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Safety of Funds
OANDA employs the following practices to help ensure the safety of customer funds deposited with us for the purpose of trading on the FXTrade™ forex trading platform.
1. Membership in regulatory organizations: OANDA is registered with the U.S. Commodity Futures Trading Commission (CFTC) as a Futures Commission Merchant (FCM). As such, OANDA is subject to the anti-fraud provisions in the Commodity Exchange Act. OANDA is also a member of the National Futures Association (NFA) – our registration number is 0325821. The NFA is the futures industry self-regulatory organization designated by the CFTC. OANDA is subject to the NFA’s Compliance Rules and Financial Requirements designed to safeguard your investment.
2. Segregation of funds: OANDA maintains all customer funds strictly separate from operational funds in accounts at highly reputable banks such as JPMorgan Chase, Citibank, UBS, Deutsche Bank and Royal Bank of Canada. Funds are withdrawn from these accounts only as a direct result of customers' trading-related activities or withdrawal requests.
3. Exceeding financial requirements: OANDA is required by law to meet specific financial requirements, file financial reports, retain qualified professional accountants to audit its financial records, and to file reports with the NFA and the CFTC. OANDA compiles and submits financial data on a daily, weekly and monthly basis to ensure strict compliance with these requirements. OANDA's net capital exceeds regulatory guidelines many times over.
4. Annual audit: Both the financial and operational aspects of OANDA are audited by the NFA as well as by our outside professional financial auditors on an annual basis. Our financial auditors are KPMG LLP, Chartered Accountants.
5. Internal procedures: OANDA has numerous internal procedures in place designed to prevent the possibility of financial lose due to fraudulent activity by employees, including an ethics policy and training program, separation of duties, and operational checks and balances.
6. Risk management programs: OANDA uses sophisticated risk management technology to minimize currency risk. In particular, customer account margins are automatically monitored by the second to prevent margin deficiency and protect client funds. We also hedge our aggregate client positions automatically with partner banks on a second-by-second basis in order to minimize our currency exposure and risk.
7. Track record: OANDA has built an enviable performance record since the launch of our FXTrade™ forex trading platform over half a decade ago. During that time, OANDA has never been the subject of any disciplinary or corrective action, unresolved customer dispute, regulatory or court proceeding, or been unable to satisfy any of its obligations.
8. Full risk disclosure: To ensure that our customers are fully informed of the risks inherent in forex trading, please be sure to read our complete Risk Disclosure Statement and contact us if you have any questions or concerns.