3. Do you foresee any challenges facing the Australian Forex market?
One of the challenges is to be able to stay ahead of the changing demands and needs of traders and customers. However, OANDA has a strong culture of innovation – products and services wise – and we are always ahead of the curve, anticipating our clients’ needs and requirements.
At the same time, we are a technology company at our core and this means we are always working to innovate, to come up with new products to help traders be better traders.
Another challenge in the market is to continue to increase standards for CFD and Forex providers in order to protect retail traders. For example OANDA fully segregates client funds, which means we do not use our clients funds for any purpose – including for margining purposes. This goes over and above current legislation.
We also only allow clients to open an account with us if they pass our product knowledge, trading experience and minimum net worth requirements. This is in place to make sure clients are aware of and understand the risks of trading Forex and CFDs.
Our presence in Australia shows our commitment to this region and we are confident that our product and platform development strategy, compliance infrastructure and service are market leading.
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OANDA has a strong legacy of innovation and we’re always looking for ways to disrupt the market. We are a technology company at our core. We are always working to discover new and better ways to leverage that technology for the benefit of our clients. We truly want our clients to succeed and it’s our execution speed, transparency and reliability that sets us apart.
Speed of our trade execution is definitely one of the advantages and key differentiating factor that we bring to the market. Research shows OANDA performs up to 20 times faster than others in the industry. The difference between an execution of 11 milliseconds versus that of 400 or more can mean the potential for a 25% better return, using our platform.
We never reject trades. We have competitors who reject up to 30% of trades because the trade doesn’t work for them. We process 100% of our client trades, even if it’s at a loss to OANDA. We have a public development area called FX Labs where we expose our open order book (buyers, sellers, entry and exit levels etc), and give analysis on what our profitable traders are doing. This is available to everyone and is information other providers don’t want to share.
Innovation is at the heart of OANDA and we will continue to bring new technologies, products and services to market ahead of our competitors. If there are companies in our industry that are the best at what they do – e.g. auto chartist, Currensee copy trading, MT4 t – we’ll connect with them to bring our clients industry leading tools and the ability to access the same fast execution our clients enjoy from trading through our proprietary platform. Other providers will try and develop these products in house, which takes time and often they don’t have the IP to compete with businesses that specialize in these areas.
We are a company that is after our clients’ success because it is only when our clients are successful when we can be successful as well. If our clients are successful and happy with our products and services, then they stay with us for a long time and this is what’s at the core of our strong growth.