FXCM vs. OANDA: What You Need To Know

Trading can be daunting, but the right broker could set you on the path to success. We’ve compared two of the best brokers – FXCM and OANDA – so finding your perfect match is even easier.

Broker Type

FXCM

FXCM, formerly known as Forex Capital Markets, is a London-based retail broker that enables people to speculate on the foreign exchange market. With FXCM, you can trade in contracts for difference (CFDs) across major indices and commodities such as gold and crude oil – opening up new possibilities when dealing with currencies.

FXCM, formerly Shalish Capital Markets, has been at the forefront of foreign exchange trading since 1999. Founded in New York and later expanding to London in 2003 with a regulated office under UK’s Financial Services Authority – FXCM is the leading innovation for global currency markets.

From its beginnings in 1999, FXCM has become a recognized leader in the forex and CFD markets. Its commitment to technological excellence is evidenced by numerous awards for being at the forefront of innovation in trading services. This worldwide focus extends into their vast infrastructure that helps ensure customers always have access to premium market conditions for successful trades. As an ongoing testament to this success, FXCM continuously moves forward with cutting-edge solutions explicitly designed with clients’ needs as a top priority.

Benefits

• Liquidity
• Certainty of Execution
• Wide Range of Markets

Drawbacks

• Wider Bid-Ask Spread
• Lack of Transparency
• Conflicts of Interest

OANDA

OANDA Corporation is an established leader in the Futures Commission and Foreign Exchange market, boasting accreditation from the Commodity Futures Trading Commission (CFTC) and National Futures Association.

Two highly educated visionaries, a computer scientist (Dr. Michael Stumm) and an economist (Dr. Richard Olsen), came together to give birth to the idea of harnessing technology and Internet access as tools for unlocking unprecedented possibilities in currency data and trading.

In 1997, OANDA ushered in a new era of free exchange rate information when it became the first to make this data available online.

Twenty-five years later, you can trade various financial products and crypto-currencies across multiple countries on the platform. The award-winning platform offers rapid execution with cutting-edge tools, state-of-the-art charting packages, leading indicators, and drawing features from TradingView.

In addition, OANDA offers the finest foreign exchange solutions, providing data seamlessly for over 200 currencies and accurate Historical Currency Converter information stretching back over two decades.

The reliable Exchange Rates API meets the demands of thousands of global businesses by automatically delivering real-time spot rates to their ERP systems, TMSs, digital products, apps, or websites. With access to more than 38000 currency pairs from 25 central bank exchanges worldwide, it’s no wonder why FXCM’s services have become a gold standard in corporate FX solutions.

Benefits

• Faster Trade Execution
• More Transparent Pricing
• Lower Costs
• Zero Conflict of Interest

Drawbacks

• Higher Minimum Deposits
• Lack of Trade Execution Control
• Less Personalized Service
• Higher Volatility

Products

FXCM

• Forex – EUR/USD, USD/JP, GBP/USD, USD/CHF, AUD/USD, USD/CAD, NZD/USD, and more.
• Shares – Tesla Motors, Amazon.com, GameStop, Apple, Alibaba, Boeing, Google, Microsoft, Meta Platforms, and more.
• Commodities – US Oil, UK Oil, NGAS, Copper, XAG/USD, and XAU/USD
• Indices – SPX500, NAS100, JPN225, GER30, and more.
• Cryptocurrencies – Bitcoin, BCH, EOS, Ethereum, and Litecoin. 

OANDA

• Forex – Forex Pairs include EUR/USD, USD/JP, GBP/USD, USD/CHF, AUD/USD, USD/CAD, and NZD/USD.
• Indices – US Wall St 30, UK 100, Germany 30, Australia 200, Europe 50, US Nas 100, and more.
• Metals – Gold, Palladium, Platinum, and Silver.
• Shares – VOLKSWAGEN AG, DEUTSCHE TELEKOM AG-REG, HEINEKEN NV, LVMH MOET HENNESSY LOUIS VUITTON, AIR FRANCE-KLM, CAPGEMINI, and more.
• Commodities – Corn, Copper, Natural Gas, Brent Crude Oil, West Texas Oil, Wheat, Sugar, and Soybeans.
• Cryptocurrencies – Bitcoin, Bitcoin Cash, Litecoin, Ether, Cardano, Dogecoin, EOS, Uniswap, and more.

Platforms

FXCM

Trading Station

Have you heard about the new Trading Station Web 2.0 platform? Not only does it work with Mac, but its modern look and cleaner user interface make this FXCM’s most incredible web-based platform to date. With HTML 5 running in the background, exciting new features make trading easier.

Features:

• News & Calendar
• Education & Research
• FXCM Cloud
• FXCM Charts

TradingView Pro

TradingView is your go-to source for all the latest trading and investing news. Access live stream quotes, graphs, and helpful insights from experienced traders. Plus, you can practice with a demo account until you’re ready to take on real markets.

Unlock all-new features on TradingView, such as doubling the data displayed in charts and marketplace add-ons. Earn an exclusive badge next to your name, get custom resolutions for symbols, and start trading directly from TradingView with FXCM integration – making it smoother.

MetaTrader 4 on Mac, Windows, and Android

Get ultimate control of your trades when you set Stop Loss and Take Profit orders before executing them. Work with precise lot sizes for maximum financial protection, then close as much or as little of a position at any time.

