OANDA Discussion

The email is self explanatory....
(For example, placing a EUR/JPY trade in a USD based account your trade settles in JPY and then it is immediately converted to USD at the JPY/USD mid price +/- 0.5%. If this trade resulted in 10,000 JPY of profit, the cost of converting it back to USD would be approximately 0.47 USD based on current market rates.)

For unknown reasons Oanda will change the way it converts the value of trades if USD is not your base currency. Hopefully it will be better.

Oanda is the best one to trade indices I ever find, low spreads, high rebates, but sadly, they closed the business here

(they closed the business here)

where did they closed the business? could you pls elaborate?

I trade from China in the spring and summer and in Cyprus in the fall and winter. If Oanda is closed in China it's because of the regulator the China Securities Regulatory commission (中国证券监督管理委员会). I guess I will need a VPN when I go back to China this summer.

Hi, yes, you cannot login to oanda here from China, if you want to trade here, you need a VPN for sure.

They closed all the accounts if you were Chinese.

I do not know the reason, Oanda just send an email to say my account would be closed.

Hi, I am from China, Oanda closed all Chinese clients' accounts.

Hi
does anybody have any idea how OANDA calculates the finance costs on commodities and indices?
I would like to put some trades on Sugar, silver, etc. I trade daily bars, hate to make a profit, and end up losing money on fees.
Also don´t feel like finding out by spending time and money on discovering the well-hidden Oanda secrets.
You all have a great, healthy weekend.

Oanda fee=your profit +10%. lol
I cannot believe people still trade with this broker. Finance fees, currency conversion fees etc. WTF??? What broker is charging conversion fees to convert your trade into your base account currency? The finance fees are to replace the swap fees, since legally they cannot charge them since none of their orders actually go into the market. Classic market maker bullshit. Funny thing is the "finance fees" are now exponentially higher than the swap fees ever were? This broker is the classic example of how regulators do not have the traders best interest in mind.

I think you might want to check your calculation for Oanda's fee. Do you honestly believe Oanda charges a fee that is equal to the trader's profit plus 10%?

I cannot believe someone would post something like this.

It's sarcasm. Just giving an example of how all Oanda fees just keeping adding up and take away from what should be YOUR profit.

Hi all I'm trying to get the trade explorer to work on my profile but I keep getting this error.


Trade Explorer functionality
is limited because there are
no closed trades in this
brokerage account.


Anyone have any experience in resolving this error?

Thanks

Allthough I must say the sarcasm is fully justified, check this statement:

"Rates are based on a blend of underlying liquidity providers’ tom-next swap rates, adjusted by the instrument specific admin fee, and annualised."

AND:
"On our financing costs webpage, you can select the instrument that you wish to trade and it will calculate both the annualised funding rate (including the specific admin fee) and anticipated daily financing cost based on prevailing rates."

Such webpage does not exist!

That is anything but tranparency. I own a business, could not even dream of treating my clients that way.
Back to square one, the only real advantage for me at least, trading with this Market Maker, is the advantage of non- lot position sizing.As far as I researched, they are the only ones.

"Rates are based on a blend of underlying liquidity providers’ tom-next swap rates, adjusted by the instrument specific admin fee, and annualised." AND: "On our financing costs webpage, you can select the instrument that you wish to trade and it will calculate both the annualised funding rate (including the specific admin fee) and anticipated daily financing cost based on prevailing rates." Such webpage does not exist! That is anything but tranparency. ......

Hi Cuchuflito,
Just click on "Resources" on the fxtrade platform and from dropdown you can select "Financing rates", and you can go to the webpage. the page address is as follows ... https://www.oanda.com/bvi-en/cfds/financing-costs/

I am pasting the page for your ref, as i see many unaware of the same.

Financing costs
Find out how we calculate our financing costs, so you can better understand the financing charge or financing credit and other associated potential charges when you trade with us.

