Oanda Forex Broker Spreads, Fees and Conditions Analyzed

Oanda is one of the world’s largest and most popular online forex and CFD brokers. With tight spreads and no minimum trade size, Oanda appeals to forex traders of all experience levels. However, Oanda’s trading conditions, including spreads, commissions and fees, can vary depending on your account type, trade size and currency pair.

This comprehensive review analyzes Oanda’s spreads, fees and trading conditions across all account types to help you determine if Oanda is the right broker for your currency trading needs.

Introduction to Oanda’s Spreads, Fees and Trading Conditions

Oanda is regulated in a number of jurisdictions and offers three main forex trading account types: Standard, Premium and Commission-Based. Each account has different spreads, commissions, fees and trading conditions.

Some key points about Oanda’s spreads and trading fees:

  • No commissions on Standard and Premium accounts
  • Raw interbank spreads from 0.4 pips on major currency pairs
  • Premium accounts get reduced spreads
  • Minimum spreads from 0.1 pip with commission-based pricing
  • No minimum deposit or account size limits
  • No deposit, withdrawal or monthly account fees

When analyzing Oanda’s competitiveness, you need to look at the all-in cost to trade including spreads, commissions and financing rates. We break these down in detail below.

Standard Account Spreads and Conditions

Oanda’s Standard account offers competitive variable spreads with no commissions. This account uses Oanda’s proprietary pricing engine with raw interbank spreads that can fluctuate throughout the day.

Here is an overview of key conditions for Oanda’s Standard account:

  • Account Currency: USD, EUR, GBP, CAD, AUD, CHF, SGD, JPY
  • Minimum Deposit: None
  • Spreads: Variable interbank spreads, no commissions
  • Minimum Trade Size: None, fractional pip pricing
  • Financing: Cash rates +/- 2%
  • Features: Full suite of analysis/trading tools, 25+ currency pairs

To give you an idea of the average spreads with a Standard account, here are sample spreads during normal market conditions:

Currency PairTypical Spreads
EUR/USD0.4 – 1 pip
USD/JPY0.5 – 1.2 pips
GBP/USD0.7 – 1.5 pips
AUD/USD0.3 – 1 pips
USD/CAD0.6 – 1.2 pips

Spreads will fluctuate throughout the day and can widen during major news events or periods of low liquidity. But overall, Oanda offers very competitive spreads on major pairs without any commissions.

There are no deposit fees, account fees or monthly inactivity fees with a Standard account. You only pay the spread when you trade. There are also no limits on position size.

One downside is that financing rates on open trades are 2% above or below prevailing cash rates. This can make holding positions long term more expensive than other brokers.

Premium Account Reduced Spreads

For active traders, Oanda offers a Premium account with reduced spreads for high volume trading. Premium accounts provide:

  • Reduced spreads on major, minor and exotic currency pairs
  • Spread reductions based on previous month’s volume
  • Minimum spreads as low as 0 pips on EUR/USD
  • Dedicated dealer trading support and expert market analysis

The following table shows the average spread reductions based on your monthly trade volume with a Premium account:

Monthly Volume (lots)EUR/USD Spread
0 – 1000.2 pips
100 – 2500.1 pips
Over 2500 pips

So the more you trade, the lower your spreads. Active scalpers can benefit from 0 pip spreads during normal market conditions on major pairs like EUR/USD if they trade over 250 lots per month.

Reduced spreads are available on over 50 currency pairs. And like the Standard account, there are no deposit minimums or commissions to worry about.

Premium accounts allow substantial savings on spreads for high frequency traders. But spreads can widen during news events based on volatility and liquidity.

Commission-Based Account Spreads and Fees

For lowest possible spreads, Oanda offers a commission-based pricing account. With this account you pay a small commission per trade but get access to minimum spreads from just 0.1 pips.

Here are the key details on Oanda’s commission pricing model:

  • Account Currency: USD only
  • Spreads: From 0.1 pips on majors
  • Commission: $3.50 per 100k traded per side
  • Minimum Trade Size: 10,000 of base currency
  • Financing: Cash rates only

With commission pricing, the all-in cost comes from the combination of the spread and commission charge per trade.

For example, let’s look at trading 100,000 EUR/USD. With a spread of 0.2 pips and $3.50 commission, the total trading costs are:

  • Spread cost: (100,000 x 0.2 pip spread) / 10,000 = $2 per trade
  • Commission: $3.50 per side
  • Total cost: Around $5.50 round turn

So the combination of ultra tight spreads and low commission rates provides very competitive all-in trading costs, especially for larger trade sizes.

Commission pricing also eliminates expensive financing rates. You just pay the cash rate for holding positions overnight, which can lead to interest payments for you rather than fees.

