IG Group vs. Oanda • 2023 Pros & Cons • Benzinga (2023)

Which is a better choice if you’re a forex trader? IG or Oanda? A closer look at this matchup should reveal which one is the right fit for you.

Who is IG for?

IG (LON: IGG) is a long-standing, well-regulated forex broker that attracts forex traders who want the utmost in safety, product selection, trading tools and research. Whether you trade forex or contracts for difference (CFDs), IG has the resources to offer you the best trading environment at an affordable rate. IG’s headquarters are in London but it has a U.S. division.

A broker’s longevity in this volatile industry is a credible statement. IG has been around for 46 years. Many countries have forex regulators that operate on a tier system. Forex brokers earn the privilege of tier-1 regulation by successfully obeying the rigid guidelines and regulations of each country it does business in. IG operates under the authority of tier-1 regulators in Australia, Japan, Singapore, Switzerland, the U.K. and the U.S. IG adds to its credibility by being a regulated bank.

IG offers over 17,000 tradable instruments and the largest amount of CFDs. IG attracts investors who intend to increase their success odds in forex and CFD trading and it serves global client centers in 16 countries. IG leads the world in providing contracts for difference and financial spread betting to traders all over the world.

You’ll find IG’s web-based platform easy to navigate if you’re a beginner. Many features make your trading go smoother, including:

Advanced traders may prefer the MetaTrader 4 on IG’s dealer platform for share trading. This system features automatic trading. All platforms have real-time charting with advanced capabilities.

Who is Oanda for?

Oanda attracts tech-savvy traders and beginners alike. This London-based forex trader ranks high among its rivals in safety trading platforms, tradable instruments and research but trails IG in every category.

Traders who value safety will like Oanda. The private forex broker has been in business for 24 years and must abide by the Financial Conduct Authority (FCA), one of the strictest worldwide financial regulators. Traders can consider Oanda a low-risk broker.

Oanda calls its trading system fx Trade. The platforms provide great selections for algorithmic trading, though it lags behind IG. Oanda offers 4 ways to trade:

Oanda doesn’t offer stocks and options. Its major offerings are CFDs, forex currency pairs and commodities. Globally, it has operations in 12 countries.

IG’s Fees and Commissions

IG manages to provide superior products and services within a low price range. A currency spread rate sheet is a good indicator of a forex broker’s fee structure. The spread is the broker’s commission on currency pairs. You can learn more about trading terms by reading how to trade in forex.

This table lays out IG’s rates for currency spreads. It compares IG’s rates to the market average. The unit of measure is a pip, or point per percentage. A pip represents 1/100th of 1 cent for U.S.-based currency pairs.

With a $250 minimum initial deposit, IG makes it easy to start trading on the forex market. Its rates are generally below the industry average. IG uses the economy of scale to keep prices low for traders. This means this broker uses its massive asset pool to buy huge blocks of shares at a discount price. IG passes on the savings to its traders. Learn more about how to trade forex and how to trade options.

IG offers even bigger savings for professional volume traders on its L2 Dealer platform. It provides a tier-based pricing scale adjusted by the customer’s trade volume from the preceding month. The commission-based offering, Forex Direct, is available on this platform. The minimum deposit for the L2 Dealer platform is $1,230.

Oanda’s Fees and Commissions

Oanda doesn’t require a minimum initial deposit, but it makes up for it with its spread fees. Its rates are slightly below the industry average. Oanda’s fees are more in line with FOREX.com or FxPro.

This chart gives a breakdown of Oanda’s currency spread rate compared to the industry average. Oanda offers the smallest micro lot. The minimum forex trading size is 1 micro lot, and Oanda reduced the minimum trade size to 0.001.

IG’s Research Offerings

IG attempts to offer its clients premier market research so that only 68% of IG’s traders lose money. This failure rate is excellent compared to the Financial Conduct Authority’s (FCA’s) estimate of 82%. IG offers its clients premier market research. It uses in-house and outside sources to deliver the most up-to-date market information available. The standard research features are:

Oanda’s Research Offerings

Oanda provides easy access to research tools and materials on its website and mobile apps — 73.5% of Oanda's 23,000 customers lose money. Oanda isn’t far behind IG in the research department. It offers the following features:

Oanda’s charting tools use more than 70 technical indicators to provide responsive guidance. Current news is available from the trading platforms.

Choose the Right Broker for You

You want to choose one of the best brokers for futures traders. IG outperforms Oanda in a matchup when you compare trustworthiness, trading platforms, low pricing, tradable instruments, research and mobile apps.

Oanda is a safe and popular forex broker that attracts a fair amount of traders. There may be intangibles that could influence you to consider this broker but this comparison is strong evidence that IG is the better choice.

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