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Oanda regulation

Your expert
Adam N.
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6d ago
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Is Oanda regulated?

Trying to find out whether Oanda is regulated? Not sure which authorities are overseeing Oanda and why this matters?

Rest assured, the lack of regulation at Oanda is not a reason for worry. Our brokerage experts have determined that Oanda is a fully regulated broker, overseen in USA, UK, Australia, Singapore, Canada, Malta, Japan, British Virgin Islands. We gathered all the information on the regulatory profile of Oanda and will explain why this matters.

Why Oanda is trustworthy
Adam
Adam Nasli
Forex • Algo Trading • Market Analysis

I have personally tested several brokers globally and I am familiar with the regulatory and licensing procedures of at least a dozen financial authorities globally. Here are my key insights into the regulatory status of Oanda as of June 2024:

  • Oanda is regulated by several authorities of which at least one is top-tier, which is vital for safeguarding your money.
  • Oanda must separate client funds/assets from its own operations; this makes all the difference for the safety of your investments.
  • As Oanda is regulated by several authorities, it is super important that you open an account with an entity that has top-tier regulation.
  • Explore the services of Oanda in our comprehensive Oanda review for 2024 and browse other top-tier regulated brokers with our unique Find My Broker tool.
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78.3% of retail CFD accounts lose money

Oanda has top-tier regulation

Think of a broker with strict regulatory oversight like a lifeguard at the beach. Just as the lifeguard keeps you safe in the water, offering immediate help when you need it, brokers operating with top-tier regulation protect your investments. They make sure your investments are secure and handled with integrity and transparency.

Oanda operates in several countries and is supervised by the following financial authorities:

  • USA - Retail Foreign Exchange Dealer (RFED)
  • Canada - Canadian Investment Regulatory Organization (CIRO)
  • UK - Financial Conduct Authority (FCA)
  • EU - Malta Financial Services Authority
  • Singapore - Monetary Authority of Singapore (MAS)
  • Australia - Australian Securities and Investment Commission (ASIC)
  • Japan - Financial Futures Association of Japan (FFAJ)
  • Other countries (Asia, Africa, non-EU Europe, South America, Middle East, etc) - British Virgin Islands Financial Services Commission

Why does all this matter? We are contacted by an alarming number of people who ended up working with unregulated brokers and they share with us some sad and frightening stories. Here’s an example.

Your can protect your money by choosing a well-regulated broker.

Marco invested a substantial amount using what appeared to be a credible online trading platform. Initially, his investments showed gains, and he was able to make several withdrawals without issues. Encouraged, he increased his investments, but when he tried to withdraw some profits after a successful trade, his requests went unanswered, and customer service became unreachable. Further investigation revealed the broker was not regulated by any financial authority. Eventually, the platform vanished overnight, taking John's investments with it, leaving him with no recourse to recover his funds.

Choosing a broker with top-tier regulation means you're in safe hands. This level of strict oversight ensures that your investments are protected, you're getting fair pricing, and trading conditions are transparent and favorable.

Client fund segregation: your ultimate safeguard

As a broker with top-tier regulation, Oanda is legally required to keep the funds and assets of its clients separate from its own money. This is a game changer in terms of the safety of your investments.

Client fund segregation is like having your money in a separate safe from Oanda’s own cash. Thus, if your broker ever runs into financial trouble, your funds won't be touched to settle their debts - they're entirely off-limits. It’s a crucial setup because it protects your money, ensuring that what you’ve invested stays secure and accessible only to you. This segregation is a requirement imposed by top-tier regulators and not something you can request your broker to do. You will only have access to this safety net if your broker has the appropriate regulation.

In the highly unlikely event that Oanda commits fraud and uses client assets for its own purposes, you can still recover your money if you have access to investor protection.

Oanda has several legal entities, each serving clients from different parts of the world. This is important because the investor protection amount and the regulator differ from entity to entity.

Oanda regulation and investor protection
Client country Investor protection amount Regulator Legal entity
UK £85,000 Financial Conduct Authority (FCA) OANDA Europe Ltd
EU €20,000 Malta Financial Services Authority OANDA Europe Markets Ltd
US No protection Commodity Trading Futures Commission
National Futures Association
OANDA Corporation
Canada CAD 1,000,000 Canadian Investment Regulatory Organization (CIRO) OANDA (Canada) Corporation
Australia No protection Australian Securities and Investment Commission (ASIC) OANDA Australia Pty Ltd
Singapore No protection Monetary Authority of Singapore (MAS) OANDA Asia Pacific Pte Ltd
Japan No protection Financial Futures Association of Japan (FFAJ) OANDA Japan Co., Ltd.
Other countries No protection British Virgin Islands Financial Services Commission OANDA Global Markets Ltd

Oanda provides negative balance protection for forex spot and CFD trading, but only for retail clients from the European Union. Professional and non-EU clients are not covered by any negative balance protection.

Choose your brokerage entity smartly

Since Oanda is regulated by multiple authorities, it's crucial to open an account with an entity that has top-tier regulation. This ensures your investments are always protected under the highest standards.

Whenever possible, avoid signing up with entities that are regulated in off-shore countries such as the Seychelles, the Bahamas, St. Vincent and Grenadine, etc. While you may have access to a much higher level of leverage for your trades, this is extremely risky and you run a much higher risk of losing all your invested money.

In addition, rules and regulations imposed by regulators in these countries are typically less severe, potentially damaging the safety of your investments. If you are offered the option to choose which entity you open an account with, go with the one that operates under a stricter regulator.

Get to know Oanda better and browse other top-tier regulated brokers

For detailed insights into trading conditions, costs, and service quality at Oanda, check out BrokerChooser's Oanda review for 2024. All our broker reviews are based on the analysis of nearly 600 data points and direct experience. When we review a broker, we go hands-on by opening a real-money account and trading on its platforms, giving us a complete view of what it offers and how it performs.

The BrokerChooser team has personally tested and reviewed more than 100 brokers globally, all of which have top-tier regulation. All our experience and expertise is included in the Find My Broker tool. Simply answer a few questions and get a personalized broker list.

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Further reading

Everything you find on BrokerChooser is based on reliable data and unbiased information. We combine our 10+ years finance experience with readers feedback. Read more about our methodology.

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Adam Nasli
Author of this article
I bring extensive financial expertise as one of BrokerChooser's earliest team members. Personally, I tested nearly all 100+ brokers on our site, opening real-money accounts, executing trades, assessing customer services, and providing firsthand assessment. My professional background includes roles in the banking sector and a degree from Central European University, where I teach finance. My passions lies in in-depth research of the financial industry, building trading algorithms, and managing long-term investments.
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