CFDs on FX, indices and commodities
If you have an open position on your account at the end of each trading day (5pm ET), the position is considered to be held overnight and subject to either a financing charge or credit to reflect the cost of funding your position (in relation to the margin utilised).
The financing cost is calculated on a per position basis and may be a charge or a credit to your account, depending on whether you hold a buy/long position or a sell/short position. The financing charge or credit also takes into account the impact of our admin fee.
Funding rates for CFD positions
FX and metal (except copper):
Daily financing charge or credit = size of position x applicable funding rate/365.
Indices and commodities (including copper):
Daily financing charge or credit = value of position* x applicable funding rate/365.
*where value of position = size of position x price at the end of the trading day (5pm ET).
Funding rates (or ‘swap rates’ for FX products) vary depending on the instrument and may change on a daily basis. These are quoted as an annual rate. Each instrument has two quoted rates: one for a buy/long position and the other for a sell/short position.
A negative funding rate will result in a charge being debited from your account, and a positive funding rate results in a credit into your account.
How we calculate funding rates
The below table shows how we calculate funding rates for our FX, metals and indices CFDs.
Funding rates (long/buy positions)Funding rates (short/sell positions)
FX and metals (excluding copper)Rates are based on a blend of underlying liquidity providers’ tom-next SWAP rates, adjusted by the instrument-specific admin fee, and annualised.

On our financing costs webpage, you can select the instrument that you wish to trade and it will calculate both the annualised funding rate (including the specific admin fee) and anticipated daily financing cost based on prevailing rates. Additionally, you will also see historic funding rates.Rates are based on a blend of underlying liquidity providers’ tom-next SWAP rates, adjusted by the instrument-specific admin fee, and annualised.

On our financing costs webpage, you can select the instrument that you wish to trade and it will calculate both the annualised funding rate (including the specific admin fee) and anticipated daily financing cost based on prevailing rates. Additionally, you will also see historic funding rates.
IndicesRates are admin fee of 2.5% plus relevant* interbank funding rate, annualised. Represented by a negative rate, and hence a charge.

*rate used in the country whose currency is the instruments’ quote currency using the table below.

On our financing costs webpage, you can select the instrument that you wish to trade and it will calculate both the annualised funding rate (including the admin fee) and anticipated daily financing cost based on prevailing rates.

Additionally, you will also see historic funding rates.When the relevant* one month interbank funding rate is greater than our 2.5% admin fee, the rate used will be the difference between the two, annualised. This is represented by a positive rate, and therefore a credit.

When the relevant* interbank funding rate is lower than our 2.5% admin fee, the rate used will be the difference between the two, annualised. This is represented by a negative rate, and therefore a charge.

*rate used in the country whose currency is the instruments’ quote currency using the table below.

On our financing costs webpage, you can select the instrument that you wish to trade and it will calculate both the annualised funding rate (including the admin fee) and anticipated daily financing cost based on prevailing rates. Additionally, you will also see historic funding rates.
IndexInterbank funding rate
AUS200Australia Bank Bill - 3 months
CHINA50USD LIBOR - 1 month
EU50EURIBOR - 3 months
FRA40EURIBOR - 1 month
GER30EURIBOR - 3 months
HK50HKD HIBOR - 1 month
INDIA50USD LIBOR - 1 month
JP225USD LIBOR - 3 months
NL25EURIBOR - 1 month
SINGIXSGD SIBOR - 1 month
TWIXUSD LIBOR - 1 month
UK100GBP LIBOR - 3 months
US30USD LIBOR - 3 months
US100USD LIBOR - 3 months
US500USD LIBOR - 3 months
US2000USD LIBOR - 3 months
Admin fee table
InstrumentAdmin fee
ZAR pairs2.00%
Other pairs1.00%
Financing costs affected by holidays and weekends
Different asset classes settle on different days.
FX and metal (except copper) trades typically settle on a T+2 basis, which effectively means that weekend financing is usually applied two days earlier on Wednesdays (tripling the usual daily rate), although this timeline is similarly impacted by public holidays. Please note that USD/CAD settles on a T+1 basis and therefore has its three-day financing applied on a Thursday.
Indices and commodities (including copper) typically factor in weekend financing on a Friday (tripling the usual daily rate), although this timeline is also similarly impacted by public holidays.
Accordingly, the actual funding rate on any given day may reflect more than one day’s costs.
No financing charges or credits are applied to clients’ accounts over the weekend.
See our FAQs for examples of financing costs for CFD positions.
CFDs on commodities (plus copper)
OANDA’s commodity CFDs (including copper) do not have an expiry date. To achieve this, OANDA generates its commodity CFD price by applying a premium or discount rate (called the "basis rate") to the price of the underlying active futures contract.
When a futures contract is near its expiry, the basis rate for the next contract is calculated using the prices of the expiring contract and the next contract. This application of the basis rate causes the CFD price to converge towards the active future contract price as the active futures contract approaches its expiration date by moving the CFD price either higher or lower. The direction of this movement is determined by the price of the active futures contract and the CFD price. For example, if the price of the active futures contract is higher than the CFD price, the application of the basis rate will cause the CFD price to move higher to converge towards the active futures contract.
https://www.oanda.com/media/images/p...ax-870x870.png
https://www.oanda.com/media/images/N...ax-870x870.png


