OANDA is launching a new education portal on its website. The forex and CFDs brokerage is aiming to deliver a useful set of tools for novice and advanced traders. The company is focusing its portal in three directions: the basics of trading, tools and strategies and capital management.
With a wide range of educational resources, ranging from videos and eBooks to webinars and events, the brokerage is aiming to educate its clients. The firm has spent some time on redesigning its portal and adding valuable information in a user-friendly way.
With increasing regulatory scrutiny on the industry, OANDA is focusing on providing its clients with more knowledge about the mechanisms behind trading. The company is explicitly focusing on educating clients about the risks of higher leverage.
The ‘capital management’ section focuses on helping clients understand how to preserve their capital, an aspect that is not getting enough attention from retail brokers overall.
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Commenting on the launch, the president and CEO of OANDA, Vatsa Narasimha, said: “We believe our new and improved education portal will help arm our clients with the necessary tools to develop an informed trading strategy that identifies opportunities in the markets while mitigating risk.”
Preventing Risk Mispricing
Despite the resources which traders have access to, mispricing of the risks has been one of the principal triggers for increased regulatory scrutiny. After an extended period of a relatively hands-off approach from regulators, the retail trading industry is facing more and more regulatory headwinds in recent years.
While the factors for regular attention are many, fraudulent practices by some market players and the SNB negative balance stress, have played a prominent role in triggering the ongoing regulatory review in Europe.
Various brokers misrepresented retail trading as a ‘get rich quick’ scheme, while others onboarded clients en masse without considering the long-term consequences.
As studies commissioned by regulators found that a significant majority of retail clients are losing their deposits, regulatory attention was attracted. Brokers that have a long-term horizon and plan to continue serving the industry are devoting more and more resources to education.