OANDA vs IG: which broker is better?

IG and Oanda are two brokers regulated in Europe, very popular among traders, and have a wide range of services. As an investor or trader, you may be unsure about which of the two is the best option for you. Therefore, in this article, we will compare Oanda vs IG to determine which broker is better for different needs, looking at their particular features, tools, costs, and more.

oanda vs ig

IG vs Oanda: how do they work?

To find out which broker offers the best trading conditions and services, it's important to have a closer look at the two brokers.

Overview of IG

IG is a well-established broker that has been around since 1974, originating in the United Kingdom. It started its journey by focusing on gold trading but soon expanded its offerings to include various assets. Today, IG is one of the largest providers of derivatives by trading volume, giving access to over 18,000 markets.

IG is part of the IG Group, a company listed on the London Stock Exchange. This listing adds an extra layer of security for investors. Additionally, IG has offices worldwide.

IG offers a wide range of derivative products, including stocks, forex, indices, and commodities, among others.

Overview of Oanda

Oanda specialises in currency trading and has a history dating back to 1995 when it started as a free web portal providing information on currency exchange rates.

In 2001, Oanda transitioned into a broker and introduced its fxTrade service, allowing online trading in the Forex market. Over the years, it acquired the Polish broker Dom Maklerski TMS Brokers, leading to the formation of Oanda Europe Markets Ltd., which serves the European market.

Currently, Oanda offers trading in up to 13 currency pairs and provides access to more than 1,600 US stocks, along with various financial derivatives.

IG and OANDA in less than 1 minute

Before we get fully into the comparison, let's see the basics of each broker:

IG

  • 🏆 Regulation: FCA
  • 🔒 Guarantee fund: Up to £85,000 (FSCS)
  • 💼 Financial assets: Stocks, currencies, and derivatives, among others
  • 🌐 Markets: +18,000 markets
  • 💻 Account Types: Multiple
  • 💲 Costs: Variable fee structures
  • 💰 Minimum Deposit: No minimum for bank transfers
  • 📈 Platform: Proprietary, MT4, and ProRealTime
  • 📧 Contact:
    • Email: newaccountenquiries.uk@ig.com
    • Phone: 0800 195 3100
    • Live chat
ig

Oanda

  • 🏆 Regulation: FCA
  • 🔒 Guarantee fund: Up to £85,000 (FSCS)
  • 💼 Financial assets: Forex and CFDs
  • 🌐 Markets: Multiple
  • 💻 Account types: 2 (Standard account and professional)
  • 💲 Costs: Variable spreads
  • 💰 Minimum deposit: No minimum deposit requirement
  • 📈 Platform: Proprietary, TradingView, and MT5
  • 📧 Contact:
    • Email: frontdesk@oanda.com
    • Phone: +44 020 3151 2050
    • Live chat

Oanda vs IG: Which broker is safer and more reliable, Oanda or IG?

It's crucial to assess the level of security provided by a broker. Typically, this security is evaluated through regulatory measures, which outline the safeguards a platform offers to traders, both during active trading and in the event of financial insolvency.

Oanda – regulations and security measures

Oanda is a global broker with a presence on multiple continents, including Asia, Europe, and America, as indicated on its official website. It operates under various subsidiaries that are part of the Oanda Corporation group.

In the UK, Oanda is licensed by the FCA. This means that Oanda is compliant with all current regulations, such as participation in the Financial Services Compensation Scheme (FSCS), negative balance protection, leverage limits, and more.

IG – regulations and security measures

IG operates under the umbrella of the IG Group, which houses IG Markets Limited, the broker's official name.

IG Markets Limited is headquartered in the United Kingdom and is duly registered and regulated by the Financial Conduct Authority (FCA). Additionally, it's publicly listed on the London Stock Exchange, adding an extra layer of assurance through its transparent financial reporting.

It also participates in the FSCS.

Both brokers adhere to robust regulation and oversight; however, IG stands out for its transparency and association with a publicly traded group on the London Stock Exchange.

Products and markets: IG vs Oanda

Now that we've established that both IG and Oanda are well-regulated and offer security guarantees, let's compare their product offerings and market access to determine which broker may be a better fit for you.

IG's product and market offerings

IG has a very complex offering that combines both derivatives, such as CFDs and spread betting, and real assets (stocks).

Regarding the types of assets available, there is a wide choice:

Oanda's product and market offerings

Oanda, on the other hand, has a more limited range of assets to choose from, namely stocks and forex.

Also, Oanda doesn't offer real assets, so it's a CFD broker.

Which broker offers better accounts, IG or Oanda?

Next, let's have a look at the type of trading accounts available with both brokers and their key features.

IG accounts

IG offers a wide range of accounts, depending on what your needs and purposes are:

  • Spread betting or CFD account
  • Share-dealing account
  • Smart portfolios account

In other words, IG caters to both active traders and long-term investors.

