OANDA vs. Interactive Brokers

If you’re new to trading, you might wonder which online broker is better: OANDA or Interactive Brokers. When diving into financial markets, you want to feel confident about the company to which you entrust your money. You also want to pay the lowest fees but still have access to high-quality tools, education and support. 

This in-depth comparison can help you decide whether OANDA or Interactive Brokers fits your trading needs.

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Overview of OANDA

OANDA is a global financial technology and services company based in New York City that offers currency information and foreign exchange (forex) trading. It was founded in 1996 to provide foreign exchange rates to the public online and added forex trading platforms in 2001. OANDA is a market maker, meaning it quotes its bid and ask prices.

Overview of Interactive Brokers

Interactive Brokers is a multinational brokerage based in Greenwich, Connecticut. Based on the number of daily average revenue trades, it is the largest trading platform in the U.S. The company traces its roots back to a market maker founded in 1977. In 1993, the electronic brokerage was created. 

Interactive Brokers uses electronic communications networks (ECNs) to connect clients directly to markets.

Comparing OANDA vs. Interactive Brokers

OANDA and Interactive Brokers are well-known brokers that cater to retail and professional traders. Here’s a comparison of the offerings from OANDA and Interactive Brokers.

Fees

OANDA and Interactive Brokers charge low fees, and neither has a minimum deposit. OANDA's commissions are straightforward for U.S. clients as a forex broker. Interactive Brokers lists an array of commissions for the many assets it offers. 

While OANDA doesn’t charge a withdrawal fee, it may charge an inactivity fee. Interactive Brokers charges a withdrawal fee after the first free withdrawal in a month but has no inactivity fee.

OANDA: Forex fees and commissions are built into the spread. OANDA doesn’t offer stocks to U.S.-based clients, although European clients can trade U.S. stocks commission-free. OANDA charges a fixed 0.25% fee for crypto trading with a minimum of $0.01. You won’t be charged for withdrawals. However, you may be charged $14 if your account is inactive for 12 consecutive months.

Interactive Brokers: Interactive Brokers charge no fee on trades of U.S. stocks for clients on IBKR Lite. IBKR Pro clients pay a fixed $0.005 per share with a $1 minimum and a 1% maximum of trade value. Interactive Brokers charges less than $14.95 per trade or 3% of trade value in the U.S. tech fund, although it has more than 18,000 funds with no fee. For Forex, Interactive Brokers charges a $2 commission per lot. Your first withdrawal in a month is free, but you’ll pay $10 per withdrawal after that. Interactive Brokers has no inactivity fee.

Winner: OANDA

Promotions

OANDA offers welcome bonuses to new forex traders. While Interactive Brokers doesn’t offer a promotion specific to forex trading, it has a referral program for members.

OANDA: You can receive a welcome bonus of up to $10,000 if you deposit $50,000 and trade a notional volume of $50,000,000.

Interactive Brokers: The Refer a Friend program offers clients $200 for each person referred once the new client deposits $10,000 within 30 days of opening a new account and maintains $10,000 for a year. The new client can receive $1 for every $100 deposited, earning up to $1,000.

Winner: Interactive Brokers

Mobile App

OANDA and Interactive Brokers offer robust mobile apps with the same access as their desktop platforms. Each mobile app is geared to the strengths of the platforms: OANDA targets crypto and forex traders, while Interactive Brokers targets intermediate and advanced traders. Both are available for Android and iOS.

OANDA: The OANDA mobile app offers a customizable interface. You can set up alerts and price signals, catch up on the latest market news, and place orders through a chart trading function. 

Interactive Brokers: You can access 150 markets worldwide and trade stocks, bonds, futures, options and more. The mobile app provides over 50 columns of data and access to institution-level research.

Winner: OANDA

Accounts and Features

With OANDA, retail clients get two account types and several different accounts, while Interactive Brokers has two plans – IBKR Pro and IBKR Lite – with several accounts available. 

OANDA: OANDA offers two account types: core pricing and spread-only pricing. Accounts can be for individual, joint, corporate or accredited investors.

Interactive Brokers: Interactive Brokers offers an array of accounts: individual, joint, IRA, trust, UGMA/UTMA, family office, small business, advisor and broker.  

Winner: Interactive Brokers

Ease of Use and Trading Platforms

Interactive Brokers can be complex for beginning traders. They may find it more difficult to set up an account with Interactive Brokers than with OANDA, and the processes for depositing and withdrawing funds are more complicated. 

Additionally, Interactive Brokers’ trading platform is proprietary and can take more time to get used to. OANDA uses trading platforms (MT4, MT5 and TradingView) that are widely used and more intuitive.

OANDA: OANDA has a sophisticated interface with a lot of user-friendly functionality. The forex trading platforms are well-known to traders. Even OANDA’s proprietary platform, OANDA Trade, won’t take long to adjust.

Interactive Brokers: With their reach of assets and markets, Interactive Brokers’ platforms – IBKR GlobalTrader and Trader Workstation – can be complicated. However, with time and effort, a user can unleash powerful tools to reach an array of markets and trade many assets.

Winner: OANDA

Customer Support

Customer support is essential even for professional traders. OANDA and Interactive Brokers offer 24-hour customer support through live chat, email and phone calls in several languages. They also have robust resources on their websites.

OANDA: You can contact OANDA in English, Chinese, French, German, Japanese, Korean, Russian, and Spanish.

Interactive Brokers: customer support offers help in English, Cantonese, French, German, Italian, Japanese, Mandarin, Russian and Spanish. 

Winner: OANDA

Find the Trading Platform for You

OANDA and Interactive Brokers are well-known companies with solid reputations among investors. Their services and platforms offer the functionality and tools any trader needs. If you’re a beginning forex trader, OANDA has the slight edge to get you going. However, Interactive Brokers gives you access to more assets and markets.

Frequently Asked Questions