San Francisco-headquartered OANDA, the popular globally regulated multi-asset broker, today made note of the Financial Conduct Authority’s (FCA) consultation paper published yesterday, December 6, 2016, and states that it supports any changes that improve the long-term trading experience for clients.
Yesterday, The UK’s Financial Conduct Authority (FCA) issued directives proposing stricter rules for firms selling Contract for Difference (CFD) products to retail customers to improve standards across the sector and ensure consumers are appropriately protected.
OANDA’s statement reads as follows:
OANDA believes that client risk management and education is of primary importance, and advises against trading with brokers who offer excessive bonuses and high levels of leverage. The company believes the FCA announcement further validates its established leverage rules, under which clients in Europe receive a default setting of 50:1, with a maximum of 100:1. Approximately 75% of the firm’s European trades originate from clients with 50:1 leverage or below. In addition to a strong focus on risk management, OANDA also provides customers with uncensored access to the market, offering an extensive range of trading tools, market analysis and educational resources that ensure clients receive ongoing support to help them on their trading journey. 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’s decision to forgive negative balances during the Swiss National Bank crisis last year, without re-quoting clients, is a key example of its client-focused ethos. OANDA welcomes the regulatory oversight of the FCA and looks forward to working together towards the overriding goal of achieving a better experience for traders.