Interactive Brokers vs OANDA 2026: Which Broker is Better?

Regulation & Safety

Interactive Brokers is a well-regarded broker with a robust regulatory framework. It is regulated by top-tier bodies such as the US SEC and CFTC, the UK FCA, Singapore's MAS, and Australia's ASIC. This extensive regulation across multiple jurisdictions highlights its commitment to safety and compliance, offering strong investor protection. Interactive Brokers offers insurance protection schemes, notably for US clients through SIPC, which provides coverage up to $500,000.

OANDA is also a well-regulated entity, holding licences from reputable authorities including the FCA, CFTC, ASIC, and MAS. While it may not have as many regulatory bodies as Interactive Brokers, OANDA covers essential markets and ensures a high level of client fund protection. OANDA also offers a negative balance protection policy, safeguarding clients from losing more than their account balance.

Fees & Spreads

Interactive Brokers offers very competitive pricing, with spreads starting from 0.2 pips on forex trades. The broker charges a commission of 0.005 per share for stock trades, contributing to its reputation for low trading costs. There is no minimum deposit required, making it accessible to a wide range of traders, though high leverage of 1:4 is available primarily for professional traders. However, traders should be aware of potential inactivity fees on smaller accounts.

OANDA provides a commission-free trading model, with spreads starting from 0.6 pips. While higher than Interactive Brokers, the absence of additional commissions can be appealing to traders who prefer simplicity in cost structures. OANDA requires no minimum deposit and offers leverage up to 1:50, catering more towards retail traders due to its more conservative leverage policies. Overnight fees are standard and depend on the asset class being traded.

Trading Platforms

Interactive Brokers offers a sophisticated suite of platforms with its Proprietary Web and Mobile versions, renowned for their advanced trading tools and analytics. This makes it highly suitable for experienced traders seeking comprehensive functionality. OANDA, on the other hand, provides the widely used MT4 platform alongside its Proprietary Web and Mobile platforms. MT4's popularity among forex traders, coupled with OANDA's user-friendly proprietary options, makes it an attractive choice for those who value flexibility and accessibility.

Who Should Choose Interactive Brokers?

• Professional traders seeking low commission fees and tight spreads.
• Investors needing access to a wide range of markets and asset classes.
• Traders who require advanced trading tools and analytics.
• Experienced traders comfortable with complex trading platforms.

Who Should Choose OANDA?

• Beginner traders looking for a user-friendly platform without a minimum deposit.
• Forex traders who prefer a commission-free trading model.
• Retail traders in the US, benefiting from OANDA's broad regulatory compliance.
• Traders needing access to historical data and API for automated trading.

Our Verdict

For beginners, OANDA is the better choice due to its user-friendliness and commission-free trading. However, for professional traders, Interactive Brokers stands out with its advanced tools and low trading fees. On fees alone, Interactive Brokers offers more competitive pricing with its lower spreads and commissions.