The funding rate applied on commodities at the end of the trading day (5pm ET) is intended to offset the price movements created by this pricing methodology, and as such could be a credit or debit depending on whether you are long or short and whether the price movement is positive or negative and the impact of the additional admin fee.
Financing charges or credits are calculated as follows:
Financing charge or credit = size of position x applicable funding rate x [trade duration (in days) / 365] x conversion rate to account currency.
OANDA charges financing on commodity (including copper) CFDs using the basis rate with a % admin fee applied.
For long positions, your account will be debited the basis rate plus a 2.5% admin fee. For short positions, your account will be credited the basis rate minus a 2.5% admin fee (which could result in a charge where the basis rate is less than the admin fee).

Before being acquired by a new firm almost all OANDA swap rates had one positive rate and one negative rate as per normal market operations. Now OANDA is just like most other brokers that want to maximize their profits. This is why I mostly stopped trading on D1 charts.

I think its there admin fee which wasn't there earlier,

( "For long positions, your account will be debited the basis rate plus a 2.5% admin fee. For short positions, your account will be credited the basis rate minus a 2.5% admin fee (which could result in a charge where the basis rate is less than the admin fee)."

Thank you for the additional information. I have been trading with OANDA for 15 years but these fees will not get me to close my account since there are a lot worse brokers. I like the low spread of the DJ30.

Russian will be closed too as far as know.

Got this e-mail today, as usual, confusing!!
I live in Germany.
It sounds easier the "gold standard " stay with the same version, but then right away they threaten me with: "you will no longer...."

As usual, just from reading the mail, you get the feeling of lack of transparency, or "human care" for their clients. I own a small company, we are flooded with good recomendations in our website, and work, we really take care of the people on the other side of our contract.

"In light of the UK’s decision to leave the EU, the transitional period expires at 11pm on 31 December 2020.

You therefore have the following choices with regards to your future business with OANDA:

1. Decide to remain a client of OANDA Europe Limited (OEL), based in the UK, who will continue to provide a trading service authorised and regulated by the Financial Conduct Authority (FCA) and in compliance with the FCA’s client money and client assets regulation.
2. Opt to move your business to a new OANDA EU regulated entity, OANDA Europe Markets (OEM) based in Malta, regulated by the Malta Financial Services Authority (MFSA) and subject to the regulations of the European Securities and Markets Authority (ESMA)

If you prefer to remain a client of OEL, you do not need to do anything, and will thereby continue to receive the ‘gold standard’ regulatory protections provided by the FCA. Starting from 11pm 31st December 2020, we will not be able to offer you the benefit of any new services or ability to trade on any new financial instruments, or send you any form of marketing material.

To move your business to OEM, you will need to apply for a new account with them from Tuesday 22nd December 2020, at http://www.oanda.com/apply/.

Please do not hesitate to raise any questions or queries with our support team at [email protected] or +44 20 3151 2050

Kind regards,
The OANDA team"

So, after 11pm 31st December 2020, we can trade further in the current Oanda account or not ???