I’m getting confused by the terminology. OANDA talks about spreads and commissions like they’re different things, but I’m not clear on what exactly each one is and how the GlobeGain rebates actually work against both of them.
Do rebates come off the spread? The commission? Both? And does it matter which one they apply to for my trading cost calculation?
I want to make sure I’m understanding the full picture so I can actually trust my cost estimates.
Spread is bid ask. Commission is the extra fee.
Rebates reduce both effectively.
Spread is the difference between buy and sell price. Commission is a separate flat fee OANDA charges per trade or per lot. They’re two different costs.
GlobeGain rebates typically apply as cashback on your total trading volume, which means you’re getting cash back that offsets both costs combined. So if your spread plus commission equals $8 per 100k lot, and GlobeGain rebates you $1.50, your net cost is $6.50.
For your calculations, treat the rebate as a blanket reduction in total trading costs, not something that applies to just one of these fees.
Different account types charge differently. Standard accounts usually have higher spreads and lower or no commissions. ECN accounts have tighter spreads but explicit commissions.
Either way, GlobeGain rebates reduce your out-of-pocket cost. The exact mechanics don’t matter as much as knowing your final cost after rebates are applied. Track that number, not the individual components.
Think of it this way: the spread is what OANDA makes from the difference between buy and sell prices. The commission is an extra fee on top of that.
Your rebate from GlobeGain is cash back on your trading activity, which helps offset both of those costs combined. It’s not like the rebate goes against one or the other separately. It just reduces what you pay overall.
Spread is built into each trade. Commission is charged on top.
Rebates reduce your total costs regardless of the split.
I track it by looking at my OANDA statement: spreads paid (usually embedded in the execution price), commissions charged (listed separately), and then cross-reference my GlobeGain cashback. Subtract the cashback from the combined spread and commission, and that’s my true cost.
Over time, you’ll notice which account type with which rebate tier gives you the best net cost for your trading style.