OANDA

MT5 web, desktop, and mobile

Get ready to take your trading game up a notch with MetaTrader 5. This powerful platform boasts advanced tools, deeper market insights, and improved charting capabilities – perfect for traders looking to level up their strategy.

• Automated Trading Strategies
• 21 Charting Timeframes
• 6 Pending Order Types

MT4 web, desktop, and mobile

Easily access OANDA’s MetaTrader 4 web platform from your Mac without any Windows installations. Plus, stay in the loop with push notifications sent directly to your MT4 mobile app, including updates from the MQL5 community.

• Secure, Fast Chats with Other Traders
• One-Click Trading
• Premium MT4 Tools

fxTrade

With fxTrade, from ticket ordering to charting layouts and account details – it’s all designed with you in mind. Experience a friendly, secure platform that offers professional traders the same sleek user interface as retail ones – plus a super responsive experience.

• Customizable Interface
• Multi-Asset Product Suites
• One-click Trading

Fees

Spreads and Commission

Spread is the difference between a financial instrument’s bid and ask price. The spread is how these companies make money since they don’t charge commissions. 

With traders in mind, we put the two brokers to the test. In a typical trading day across all markets – from EUR/USD and beyond – their spreads were identical, with each around 1.2 pips; that’s pretty good news for investors. And if you’ve got an extra-large account or are willing to commit to some severe monthly turnovers (FXCM), these guys have even more attractive offers tailored specifically for you.

Rollover/Swap Charges

Your broker may charge an overnight financing fee when you hold onto a currency trade beyond the typical trading day. This cost is based on how much interest there is between the two currencies involved in your transaction. Varying rollover fees can be expected at FXCM and OANDA – check the cost associated with each pair that piques your investment interests.

Have you ever been caught off guard by end-of-day rollover charges or credits? Well, FXCM and OANDA are two currency brokers taking different approaches. With FXCM, they use the conventional method of applying these fees at 5 pm EST daily – with a triple charge on Wednesdays due to weekend adjustments in advance. Fortunately, that’s one less thing for traders to worry about.

OANDA offers traders a quick and convenient way to manage their finances with up-to-the-second charge/credit integrations. Depending on the type of instrument they’re trading and how long each trade lasts – this could be highly beneficial or detrimental.

Tools

FXCM

• Free SMS Trade Alert: Get alerts when there’s a possible shift in the market. Be on top of your investments, and don’t miss significant trends.
• Market Data Signals: FXCM Market Data allows you to spot lucrative trading opportunities. With its powerful insights, stay ahead of price changes, and monitor volume and sentiment trends for multiple instruments – all so that your trades keep their winning edge. 
• Market Trade Scanner: FXCM’s Market Scanner helps you scan through Forex and CFDs in no time. Pick the best indicators for you, then select your preferred timeframe to find trades effortlessly.
• Free Forex Trading Signals: This signal pinpoints market openings, offering the perfect chance for users to jump in and get trading.
• eFXplus Access: eFXplus takes your trading experience to the next level with its powerful FinTech app. Access live simulations of FX strategies and trade positions from top banks’ sell-side research, plus get access to quantitative models, forecasts and insights.

OANDA

MetaTrader Premium Tools

You can unlock the full potential of your forex trading with FX Blue Labs. Access 15+ indicators and nine Expert Advisors (EA) in one download – all for free only when you trade on OANDA MT4 or MT5. Other popular features, such as Renko charts, OCO orders, and advanced trader management, are also available to give you better control over your trades. Once you upgrade today, you get access to world-class tools that can help you make smarter decisions while managing risks more effectively.

Technical Analysis

OANDA helps you get ahead of the market trends with automated chart pattern recognition and quality indicators. Use AutoChartist’s technical analysis for your MT4 or MT5 platforms, or access it through MetaTrader with a simple web-based interface.

Educational Resources

FXCM and OANDA offer an impressive range of resources to help you become a more competent forex trader. From webinars, video tutorials, articles & e-books – there’s something for everyone. Plus, OANDA’s education section is packed with helpful information: from practical trading terms to a beginner’s guide, plus bonus content that covers the basics of currency trading with interactive quizzes and exercises. But it doesn’t stop there – they also provide signals on market movements and research tools designed to quickly assist traders in making intelligent decisions.

Customer Service

With FXCM and OANDA, trading help is a phone call or chat away. They have dedicated teams in multiple regions to ensure customer support can be provided in the trader’s native language. Plus, there are plenty of self-service resources via their websites, e.g., FAQs and tutorials.

Security and Regulation

When trading with FXCM and OANDA, you can trust that your personal and financial information is handled securely. Their powerful servers are protected by advanced encryption technology and firewalls to prevent unauthorized access. In addition to security measures, both companies have earned prestigious recognition from multiple trusted agencies worldwide—including the US CFTC & NFA, UK FCA, and Australia’s ASIC.

Conclusion

With up to two decades of experience each, FXCM and OANDA are well-established brokers brimming with competitive advantages. Both provide excellent customer service, along with the same educational resources, fees that won’t break the bank, and uncompromised security measures in place to ensure compliance regulations are followed. Picking between these industry leaders is an excellent way for traders, old or new, to jump-start their journey into trading.

The options can be overwhelming if you’re looking for a broker to meet your needs. Don’t worry – both of these companies have significant aspects to offer. You’ll need to analyze what platform or products are right for you before deciding which is best suited. Once you’ve made up your mind, rest assured that both brokers provide excellent service – whichever route you choose won’t disappoint.