I expect to be going live soon on Oanda’s MT4 platform. I’ll need to choose between the Core Pricing + Commission model or Spread Only model to pay the broker. I think I’ve got my math comparisons correct so I could make the wisest choice; but if you understand these pricing models well, especially Core Pricing + Commission, I’d truly appreciate if you’d check my math on these comparisons. I sent this exact same example and query to Oanda customer support, but got a very cordial non-answer. (“We don’t give trade advice.” - But did I ask for advice?)
Either affirm me or correct my math. I must know that I’ll be making the right choice. Thank you very much.
HERE’S THE MATH:
OANDA CORE PRICING + COMMISSION IS ($5 PER SIDE PER LOT = $10 ROUND TURN PER LOT) + ABOUT A 1 PIP LOWER SPREAD THAN SPREAD ONLY.
TRADE VOLUME: 2 MINILOTS
STOP LOSS: 10 PIPS
EACH PIP MOVEMENT = $80/10 = $8.00, SO . . .
WITH CORE PRICING I PAY A $2 COMMISSION (2 MINILOTS AT $1 PER MINILOT ROUND TURN), BUT SAVE $8.00 ON THE 1-PIP LOWER SPREAD.
TOTAL PAID: $2.00.
WITH SPREAD ONLY THERE IS NO COMMISSION, BUT I PAY $8 FOR THE EXTRA SPREAD PIP.
If my math is correct, there is no doubt I should choose Core Pricing + Commission. I’ve tried similar hypothetical examples, and CP + C kicked the poop out of Spread Only each time - if my math is correct.