Oanda is one of the world’s largest retail forex and CFD brokers, serving clients in over 180 countries. With competitive spreads and transparent, low commissions, Oanda aims to provide traders with fair pricing and quality trade execution.
But how do Oanda’s spreads and fees stack up against other top forex brokers? This comprehensive review compares Oanda’s pricing model, spreads, commissions, and non-trading fees to leading alternatives like FOREX.com, Saxo Bank, IG, and Plus500.
Oanda’s Pricing Model and Spreads
Oanda uses a combined pricing model consisting of:
- Variable spreads
- Commission per trade
Spreads at Oanda vary based on market conditions, the currency pair, time of day, liquidity, and size of the trade. Unlike fixed spreads which remain static, Oanda’s variable spreads will widen or tighten according to volatility and liquidity.
This table compares typical variable spreads at Oanda to popular forex pairs:
| Currency PairTypical Spreads at Oanda | |
|---|---|
| EUR/USD | 0.9 pips |
| GBP/USD | 1.3 pips |
| USD/JPY | 0.9 pips |
| AUD/USD | 1.0 pips |
| USD/CAD | 1.4 pips |
| USD/CHF | 1.1 pips |
On average, spreads at Oanda are competitive but slightly higher relative to leading rivals. Spreads can widen significantly during news events or periods of low liquidity.
Oanda’s Commissions per Trade
In addition to variable spreads, Oanda also charges a transparent commission fee per trade.
For standard accounts, the commission is $3.50 per 100k units traded for forex pairs and $1.25 per 10k units on indices and commodities.
Here’s a comparison of Oanda’s commissions to other top brokers:
| Broker | Commissions |
|---|---|
| Oanda | $3.50 per 100k traded (forex), $1.25 per 10k traded (indices/commodities) |
| FOREX.com | No commissions |
| Saxo Bank | Volume-based tiered commissions from $3 – $10 |
| IG | No commissions |
| Plus 500 | No commissions |
Oanda’s transparent volume-based commissions are quite competitive. Many brokers offer commission-free trading but have higher spreads to compensate. Oanda’s pricing model allows for both competitive spreads and low commissions per trade.
Comparing Oanda’s Overall Spreads + Commissions
To accurately compare costs between brokers, we need to look at overall trading costs including both spreads and commissions per trade.
Let’s compare a 100k EUR/USD round-turn trade at Oanda vs FOREX.com and Saxo Bank:
| Broker | Typical Spread | Commission per 100k Trade | Total Cost per 100k Trade |
|---|---|---|---|
| Oanda | ~1 pip | $7 round turn | ~$8 |
| FOREX.com | 1.4 pips | $0 | $14 |
| Saxo Bank | 0.6 pips | $6 | $12 |
With both spreads and commissions factored in, Oanda has lower overall trading costs compared to FOREX.com and Saxo Bank for this sample forex trade.
Now let’s compare a 10k trade on the Germany 30 index:
| Broker | Typical Spread | Commission per 10k Trade | Total Cost per 10k Trade |
|---|---|---|---|
| Oanda | 1.0 pips | $1.25 round turn | $2.25 |
| IG | 1.2 pips | $0 | $2.40 |
| Plus500 | 2.0 pips | $0 | $4.00 |
Again, Oanda comes out very competitively taking into account both spread and commissions.
So while Oanda’s spreads may be slightly higher than some rivals, its low transparent commissions per trade results in very competitive all-in trading costs.
Oanda’s Non-Trading Fees
In addition to spreads and commissions, brokers may charge other fees for deposits, withdrawals, account activity, data usage, and more. Here’s an overview of Oanda’s account and trading fees:
- Account Currency Conversion – 2% fee for balances converted to different currency
- Deposits – No fees for most methods; 2% for debit/credit cards
- Withdrawals – No wire fees; $20 fee for EFT
- Account Maintenance – No monthly inactivity fees
- Market Data – Free live rates for all Oanda platforms
- Guaranteed Stop Orders – Small fee to guarantee stop execution during gaps/volatility
Oanda has very limited ancillary fees. There are no monthly data or account maintenance fees. The only minor fees relate to account funding and guaranteed stops.
Let’s compare non-trading fees to other brokers:
| Fee Type | Oanda | FOREX.com | Saxo Bank | IG | Plus500 |
|---|---|---|---|---|---|
| Inactivity Fees | $0 | $15 after 12 months | $10 after 6 months | $10 after 24 months | $10 after 6 months |
| Deposit/Withdrawal | Very low | Low | High | Low | Low |
| Account Currency Conversion | 2% | Typical bank rates | 0.5% | 1% | 1% |
| Guaranteed Stops | Small fee | NA | Small fee | Small fee | NA |
Oanda does not charge monthly inactivity fees and has low deposit/withdrawal fees. Account currency conversions are more expensive at 2% but overall Oanda has very limited ancillary account and trading fees.
Final Thoughts – Oanda’s Costs Are Competitive
After thoroughly comparing spreads, commissions, and non-trading fees, Oanda emerges as a competitively priced forex and CFD broker overall.
While spreads are slightly higher than leading rivals, Oanda makes up for it with low transparent commissions per trade. This results in very competitive all-in costs for trades.
Additionally, Oanda does not nickel and dime traders with monthly account fees, high withdrawal fees, or expensive currency conversions.
For traders looking for a well-regulated broker with competitive pricing, excellent trading platforms, and top-notch customer service, Oanda is an excellent choice.
FAQ on Oanda Fees
Below are answers to common questions traders have about Oanda’s pricing model, spreads, commissions, and account fees.
Does Oanda charge inactivity or account maintenance fees?
No, Oanda does not charge any monthly account maintenance or inactivity fees. Accounts can remain open with a $0 balance indefinitely without fees.
How does Oanda make money?
Oanda profits from the small spread on each trade along with transparent commissions per trade. They provide competitive spreads and pass the trading costs on to clients directly without fees.
Does Oanda offer guaranteed stop orders?
Yes, Oanda allows clients to guarantee execution of stop loss or take profit orders during volatile markets and gaps. There is a small premium charged for each guaranteed stop order.
What is Oanda’s overnight/swap fee?
Oanda applies small overnight fees on positions held longer than 24 hours based on interest rates. Long positions receive a credit, short positions a debit. Swap fees are displayed on the platform.
Does Oanda charge withdrawal fees?
Oanda does not charge fees for electronic or wire withdrawals. The only withdrawal fee is a $20 flat fee for EFT transfers to US/Canadian banks. Other transfers are free.
Can I convert my account balance to a different currency?
Yes, Oanda allows clients to hold balances and even trade in exotic currencies. There is a 2% fee to convert account balances to another currency.
So in summary, Oanda has very transparent, competitive trading costs and almost no ancillary fees. This makes them an excellent option for active traders looking for tight spreads and low commissions.
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:
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| 10. | Binance | DASP | $10 | Binance Platforms | N/A | Best Crypto Broker | Open Binance Account |
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