Why Financial Institutions Use OANDA FXTrade

• liquidity
• tight spreads
• high quality of execution
• electronic interface
• many currency pairs

OANDA FXTrade can offer more liquidity than the major banks with tighter spreads and unsurpassed quality of execution. With the FXTrade API, Straight-through Processing solutions are efficient and cost-effective.

• real-time currency hedging
• STP solution
• tight spreads

OANDA FXTrade allows hedging at a granularity down to $1, second-by-second, eliminating currency exposure and risk almost entirely with a fully automated system.

Example: A New York buyer pays a London merchant 37 British Pounds online through a payment service. In less than a second, the service automatically hedges the 37 Pound transaction using the FXTrade API.

• overlay strategy to hedge foreign currency exposure
• real-time STP solution
• tight spreads

FXTrade removes the fluctuating value of currency from the investment equation. Instantaneous hedging of a precise exposure is automatic, at a total cost of no more than the spread.

Example: A broker in Amsterdam buys 100 shares of IBM in USD for her Euro-based client. The client is speculating that IBM shares will appreciate, but does not want to speculate on the USD. To eliminate currency exchange risk, an overlay strategy is used, where simultaneous with the equity transaction the broker hedges the USD exposure by going long EUR/USD. She does this automatically for the client by using the FXTrade API. If IBM shares go up, the client is guaranteed a positive return, regardless of what the USD does.

• state-of-the-art, front-end client interface with the bank's own branding
• smooth integration with existing infrastructure and seamless interfacing with liquidity providers
• scalability to support a large number of users and high transaction throughput
• adaptable business rules for market-making, margin requirements, interest rates, etc., to meet their own requirements
• STP with automated hedging and record-keeping to reduce personnel costs

By licensing OANDA FXTrade technology, you can offer a superior trading platform to your clients. The bank licenses FXTrade but runs the platform as its own in its own data center. The bank is responsible for setting prices, hedging, meeting all regulatory requirements, and for managing clients and associated administrative functions. OANDA is responsible for system operation.

However the bank chooses to integrate FXTrade into its native environment and business, the OANDA FXTrade platform offers speed to market, with significantly lower IT development cost and efficient transaction processing.

Moreover, the FXTrade platform can easily be extended to trade commodities, indices, energy, bonds, or anything else for which there is an active market.