OANDA Reduces Spreads on Leading Global Indexes
- The spread reduction is in line with the company’s efforts to reduce trading costs for clients.
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.
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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.
Vatsa Narasimha, President and Chief Executive Officer of OANDA Global Corporation, issued a statement to discuss the company’s spread reduction initiative on indexes.
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 Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a common marketing point of emphasis by brokers, whose action execution varies considerably from company to company. When execution prices are not matching the submitted price the client is charged or credited the difference resulting from the negative or positive slippage.Slippage is a very contentious issue among retail traders, which can lead to issues. Many traders view levels of slippage at brokers as a key determinant for their business. Best Execution a Legal ObligationBrokers are required by law to diver to their clients the best execution possible. Some regulators are requiring brokers to submit execution stats in order to assess the quality of their services. Other brokers are regularly posting execution statistics in order to boost the confidence of their clients in the best execution commitment of the company.Best execution has been a point of emphasis in recent years from both retail and institutional players in the FX industry. Negotiating and executing transactions in order to promote a robust, fair, open, liquid and appropriately transparent FX market is identified as one of the six main principles outlined in the FX Global Code of Conduct, which came into effect in 2018. Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a common marketing point of emphasis by brokers, whose action execution varies considerably from company to company. When execution prices are not matching the submitted price the client is charged or credited the difference resulting from the negative or positive slippage.Slippage is a very contentious issue among retail traders, which can lead to issues. Many traders view levels of slippage at brokers as a key determinant for their business. Best Execution a Legal ObligationBrokers are required by law to diver to their clients the best execution possible. Some regulators are requiring brokers to submit execution stats in order to assess the quality of their services. Other brokers are regularly posting execution statistics in order to boost the confidence of their clients in the best execution commitment of the company.Best execution has been a point of emphasis in recent years from both retail and institutional players in the FX industry. Negotiating and executing transactions in order to promote a robust, fair, open, liquid and appropriately transparent FX market is identified as one of the six main principles outlined in the FX Global Code of Conduct, which came into effect in 2018. Read this Term 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.
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.
Discover credible partners and premium clients at China’s leading finance event!
[gptAdvertisement]
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.
Vatsa Narasimha, President and Chief Executive Officer of OANDA Global Corporation, issued a statement to discuss the company’s spread reduction initiative on indexes.
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 Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a common marketing point of emphasis by brokers, whose action execution varies considerably from company to company. When execution prices are not matching the submitted price the client is charged or credited the difference resulting from the negative or positive slippage.Slippage is a very contentious issue among retail traders, which can lead to issues. Many traders view levels of slippage at brokers as a key determinant for their business. Best Execution a Legal ObligationBrokers are required by law to diver to their clients the best execution possible. Some regulators are requiring brokers to submit execution stats in order to assess the quality of their services. Other brokers are regularly posting execution statistics in order to boost the confidence of their clients in the best execution commitment of the company.Best execution has been a point of emphasis in recent years from both retail and institutional players in the FX industry. Negotiating and executing transactions in order to promote a robust, fair, open, liquid and appropriately transparent FX market is identified as one of the six main principles outlined in the FX Global Code of Conduct, which came into effect in 2018. Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a common marketing point of emphasis by brokers, whose action execution varies considerably from company to company. When execution prices are not matching the submitted price the client is charged or credited the difference resulting from the negative or positive slippage.Slippage is a very contentious issue among retail traders, which can lead to issues. Many traders view levels of slippage at brokers as a key determinant for their business. Best Execution a Legal ObligationBrokers are required by law to diver to their clients the best execution possible. Some regulators are requiring brokers to submit execution stats in order to assess the quality of their services. Other brokers are regularly posting execution statistics in order to boost the confidence of their clients in the best execution commitment of the company.Best execution has been a point of emphasis in recent years from both retail and institutional players in the FX industry. Negotiating and executing transactions in order to promote a robust, fair, open, liquid and appropriately transparent FX market is identified as one of the six main principles outlined in the FX Global Code of Conduct, which came into effect in 2018. Read this Term 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.