OANDA and Pepperstone are global forex brokers with ASIC and FCA regulations and the MetaTrader 4 forex trading platform. Overall, Pepperstone offers lower EUR/USD from 0.0 pips, more CFDs, including cryptocurrencies and superior customer service. Let’s have a closer look.
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Our full comparison covers the 10 most important trading factors. Here are five noticeable differences between Pepperstone and OANDA:
The most important quality you should look for when choosing a forex broker is the transaction costs. In this section, we’re going to examine which forex broker between Pepperstone and OANDA can help you minimise the cost of doing business in the forex exchange market.
When assessing which forex broker has the lowest spreads and fees between Pepperstone and OANDA, we took into consideration the different account types that both forex brokers offer. For our Pepperstone vs OANDA
transaction costs review, we evaluated the following:
Pepperstone vs OANDA: Spread Comparison
Pepperstone has been recognised as offering market-leading spreads and fees. The Australian forex broker offers the most affordable and cheapest transaction costs when compared to OANDA’s pricing model. The table below highlights the Pepperstone and OANDA head-to-head spreads for the EUR/USD and other major currency pairs.
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|---|---|---|---|---|---|
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1.10 | 1.20 | 1.40 | 2.00 | 1.50 |
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0.70 | 2.20 | 1.10 | 1.60 | 1.60 |
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1.90 | 2.00 | 2.40 | 2.30 | 2.50 |
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1.40 | 2.50 | 2.50 | 2.60 | 2.60 |
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1.20 | 1.80 | 1.90 | 2.30 | 2.30 |
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1.32 | 1.95 | 1.37 | 1.87 | 1.73 |
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1.30 | 1.70 | 2.10 | 1.70 | 2.10 |
Avg. spreads are taken from each broker's website and updated monthly. Last update on 12/01/2024
Pepperstone and Oanda both offer two types of pricing models:
For an accurate review process, our team of industry experts compared head-to-head the Pepperstone and OANDA spreads for each individual pricing model.
Commission-Based Model
Pepperstone is able to keep the spreads low due to its ECN trading environment, which allows the Australian-based forex broker to offer the best possible spreads. On the other hand, OANDA’s dealing desk solution comes with higher spreads. Pepperstone’s Razor account (commission-based model) can give forex traders access to competitive spreads that can go as low as 0 pips on the EUR/USD (during liquid hours). The average EUR/USD spread is 0.09 pips.
In comparison, OANDA doesn’t offer information on its average spread for its core pricing + commission model. OANDA’s live spread revealed the EUR/USD spread of 1.2 pips, but they advertise spreads going as low as 0.1 pips.
Spread-Based Model
Our review process revealed that Pepperstone’s spread pricing model is slightly better than OANDA has to offer. Pepperstone’s average EUR/USD spread is 0.69 pips, while the minimum spread is 1.0 pips pip on the EUR/USD. In comparison, since OANDA has variable spreads during periods of illiquidity and high volatility, spreads can widen as much as 10 to 20 pips.
OANDA advertises itself as having the spread going to as low as 0.9 pips on the EUR/USD for its spread-only pricing model. However, OANDA’s average spreads are higher compared to the industry standards of what is considered low spread.
Pepperstone vs OANDA: Commission Comparison
Below is a summary of Pepperstone commissions across different trading platforms per 100,000 units traded (1 standard lot) per side:
In contrast, OANDA charges a $5 commission per 100,000 unit traded (1 standard lot) per side.
Verdict
Overall, Pepperstone comes ahead of OANDA with its low transaction costs. Clients with Pepperstone can benefit from lower trading costs, which is great for scalping. Pepperstone offers competitive average spreads and commissions with its transparent pricing model. If you want to take advantage of the ultra-tight spreads, make sure you open a Pepperstone demo account first to test it with your own hands. To learn more about Pepperstone charges, view the full Pepperstone Fees analysis.
Pepperstone ReviewVisit Pepperstone
| Trading Platform | Pepperstone | OANDA |
|---|---|---|
| MetaTrader 4 | Yes | Yes |
| MetaTrader 5 | Yes | No |
| cTrader | Yes | No |
| TradingView | Yes | Yes |
| Copy Trading | Yes | Yes |
| Proprietary Platform | Yes | Yes |
Our team of industry experts filtered all the main trading features and tools that must come with an online broker platform to establish which forex broker has the best trading platform. When comparing Pepperstone vs OANDA trading platforms, we took into account multiple factors, such as:
After meticulously examining the entire above trading platform features, we concluded that the winner in this category is forex broker Pepperstone. The most powerful technological feature of a forex broker is its trading platform, so before choosing the right FX broker, you need to make sure it includes all the trading tools to suit your trading style.
