Explore the differences between IC Markets and OANDA across key aspects, including platforms, fees, and regulatory oversight, to choose the best broker.
Both IC Markets and OANDA are highly respected brokers in the Forex and CFD trading industry. They offer competitive pricing, a range of trading platforms, and robust regulatory oversight. However, these brokers cater to different types of traders, with IC Markets known for its tight spreads and fast execution, while OANDA is known for its user-friendly experience and flexible account options. In this detailed comparison, we will explore the key differences between IC Markets vs OANDA across several aspects to help you choose the broker that best suits your trading style.
Regulation and Trustworthiness
IC Markets: IC Markets is regulated by some of the world’s most trusted financial authorities, including the Australian Securities and Investments Commission (ASIC), the Cyprus Securities and Exchange Commission (CySEC), and the Seychelles Financial Services Authority (FSA). This ensures that IC Markets follows stringent security and transparency measures, including the segregation of client funds. IC Markets has built a strong reputation, particularly among professional traders, for its reliability and security.
OANDA: OANDA is also highly regulated, with licenses from several top-tier regulators, including the US Commodity Futures Trading Commission (CFTC), the Financial Conduct Authority (FCA) in the UK, and the Australian Securities and Investments Commission (ASIC). OANDA’s regulatory reach includes the US, making it one of the few brokers that can serve American traders. This broad regulatory coverage makes OANDA a safe and trustworthy broker for traders worldwide.
Verdict: Both IC Markets and OANDA are well-regulated and offer a high level of trustworthiness. However, OANDA’s regulation in the US and broader global reach gives it an advantage, especially for traders in the US market. IC Markets remains a strong contender, particularly for traders in Australia and Europe.
Trading Platforms
IC Markets: IC Markets provides a wide range of platforms, including MetaTrader 4 (MT4), MetaTrader 5 (MT5), and cTrader. These platforms are known for their advanced charting tools, technical analysis features, and support for automated trading via Expert Advisors (EAs). cTrader is especially popular with scalpers and high-frequency traders due to its low-latency execution and customizable interface. IC Markets' platforms are available on desktop, web, and mobile, offering traders flexibility and advanced trading capabilities.
OANDA: OANDA offers the MetaTrader 4 (MT4) platform alongside its proprietary platform, OANDA Trade. OANDA Trade is designed for ease of use and offers a range of features, including advanced charting tools, technical analysis, and a straightforward interface, making it ideal for both beginner and intermediate traders. OANDA also offers TradingView integration, which enhances the charting and analytical tools available to traders. OANDA's platforms are available on desktop, web, and mobile, providing flexibility for traders on the go.
Verdict: IC Markets offers more platform variety, particularly with the addition of cTrader, which is favored by professional traders and scalpers. OANDA’s proprietary platform, OANDA Trade, is more user-friendly and ideal for beginners. Traders seeking advanced trading tools and fast execution may prefer IC Markets, while those looking for simplicity and ease of use may lean toward OANDA.
Trading Instruments
IC Markets: IC Markets offers access to over 230 trading instruments, including Forex, indices, commodities, cryptocurrencies, and shares (via CFDs). The broker is particularly strong in Forex, offering more than 60 currency pairs, including major, minor, and exotic pairs. IC Markets also provides access to a wide range of commodities like gold and oil, as well as global indices and cryptocurrencies, allowing traders to diversify their portfolios.
OANDA: OANDA offers a similar range of trading instruments, with a focus on Forex and CFDs. OANDA provides access to over 70 currency pairs, making it a strong choice for Forex traders. In addition to Forex, OANDA offers CFDs on commodities, indices, metals, and bonds. However, OANDA’s cryptocurrency offerings are more limited compared to IC Markets. OANDA is well-known for offering historical exchange rate data, which can be useful for traders looking for detailed market analysis.
Verdict: Both brokers offer a broad range of trading instruments, but IC Markets provides a slightly wider selection of cryptocurrencies and CFDs on shares. OANDA has a slight edge in Forex with more currency pairs, but IC Markets offers more diversity for traders looking to access a variety of asset classes.
Spreads and Fees
IC Markets: IC Markets is known for its tight spreads, especially on its Raw Spread account, where spreads start from 0.0 pips, with a small commission per trade. The Standard account is commission-free, with spreads starting from 1.0 pips. IC Markets’ raw spread model is ideal for scalpers and high-frequency traders who want to minimize trading costs. Additionally, IC Markets does not charge fees for deposits or withdrawals, and there are no inactivity fees.
