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Safety of Funds
Safety of Funds
OANDA is registered with the U.S. Commodity Futures Trading
Commission (CFTC) as a Futures Commission Merchant (FCM), and
OANDA is a member of the National Futures Association (NFA # 0325821).
These organizations impose rules and regulations on FCMs specifically
to protect the customer funds.
In adhering to these regulations, OANDA
maintains all customer funds strictly segregated from operational
funds in accounts maintained at highly reputable banks, such as
JPMorgan Chase, Citibank, UBS, Deutsche Bank, Royal Bank of Canada,
etc. Funds are withdrawn from these accounts only as a direct
result of customers' trading related activities or customer withdrawal
requests. In the unlikely event of an OANDA bankruptcy, all customer
funds maintained at these banks are legally protected.
Moreover, OANDA continuously meets specific
financial requirements, including minimal capital requirements
based on customers' open positions. OANDA compiles and submits
to the CFTC and the NFA financial data on a daily, weekly and
monthly basis. Both the operational and the financial aspects
of OANDA are audited by the NFA as well as financial auditors,
which in our case is Deloitte & Touche.
As any other financial institution, OANDA
has numerous internal procedures in place designed to prevent
the possibility of fraudulent activity of OANDA employees.
Finally, OANDA uses sophisticated risk management
technology so as to minimize currency risk. In particular, customer
positions are continuously (and in an automated fashion) monitored,
and, when appropriate, our back-end FX traders hedge accordingly.
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