Pepperstone took a bigger score than OANDA in terms of the selection of trading platforms. Pepperstone offers the most popular trading platform, the MetaTrader 4, along with the upgraded MetaTrader 5 and the multi-asset trading platform cTrader. In contrast, OANDA traders only have available forex trading through the MT4 platform and the proprietary trading platform fxTrade.
The trading software solution offered by Pepperstone and OANDA is available through:
Pepperstone vs OANDA: Order Execution Speed
Pepperstone is a true ECN + STP forex broker that offers Direct Market Access (DMA) via multiple liquidity providers. In comparison, OANDA is a market maker that executes client orders through their own No Dealing Desk Brokers. Without any question, Pepperstone has proven its superiority over OANDA’s market maker model.
Pepperstone’s ECN trading style can provide forex traders with:
Pepperstone clients can have their order executed in less than 30 milliseconds with one of the 22 banks and liquidity providers available through Pepperstone. On the other hand, OANDA advertises itself of filling your order in 0.012 seconds, but its in-house trading platform took a lower score because of:
Pepperstone vs OANDA: Technical Analysis Tools
Pepperstone is a respected forex trading broker that provides its clients with powerful technical analysis tools to assist forex traders with all their trading needs. OANDA fxTrader only comes with some basic technical tools and indicators. In this category, Pepperstone’s trading platforms took again the highest score as it’s more sophisticated and include the following main technical tools:
OANDA fxTrader lacks technical analysis tools and only offers a limited range of technical features. This limitation can hinder forex traders’ ability to properly execute their trading strategies. However, both Pepperstone and OANDA MetaTrader 4 platforms offer access to Autochartist’s advanced tools.
The only tool that makes OANDA stand out is the CFTC’s Commitments of Traders (COT) graph tool, which is more suitable for sentiment-based traders.
Pepperstone took extra points due to its cTrader platform easy-to-use interface, which has the following advantages over the OANDA’s fxTrader platform:
Pepperstone vs OANDA: Social Trading
In terms of social and copy trading features, Pepperstone tops OANDA as it has partnered with multiple third-party providers like MyFxBook’s AutoTrade, MetaTrader signals, DupliTrade, Mirror Trader and RoboX. The lack of features related to social trading and copy trading makes OANDA not compatible with beginner traders.
At Pepperstone, social trading is combined with risk management tools to offer a complete solution for the highly volatile markets. On the downside, the copy trading platform Zulutrade is not offered by either of the two brokers.
Verdict
Our review process discovered that the Pepperstone range of trading platforms is superior to OANDA’s technological solution. Overall, after evaluating Pepperstone vs OANDA trading platforms, including the available technical tools, the quality of order executions, security and functionality, our team of industry experts awarded Pepperstone with the big prize.
Another measure we took into consideration in our review process is the different types of trading accounts. Both forex brokers Pepperstone and OANDA offer their clients the option to choose between two main types of trading accounts. Which type of forex account is the best fit for your trading needs depends on factors such as:
Our team of industry experts will give you a brief overview of the options available to FX traders through Pepperstone and Oanda. Pepperstone offers two types of trading accounts that cater to scalpers and algorithmic traders, and the second one is designed for beginner traders:
In the past, Pepperstone had a minimum deposit of $200; this has since been removed, nevertheless, a deposit will still need to be made to meet initial margin requirements to open a position.
Most clients with OANDA will use the OANDA ‘Spread Only Pricing’ account. This account is very similar to the Pepperstone standard account.
Likewise, the OANDA has a ‘Core Pricing’ Account, which is similar to Pepperstone’s Razor Account for MetaTrader. This account is only available to clients of OANDA in Australia, Singapore and the USA. Round-trip commission costs for each standard lot in Australia are AUD 7.00 (3.50 sideways), In Singapore SGD 7.00 (3.50 side ways) and USA is USD 10.00 (sideways 5.00).
Our Pepperstone review process discovered that the Australian-based forex broker also offers PAMM and MAM trading solutions for professional money managers. By comparison, OANDA doesn’t offer managed accounts. Pepperstone scores extra points again and comes ahead of OANDA by offering accounts packages for professional fund managers.
