Pepperstone vs. OANDA: Which Broker is Right for You?

If you’re new to the forex game, picking the right broker can be tough. Or you want to change your current broker for a reason. And the fact that there are tons of choices out there does not make things easier for you. Don’t worry; we’ll make it easier for you by comparing the two biggest players in the block. Both of these have been around for a while, and they made a good name. Here, we’ll compare them to each other to give you some ideas to choose which is better for you. Hold on to your seats and get ready to be educated.

Pepperstone vs. OANDA: Who Are These Guys?

Starting our comparison by giving a little bit of info about them is probably the best idea. Pepperstone is an Aussie-founded broker that has been in the game since 2010. That might not be a long time, but remember, these fintech companies are just beginning the rise. The company founders were frustrated by delayed executions, expensive prices and poor customer support and said, “We’ll take matters into our own hands,” and started this company.

Over 400,000 people worldwide now trust them to trade with an average of over $12 billion in trades. That makes them one of the world’s biggest forex brokers. They are also quite trustworthy; according to their website, they are being regulated by ASIC (Australian Securities and Investment Commission), the Securities Commission of the Bahamas, FCA, and many other regulatory bodies. They were awarded by Investment Trends, Deloitte and Compare Forex Brokers several times.

It offers multiple trading platforms that answer the demand for various trading styles and preferences. Plus, they offer tight spreads on major currency pairs. That means you don’t have to share your profit with the broker that much. Pepperstone offers up to 400:1 leverage which might potentially increase your profits if you use it carefully.

In addition to forex trading, this broker from down under offers CFDs on indices, commodities, cryptos and shares, so you don’t have to seek another broker for your potentially diverse portfolio. They are also very proud to offer NDD (no dealing desk) execution which allows faster executions and lower costs. They also offer negative balance protection. This means that even if you lose more than you have, your balance will return to zero as soon as possible.

The other side of this comparison is a name that we are familiar with, OANDA, a New York-based company. OANDA was founded in 1996 to handle “all things currency.” It offers various services, such as currency conversion to providing FX data services for various companies. But online brokerage service is what makes OANDA popular among people. Through OANDA, people can trade forex, indices, commodities and bonds with ease.

OANDA offers various different levels of protection depending on the region. They offer negative balance protection to their European customers or offer a guaranteed stop-loss order in Asia. Unfortunately, they do not offer any protection in the US. They are registered and regulated by CFTC, NFA, and FCA, so you know they are legit.

Let’s Help You Decide, Shall We?

While both of these brokers are reputable and tightly regulated, OANDA has been around longer when compared to Pepperstone. This might be a huge positive if you are looking for a more deep-rooted broker. Also, its community might be larger and they might help you better. On the other hand, if you are looking for a newer company that is more user-friendly and familiar with today’s technology, Aussie-founded Pepperstone might be your cup of tea. Both brokers offer similar assets, services and opportunities. But it seems like Pepperstone gives more importance to user protection because they provide negative balance protection to its users. OANDA only offers what is mandated by the law.

Final Verdict:

All in all, it depends on your personal preferences. Both brokers are reputable ones that offer similar trading experiences. Both are regulated by several organizations, which increases people’s trust. Our biggest tip would be to research both brokers yourself and see which offers a better trading experience for your unique needs and preferences. Just remember: don’t put all your eggs into the same basket, don’t invest more than you can afford and be safe and sound when spending all of your hard-earned money.