OANDA: OANDA offers variable spreads, with no commission fees on trades. Spreads on major currency pairs like EUR/USD typically start from 1.0 pips but may vary depending on market conditions. OANDA’s commission-free trading structure is appealing to beginner traders who want simple pricing. However, OANDA does charge an inactivity fee if an account remains dormant for 12 months or more, and withdrawal fees may apply depending on the method used.
Verdict: IC Markets generally offers lower spreads, particularly for active traders using the Raw Spread account. OANDA’s commission-free structure is simpler and more predictable but may result in wider spreads during times of market volatility. Traders focused on minimizing costs and those with high trading volumes may prefer IC Markets, while beginners looking for a straightforward fee structure may prefer OANDA.
Leverage
IC Markets: IC Markets offers leverage of up to 1:500 for Forex trading for clients outside the EU and Australia. For traders in regulated regions like Europe and Australia, leverage is capped at 1:30 due to regulatory restrictions. This high leverage is particularly attractive to experienced traders who want to maximize their exposure, though it comes with increased risk.
OANDA: OANDA offers leverage of up to 1:50 for US-based traders and up to 1:30 for traders in the EU, Australia, and other regulated regions. For traders outside these regions, OANDA offers more flexible leverage, but it generally does not match the higher leverage offered by IC Markets. OANDA’s conservative leverage offerings are well-suited to retail traders who prefer lower risk exposure.
Verdict: IC Markets offers higher leverage options (up to 1:500), making it more attractive for experienced traders who are comfortable with high-risk, high-reward trading. OANDA’s leverage is more conservative, which is better suited for retail traders or those in heavily regulated regions like the US and EU.
Order Execution and Speed
IC Markets: IC Markets is renowned for its fast order execution speeds, particularly on its cTrader platform, which is optimized for low-latency trading. The broker uses an ECN (Electronic Communication Network) model, providing traders with direct access to liquidity providers, resulting in minimal slippage and fast order execution. This makes IC Markets ideal for scalpers, high-frequency traders, and professionals who require precise and fast execution.
OANDA: OANDA offers competitive order execution, though it operates as a market maker. While execution speeds are generally reliable for retail traders, OANDA does not use an ECN model, which may result in slightly slower execution compared to IC Markets. OANDA’s platform is still sufficient for most retail traders, but it may not meet the needs of traders who require ultra-fast execution for scalping or high-frequency trading.
Verdict: IC Markets has the edge in terms of order execution speed, particularly for scalpers and professional traders who rely on fast, low-latency trading. OANDA’s execution is reliable and suitable for most retail traders, but traders who need precision and speed may prefer IC Markets.
Customer Support and Education
IC Markets: IC Markets provides 24/7 customer support via live chat, phone, and email. The broker is known for its responsive and knowledgeable support team, which assists traders with technical issues, account queries, and platform-related questions. IC Markets also offers a range of educational resources, including webinars, tutorials, and trading guides, which are useful for both beginner and advanced traders.
OANDA: OANDA offers 24/5 customer support through live chat, phone, and email. The broker also has a comprehensive range of educational materials, including webinars, video tutorials, and market analysis. OANDA’s educational resources are particularly beginner-friendly, with a focus on helping new traders understand the basics of Forex and CFD trading. Additionally, OANDA provides access to detailed market analysis and research tools, including news feeds and economic calendars.
Verdict: Both brokers offer excellent customer support and educational resources, but IC Markets has an advantage with 24/7 support, which may be more appealing to traders who need assistance at any time. OANDA’s educational resources are more geared toward beginners, offering easy-to-understand guides and tutorials. IC Markets provides a more balanced offering with resources for both beginners and advanced traders. Traders seeking 24/7 support and more advanced education may prefer IC Markets, while those starting out may find OANDA’s beginner-friendly approach more helpful.
Account Types and Features
IC Markets: IC Markets offers two primary account types: the Standard account and the Raw Spread account. The Standard account is commission-free, with spreads starting from 1.0 pips, while the Raw Spread account offers tighter spreads starting from 0.0 pips, with a small commission per trade. Both accounts are available on MetaTrader 4 (MT4), MetaTrader 5 (MT5), and cTrader, giving traders flexibility depending on their platform preference. IC Markets also offers Islamic accounts and demo accounts for practice trading.
OANDA: OANDA offers a single account type for most retail traders, with variable spreads and no commission fees. The simplicity of OANDA’s account structure makes it easy for new traders to get started without having to choose between multiple account types. OANDA also offers Islamic accounts, demo accounts, and professional accounts for experienced traders who meet certain criteria, such as higher trading volumes. OANDA’s focus on flexible account options allows traders to manage their accounts without worrying about complex fee structures.
