Hello again! If you are thinking about earning some serious money with forex trading, you should know the value of having a reliable broker on your side . Here, I’ll compare two of the industry leaders, FXCM and OANDA . It’s time to separate the wheat from the chaff and find out the best option for you . But beware, the whole comparison is based on my experiences so it can be different from what you’ll possibly experience when using these . Without further ado, let’s get started .
FXCM: Proudly Serving Since 1999
I’ve had the pleasure of exploring FXCM’s world as a professional forex trader . Let me tell you about my experience with this well-established New York-based FX broker from 1999 . FXCM has moved its headquarters to London where it is subject to strict regulation by the Financial Conduct Authority (FCA) and other authorities such as Australia’s ASIC and South Africa’s FSCA . So it is solid on the regulation side of things .
When it comes to trading accounts FXCM has several nice things that can pull you . The ability to trade currencies and contracts for difference (CFDs) attracted me because it gave me access to commodities and cryptocurrencies . The leverage they offer made my trades more interesting, too . The abundance of add-ons and software packages is what drew my attention, though . I really appreciated the opportunity to try out their Trading Station, MetaTrader 4 (which allows copy-trading via ZuluTrade) and NinjaTrader, as well as the many available plugins . Thanks to this I was able to pick the trading platform that worked best for me .
We need to talk about prices . As a trader I found FXCM’s low fees and flexible policies to be very appealing . Their Standard Account is affordable enough that I could open one and begin trading forex and CFDs right away . For frequent traders like myself the enhanced functionality of their Active Trader account makes it a strong contender . Remember that it calls for a larger amount of cash upfront .
FXCM unquestionably knows how to keep us happy as traders in terms of customer service . The company’s customer service department was excellent in my experience . I could reach them via multiple methods and the wait times for help were minimal . It’s comforting to know that you can reach out via text or phone whenever you need assistance .
Now let’s talk about a drawback that I found . If you’re a professional trader thinking about opening an Active Trader account you should know that some of the investor protections afforded by the Financial Conduct Authority (FCA) may no longer apply . Even though it didn’t have any bearing on me it’s something to think about if it applies to you .
For the most part, I’ve enjoyed working with FXCM . You can trade with them with confidence because they are a reputable company with low fees, multiple trading platforms and a wide selection of useful add-ons and tools . FXCM is a broker worth looking into if you want a variety of trading platforms and a history of customer satisfaction .
OANDA: “All Things Currency”
Now it’s time to talk about OANDA, a foreign exchange broker that has been in business since 1996 . The company’s headquarters can be found in New York City . It was established there by Drs . Michael Stumm and Richard Olsen . This company claims to deal with all aspects of foreign exchange, including currency conversion and FX data services for commercial clients . For those interested in entering the retail FX or CFD markets, they also provide online trading .
OANDA has evolved to provide two account tiers, the basic and the advanced . Traders can choose from a variety of instruments and strategies, such as CFDs and spread betting . However, keep in mind that not all services are offered in every location where they are active .
I noticed that the safety of your OANDA account may vary depending on your location and that this is not advertised . When it comes to negative balance protection for instance, OANDA Europe Limited satisfies the ESMA’s requirements . You won’t be responsible for paying them back if things go south, is a simplified explanation . You’re out of luck if you’re located in the United States though . Clients in the United States are not given the same security by OANDA Corporation .
Speaking of the US, OANDA is one of the few brokers that accept customers from there . They have been given the seal of approval by the CFTC and the NFA respectively . UK customers have protection for their assets up to £85,000 thanks to FCA authorization and regulation . Really not bad at all .
Alright, let’s talk about the good stuff then . OANDA is a transparent company with an easy-to-navigate website . You won’t be in the dark because they put a premium on educating and informing their customers . The features of their trading platform fxTrade are standard fare . TradingView, a high-end financial visualization platform, is one of the companies they partnered with to improve their desktop and web-based offerings .
OANDA provides an abundance of helpful resources and tools . All sorts of high-tech data analysis tools, from calendars to real-time news feeds to economic forecasts, are at your fingertips . It’s like having instantaneous access to a vast pool of knowledgeable individuals .
Now let’s talk about some of the less-than-ideal parts . If you’re a customer in the United States, hear me out: OANDA does not provide protection against negative balances, so if your balance falls below zero, you will owe the company money . Yikes! No one in the United States can place an order with a guaranteed stop-loss . And if you are in the US you are limited to trading 70 currency pairs . You are not allowed to trade in CFDs on individual stocks or ETFs, either .
Also, the costs must be taken into account . OANDA has several different fees, including an inactivity fee if you don’t make any transactions in a given month, withdrawal fees, bank wire transfer fees and multiple debit card withdrawal fees in the same month . So keep an eye on those fees .
Compulsory TL;DR For the Internet People
FXCM and OANDA have pros and cons in their battle . FXCM has a wide range of trading platforms, low fees, and many plugins and apps to simplify trading . They accept traders with low deposits . OANDA’s comprehensive services set it apart . It manages currencies and offers CFD and spread betting for many asset classes . They prioritize transparency, client education, and research with advanced tools and resources . However, OANDA lacks guaranteed stop-loss orders and investor protections for U .S . clients . In the end, choosing between these two depends on personal preferences, trading styles and needs . If you need any help, don’t be shy; let us know . See you on the next one .
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