It will be interesting to see how many of their CAD clients stay with them since taxes are very high in Canada.

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.

@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 »