Now that GAIN Capital has confirmed that it has acquired the client accounts of FXCM at a maximum rate of
$500 per account, the only other player in the US retail forex industry is OANDA. The broker’s new CEO Vatsa Narasimha is on the wires with a statement highlighting that the company is welcoming the recent actions of the chief US regulator – the US Commodity Futures Trading Commission.
Commenting in an official statement, the Chief Executive Officer at OANDA, Vatsa Narasimha, said: “At our very core, OANDA has always been an extremely client-focused organisation, dedicated to creating a fair and transparent arena in which retail clients can trade, safe in the knowledge that we have their best interests at heart.”
What Lies Ahead for a British Fintech Industry Outside the EUGo to article >>
“That’s why we believe the affirmative stance taken by the US Commodity Futures Trading Commission (CFTC) against the misrepresentation of interests to retail clients trading the global currency markets is an extremely positive move. Given our long-standing commitment to integrity, we believe the retail trading industry as a whole will benefit from a more transparent approach where brokers are held accountable for making questionable statements or falsely disclosing their interests,” Narasimha explains.
The changes for the US retail forex industry signify that clients no longer have access to a straight-through processing (STP) brokerage. As the CFTC’s order has demonstrated that has been the case for a long time, despite FXCM asserting to its clients that the broker is using a non-dealing desk platform.
The brokerage asserted and marketed to its clients a non-dealing desk platform, which according to the charges brought forward by the National Futures Association (NFA) was not the case.
OANDA is one of the oldest forex brokers in the world and has pioneered a number of services to retail clients. The company is operating as a market maker and has a solid reputation across the seven jurisdictions where the company is regulated.