There is no minimum deposit required if you make a bank transfer, but you need to deposit at least £250 minimum for PayPal and credit/debit cards.

Oanda accounts

There are two types of accounts:

  • Oanda account: With this account, you will have access to all Oanda products, a 24-hour customer service and investment tools such as information panels.
  • Professional account: This account, designed for professional and institutional investors, offers more advanced tools and higher leverage.

Oanda also has no minimum deposit.

IG vs Oanda: cost structure

A crucial aspect to consider next is the broker's cost structure. Here are some of the main considerations of the two brokers.

IG costs

IG's cost structure is variable, depending on many aspects, such as the type of account and assets. For example, a spread-betting account will come with spreads, while a share-dealing account charges commissions, starting from £0 for US stocks and  £3 for UK stocks.

To have a look at the full breakdown of the cost structure, check out our IG review.

Oanda costs

Oanda charges £0 commissions but, of course, you need to cover the spreads, just like with all CFD brokers. For example, the GBP/USD spread, at press time, is 1.3 pips. Spreads depend on your chosen currency pair and multiple other factors, such as market volatility.

However, on average, Oanda's spreads are average, and the cost structure could be an advantage if your trading strategy is based on forex.

Trading platform: IG vs Oanda

Next, let's have a look at the trading platforms:

IG platforms

IG offers a huge variety of services when it comes to its platforms. On the one hand, it has its own online platform that allows you to trade using only a browser. In addition, it also has a mobile version, so you can access the market at any time and place.

oanda vs ig markets

In addition, IG provides access to:

  • MetaTrader4: MT4 is undoubtedly the most popular option among forex traders. It boasts many tools, features, and customisation options to suit any trader and any strategy.
  • ProRealTime: Similarly, ProRealTime is a popular choice among many traders, especially advanced ones.

Oanda platforms

Oanda also offers a wide range of platforms:

ig mt4

IG vs Oanda – customer service

One crucial aspect for investors to consider when evaluating a broker is its customer service. This is especially important for non-expert traders who may have questions or concerns about products, commissions, operations, and more. Let's compare the customer service offerings of IG and Oanda to determine which one excels in this aspect.

IG customer service

IG offers excellent customer service via different methods:

  • Phone: 0800 195 3100
  • Email: newaccountenquiries.uk@ig.com
  • Live chat

Customer service has a 24-hour schedule, from 8 am Saturday to 10 pm Friday.

Oanda customer service

Similarly, you can contact Oanda via:

  • Online chat
  • Phone: +44 020 3151 2050
  • Email: frontdesk@oanda.com

Oanda's customer service team works from Sunday at 9 p.m. GMT to Friday at 11 p.m. GMT.

Other broker comparison articles

If you can't decide just yet, have a look at our other comparison articles:

👉 IG vs eToro

👉 IG vs Interactive Brokers

👉 IG vs ActivTrades

Summary: which broker is better, IG or Oanda?

When it comes to regulation and security, both IG and Oanda are evenly matched, as both are regulated by the FCA and provide the same level of financial security to investors.

However, differences become evident in their product and market offerings. IG has a very wide product and market offering, while Oanda focuses mainly on CFDs (and forex in particular). Hence, if you're looking for asset diversity, IG is more suitable for your needs.

Account options are also different. Oanda essentially offers only one account for retail traders, while IG targets both traders and long-term investors with multiple account types.

In terms of costs, Oanda holds a slight edge over IG considering the forex spreads. However, IG's more complex offering of assets could suit both traders and long-term investors with a competitive cost structure.

IG provides multiple trading platforms, including MT4, ProRealTime, and proprietary platform, making it a more versatile option. Oanda, while slightly less comprehensive, offers a fast and user-friendly alternative. It's important to note that, although focused on forex, it doesn't offer MT4 as an option, but rather MT5, which is more popular for trading other assets, such as stocks.

Customer service at both brokers is comparable, with no clear advantage for one over the other.

Overall, if you have a multi-asset strategy or look for versatility and multiple options, IG could be an excellent choice. However, if you are a beginner trader focused on forex, Oanda could help you get started in your trading journey while keeping costs low.

IG vs Oanda: pros and cons

ig vs oanda for spread

Pros and cons of IG

Pros Cons
✅Quality and variety of platforms❌Choice of platforms could be confusing for beginners
✅Wide product offering
✅Broker specialised in trading and investment
ig vs oanda for scalping

Pros and cons of Oanda

Pros Cons
✅Simpler cost structure (no commissions)❌Mainly for forex trading
✅Access to TradingView and MT5❌No access to MT4
✅ Competitive forex spreads

FAQs

Which broker is more suitable for professional investors?

IG is often considered a better choice for professional investors due to its wider range of products and professional platforms.

Do Oanda and IG provide access to major global markets?

Yes, both brokers offer access to major global markets, making it convenient for traders to invest internationally.

Which broker is more suitable for beginners?

Oanda is often considered a simpler and slightly more cost-effective choice for beginners who want to start with forex.

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