OANDA launches raw spreads plus commission pricing for US clients

Maria Nikolova

As FXCM exits the US retail FX market, OANDA starts offering a pricing model that used to be offered by FXCM US.

Online trading and technology provider OANDA has started offering a new pricing option for its US clients – in its essence, it combines core pricing plus commission. Putting it otherwise, this is the familiar pricing model of raw spreads plus commission.

According to a post in OANDA’s forum, the new pricing option is still in beta. An information sheet shows that this model is effective for trades executed as of March 6, 2017.

The main idea behind this pricing model is to offer eligible OANDA US customers a reduced spread relative to the broker spread-only pricing account in exchange for the payment of a fixed commission per trade. With Core Pricing the total cost for each trade will equal the sum of the applicable Core Pricing spread plus the commission.

This pricing model applies to 70 FX pairs. An important condition to qualify for the offer is for traders to have a minimum balance/deposit of $10,000.

If someone feels a deja-vu, this is because, back in 2014, FXCM, which is now leaving the US retail FX market, rolled out this type of pricing to its US customers. Back then, FXCM said the move will benefit customers thanks to lower trading expenses, while also boosting pricing transparency – instead of charging customers with a hidden mark-up included in the spread, a broker charges a commission on top of raw spreads.

Now, as FXCM exits the US, some customers may find it appealing to shift to the same pricing model – this time with OANDA. Well, we should not be judging brokers for trying to make use of a business opportunity when it comes along. But traders are the ones to decide which broker they trade with and what pricing model they choose.

Meanwhile, GAIN Capital’s Forex.com completed the acquisition of FXCM US accounts on February 24, 2017. Yesterday, GAIN Capital’s CEO Glenn Stevens said the broker was pleased with the trading activity of the transferred accounts.

Read this next

Institutional FX

Broadridge helps SLIB to enhance cross-border proxy voting in France

“Together with our partners at SLIB, we have delivered an advanced voting and communications solution that makes it easier than ever for all investors, both those in France and in other markets, to seamlessly cast their votes in the companies they own.”

Digital Assets

FTX resumes salary payments to employees and contractors, except in Bahamas and Australia

“FTX also is making cash payments to selected non-U.S. vendors and service providers where necessary to preserve business operations, subject to the limits approved by the Bankruptcy Court. We recognize the hardship imposed by the temporary interruption in these payments and thank all of our valuable employees and partners for their support.”

Market News

Rishi Sunak’s reign in real data

After several weeks of Rishi Sunak’s appointment as the new Prime Minister, it is obvious that he has claimed quite the public support.

Digital Assets

CrossTower acquires BEQUANT to help crypto industry reset and consolidate

“We are stabilizing an industry with incredible promise; regaining trust; and rebuilding the future of finance.”

Retail FX

Plum launches crypto offering for EU residents

Plum has added crypto investing to its range of investment options in France, Belgium, Spain, and Ireland. Residents there will be able to buy and sell cryptocurrencies in their app with just a few taps, via services provided by Bitpanda.

Retail FX

FX/CFD and Crypto broker Quantfury launches fractional trading of stocks, ETFs, commodities

“Quantfury is advancing its unmatched trading and investing conditions further by making it even more affordable to Quantfurians out there. Fractional trading mode opens up more trading opportunities to the Quantfury global audience of more than 400,000 Quantfurians.”

Industry News

SEC awards $20 million to whistleblower despite degree of culpability and reporting delay

The Securities and Exchange Commission has awarded a whistleblower with $20 million for providing new and critical information that led to the success of an enforcement action.

Institutional FX

Tradesmarter’s white label WOW TRADER integrates with TradingView

Tradesmarter’s white label trading platform solution WOW TRADER has integrated with TradingView, the high performance and mobile friendly charting tool.

Industry News

ASIC loses fee overcharging case against Commonwealth Bank of Australia

“ASIC pursued this case because we believed CBA did not have robust compliance systems to ensure customers were being correctly charged. ASIC will carefully consider the judgment and continue to work to ensure large financial institutions charge fees correctly and put their customers first.”