OANDA Breaks the Sound Barrier in Foreign Exchange: First to Narrow Spread to Less Than 1.0 Pip
New York, Toronto, and Zurich - January 8, 2008 — OANDA Corporation, well known for pioneering Internet-based forex trading and a global leader in currency information services, announces today that it has broken the sound barrier in foreign exchange and lowered its standard spread on EUR/USD to an astonishing 0.9 pips.
In the foreign exchange market, trading spreads are very important because they affect the return on investors' trading strategies. With wider spreads, traders pay more when they buy and get less when they sell, making it more difficult for them to realize a profit. "A half pip lower spread may not sound like much, but it can easily make the difference between a profitable trading strategy and an unprofitable one," said Michael Stumm, CEO and co-founder of OANDA Corporation.
In a recent comparison of online foreign exchange trading companies, OANDA had the lowest spreads of nearly all of its competitors for all of the major currency pairs, including EUR/USD, EUR/JPY, USD/JPY and GBP/USD. "By maintaining a fully automated trading platform," Mr. Stumm continued, "with no human involvement or dealer intervention, we are able to offer our clients the tightest spreads possible."
OANDA's spread policy is simple: to offer the tightest variable spreads possible with no discrimination. On fxTrade, OANDA's real-time forex trading application, all traders get exactly the same spread regardless of account size or trade size or type of customer. And OANDA does not engage in the practice of providing hidden kickbacks to Introducing Brokers (IB) or white-label partners. To understand more about spreads, visit OANDA's Understanding Spreads page at https://www.oanda.com/forex-trading/why/competitive-spreads, or use OANDA's Spread Cost Calculator (https://www.oanda.com/forex-trading/analysis/spread-cost-calculator/) to see how much spreads are costing you and how big a difference spreads make to your return.
OANDA Corporation is a trendsetter in Internet-based currency trading and a globally recognized provider of currency localization and information services. Possessing one of the world's largest and most accurate databases of currency prices, OANDA was the first to offer a broad range of currency exchange-rate information free of charge over the Web in 1995. Today it handles more than a million queries a day. OANDA became an Internet-based business-to-business application service provider (ASP) in 1997 and currently services over 75,000 ASP clients around the world.
With its launch of FXTrade in 2001, OANDA was one of the first companies to offer fully automated online currency trading. The OANDA FXTrade system provides retail and institutional clients a state-of-the-art platform that enables competitive, real-time access to the foreign exchange market. To date, more than 275,000,000 trades have been executed over the FXTrade platform. For more information about OANDA and its services, please visit https://www.oanda.com.
OANDA is a registered Futures Commission Merchant (FCM) with the Commodity Futures Trading Commission (CFTC) and is a member of the National Futures Association (NFA).