February 11, 2024

OANDA Spreads

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OANDA is one of the world's top forex brokers. But does it have competitive spreads? Read on to find out.

OANDA is a budget-friendly choice for traders due to its average spreads. But what exactly is its spread for some specific currency pairs or assets?

Keep reading to get precise details on spread rates for specific currency pairs, metals, and commodities.

Spread is the difference between a buy (bid) and sell (ask) price when trading. This is normally measured in pips. This is the fee charged by the broker for every trading transaction.

OANDA Spreads for Major Currency Pairs

OANDA's spreads for major currency pairs are higher but still close to the average industry spreads.

Some of its minor currency pairs, metals, and commodities are lower than the industry average. This is one of the reasons why OANDA is a great option for low-cost trading.

Here are OANDA's average spreads for the 7 major currency pairs:[1]

Currency PairOANDA's Average SpreadIndustry Average Spread

What are major currency pairs?
Major currency pairs are the most traded currency pairs in foreign exchange. These are pairs that include the US dollar.

Now, let's look into the spreads for the minor pairs.

OANDA Spreads for Minor Currency Pairs

Minor currency pairs generally have higher spreads than the major pairs. For some pairs, OANDA's spread is lower than the industry average. Here are the average spreads at OANDA for some minor currency pairs:[2]

Currency PairOANDA's Average SpreadIndustry Average Spread

What are minor currency pairs?
Minor currency pairs are pairs that don't contain the US dollar. But they do contain at least one of the other three major currencies: Japanese yen, Euro, and British pound.

Aside from the major and minor pairs, OANDA also offers metals and commodities trading.

OANDA Spreads for Metals and Commodities

Some of OANDA's metals and commodities spreads are lower than the industry average. But some are also higher. Shown below are the average spreads for some common metals and commodities.[3]

Metal/CommodityOANDA's Average SpreadIndustry Average Spread

Why is OANDA spread so high?
OANDA spread is high for major currency pairs, but not necessarily for some minor pairs, commodities, and metals. Compared to FOREX.com, OANDA actually has slightly lower spreads. A spread increases depending on the time of trading and economic events that cause market volatility.

Factors that Affect Forex Spreads

Aside from the broker's standard spread charge, these two factors also affect the widening or tightening of spreads:

  1. Time of Trading
    The time when you place a trade matters. The spread will be lower if you place a trade on a US currency during the US trading session than when you trade the same pair during the Asian trading session.

    That's because there are fewer traders if it is not the normal trading session for the currency. If there are not enough market participants, the broker tends to widen the spread to compensate for the risk of loss.

  2. Economic Events
    Economic events such as when the US unemployment rate comes out can cause volatility in currencies.

    Volatility is when exchange rates fluctuate too much. During these events, a broker tends to increase the spread because it can be difficult to pinpoint the actual exchange rate.

Have you experienced slippage or requoting with OANDA during high volatility trading?

What Does a Higher Spread Mean

Minor currency pairs generally have higher spreads than the major currency pairs. What does this mean?

If a spread is higher, that means you're paying more to the broker whenever you're trading that particular asset. The higher the currency pair's spread, the more expensive it is to trade that pair.

That's why it's often best for beginners to start trading with the major pairs. This way, the trading cost won't be too high.

What is the best spread in forex?
The best spread in forex is a zero spread. That means the buying price and the selling price are the same. If a currency pair has zero spread, that means your broker did not charge you anything for trading that currency. But there's no zero spread in reality. Thus, the best possible spread is a spread that is closer to zero.

Non-Trading Fees

Aside from spreads, OANDA also has non-trading fees such as an inactivity fee and withdrawal fee.

  1. Inactivity Fee
    OANDA charges a $10 inactivity fee for accounts that have no open trades for the past year.[4]

  2. Withdrawal Fee
    OANDA charges $20 for every withdrawal through bank transfer.[5]

What Is OANDA?

OANDA, short for Olsen and Associates, is one of the world's premier forex (foreign exchange) brokers. This broker is known to have one of the largest customer funds held.

It has a strong track record of regulatory compliance, and this demonstrates the company's commitment to providing a secure and reliable trading environment.

OANDA offers forex traders what they need to effectively navigate the financial markets. This includes currency conversion, foreign exchange data services, and global online brokerage service.

This broker does not operate as a bank and is not publicly traded.

What is the most important factor for you when choosing a forex broker?

Bottom Line

OANDA offers competitive average spreads. This makes it an attractive choice for traders like you.

Spreads of major currency pairs are generally lower than that of the minor currency pairs. So if you're starting out, make sure to stick first with the major pairs before exploring the minor pairs.

Spreads of metals and commodities are way higher than of the currency pairs. Trade these assets only if you have sufficient capital to cushion market volatility.

How do you rate OANDA's spreads compared to other forex brokers you have used?


  1. ^ Oanda. Popular Forex Pairs, Retrieved 12/11/2023
  2. ^ Oanda. Forex Pairs, Retrieved 12/11/2023
  3. ^ Oanda. Spreads And Margins, Retrieved 12/11/2023
  4. ^ Oanda. Our Charges And Fees, Retrieved 12/11/2023
  5. ^ Oanda. Withdrawal Fees and Costs, Retrieved 12/11/2023

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OANDA Corporation is regulated by the CFTC/NFA. OANDA is a member Firm of the NFA (Member ID: 0325821). CFDs are not available to residents in the United States.


Trading in digital assets, including cryptocurrencies, is especially risky and is only for individuals with a high risk tolerance and the financial ability to sustain losses. OANDA Corporation is not party to any transactions in digital assets and does not custody digital assets on your behalf. All digital asset transactions occur on the Paxos Trust Company exchange. Any positions in digital assets are custodied solely with Paxos and held in an account in your name outside of OANDA Corporation. Digital assets held with Paxos are not protected by SIPC. Paxos is not an NFA member and is not subject to the NFA's regulatory oversight and examinations.

Leveraged trading in foreign currency contracts or other off-exchange products on margin carries a high level of risk and may not be suitable for everyone. We advise you to carefully consider whether trading is appropriate for you in light of your personal circumstances. You may lose more than you invest. Information on this website is general in nature. We recommend that you seek independent financial advice and ensure you fully understand the risks involved before trading. Trading through an online platform carries additional risks.


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