Market volatility and market liquidity are two primary factors that affect spreads. Trade execution is fully automated and is built around our principles of fairness and transparency.
Our spreads start from just 0.6 pips on EUR/USD, 1 point on the UK 100, 1.2 points on Germany 40, and 1.3 pips on USD/JPY
Fast execution ensures you are getting the best available price when you trade with us. Our award-winning* trading platform is engineered for reliability and speed.
Our pricing is derived from:
Your orders are filled at our best available price.
Our pricing for forex and metals CFDs is derived from our liquidity providers - major financial institutions who provide us with available spot pricing for FX pairs and metals. These prices are analysed by our automated pricing system to generate our midpoint price for each FX pair and metal CFD. Different groups of liquidity providers are used to derive pricing for different products/instruments.
For unusual FX pairs, we may derive the price from two major/minor currency pairs. For example, the price for the Singapore Dollar/South African Rand FX pair may be derived from the USD/SGD and USD/ZAR FX pair prices.
Our pricing for our indices CFDs is calculated by reference to a combination of the relevant futures prices and the ‘cash’ or ‘spot’ prices, in respect of the underlying instrument.
Adjustments are made such as adding our own spread, adjusting for liquidity in external markets, currency exchange rate differentials and other relevant factors. Adjustments may also be made to reflect market movement following the payment of dividends and other anticipated corporate actions.
The prices of our commodity (including copper) and bond CFDs are based on underlying futures contracts. When an underlying futures contract is near expiry, we calculate the basis rate, which represents the difference in price between the expiring futures contract and the next futures contract. From that point forward, our CFD price is calculated as the present value of the price of the next futures contract, using the basis rate for the present value calculation. The present value is calculated continuously, second-by-second.
When the basis rate is positive, the CFD price will tend to move upwards towards the contract price. When the basis rate is negative, the CFD price will tend to move downwards towards the contract price.
Find out how financing costs are calculated.
Constituent stocks of an index will periodically pay dividends to shareholders. When they do, this impacts the overall price of the index, causing it to drop by a certain amount. We may make dividend adjustments if a dividend is scheduled to be paid to the holders of the underlying instrument. These adjustments are normally made on the ex-dividend date.
When there’s a dividend payment, this is normally reflected in the index CFD price. If you have an open position at the time of a dividend adjustment, we’ll ensure that there is no material impact on you by either crediting or debiting your account with the same amount that your unrealised profit and loss has been impacted.
For example:
For long positions:
Let’s assume UK100 (FTSE) is trading at 7,167.95 GBP. If you are long 20 units of UK 100 and a stock in the index pays out a dividend that equates to 5 index points.
The index value would drop to 7162.95 GBP.
The dividend adjustment would be
= index dividend points X no. of units of the index CFD held
= 5 X 20 = 100 GBP
This will be credited to your account post home currency conversion.
For short positions:
Let’s assume US SPX 500 (S&P500) is trading at 2,989.69 USD. If you are short 10 units and a stock in the index pays out a dividend that equates to of 0.890 index points.
The dividend adjustment would be
= Index dividend points X no. of units of the index CFD held
= 0.890 X 10 = 8.90 USD
This will be debited from your account post home currency conversion.
You will be able to see OANDA's dividend adjustments on your Transaction History and Statements.
Go from application to trading in three easy steps:
^Subject to meeting our criteria. Additional information/documentation may be requested prior to account activation to establish eligibility.
With over 25 years experience, we offer multiple platforms and powerful tools to help you trade smarter.
Trade forex CFDs
Take a position on forex CFD pairs using our OANDA Trade platform, MT5, MT4 and TradingView.
What are financing costs?
Financing costs can affect your cost of trading, so it's important to understand how financing works.
Our spreads and margins
For retail clients, our margin rates start from just 3.3% on EUR/USD and 5% on AUD/USD.
*Ranked highest for overall client satisfaction (Investment Trends Report 2023). Most Popular Broker 3 years in a row (TradingView Broker Awards 2022, 2021 & 2020). Voted Best Forex and CFD Broker 2021 (TradingView Broker Awards 2021). Best Trading Tools winner (Online Personal Wealth Awards 2021).