Oanda, a forex broker based in San Francisco that provides forex trading services around the globe, has started offering a new pricing option for its US clients.
The new pricing model combines core pricing plus commission. In other words, this is the well-known pricing model of raw spreads plus commission.
70 FX pairs included in the offering
Commissions on the offering are set at $50 per million traded. As for the minimum deposit requirement, it is currently set at $10,000.
According to OANDA, the minimum spread on the EU/USD pair starts from 0.1 pips, reaching up to 0.4 pips in a typical market environment.
The broker has included 70 FX pairs in its offering, including Turkish lira, South African Rand, Chinese yuan and Eastern European currencies.
Pricing model from 2014
FXCM, which is now leaving the US retail FX market, offered this type of pricing to its US customers back in 2014.
Three years later, with all the negative developments around the FXCM, OANDA considers that some customers may find it appealing to shift to the same pricing model with them.
After years of committing solely to a market making model, OANDA is stepping up its game. The main reason behind OANDA’s decision could be the acquisition of FXCM’s clients by GAIN Capital.
The introduction of the competitive offering with raw spreads may motivate GAIN Capital to respond with one of its own. All this implies that US citizens will have a credible alternative to market making.
OANDA is one of the oldest forex brokers in the world and has pioneered a number of services to retail clients. The broker provides two basic types of trading platforms – MetaTrader4 and FXTrade Web Trader.
Customer support at OANDA is available 24/5, and can be contacted via live chat, email fax or telephone.
The broker is regulated in six different countries under the local regulatory boards – NFA, CySEC, ASIC, CFTC, MiFID, and FCA.