.

OANDA also supports the widely popular MetaTrader 4 (MT4) platform but has its own trading platform called OANDA Trade Web and OANDA Trade Mobile. We thought the outstanding feature of the web version is that it comes with TradingView for advanced charting and a guaranteed stop loss, but we were disappointed it is not available for the web.

Desktop Platforms were equally acceptable for both FXCM and OANDA. FXCM desktop version stood out more because of their Trading Station. For us, one of its main highlights is the Marketscope 2.0 charting tool, which offers powerful charting capabilities that run parallel to the main platform window. Trading Station is a strong competitor to MetaTrader and features complex back-testing options, such as accounting for potential historical slippage and trading costs.

Neither broker supports social trading, however, it is still possible by using MetaTrader’s Trading Signals, to have the ability to copy trades of successful traders.

Verdict

On paper, FXCM and OANDA have similar offerings to clients. We gave FXCM a Trading Platform score of 7 and OANDA a 6 because of FXCM’s Marketscope 2.0 charting tool. It is advanced and efficient, making trading a breeze for us.

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3. OANDA: Superior Accounts And Features

1. FXCM offers a unique account type for high-volume traders in the UK called the Active Trader account, which features tiered commissions.
2. OANDA provides a Cores Spread account with a fixed commission of $7 per lot, available in Australia, Singapore, and the US.
3. Both brokers offer maximum leverage allowed by regulators, but FXCM allows up to 1:200 for Pro Accounts, while OANDA caps at 1:100.
4. FXCM charges an inactivity fee of 50 units after 12 months, whereas OANDA charges $10 per month after 12 months of inactivity.
5. OANDA has a zero initial deposit requirement, making it more accessible for beginners, while FXCM requires a $300 initial deposit.

Verdict

OANDA offers a more flexible and accessible range of account types, especially for beginners and those looking for fixed commissions.

4. FXCM: Best Trading Experience And Ease

FXCM and OANDA are market maker brokers. Due to their stellar reputations, they get by well. A market maker facilitates the process required to provide liquidity for trading pairs on centralised exchanges. In the forex industry, market makers often have a bad reputation because some brokers display worse bid/ask prices than ECN brokers.

In our case, though, we found that FXCM and OANDA provided consistent low spreads without manipulation, so you shouldn’t concern yourself if the broker has a dealing desk or not.

Both brokers have the maximum leverage allowed by regulators. In the case of Australia, Europe, and The United Kingdom, this is 1:30 for major pairs and 1:20 for minor and exotic pairs. If you qualify for a Pro Account or are trading from an emerging market, then leverage up to 1:100 is available with OANDA and 1:200 with FXCM. While we think high leverage can be useful, keep in mind it can lead to outsized losses, so it is best left to professionals.

On the subject of leverage, it helps if you can reduce the risk of slippage; for this reason, execution speed can make a difference. We tested the Execution Speeds of FXCM and found they have an average execution speed of 108 ms for Limit Orders and 123 ms for Market Orders. This places them 6th of the 20 Forex brokers we test.

Verdict

FXCM and OANDA are both market-maker brokers with identical leverage offerings. As traders, we desire as many base currencies as possible and a sufficient range of leverage. Both are closely matched, but we chose FXCM as our favoured broker in the Trading Experience category, so we gave them a score of 7 and OANDA a 6.

FXCM ReviewVisit FXCM

5. Tie: Stronger Trust And Regulation

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FXCM is regulated in three Tier-1 jurisdictions, making it a safe and low-risk choice for trading forex and CFDs. The broker is authorised by the following Tier-1 regulators: Australian Securities & Investment Commission (ASIC), Financial Conduct Authority (FCA), and Investment Industry Regulatory Organisation of Canada (IIROC) via Friedberg Direct.

OANDA is also regulated by these financial regulatory bodies but is also able to offer trading to clients in the US as they are regulated by the National Futures Association (NFA) and the Commodities Futures Trading Commission (CFTC) in the USA.

Despite both brokers being highly regulated, we found the brokers are not spotlessly clean. OANDA was fined $20,000 by the NFA in 2021 and $500,000 by the CFTC for regulatory breaches in 2020.

FXCM was fined $2 million in 2011 for slippage malpractice and $7 million by US regulators in 201, which saw them exit the US market.