Verdict: IC Markets offers more account variety, catering to traders who prefer raw spreads and low commissions, particularly scalpers and active traders. OANDA’s single account type is simpler, making it easier for beginners to understand, but it may lack the flexibility needed by more advanced traders. Traders who prioritize account customization and tight spreads may prefer IC Markets, while beginners who prefer a straightforward structure might lean toward OANDA.
Deposit and Withdrawal Methods
IC Markets: IC Markets supports a wide range of deposit and withdrawal methods, including bank transfers, credit/debit cards, PayPal, Neteller, and Skrill. The broker does not charge fees for deposits or withdrawals, and most transactions are processed within 24 hours. IC Markets supports multiple base currencies, reducing the need for currency conversion fees for international traders.
OANDA: OANDA offers a similar range of deposit and withdrawal options, including bank transfers, credit/debit cards, PayPal, and Skrill. While OANDA does not charge for most deposits, withdrawal fees may apply depending on the payment method, particularly for international bank transfers. OANDA’s processing times for withdrawals can take up to five business days, depending on the method used.
Verdict: IC Markets has an edge when it comes to deposit and withdrawal fees, as it does not charge for any transactions. OANDA’s withdrawal fees for certain methods, especially for international transfers, may be a drawback for some traders. Overall, both brokers provide reliable and flexible payment options, but IC Markets may appeal more to traders who prioritize fee-free transactions and faster processing times.
Mobile Trading
IC Markets: IC Markets provides mobile trading through the MetaTrader 4 (MT4), MetaTrader 5 (MT5), and cTrader mobile apps, available on both iOS and Android devices. These apps offer full functionality, including real-time market data, advanced charting tools, and the ability to execute and manage trades on the go. The mobile platforms replicate the desktop experience, ensuring that traders have access to all essential tools and features while away from their computers.
OANDA: OANDA offers mobile trading through the MetaTrader 4 (MT4) app as well as its proprietary OANDA Trade mobile app. The OANDA Trade app is designed for ease of use and offers real-time market data, customizable charts, and the ability to execute trades quickly. OANDA’s mobile app is user-friendly and ideal for beginner and intermediate traders who need a simplified mobile trading experience.
Verdict: Both brokers offer excellent mobile trading experiences. IC Markets offers more platform variety with the inclusion of cTrader, making it suitable for professional traders who need advanced tools on mobile. OANDA’s proprietary mobile app is more user-friendly, making it a better choice for beginners. Traders who prioritize mobile flexibility and advanced features may prefer IC Markets, while those seeking simplicity will find OANDA’s app easier to use.
Research and Market Analysis
IC Markets: IC Markets provides comprehensive research tools, including daily market updates, technical analysis reports, and an economic calendar. The broker partners with Trading Central to provide professional-grade market analysis and trading signals, which are valuable for traders looking for actionable insights. IC Markets’ research content is geared toward both beginners and experienced traders, making it suitable for a wide range of trading strategies.
OANDA: OANDA offers a variety of research tools, including market analysis, news updates, economic calendars, and TradingView integration for advanced charting and analysis. OANDA’s research tools are more accessible to beginner and intermediate traders, with a focus on helping traders stay informed about market developments. The broker also offers educational content, including webinars and tutorials, which are particularly helpful for newer traders.
Verdict: IC Markets has the edge in providing more advanced research and market analysis tools, particularly for experienced traders who rely on in-depth technical analysis. OANDA’s research offerings are more user-friendly and accessible to beginners. Traders seeking professional analysis and advanced trading signals may prefer IC Markets, while those looking for a simpler approach to market research may find OANDA more suitable.
Conclusion
IC Markets vs OANDA: The Verdict
In the comparison of IC Markets vs OANDA, both brokers offer strong advantages depending on your trading preferences and experience level. IC Markets excels in providing tight spreads, fast execution, and advanced trading platforms like cTrader, making it ideal for scalpers, high-frequency traders, and professionals who prioritize speed and low trading costs. IC Markets also offers more flexibility in account types and better platform variety for advanced traders.
OANDA, on the other hand, is more focused on simplicity and user-friendliness, with a straightforward account structure, no commission fees, and a proprietary platform designed for ease of use. OANDA is particularly appealing to beginner traders and those looking for a broker with strong regulatory oversight in the US market. The broker’s educational resources and research tools are more accessible to new traders, making it an excellent choice for those just starting out.
Ultimately, IC Markets is the better choice for experienced traders who require low spreads, fast execution, and a variety of platforms. OANDA is more suitable for beginners and those seeking a user-friendly experience with flexible account options. The choice between these brokers will depend on your specific trading needs and goals.
Published by:
Daniel Carter