Note* Unfortunately, only Pepperstone offers tailored services for Muslim traders by offering an Islamic trading account. Pepperstone offers the Swap-free account (Islamic account) to their clients in specific regions by default and at their discretion.
| Pepperstone | OANDA | |
|---|---|---|
| Standard Account | Yes | Yes |
| Raw Account | Yes | Yes |
| Swap Free Account | Yes | No |
| Active Traders | Yes | No |
| Spread Betting (UK) | Yes | Yes |
Additionally, both brokers offer subaccounts for tax-free spread betting, but only available for UK traders.
For an in-depth comparison of the Pepperstone Razor vs. Standard account, make sure you read our full Pepperstone Account Types review, which will outline the key points of difference between the two types of trading accounts.
When it comes to the overall trading experience and ease of use, both Pepperstone and OANDA have their unique strengths. From our own testing, Pepperstone stands out with its variety of platforms, especially with its MT4 offering. On the other hand, OANDA is highlighted as the best for beginners, ensuring a smooth start for those new to the trading world.
Verdict
While both brokers offer a commendable trading experience, Pepperstone slightly edges out with its diverse platform offerings and automation tools.
Pepperstone Trust Score
OANDA Trust Score
Trust and regulation are paramount when selecting a forex broker. Both Pepperstone and OANDA are globally recognised and regulated by major financial authorities. Pepperstone boasts regulation from several key financial centres, including the Australian Securities and Investments Commission (ASIC) in Australia, the Financial Conduct Authority (FCA) in the UK, the Cyprus Securities and Exchange Commission (CySEC) in Europe, the Federal Financial Supervisory Authority (BaFin) in Germany, and the Dubai Financial Services Authority (DFSA) in the UAE.
On the flip side, OANDA, being US-based, is governed by the National Futures Association (NFA). Additionally, OANDA holds licenses from ASIC, FCA, CIRO, and FSA. Both brokers adhere to the high standards set by these regulatory bodies, ensuring that traders’ funds are safe and secure.
| Pepperstone | OANDA | |
|---|---|---|
| Tier 1 Regulation | ASIC (Australia) FCA (UK) BaFin (Germany) CYSEC (Cyprus) | NFA/CFTC (USA) MAS (Singapore) CIRO (CANADA) FCA (UK) ASIC (Australia) |
| Tier 2 Regulation | DFSA (Dubai) | JFSA (Japan) KNF (Poland) MFSA (Europe) |
| Tier 3 Regulation | SCB (Bahamas) CMA (Kenya) | FSC-BVI |
Verdict
While both brokers are well-regulated, Pepperstone has a slight edge due to its broader range of regulatory oversight from multiple major financial centres.
When choosing your forex broker, you also need to consider the range of markets offered by your favourite forex broker. The variety of financial instruments offered by Pepperstone and OANDA are rich in CFD offerings, which means they can accommodate all types of traders.
The table below shows head-to-head the range of CFDs offered by Pepperstone and OANDA.
| Pepperstone | Oanda | |
|---|---|---|
| Forex Currency Pairs | 92 | +71 |
| Index CFDs | 23 | 15 |
| Share CFDs | 700+ | NO |
| Commodities | 16 | 7 |
| Cryptocurrencies | 12 | NO |
| Currency Index CFDs | 1 | NO |
| Metal | 5 | 23 |
| Bonds | NO | 6 |
Pepperstone range of markets can give forex traders access to a multitude of asset classes, including:
By comparison, after we carried out our research, we found out that OANDA is offering a limited number of instruments available for trading. If you want to start trading with OANDA, be aware that you will NOT be able to trade:
Verdict
In terms of the range of available assets to trade, OANDA has a bit of an advantage over Pepperstone by offering Bonds CFDs trading, which can’t be found on the Australian-based forex broker. Overall, Pepperstone is the winner in this category because it offers a larger number of CFD trading instruments. More than 700 instruments are powered by Pepperstone’s low spreads trading conditions.
Education is a cornerstone for any trader, be it a novice or an expert. Both Pepperstone and OANDA have invested significantly in this area, ensuring their clients have access to top-notch educational resources. From the comparison page and our own testing, here’s how the two brokers stack up:
Verdict
Based on our testing, OANDA slightly edges out Pepperstone in the educational resources department, ensuring a comprehensive learning experience for its users.