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The one downside is that you need to trade 10,000 unit micro lots as the minimum position size to get these tight spreads. This account is better for larger traders, not beginners.

How Oanda’s Fees Compare to Other Forex Brokers

Oanda offers very competitive spreads and transparent all-in pricing across its range of accounts. How do Oanda’s costs stack up vs other leading brokers?

To compare, let’s look at average EUR/USD spread + commission costs for trading 100k per side:

  • Oanda Standard Account: 1 pip spread = $10 round turn
  • Oanda Premium Account: 0.2 pip spread = $2 round turn
  • Oanda Commission Account: 0.2 pip + $7 commission = $9 round turn
  • XM Standard Account: 1.2 pip spread = $12 round turn
  • IG Standard Account: 0.6 pip spread = $6 round turn
  • FXCM Standard Account: 0.9 pip spread + $5 commission = $10 round turn
  • Pepperstone Razor Account: 0.1 pip + $7 commission = $14 round turn

Oanda’s pricing is very competitive, offering lower all-in costs than many other well known brokers. The combination of tight spreads and transparent, low commissions makes Oanda a top choice for active forex traders overall.

Oanda Spreads FAQs

How often does Oanda update their spreads and prices?

Oanda provides real-time pricing directly from the interbank market. Prices and spreads are updated multiple times per second to reflect changing market liquidity and volatility. Oanda does not artificially manipulate or widen spreads.

How much do spreads vary between currency pairs?

Spreads will be lower on major pairs like EUR/USD and GBP/USD versus exotic pairs. For example, typical EUR/USD spreads are under 1 pip while exotic pairs like USD/SEK often have spreads of 3-5 pips or higher.

What impacts spreads and liquidity with Oanda?

Spreads tend to widen during periods of increased volatility and decrease when markets are calm. News events, economic data releases, interest rate decisions and other fundamental drivers affect spreads as they impact currency volatility.

Does Oanda offer guaranteed fixed spreads?

No, Oanda does not offer fixed spreads. Spreads are variable based on changing interbank rates. For fixed spreads, a broker needs to increase their markup in the spread to hedge the risk of widening interbank spreads.

How do commissions compare to tight spread accounts?

Commissions allow spreads to be lower since the broker makes money from the commission not the spread markup. So commission accounts can make sense for larger trade sizes. For smaller trade sizes, tight spread accounts are typically better value.

Final Thoughts on Oanda’s Competitive Trading Conditions

Oanda provides a range of account types tailored to different trade frequencies, position sizes and experience levels. No matter which account you choose, their pricing is competitive across forex brokers.

With no minimum balances or deposit fees, Oanda accommodates traders of all sizes and experience levels. Between their transparent pricing, regulation and suite of trading platforms, Oanda is a top choice for forex and CFD traders looking for a reputable broker with great trading conditions.

Just be sure to compare spreads across brokers during the times you plan to trade, since variable spreads fluctuate based on trading volume and market liquidity. Oanda’s pricing engine makes their pricing very competitive overall, but always compare brokers at the times you will be actively trading.

Best and Most Trusted Forex Brokers

Based on regulation, award recognition, mainstream credibility, and overwhelmingly positive client feedback, these six brokers stand out for their sterling reputations:

NoBrokerRegulationMin. DepositPlatformsAccount TypesOfferOpen New Account
1.RoboForexFSC Belize$10MT4, MT5, RTraderStandard, Cent, Zero SpreadWelcome Bonus $30Open RoboForex Account
2.AvaTradeASIC, FSCA$100MT4, MT5Standard, Cent, Zero SpreadTop Forex BrokerOpen AvaTrade Account
3.ExnessFCA, CySEC$1MT4, MT5Standard, Cent, Zero SpreadFree VPSOpen Exness Account
4.XMASIC, CySEC, FCA$5MT4, MT5Standard, Micro, Zero Spread20% Deposit BonusOpen XM Account
5.ICMarketsSeychelles FSA$200MT4, MT5, CTraderStandard, Zero SpreadBest Paypal BrokerOpen ICMarkets Account
6.XBTFXASIC, CySEC, FCA$10MT4, MT5Standard, Zero SpreadBest USA BrokerOpen XBTFX Account
7.VantageASIC, CySEC, FCA$50MT4, MT5Standard, Cent, Zero Spread20% Deposit BonusOpen Vantage Account
8.FXTMFSC Mauritius$10MT4, MT5Standard, Micro, Zero SpreadWelcome Bonus $50Open FXTM Account
9.FBSASIC, CySEC, FCA$5MT4, MT5Standard, Cent, Zero Spread100% Deposit BonusOpen FBS Account
10.BinanceDASP$10Binance PlatformsN/ABest Crypto BrokerOpen Binance Account
11.TradingViewUnregulatedFreeTradingViewN/ABest Trading PlatformOpen TradingView Account

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