Sincere opinion on Oanda

Discussion in 'Forex Brokers' started by mr.az, Aug 2, 2010.

  1. Staying at your example, interest-wise trading a synthetic EURCHF is still cheaper at Oanda than trading a synthetic EURCHF at IB.
     
    #81     Aug 5, 2010
  2. dhpar

    dhpar

    that's a BS. holding the position for 10 days costs you USD178 at Oanda while zero at IB.

    p.s. for the sake of the argument i am ignoring cost of carry of EURCHF position itself which differs between IB and Oanda depending on the size of the trade.
     
    #82     Aug 5, 2010
  3. Going short 1lot EURUSD at a rate of 1.31809 for example and holding 10 days you pay 32.85€ or $43.30.
    Additionally you go short USDCHF at a rate of 1,04633 with a positions size of 131,809 units. You pay interest of 16.42€ or $21.64 for 10 days. So now you have a synthetic EURCHF short.

    So you pay for all $65 for 10 days.

    What position sizes are you talking about?
     
    #83     Aug 5, 2010
  4. Doing the same at IB you pay around $70 Tier1, no?
     
    #84     Aug 5, 2010
  5. dhpar

    dhpar


    I was talking about the original example (EUR1MM at 1.30). for simplicity let's ignore comparison of CoC between the two brokers, i.e. ignore difference in costs for EUR and benefits for CHF. otherwise it becomes complex and depends on the exact size of the trade due to "Tier-ing" at IB...

    you end up net paying on USD legs of the trades at Oanda (but not at IB because there is zero USD exposure). this is the financing spread (currently 50bps for major pairs at Oanda).

    therefore 50bps x 10days / 365 x 1.3MM = USD178 additional costs at Oanda
     
    #85     Aug 5, 2010
  6. mr.az

    mr.az

    did you guys saw this?

    Oanda is advertising on google :eek:

    [​IMG]
     
    #86     Aug 5, 2010

  7. Where did you saw this ad ?
     
    #87     Aug 6, 2010
  8. #88     Aug 6, 2010
  9. #89     Aug 6, 2010
  10. mr.az

    mr.az

    I thought their policy is never to advertise

    :confused:
     
    #90     Aug 6, 2010