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Oanda Spread Problem

  • #1
  • First Post: Apr 23, 2006 5:38pm Apr 23, 2006 5:38pm
Has anyone noticed how occasionally the spreads quoted by Oanda jump up to a high value? For example, right at this moment, instead of the usual 1.5 pips on the Euro, they're quoting 10 pips, with similarly high values for other pairs. I've seen this happen before and after a while they drop back to their normal value. Now I know that spreads can widen with volatility, but this seems odd.

I like Oanda, but I'd be worried about opening a live account. If the spread suddenlt widens at a critical moment, I could be left seriously disadvantaged.
  • #2
  • Apr 23, 2006 5:47pm Apr 23, 2006 5:47pm
Well it is a very well known fact about Oanda that their spreads change constantly. Most of the time you will find the spreads are widening just before amajor news announcement, I believe it is quoted somewhere in their terms and conditions.

Other brokers just before major news take an eternity to execute trade requests, others don't allow it at all .. it seems oanda just widens spreads. Pro's and con's for each.
You can quit and they won't care, but you will always know.
  • #3
  • Apr 23, 2006 5:50pm Apr 23, 2006 5:50pm
It is well known that Oanda has 10-20 spreads in weekends.

Spreads will drop back to normal on Sunday night Eastern time.
  • #4
  • Apr 23, 2006 6:14pm Apr 23, 2006 6:14pm
Quoting Akuma99
Well it is a very well known fact about Oanda that their spreads change constantly. Most of the time you will find the spreads are widening just before amajor news announcement, I believe it is quoted somewhere in their terms and conditions.

Other brokers just before major news take an eternity to execute trade requests, others don't allow it at all .. it seems oanda just widens spreads. Pro's and con's for each.
OK, so on-balance, would you say this is an acceptable compromise with Oanda....or would I be better looking at someone like FxSol?
  • #5
  • Apr 23, 2006 8:01pm Apr 23, 2006 8:01pm
Personally I would rather a widened spread rather than delayed execution, requotes etc. and the associated slippage, at least you know where you stand. Others will probably be able to tell you if oanda also suffer from re-quotes around news times.
You can quit and they won't care, but you will always know.
  • #6
  • Apr 23, 2006 10:38pm Apr 23, 2006 10:38pm
I trade the news regularly with Oanda and I have never received a requote. Spreads double or triple during releases or extremely volatile periods, but you can always trade at the quoted prices. Their order management system is kinda shabby, but their a good solid company that I would recommend to anyone...
  • #7
  • Apr 23, 2006 10:40pm Apr 23, 2006 10:40pm
Here you go, Hope this helps.

BTW, I agree with the post above




Overall, just stay away from big news. Use the FF calendar!


http://fxtrade.oanda.com/resources/s...ad_EUR_USD.png

http://fxtrade.oanda.com/resources/s...ad_GBP_USD.png

http://fxtrade.oanda.com/resources/s...ad_USD_CAD.png
  • #8
  • Apr 24, 2006 9:13am Apr 24, 2006 9:13am
This is good info to know. I've been considering opening an acct with Oanda. I think I can deal with the changing spread.

I just closed my FXCM acct 2 weeks ago. The slippage and execution was horrible, almost criminal if you ask me.
  • #9
  • Apr 24, 2006 10:53am Apr 24, 2006 10:53am
i can recommend oanda

avlasov chart shows the spreads at news time eur/usd are no problem at all they tend to spread to 4pips for 3 to 5 minuits the gpb/usd tend to rise to 10pips

never had a order rejected

the free fxnews is good too and fast
  • #10
  • Apr 24, 2006 11:49am Apr 24, 2006 11:49am
but i dont want to use it any more , i am looking for another broker .

and oanda maybe my next choise .
  • #11
  • Apr 24, 2006 11:53am Apr 24, 2006 11:53am
That is very unfair manipulation to attract clients.

The volume rises during news release and if the spreads are 10 pips by that time this means that oanda gets much more. When Spread is fixed 1.5 no one is trading and so spreads does notmatter much.
kiss the trend
  • #12
  • Apr 24, 2006 2:04pm Apr 24, 2006 2:04pm
it depends what you mean by unfair some broker reqoute ie so you dont get a fill

during the news some wont allow any trade up to 30 min before the annoucement i find on most news it goes back to normal within a minuite or so
depends on the volitity i suppose
  • #13
  • Apr 24, 2006 2:23pm Apr 24, 2006 2:23pm
Quoting fx-trader777
That is very unfair manipulation to attract clients.

The volume rises during news release and if the spreads are 10 pips by that time this means that oanda gets much more. When Spread is fixed 1.5 no one is trading and so spreads does notmatter much.
777,

I've been with Oanda for a while and I seem to always to advantage of the low spreads. The main reason is I never trade around big news times. My trades are usually in before or after when the spreads are low. But, I don't like the weekend spread ... for example they don't reduce the spread on Sunday, I trade long term and learned to live with bigger spreads so it doesn't brother me much. And I agree it would be a shock to some to watch the spread widen from 1.5 to 10 ...

Happy Trading ...
If it is not broken, fix it until it is!
  • #14
  • Apr 24, 2006 4:03pm Apr 24, 2006 4:03pm
Oanda's spreads widen mostly on weekends which is understandable.
They allow you to open & close positions over the weekend.
Other brokers remain closed and do not allow any activity.
Here's a tip if you dont wish to pay weekend spreads:
DO NOT TRADE DURING WEEKENDS...
:
  • #15
  • Edited Apr 29, 2006 6:27am Apr 28, 2006 3:31am | Edited Apr 29, 2006 6:27am
Here is also another tip: If you want to trade a lot around the news, during the weekend, or Sunday evening and you are having to pay more for the widened pip spread, what you can do is open a sub account with Oanda and just open a buy and a sell. Do this early before the pip spread widens and close the trade that is not the right direction once you have figured out which way it is going to go. By doing this you will only have to pay a 3 pip spread on EURUSD instead of the 10 pip spread that it widens into.
  • #16
  • Last Post: Apr 28, 2006 5:57am Apr 28, 2006 5:57am
Quoting billford
Here is also another tip: If you want to trade a lot around the news or during the weekend and you are having to pay more for the widened pip spread, what you can do is open a sub account with Oanda and just open a buy and a sell. Do this early before the pip spread widens and close the one that is not the right direction once you have figured out which way it is going to go. By doing this you will only have to pay a 3 pip spread on EURUSD instead of the 10 pip spread that it widens into.
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