OANDA is migrating Canadian clients to OANDA Canada
OANDA recently let its Canadian clients know that they will need to migrate their accounts to OANDA Canada in order
OANDA recently let its Canadian clients know that they will need to migrate their accounts to OANDA Canada in order for it to comply with IIROC regulations (thanks to Yohay from forexcrunch.com for the tip). Canadian regulations are as numerous and conflicting as the US ones with various local and provincial regulatory agencies setting finance related rules. IIROC (Investment Industry Regulatory Organization of Canada) is the national self-regulatory organization which oversees all investment dealers and trading activity on debt and equity marketplaces in Canada.
This is what OANDA had to say when I contacted them, I hope this helps OANDA’s Canadian traders looking for more information about this:
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“OANDA Canada was registered with IIROC on September 2009. New Canadian users registered directly OANDA Canada soon after. In November 2010 the first migration email was circulated for existing Canadian clients of OANDA Corporation into OANDA Canada. Migration is needed for clients as well as OANDA Canada to comply with Canadian regulations.
OANDA Corporation is registered with the NFA and CFTC in the United States and cannot, under current Canadian law, offer retail forex trading on margin to Canadian clients.
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OANDA registered its Canadian subsidiary with IIROC in Canada to allow its Canadian clients to continue to trade retail forex with us. This means that Canadian clients will have to migrate their account(s) from OANDA Corporation to OANDA Canada in order to continue to trade.
The main difference between the regulatory regimes in the U.S. and Canada is the leverage available to clients. The margin requirements are higher in Canada and subject to change based on the underlying volatility of the currency pairs. A benefit of trading with OANDA Canada is that clients funds are insured of up to $1,000,000.00 CAD with the Canadian Investor Protection Fund (CIPF) providing a higher level of security of funds.
We are aware that there are a number of clients that have concerns about the account migration. If clients have questions or concerns, we’d kindly request they email us at frontdesk-ca@oanda.com”
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It will be interesting to see how many of their CAD clients stay with them since taxes are very high in Canada.
@Timur – Its a matter of trust. If you are a broker, and 200 clients are using a service built on an illegal hack with MQ doing nothing about it for years, then there is a legitimate complaint to have wanted to receive a heads up to to announce to clients to move away from this product. Enough brokers have expressed that they have had to deal with angry clients because of products they are using not connecting. The question being asked among ‘legitimate 3rd party’ users is whether there will be more surprises. The fact that they are asking… Read more »
@Timur – Its a matter of trust. If you are a broker, and 200 clients are using a service built on an illegal hack with MQ doing nothing about it for years, then there is a legitimate complaint to have wanted to receive a heads up to to announce to clients to move away from this product. Enough brokers have expressed that they have had to deal with angry clients because of products they are using not connecting. The question being asked among ‘legitimate 3rd party’ users is whether there will be more surprises. The fact that they are asking… Read more »
well, they hinted to licensing in the article. We’ll see
well, they hinted to licensing in the article. We’ll see
@Expat – corrected, thanks.
@Expat – corrected, thanks.
The problem really is that Oanda is forcing its clients to close positions and lose money. Many as witnessed from their forum stand to lose tens of thousands of dollars. This is a very irresponsible for a company like Oanda. There is already talk amongst traders of a possible class action suit against Oanda for the losses they may be forced to incur.
Well, this presents a terrible roadblock to continued trading within a currency group.
I’m buried in a USD/Chf tradebut have been able to buy at lower entry points and then close out at small profits with an eye to eventually breaking even and closing out the trade or possibly coming out ahead if there is a major reversal.
Now I have no option but to wait for the major reversal or buy long again without any closing out. I’ll probably open another account to handle that action.
@Ben – we don’t have specific verification, but they have posted responses in our comments before, also, this comment comes from a similar IP to a comment that was verified in the past to be from MQ.
@Ben – we don’t have specific verification, but they have posted responses in our comments before, also, this comment comes from a similar IP to a comment that was verified in the past to be from MQ.
Ben Bernanke – lol
institutional platform, they always look differently in terms of GUI than retail ones
institutional platform, they always look differently in terms of GUI than retail ones
Ben Bernanke – lol
@Bill and George You’ve already lost the money. If you’re floating losses, you’ve already accumulated them and they’re real. If you were to close your positions and reopen them at the same price, nothing has changed except how you perceive them. The absolute most that you could be out is the spread if you decide to reopen your floating losses. I realize it’s a large psychological hit to realize profits, but traders in this market would be MUCH better off if they could internalize the fact that floating losses are LOSSES. If you believe in your positions that much, open… Read more »
@ Alan Its not a matter of a floating loss. Its the principal behind it. When you take a trade and if your stoploss is 200 pips on a longterm position then in reality being forced to close out at 100 pips by the broker is just theft. Most of my positions are held for months rather than days or weeks. Floating losses can be just part of your trading strategy also. Just because it doesn’t work for you doesn’t mean it won’t work for someone else. Oanda should be ashamed of themselves. I don’t stand to lose at all… Read more »
I completely understand the argument that it’s the principal behind the move. It’s definitely jarring to hear that your trading will be interrupted. And this isn’t necessarily directed at you or Bill, but more about how people view positions in this market, in general. If you have a 200 pip stop loss and you’re forced to close it at a 100 pip loss, all that you need to do is reenter the position and slap a stop of 100 pips on it. If you add the positions together, there’s no mathematical difference (assuming you didn’t pay the spread twice, or… Read more »
I am one of those traders George mentioned and stand to lose almost $300,000. Oanda did not notify me or send any correspondence but instead told me they had put notice of this change on their website (no date). I am now seeking legal action suit against Oanda for these massive losses I am forced to incur. This is sheer theft on Oanda’s part.
Notice the NFA states a VOLUNTARY requirement and Oanda very quickly see a profit to be made and interprets this as a MUST (mandatory). Oanda are not being fair and I’m sure there will be many legal cases against them for this action. Oanda’s opening paragraph reads……. OANDA MUST!!!! follow a forex regulatory policy on how you close your trades Starting May 30, 2011, OANDA is introducing “First In First Out” (FIFO), a forex trading policy that complies with National Futures Association (NFA) regulations……………… Meanwhile, the NFA website http://www.nfa.futures.org/NFA-compliance/index.HTML states……………………… Regulatory success hinges upon our Members VOLUNTARILY complying with NFA’s… Read more »
@ Trev I really feel for you. What has Oanda said about your losses they are forcing you to take a loss like this is absolutely a bucket shop mentality. With the amount you stand to lose I would think that setting up a website to get people to join you in a class action suit would be a good idea. I know of people who would join you in this type of law suit as they are losing too, out of no fault of their own, but Oanda’s inherent greed to make a quick dollar. I have been with… Read more »
@ George Thanks for the response George, I am going to do that (set up a website) and then try to get people to join me in a class action suit. I spoke to a Lawyer today and he suggested this too. He said I would have to start in USA where I had the account first opened. By the way the CFTC are starting some investigations too, as is NFA & FSA. Oanda’s have been manipulating & abusing markets using black box techniques and high frequency trading etc, etc. I agree with you , they a sleazy bucket shop.… Read more »