OANDA, a provider of multi-asset trading services, has restructured its spread pricing model, to be implemented on some of the largest stock indexes in the world.
The spreads vary among the contracts, with the lowest level to be placed on the US Nasdaq index at 0.5 points. Comparatively, the Dow Jones Industrial Average will see it spread cut to 1.6 pts.
Additional indexes that will be affected by the company’s decision include the German stock index DAX 30, as well as the London-based FTSE 100 index. Each of their spreads will receive a reduction, to new levels of 0.9 and 0.8 points, respectively. Meanwhile, the Australian index ASX, offered under its OANDA symbol AUS 200, has incurred a spread reduction to the 0.8 level as well.
OANDA’s decision to cut trading costs for its clients, comes on the heels of higher margin requirements, which have placed stringent controls over veteran FX and CFD investors. Global regulators have intensified efforts to reduce risks to investors in the leveraged FX market.
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Vatsa Narasimha, President and Chief Executive Officer of OANDA Global Corporation, issued a statement to discuss the company’s spread reduction initiative on indexes.
“At OANDA, we take pride in helping our clients become successful self-directed traders, whether through enhancements to our institutional-grade trading platform, cutting-edge trading tools, advanced charting solutions or award-winning educational material.”
Mr. Narasimha continued: “Over the course of our 23-year history, we’ve worked hard to meet the needs of our clients, who have increasingly expressed an interest in tighter spreads on indices. As a result, we’ve moved to offer tighter spreads during cash hours, which will enable clients to reduce the cost of trading on our V20 platform while continuing to benefit from our fully-automated execution and transparent pricing.”
Evident in Mr. Narasimha’s comments, is OANDA’s aim to improve the overall trading environment for its clients. Toward the end of 2017, the company expanded its Education Portal to provide useful information and tools for traders of all levels.
OANDA also is showing signs of expansionary efforts, through a partnership with Western Union that facilitated the company’s German presence. The agreement enabled OANDA to offer a new cross-border money transfer solution to its customers in Germany.