How do Pepperstone and Oanda compare on spreads?
Verdict
- Pepperstone publishes average spreads, 0.1 pips on EUR/USD for Razor and 1.1 for Standard, which makes it our pick for traders who want to know their cost in advance.
- OANDA publishes 'from' spreads: EUR/USD from 1.0 pip on its spread-only account, or from 0.1 pip plus commission on Core pricing (BVI pricing page).
- A 'from' figure is a minimum and an average is a typical cost, so the two can't be compared directly; OANDA's Core commission is also not in our data.
- For Singapore residents, OANDA has a MAS-licensed company (OANDA Asia Pacific Pte Ltd); Pepperstone serves Singapore from the Bahamas without a MAS licence.
The honest answer is that Pepperstone and OANDA publish spreads in different ways, so a neat head-to-head isn't possible from their own pages. What we can do is show what each publishes, explain why the numbers differ in kind, and work out the costs that can be calculated. On that basis Pepperstone is the easier broker to price.
Our take: Pepperstone's published averages make it easier to price
Pepperstone states what its spreads usually are: 0.1 pips on EUR/USD, 0.2 on GBP/USD and 0.3 on USD/JPY on Razor, and 1.1, 1.2 and 1.3 on Standard. Add Razor's commission and a round-turn lot of EUR/USD costs $7 on cTrader or $8 on MT5 and TradingView. OANDA's headline figures are the lowest it may quote, not what you will usually see, so the real comparison has to happen on live prices. If you want a cost you can work out before trading, Pepperstone gives you one.
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Average vs 'from': why the figures differ in kind
An average spread is taken over a period of normal trading, so it includes the moments when spreads widen. A 'from' spread is the tightest the broker quotes, often only at the busiest hours. Setting OANDA's 1.0-pip minimum against Pepperstone's 1.1-pip Standard average does not show that OANDA is cheaper; the OANDA spread you actually get will sometimes be wider than 1.0 and should not be narrower.
What each broker publishes on EUR/USD
| Account | Spread figure | Type | Commission |
|---|---|---|---|
| Pepperstone Razor | 0.1 pips | Average | $3.50 per side (MT5, TradingView); $3.00 on cTrader |
| Pepperstone Standard | 1.1 pips | Average | None |
| OANDA spread-only | 1.0 pip | From (minimum) | None |
| OANDA Core pricing | 0.1 pip | From (minimum) | Charged; amount not in our data |
Which OANDA company serves Singapore
OANDA's spreads above come from its BVI pricing page, for OANDA Global Markets. Singapore residents are served by OANDA Asia Pacific Pte Ltd, which holds a MAS capital markets services licence, and its pricing may differ, so check OANDA's Singapore pages before comparing. Pepperstone serves Singapore through Pepperstone Markets Limited, licensed by the Securities Commission of The Bahamas, with no MAS licence. If spreads are close, that regulatory difference may decide it for you.
How to compare them yourself
- Use small live accounts, or each broker's demo if it offers one, and watch EUR/USD at the hours you trade.
- Note the spread every few minutes for a week, including around data releases.
- Add commission where it applies, converting it into pips: $7 a lot equals 0.7 pips.
- Compare the total, not the spread alone.
Sources
Pricing pages from both brokers.
Is OANDA cheaper than Pepperstone on EUR/USD?
Its published figures can't show that, because OANDA gives minimum spreads and Pepperstone gives averages. Compare live spreads at the hours you trade.
Does Pepperstone have a spread-only account?
Yes, the Standard account, with an average EUR/USD spread of 1.1 pips and no commission.
Is OANDA regulated in Singapore?
Yes, through OANDA Asia Pacific Pte Ltd, which holds a MAS capital markets services licence.
Spreads are only one part of trading risk; CFDs and margin forex are leveraged and you can lose money rapidly. Pepperstone's international site says 80% of retail investor accounts lose money trading CFDs with this provider. Not investment advice.