OANDA welcomes Australian Federal Government’s move to segregate client funds

A global leader in online multi-asset trading services, OANDA welcomes the Australian Federal government’s decision to move forward with the law on segregation of client funds among forex and Contracts For Difference (CFD) providers.

OANDA has long been an advocate for the segregation of client money. An extremely well capitalised broker, the company has never used client money as collateral for hedging, and all client funds are kept completely separate to company funds, affording a much higher level of protection than can be expected with many other brokers who don’t segregate funds. OANDA is also a member of the CFD Forum – an industry body that is committed to enhancing the efficient operation, transparency and overall investor understanding and confidence in the Australian CFD market.

“We fully support the government’s move to introduce the mandatory segregation of client funds. This new law will bring Australia in line with other international markets that ensure client funds are protected and secure. We welcome this legislation as it will not only safeguard investors but it will also ensure that Australian FX and CFD markets are underpinned by a strong regulatory framework,” said Stephen Andrews, managing director at OANDA Australia.

Widely respected in the industry, OANDA combines cutting-edge trading technology and institutional-grade execution across a wide range of asset classes, enabling clients to trade global stock indices, currencies, commodities, precious metals and treasuries on the world’s best retail FX platform[1]. The firm boasts a state-of-the-art V20 trading engine that execute trades in less than two milliseconds[2], significantly reducing the chance of slippage in one of the world’s fastest-paced markets. The company’s trading platform also provides depth of market, giving traders a better view of underlying market liquidity, and offers hedging so they can better manage exposure.

Regulated by six authorities around the world, OANDA has a solid track record of regulatory compliance and prides itself on putting its clients first. The company has earned a stellar reputation for integrity and transparency over its 20-year history, working hard to ensure their clients succeed by offering competitive spreads with no commission, no requotes and no rejections. It has remained true to this legacy during unprecedented market events such as the SNB crisis, refusing to re-price or amend any client CHF cross trades, and where possible clearing all client negative account balances incurred as a result.

OANDA welcomes the Australian government’s decision on the security and protection of client funds and looks forward to working together towards the overriding goal of achieving a better experience for traders.