When choosing a broker, the most important detail is to check the broker is regulated in the country you are resident in. So, if you are in Australia, it is best the broker has ASIC regulation.

Verdict

We gave FXCM and OANDA both a score of 8 as they are heavily regulated and hold positive reputations within the forex trading industry.

FXCM ReviewVisit FXCM

6. FXCM: Top Product Range And CFD Markets

OANDA beats FXCM with more forex pairs to choose from, 68 versus 42. But FXCM has far more in the category of share CFD trading at 219 to OANDAs 0. We found it surprising that OANDA doesn’t have shares trading with CFDs, not just because most forex brokers offer this, but because OANDA is such a major global broker.

We consider both brokers a toss-up with commodities as they have virtually equal offerings. Oanda gave us the edge to choose more bonds and treasuries, which we really liked.

On the other hand, FXCM flipped the score by offering 7 cryptocurrencies versus OANDA’s 4. In today’s markets, we find the more cryptos to trade, the better because there is a growing demand for crypto trading.

Should you be based in the UK, both brokers offer spread betting as an alternative to CFD trading.

Verdict

Although FXCM has fewer forex pairs to trade, we feel they deserve a higher Tradable Products score than OANDA primarily because of OANDA’s lack of shares to choose from. OANDA is no slouch with 68 forex pairs, and we note that as a positive. But again, we feel that brokers today need to offer shares trading. We gave FXCM a score of 7 and OANDA a 6.

FXCM ReviewVisit FXCM

7. Tie: Superior Educational Resources

FXCM’s in-house education is above average, primarily consisting of articles, videos, and content produced for its YouTube channel. The learning centre offers us two comprehensive guides and a vast library of nearly 200 articles covering topics such as trading tips, strategies, charting, and indicators. FXCM also offers a selection of articles broken down by experience level, catering to beginner, intermediate, and advanced traders.

OANDA offers us a well-structured education suite suitable for different levels of experience, and its market analysis is detailed and comprehensive, thanks to the in-house analysts and third-party provider, Market Pulse.

OANDA provides a variety of educational materials, including getting-started guides, tools and strategies, and capital management resources. Additionally, OANDA hosts frequent webinars covering various trading topics and maintains an archive of past webinars for on-demand viewing.

Verdict

We thought FXCM and OANDA matched up well on education and research.

8. FXCM: Superior Customer Service

When it comes to customer service, both OANDA and FXCM have their merits. OANDA offers 24/5 customer support through live chat, email, and phone, catering to traders around the globe. FXCM, on the other hand, provides a similar level of support but stands out with its educational webinars and market analysis updates.

In terms of accessibility and response time, OANDA’s live chat is generally quicker, while FXCM offers more in-depth responses. Below is a table summarising the key customer service features of each broker:

Verdict

Based on our analysis, FXCM offers a slightly more comprehensive customer service experience, particularly with its educational webinars and in-depth responses.

FXCM ReviewVisit FXCM

9. OANDA: Better Funding Options

When it comes to funding options, both OANDA and FXCM offer a variety of methods to suit different trader needs. OANDA provides the convenience of multiple payment options, including credit/debit cards, bank transfers, and PayPal. FXCM, on the other hand, also accepts credit/debit cards and bank transfers but adds the option of Skrill for traders who prefer e-wallets.

Here’s a table summarising the available funding options for each broker:

Verdict

OANDA offers a slightly more versatile range of funding options, including PayPal, making it more convenient for a broader spectrum of traders.

10. OANDA: Lower Minimum Deposit

OANDA has a lower minimum deposit requirement of $0 vs $50 from FXCM. Having said that, if you use cards or Trustly as your payment option, both channels require at least $25 or equivalent.

You will find more details in the table below.

Unlike OANDA, FXCM has a fixed minimum deposit amount for its traders.

Verdict

OANDA clearly takes the lead by offering a $0 minimum deposit despite its varying minimum amounts.

So Is OANDA or FXCM The Best Broker?

FXCM is the winner because it excels in a greater number of categories, particularly in trading platforms, customer service, and product range. Below is a table that summarises the key information leading to this verdict.

OANDA: Best For Beginner Traders

OANDA is better suited for beginner traders due to its lower minimum deposit and more straightforward account features.

FXCM: Best For Experienced Traders

FXCM is the better choice for experienced traders, offering a superior trading platform and a wider range of products.