Which MM or ECN brokers can beat Oanda Spread? | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Which one is better: an ECN broker or OANDA? 9 replies

Cheapest ECN Comissions - Vantage FX ECN 10 replies

Reliable ECN access which can't markup price 13 replies

ECN, fixed spread or variable spread account? why? 1 reply

Oanda spread versus MB Trading spread 27 replies

Attachments: Which MM or ECN brokers can beat Oanda Spread?
Exit Attachments

Which MM or ECN brokers can beat Oanda Spread?

  • #1
  • First Post: Mar 22, 2010 4:09am Mar 22, 2010 4:09am
Nowaday the average Oanda spread is much lower than a year ago. Is this happen to all brokers or just Oanda only?

I just wonder nowaday which brokers can beat Oanda in term of transaction cost? Do cost of transaction for ECN brokers still lower than Oanda?

The attached is the Oanda spread one hour after London open.
Attached Image
  • #2
  • Mar 22, 2010 5:06am Mar 22, 2010 5:06am
I'm using Oanda and I don't think there's another broker with such low spreads and autotrading on 10-sec charts.
  • #3
  • Mar 22, 2010 7:38am Mar 22, 2010 7:38am
the problem is oanda doesn't have monthly or weekly charts, and also other brokers can compare with oanda's spreads, e.g. fxopen.
  • #4
  • Mar 22, 2010 10:14am Mar 22, 2010 10:14am
Quoting fxvoilaaa
the problem is oanda doesn't have monthly or weekly charts, and also other brokers can compare with oanda's spreads, e.g. fxopen.
Well I didnt mean to compare other features. The main focus is the transaction cost. btw anyone else can double confirm that fxopen has comparable transaction cost with oanda? The spread listed on fxopen website seems not comparable at all.
  • #5
  • Mar 22, 2010 10:33am Mar 22, 2010 10:33am
Quoting ForexQuant
Nowaday the average Oanda spread is much lower than a year ago. Is this happen to all brokers or just Oanda only?

I just wonder nowaday which brokers can beat Oanda in term of transaction cost? Do cost of transaction for ECN brokers still lower than Oanda?

The attached is the Oanda spread one hour after London open.
What about the average Oanda disconnections?
Is lower than a year ago?
I just wonder nowaday which brokers can beat Oanda in term of disconnections?
  • #6
  • Mar 22, 2010 10:38am Mar 22, 2010 10:38am
Quoting futures
What about the average Oanda disconnections?
Is lower than a year ago?
I just wonder nowaday which brokers can beat Oanda in term of disconnections?
Well I didnt mean to compare other features.

btw I rarely see bad connection & disconnection problem here. Most of the time it is my ISP problem if i got connection problem.
  • #7
  • Mar 22, 2010 10:44am Mar 22, 2010 10:44am
Quoting ForexQuant
Well I didnt mean to compare other features.

btw I rarely see bad connection & disconnection problem here. Most of the time it is my ISP problem if i got connection problem.
How many trades do you make a day?
  • #8
  • Mar 22, 2010 10:46am Mar 22, 2010 10:46am
Quoting bugscoe
How many trades do you make a day?
Does it matter?
  • #9
  • Mar 22, 2010 11:21am Mar 22, 2010 11:21am
Quoting ForexQuant
Nowaday the average Oanda spread is much lower than a year ago. Is this happen to all brokers or just Oanda only?

I just wonder nowaday which brokers can beat Oanda in term of transaction cost? Do cost of transaction for ECN brokers still lower than Oanda?

The attached is the Oanda spread one hour after London open.

n", "type": "¤di%%splay"fx.com
Attached Image
  • #10
  • Mar 22, 2010 12:05pm Mar 22, 2010 12:05pm
Quoting ForexQuant
Does it matter?
There are usually only a couple reasons why people don't realize why it would matter:

1. You're a longer term trader- 1-5 a day, etc.

2. No matter what style of trader you are, if you're losing money, connection never seems to be an issue.

If you consistently make money day after day using a high freq short term strategy that involves 100-200 transactions (not RT) a day and aren't having connection issues, I'd love to hear from you.
  • #11
  • Mar 22, 2010 1:08pm Mar 22, 2010 1:08pm
Quoting futures
n", "type": "¤di%%splay"fx.com
What's the source? Is this a Photoshop? Did you negotiate lower spreads?

Sorry if the answers are obvious; quickly posting on iPhone...
Hindsight is 20/20
  • #12
  • Mar 22, 2010 3:01pm Mar 22, 2010 3:01pm
Quoting bugscoe

If you consistently make money day after day using a high freq short term strategy that involves 100-200 transactions (not RT) a day and aren't having connection issues, I'd love to hear from you.
Can you elaborate on this ?

What broker would you use ?
  • #13
  • Mar 22, 2010 6:44pm Mar 22, 2010 6:44pm
Quoting cosgrove
What's the source? Is this a Photoshop? Did you negotiate lower spreads?

