What gives - Oanda's spread has been unusually high this A.M. and 15 minutes after news it is still at 3 pips on EURUSD!!!
That is higher than the spread on AUDUSD.
That is higher than the spread on AUDUSD.
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did oanda just drop its spread for eurusd to 1 pip? 11 replies
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DislikedYou might want to reconsider your personal definition of "news."
Jean-Claude Trichet's ECB post-rates press conferences usually last just over an hour, from 12:30 - 1:30+ GMT and can be (as was the case today) major market-moving / volatility-spiking events, in direct response to what he is saying -- or not saying -- at any given moment.
What would be extremely unusual would have been for Oanda to go back to business as usual and for the spreads to return to normal at the time of your OP, when Trichet was just beginning to warm up... on...Ignored
DislikedTypically most brokers widen spreads and delay execution time on major news events like the ECB rate change.
Theoretically speaking though spreads should be based on liquidity directly tied to libor rates.
BTW, I checked Oanda's spread history of EURUSD and saw a high of of 1.9 at the time of the release which then decreased to 1.3 - 1.2. Never saw 3 pips wideIgnored
DislikedThere must be some tom foolery going on because i was at my monitor and the spread went to 10 for a bit then 5 mins in it was at 5, 5 mins later it was 4 and 15 mins after the news it was at 3. Normally it widens to 10 for 1 min and then drops back to the spread it was previous to the news announcement.Ignored
DislikedLike all brokers, there are some little tricks done here and there at Oanda also. One of the things I've noticed is they will every now and then put their spread at 0.8 or less. The times are odd because it's usually pre-Asian session or early Asian session when you would think liquidity is low with Europe and US closed (so less people available to take advantage of it). My thought is they intentionally lower it to bring down the average spread for marketing purposes.Ignored
DislikedHaving been very intimate with Oanda over the past year and a half,
I have come to the conclusion that their practices have been less than
fair this year.
It may come from their integration of MT4 (or some failing thereof).
The way they manage their internal matching order book, their liqudity providers, or something else has changed... much to the disadvantage of the general retail customer.
Examples: May 4, 2011 (the day before Euro Bid rate announcement) 0.8 pip spread throughout US/London overlap.
May 5, 2011 (Euro Bid Rate announcement...Ignored
DislikedHaving been very intimate with Oanda over the past year and a half, I have come to the conclusion that their practices have been less than fair this year.
It may come from their integration of MT4 (or some failing thereof).
The way they manage their internal matching order book, their liqudity providers, or something else has changed... much to the disadvantage of the general retail customer.Ignored
DislikedI agree with you. Something has changed at Oanda and they are no longer competitive. I have also moved my account elsewhere.Ignored
DislikedI agree with you. Something has changed at Oanda and they are no longer competitive. I have also moved my account elsewhere.Ignored
DislikedTypically most brokers widen spreads and delay execution time on major news events like the ECB rate change.
Theoretically speaking though spreads should be based on liquidity directly tied to libor rates.
BTW, I checked Oanda's spread history of EURUSD and saw a high of of 1.9 at the time of the release which then decreased to 1.3 - 1.2. Never saw 3 pips wideIgnored
DislikedOanda spread is getting worse, but what we had before was too good to be true fixed at 0.9
However, the alternative which is second best is MB Trading, they will give you a slippage if there is volatility which is not even close to what it should be...
You can however, say that the slippage can go either way and will do so after a couple of hundred trades so it doesnt really matter...
conclusion: stay with Oanda and remember that this cost is nothing compared to stock trading...Ignored