Hello everyone,
I’m using OANDA trading platform for some time and I’m pretty happy with it since they provide flexible accounts (sub-accounts with custom leverage), very low minimum deposit and position size and straightforward API.
However, I have noticed that they have pretty wide spreads over the weekend (well, basically the spread widens just before market close). It’s usually not a problem for majors, and I assume it’s similar for other platforms, when instead of few pips, there is 10 - 20 spread (so usually 5x).
But for EUR/PLN (and other minor/exotics too) pair it seems to be a little too much. During the week the spread for this pair is around 15 - 25 pips which is fine as it’s more exotic pair. I had a position with trailing stop on 300 pips distance and just few seconds before market close (4 seconds exactly) the spread widened to 500 pips hitting TS. It’s like 20x more than during the week which seems a lot.
Is it normal that for such pairs the spread over the weekend is increased so much? Should I consider changing broker? What are your experiences here?
Thanks
P.S. There are few older topics about wide spreads, but I haven’t found a definite answer there (thread ids since as a new user I can’t post links - 30067, 33991, 11136).
Oanda are big and well-known with a large market share. It would be surprising if their spreads were uncompetitively wide. If you were looking for a forex broker from scratch it would be odd if their name wasn’t mentioned in the first few suggestions.
I don’t ever trade exotics, partly due to the spread, which is sometimes almost literally off the chart. But maybe you have a strategy that is specifically suited to PLN etc.?
300 pips is just f*ing crazy! That would prompt me to call OANDA and fight it.
I have had similar experiences with OANDA on several occasions, even in the majors. There are two easy ways that brokers can take your money. One is by increasing the spread as you and I have experienced and the other is by delaying price. They can’t change the price that they receive but they can delay it. They delay price and then move it quickly to prevent you from entering the trade unless you have a limit order waiting to be tagged. Also, you do not have the opportunity to move your SL, if you trade that way. I don’t. But I will sometimes take my SL off completely before close of session to avoid being stop hunted. Delaying price also allows them to determine whether or not they should take an opposing position to your trade.
Now they have added to the already unfair FIFO rules to force you to change your lot size to a unique value if you are adding to your position! I’m getting tired of these rules and shenanigans and I shall look at alternatives soon.
Oanda are big and well-known with a large market share. It would be surprising if their spreads were uncompetitively wide. If you were looking for a forex broker from scratch it would be odd if their name wasn’t mentioned in the first few suggestions.
That’s true and that was also a reason I choose them at the first place.
I don’t ever trade exotics, partly due to the spread, which is sometimes almost literally off the chart. But maybe you have a strategy that is specifically suited to PLN etc.?
I’m just more familiar with the PLN currency and market overall (since it’s my domestic currency) so it’s sometimes easier for me to trade it, but I also trade other pairs (majors too).
300 pips is just f*ing crazy! That would prompt me to call OANDA and fight it.
Looks kind of crazy to me too TBH. Of course you can’t say it without comparing to others… so I took a look at Trading212 and XTB (I see those are not the most recommended brokers here, but they are usually mentioned as reasonable choice) and so:
Weekend spread (in pips)
EUR/USD
XTB: 0.8
Trading212: 7.3
OANDA: 10
GBP/USD
XTB: 2.9
Trading212: 14.3
OANDA: 15
USD/JPY
XTB: 1.5
Trading212: 8
OANDA: 10
EUR/PLN
XTB: 31
Trading212: 65
OANDA: 500
EUR/NOK
XTB: 32
Trading212: 259
OANDA: 323,3
It seems there is a visible difference. Ofc during the week, the spreads value probably aligns much more. But still the weekend can bring some surprises
I’m on Oanda and never put on orders over the weekend. I wait for them to open Sunday night(my time) and place orders then. Still kinda wide until London opens overnight, though…
I’ve been taken out of some orders via stop losses on Sunday night open and it stinks.
Cheers mate. I think you’ve highlighted why you trade PLN and also why you should not trade it - the fact that its local to you isn’t a good reason to trade it - you don’t have a strategy that overcomes the in-built excessive costs of trading this exotic currency. Stick to the 8 majors. Better still, the big 4.
If you are close to all the politcal/economic news relevant to PLN then it is good to learn to trade the zloty with Euro, it’s nearest neighbour.
The spread thing, if you develop a FA/TA strategy then maybe keep stops outside the wide spread.
Incidentally Oanda have a ‘transparency’ page on spreads - see the effect of poor liquidity - right at the opening of the Asian session on their Monday, our Sunday night and indeed during the week on exotics.
If you are close to all the politcal/economic news relevant to PLN then it is good to learn to trade the zloty with Euro, it’s nearest neighbour.
Yes, that’s one of the reasons.
The spread thing, if you develop a FA/TA strategy then maybe keep stops outside the wide spread.
TBH I was thinking about it, but still looks like some unnecessary workaround.
Incidentally Oanda have a ‘transparency’ page on spreads - see the effect of poor liquidity - right at the opening of the Asian session on their Monday, our Sunday night and indeed during the week on exotics.
They have, the funny thing is that the chart there doesn’t show the wide spread over the weekend (but the live quote box shows it):