The head-to-head customer service comparison once again revealed that Pepperstone’s customer support experience is far superior to what OANDA has to offer. Pepperstone has multi-award-winning customer service that has gained industry recognition. Pepperstone won numerous industry awards for its excellent 24-hour customer service.
Here are our findings in terms of the similarities that can be found on both forex brokers:
OANDA clients can contact the support team in several languages, including English, Spanish, German, Mandarin, and Russian. Compared with Pepperstone, OANDA falls behind, as again, the Australian-based forex broker supports 12 different languages, offering a much better experience to traders from around the world.
The only feature that OANDA managed to gain some extra points was with its 24/6 customer support compared to Pepperstone’s 24/5 customer service.
OANDA’s customer support service stands out in the forex industry only when compared to forex brokers like FXCM, Forex.com or AvaTrade, as OANDA can be proud to offer far better customer service. However, OANDA has been recognised in the United States by winning the Highest Overall Client Satisfaction offered by Investment Trends – US Foreign Exchange Report.
Verdict
Overall, both OANDA and Pepperstone reviews of customer service were positive, as our review process found the Australian forex broker offered the best-enhancing customer support experience. Get your free demo account with up to $100,000 in virtual money and test the forex exchange market.
Forex traders can fund Pepperstone and OANDA trading accounts using a variety of deposit methods, including:
The head-to-head comparison revealed that Pepperstone offers 9 funding and withdrawal methods, including Visa, Mastercard, POLi, Bank transfer, BPay, PayPal, Neteller, Skrill, and Union Pay. On the other hand, OANDA has a much more limited range of deposit methods and only offers:
Deposits And Withdrawal Fees
With OANDA, you can only withdraw funds via the same method used for depositing the funds. Secondly, to deposit funds via credit and debit card there is a maximum deposit limit. With OANDA, you can only deposit $10,000 or equivalent in local currency per calendar month. On the other hand, OANDA PayPal deposit has no limits, but it only supports GBP, USD and EUR transfers.
OANDA doesn’t charge any deposit fees, but OANDA charges a withdrawal fee for credit card and bank transfers. While the first withdrawal processed within a calendar month is free, any subsequent withdrawals are subject to withdrawal fees.
Below, you have an overview of the types of withdrawal fees traders can expect from OANDA.
| First withdrawal processed within calendar month | Additional withdrawals processed within calendar month | |
|---|---|---|
| CAD | CAD $20 | CAD $40 |
| AUD | AUD $20 | AUD $40 |
| EUR | EUR 20 | EUR 35 |
| CHF | CHF 20 | CHF 40 |
| GBP | GBP 10 | GBP 20 |
| HKD | HKD $150 | HKD $300 |
| JPY | JPY 2,000 | JPY 4,000 |
| SGD | No Fee | No Fee |
| USD | USD $20 | USD $35 |
On the other hand, Pepperstone offers convenient and fast withdrawal methods, providing you with first-class trading services. Unlike OANDA, Pepperstone doesn’t charge deposit and withdrawal fees. In our Pepperstone review process, the Australian forex trading broker took an extra point in this category and won our recognition.
Deposit Currency Supported
Both Pepperstone and OANDA offer multi-currency deposit solutions:
OANDA supports the following 9 currencies: CAD, AUD, EUR, CHF, GBP, HKD, JPY, SGD, and USD. On the other hand, Pepperstone offers 10 different base currencies for their two trading account types. With Pepperstone, you can make a deposit in your local currency using your preferred deposit method with zero transaction fees.
Verdict
Our team of industry experts views Pepperstone as the overall winner in this section. But, OANDA also came closer to the high standard imposed by the Australian-based FX broker by supporting almost the same range of currencies. Before making a deposit, you can open a demo account with virtual money in your local currency.
Both Pepperstone and OANDA have a $0 minimum deposit requirement. Having said that, OANDA, unlike Pepperstone, vary their minimum deposit amounts according to regions and payment methods.