Sorry if the answers are obvious; quickly posting on iPhone...
Obviously he modified my spread table using photoshop

Quote
There are usually only a couple reasons why people don't realize why it would matter:

1. You're a longer term trader- 1-5 a day, etc.

2. No matter what style of trader you are, if you're losing money, connection never seems to be an issue.

To me what does matter is the expectancy. If your expectancy is 5 pips per trade or lower, then transaction cost does matter even if you are long term trader. However I believe that most long term trading system has higher expectancy value.
  • #14
  • Mar 22, 2010 7:39pm Mar 22, 2010 7:39pm
These spreads are best out there for the retail client at the moment in my opinion .
I have been using Oanda and Currenex and u get great fills and tiny slippage with Oanda....same cannot be said with currenex !

I will sometimes execute 20 or so short term trades on Oanda per day shooting for 10-15 pips first target...... had one disconnect in the last 6 months (i am using their desktop connection)

Now they have signed a deal with Koreas larest brokerage and Oanda will provide them liquidity......so they really are becoming a marketplace all to themselves, this can only mean tighter spreads and even better execution.

My 2c worth
  • #15
  • Mar 22, 2010 8:36pm Mar 22, 2010 8:36pm
Oanda's spreads have become very competitive with the ECNs over the past year, but there are downsides.

First, Oanda is pretty much the largest MM in the retail space. Unlike ECN & STP models, Oanda takes the opposite side of each retail client's trades. Given the ~90% probability of client failure, that adds up to a significant profit for Oanda. The profit they earn from their customers losing is so large, they are able to pass along a portion of this profit indirectly via tighter than average spreads. The lower spreads, as a form of advertising, helps keep the necessary churn of new customer accounts running at a steady rhythm (for those interested, the GAIN IPO prospectus goes into this necessity of churn for MMs).

For the minority of profitable traders, these lower spreads are a very good deal. However, given the profit motive of MMs, Oanda is enticed to see client trades close at a loss, as well as to keep profitable traders from negatively affecting their hedge book (although no MM would blatantly admit it). This comes about in other ways, most famously for Oanda are the "spread spikes" around news releases. Good luck trading with a 10 pip stop when Oanda decides to ramp the spreads +30 wide (while the "market spread" in ECN/STP land is nowhere near as affected).

I have nothing personal against Oanda, and if it weren't for the spread spikes, I would likely consider them as my broker. If you don't trade news releases, they're pretty much the cheapest option out there.
  • #16
  • Mar 23, 2010 2:31am Mar 23, 2010 2:31am
Its definitely true that the spreads are a much higher during news than on ecns. But its very predictable when that happens, and it can be worked around (at least for what i do).

I rarely have connection-problems. Last NFP was the first time since quite a while. Although i do believe the reports from other people that constantly have problems to be believable, so there is something in the bush.

Also, when comparing spreads oanda <-> ecn, one has to take into account that oanda makes a market for 10m each way.

Personally i hope they stay as they are, but i'm not married to them, so if it gets worse, there will always be other good firms around.
  • #17
  • Mar 23, 2010 3:18am Mar 23, 2010 3:18am
Quoting shrike
Also, when comparing spreads oanda <-> ecn, one has to take into account that oanda makes a market for 10m each way.
10M full without slippage? Have you ever put that to the test? Even the retail ECNs are quoting mostly 1-3M per LP. 10M at those spreads would be very impressive.

Took a closer look and Oanda is simply killing it in certain pairs. NZD/JPY a full pip ahead of the ECNs, before commissions..
  • #18
  • Mar 23, 2010 3:36am Mar 23, 2010 3:36am
I never traded 10m, usually 500k - 1m and fills are ok.

10m is what Oanda says their prices are good for. Anything more, and you have to split it up in two trades. I would also be interested in someone putting that to a test, somehow sounds too good to be true.
  • #19
  • Mar 23, 2010 8:18am Mar 23, 2010 8:18am
Quoting Trader KGB
Oanda's spreads have become very competitive with the ECNs over the past year, but there are downsides.

This comes about in other ways, most famously for Oanda are the "spread spikes" around news releases. Good luck trading with a 10 pip stop when Oanda decides to ramp the spreads +30 wide (while the "market spread" in ECN/STP land is nowhere near as affected).
Can you give an example of the ECN spread when Oanda goes to 10 and 30? Also, what happens if you're trading on Oanda, you had a 20p stop, your position was already against you 19p, and spreads went to 30? Would your order be closed at -49p loss?

Quoting Rise
I have been using Oanda and Currenex and u get great fills and tiny slippage with Oanda....same cannot be said with currenex !
Can you go into more detail about your currenex experience? I'm more worried about orders being triggered/filled than a few pips slippage. If you have a TP/SL order at a price level and the respective bid/ask touches that level, are you always filled, sometimes slipped? sometimes filled, always slipped? or what?
Hindsight is 20/20
  • #20
  • Mar 23, 2010 9:46am Mar 23, 2010 9:46am
Quoting ForexQuant
Well I didnt mean to compare other features. The main focus is the transaction cost. btw anyone else can double confirm that fxopen has comparable transaction cost with oanda? The spread listed on fxopen website seems not comparable at all.
Yeah, FX Open does have decent spreads actually, check this comparison table out:

http://www.mataf.net/en/tools/forex-spread

Check out their demo account as well.
0 traders viewing now