Oanda Market Trading Platform

[speedyking]

Hi bros, I have some enquiries about oanda trading platform. I have been using the fxtrade demo account for quite some time. Is it true that oanda charges 0 commission on all trades and only earns from the spread? What are your views on Oanda trading system?

 

[dcloud]

Hi bros, I have some enquiries about oanda trading platform. I have been using the fxtrade demo account for quite some time. Is it true that oanda charges 0 commission on all trades and only earns from the spread? What are your views on Oanda trading system?

I have traded on Oanda live account before. They have 2 platforms - a proprietary fxtrade and the more commonly used MT4. Yes you pay zero commission and spread only for trades.

Usually trading accounts with commission and low spread is ultimately cheaper when you calculate total trading cost.

Bear in mind also that there are also different account types such as whether the broker is a market maker and if there is a dealing desk.

 

[speedyking]

Even the CFD has no commission? What do you mean by dealing desk?

I have traded on Oanda live account before. They have 2 platforms - a proprietary fxtrade and the more commonly used MT4. Yes you pay zero commission and spread only for trades.

Usually trading accounts with commission and low spread is ultimately cheaper when you calculate total trading cost.

Bear in mind also that there are also different account types such as whether the broker is a market maker and if there is a dealing desk.

 

[dcloud]

Forex brokers with dealing desk are market makers.
- Fixed Spreads or usually higher spreads
- Take the opposite side of your trade
- Artificial quotes
- Orders are filled by broker on a discretionary basis

No Dealing Desk (STP)
- Most have variable spreads
- Simply a bridge between client and liquidity provider
- Prices come from liquidity providers
- Automatic execution, no re-quotes

No Dealing Desk (STP+ECN)
- Variable spreads or commission fees
- A bridge between client and liquidity provider and other participants
- Prices come from liquidity providers and other ECN particpants
- Automatic, no re-quotes

Suitable type of brokers actually depend on the type of trader you are.

Even the CFD has no commission? What do you mean by dealing desk?