The table below highlights the figures to expect when making a deposit in OANDA.
| GBP | USD | EUR | AUD | |
|---|---|---|---|---|
| Credit Card / Debit Card | £25 Minimum Deposit | $25 Minimum Deposit | €25 Minimum Deposit | $25 |
| Bank Wire | £0 Minimum Deposit | $0 Minimum Deposit | €0 Minimum Deposit | $0 |
| Trustly | £25 Minimum Deposit | $25 Minimum Deposit | €25 Minimum Deposit | $25 |
| Paypal | N/A | N/A | N/A | N/A |
Pepperstone sticks with its $0 requirement wherever you are, as shown in the table below.
| GBP | USD | EUR | AUD | |
|---|---|---|---|---|
| Credit Card / Debit Card | £0 Minimum Deposit | $0 Minimum Deposit | €0 Minimum Deposit | $0 |
| Paypal | £0 Minimum Deposit | $0 Minimum Deposit | €0 Minimum Deposit | $0 |
| Bank Wire | £0 Minimum Deposit | $0 Minimum Deposit | €0 Minimum Deposit | $0 |
| Skrill | £0 Minimum Deposit | $0 Minimum Deposit | €0 Minimum Deposit | $0 |
While both brokers have a zero minimum deposit feature, they have their respective recommended amounts.
| Minimum Deposit | Recommended Deposit | |
| Pepperstone | $0 | $200 |
| OANDA | $0 | $25 |
Verdict
It’s a resounding tie with both Pepperstone and OANDA when it comes to the minimum deposit requirement. While OANDA’s recommended deposit is only at $25, you will likely need to deposit more to open a trading position.
Pepperstone is the winner because it offers a more comprehensive range of services, platforms, and tools, combined with its strong regulatory oversight and award-winning customer service. The table below summarises the key information leading to this verdict:
| Criteria | Pepperstone | OANDA |
|---|---|---|
| Lowest Spreads And Fees | ✅ | ❌ |
| Better Trading Platform | ✅ | ❌ |
| Superior Accounts And Features | ✅ | ❌ |
| Best Trading Experience And Ease | ✅ | ❌ |
| Stronger Trust And Regulation | ✅ | ❌ |
| Top Product Range And CFD Markets | ✅ | ❌ |
| Superior Educational Resources | ❌ | ✅ |
| Superior Customer Service | ✅ | ✅ |
| Better Funding Options | ✅ | ❌ |
| Lower Minimum Deposit | ✅ | ✅ |
OANDA is the preferred choice for beginner traders due to its user-friendly platform and comprehensive educational resources.
Pepperstone stands out for experienced traders, offering advanced tools, platforms, and a wider range of trading options.
Pepperstone generally offers more competitive spreads and lower costs. For instance, they offer lower EUR/USD spreads starting from 0.0 pips. OANDA, while competitive, might have slightly higher spreads in some cases. For a detailed comparison of broker costs, you can check out this Lowest Commission Brokers.
Both OANDA and Pepperstone support MetaTrader 4, but Pepperstone is often recognised for its enhanced MT4 offerings, including advanced tools and faster execution speeds. If you’re particularly interested in MT4, this list of Best MT4 Brokers might be beneficial.
Pepperstone offers social trading features, allowing traders to copy strategies from experienced traders. OANDA, on the other hand, doesn’t have a prominent social trading platform. Social or copy trading can be a game-changer, especially for beginners. For more insights on this, you can explore the best social trading platforms.
Pepperstone offers spread betting for its UK clients, while OANDA does not have a prominent spread betting platform. Spread betting is a popular derivative product in the UK, allowing traders to speculate on the direction of financial markets without owning the underlying asset.
In my opinion, Pepperstone stands out as the superior choice for Australian forex traders. Founded in Melbourne, Australia, Pepperstone is ASIC regulated, ensuring a high level of trust and security for its clients. OANDA, while also ASIC regulated, is based overseas. Pepperstone’s deep roots in Australia, combined with its robust platform offerings and customer service, make it a top pick. For a broader perspective on Australian forex brokers, you can explore this list of the Best Forex Brokers In Australia.
For UK traders, I believe OANDA has a slight edge. While both brokers are FCA regulated, ensuring the highest standards of conduct, OANDA’s global presence and diverse platform offerings cater well to the UK market. Pepperstone, although offering a robust trading experience, is originally from Australia. UK traders seeking a platform tailored to their specific needs might find this list of Best Forex Brokers In UK quite insightful.
Ask an Expert
Does Pepperstone have a huge advantage over OANDA for scalping?
Unlike OANDA, Pepperstone has a RAW spread account which has lower spreads compared to a spread-only account. Such accounts tend to be popular with scalpers due to their lower cost. Scalpers also tend to prefer automated trading and while both allow automation with EAs on MetaTrader signals, Pepeprstone has other options such as Capitalise.ai an social trading,
Can beginners trade with Pepperstone?
Yes, beginners can trade with Pepperstone. We advise starting with a demo account and only trading small amounts once you start trading.