Oanda Fees and Spread Review

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Oanda is a great option for low-cost forex trading. The broker offers competitive spreads across their full range of CFD markets. These include indices, forex, commodities, metals, and bonds.

Oanda also offers two pricing options, which are spread-only and core pricing plus commission. With a spread-only pricing account, you can take advantage of commissions that are wrapped into the spreads they offer.

That way, the spread is the only cost you pay. With core pricing and commission trading, you can access a reduced spread relative to Oanda’s spread-only pricing account. With this account, you only pay a fixed commission per trade.

Oanda - Forex Fees and Spread

When it comes to forex spreads and fees, you want the most favorable conditions to ensure you minimize risks and maximize returns. A forex spread is the difference between a broker’s sell rate and buy rate when you exchange or trade currencies on their platform. In other words, the spread is the difference between the buy and sell prices.

Spreads are often how forex brokers make their money because they’re selling a currency pair to you for more than they paid to buy it. Conversely, they can make money by buying a currency pair from you for less than they’ll receive when they sell it.

When thinking about forex spreads and finding the most favorable conditions, the lower the spread, the better. For a major currency pair, under 1 pip is considered low, and the most favorable.

However, for some pairs with less liquidity, the ones with a spread of 2 or lower are desirable as well. When trading major currency pairs with Oanda, you might see low to average spreads. For example, the typical spread for EURUSD is 1.6 pips. And the typical spreads for GBPUSD and USDJPY, are 2.1 pips and 1.7 pips, respectively.

However, when you compare Oanda’s spreads to competitors like IC Markets and FxPro, you’ll notice that they’re a bit higher. So even though Oanda’s fees are comparatively lower than some of its competitors, it’s possible to find spreads even lower than that.

How to Reduce Oanda Forex Fees?

You can reduce fees when trading on Oanda by joining their advanced trader program. To qualify, you must deposit a minimum of US$10,000 into your Oanda account and trade more than US$10 million in monthly volume. By joining their advanced trader program, you can take advantage of cash rebates and commission markdowns.

There are 4 different account tiers you can choose. The higher the tier, the more you can earn from rebates and commission reductions. For example, with a Tier 4 account, you could get up to US$15 back per million traded or US$15 per million drop in commission

Oanda CFD Fees and Spread

Oanda Non-Trading Fees

Non-trading fees on a forex broker’s platform consist of fees that don’t relate to trading.

Does Oanda Charge Inactivity Fee?

Yes, Oanda charges an inactivity fee if there are no open trades in your account for a period of at least 12 months. So, if your account has been inactive for a year, the broker will charge you USD$10 (or 10 units of the currency you’re using in your account) until you close your account, resume trading, or the balance on your account reduces to zero.

Does Oanda Charge Withdrawal Fee?

Yes, Oanda charges a withdrawal fee of USD$20 with bank/wire transfers. However, there are no fees for debit or credit card withdrawals.

Does Oanda Charge Other Fees?

No, Oanda doesn’t have any other fees, such as a deposit fee. However, depending on your payment provider or card issuer, you may be subject to certain fees when trading on Oanda.

Oanda Financing Rates

Oanda has financing charges, which means they charge you for holding a position open overnight. So, if you have a position open on your account at the end of each trading day (5pm EST), Oanda will consider the position to be held overnight.

Therefore, your account may be subject to a financing cost or financing credit. Oanda’s financing cost or financing credit depends on the situation as well as the instrument. These costs can also change on a daily basis. However, for long positions, you’ll be charged a basis rate plus a 2.5% admin fee. For short positions, you’ll be responsible for a basis rate minus a 2.5% admin fee.

Below are some examples of Oanda’s financing rates.

Oanda Swap (pips)

Swap pips are the difference in interest rates between transaction currencies. So, a swap in forex is essentially the interest you either earn or pay for a trade. Let’s look at some of the typical swaps on the Oanda platform.