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Why Corporations Use OANDA FXTrade

Currency Risk Management
In a world of multiple currencies, currency risk is created as payments flow between parties in different monetary nominations concurrent with fluctuations in exchange rates.

To counteract currency risk, organizations can lock in the exchange rate used in their foreign currency transactions by a process known as "hedging". For an illustration of Five Hedging Options, consult our Hedging for Companies primer.

One hedging option for CFOs, treasurers and risk managers is to use the spot fx market. The currency risk of transactions can be hedged by creating an opposing position to their foreign currency transaction. By taking a position in the spot fx market, a firm can effectively "lock in" a currency conversion rate - and thereby reduce their currency risk exposure.
Corporations use FXTrade because it eliminates currency exposure at the lowest possible cost. But there's more:
  1. Tailor your position to what you need. With FXTrade you can hedge the exact amount of your transactions. No rounding up or down. The exact amount.
  2. Simplify your life and save time. Hedging currency exposure using spot FX typically costs less than buying futures or options especially when you use it in tandem with FXTrade's position flexibility. Your total cost is the amount of the spread: no commissions, no mysterious charges, no ongoing fees. And FXTrade's spreads are among the tightest in the industry.
  3. Stop spending more than you have to. You can hedge any time - 24 hours a day, 365 days a year. No need to worry about other countries' holidays. With the click of a button, you're hedged your transaction. And with FXTrade's immediate settlement, what you see is what you have. You always know your precise position, and you can modify it at any time.

Benefits of using FXTrade for Hedging
Hedge exact amounts
Using FXTrade you can hedge any amount from $1.00 upwards.
Set up multi-currency accounts
Keep your funds in the currency of your choice, or have multiple accounts in different currencies; whichever you choose, you'll have ready access to your funds and enjoy the same tight FXTrade spreads.
Know your position and history
FXTrade's position and trade blotter is easy to understand, and it updates in real time.
Get immediate settlement
What you see is what you will receive.
Hedge anytime
Place your order 24 hours a day, 365 days a year
Hedge from anywhere
The FXTrade interface runs on any Internet-connected browser, with no software to install or maintain. And it's easy to use.
Keep your record secure
FXTrade provides an auditor's read-only user interface.
Automate your transactions
Sophisticated businesses can automate hedging with FXTrade's API

Getting Started
Start managing your risk with FXTrade.
Open an FXTrade Account now.

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Trading off-exchange foreign exchange on margin carries a high level of risk and is not suitable for all investors. Trading through an on-line platform carries additional risks. Please refer to our more detailed Risk Warning, and NFA's FOREX INVESTOR ALERT.