OANDA Fined $600K by NFA Over Rule Breaches and Crypto Claims

OANDA, a well-known retail forex broker based in New York, has been hit with a $600,000 fine by the National Futures Association (NFA) due to multiple regulatory issues. The penalty follows an in-depth NFA investigation that found problems with financial oversight, internal processes, and deceptive advertising practices.

The NFA‘s report pointed out that from January to August 2023, OANDA conducted transactions with its parent company, OANDA Global Corporation (OGC), without following essential financial rules. Specifically, the broker did not secure the necessary collateral and failed to boost its capital reserves by 10% of the debts owed to OGC, as required by NFA regulations. Additionally, OANDA wrongly adjusted these transactions when calculating its net capital, which is against the regulator’s rules.

On top of these financial errors, a glitch in OANDAs API pricing system caused significant losses for many clients. The issue created a mismatch between the prices shown to users and the actual prices used for trades, impacting about 3,900 accounts. The NFA estimates that clients lost around $430,000 due to this error. As part of the settlement, OANDA has agreed to refund up to $428,592 to affected customers.

Another serious concern was related to security deposits. Between 2021 and early 2023, OANDA used incorrect margin rates for millions of trades involving the British pound (GBP) and Japanese yen (JPY). This led to under-collecting funds for nearly 3.7 million trades, creating risks for clients and raising questions about the companys risk management practices.

The NFA also criticized OANDA‘s cryptocurrency marketing. The broker’s promotions suggested that customers were trading directly with OANDA in a regulated setting. In reality, the trades were handled by a third-party crypto provider that isnt registered with the NFA and operates under less strict oversight. Despite a warning from the NFA in 2023, OANDA continued these misleading ads into 2024.

The NFA also suggested that OANDA‘s internal challenges may have played a role in these problems. Over recent years, the company has seen frequent leadership changes, including four CEOs and several compliance heads. The NFA believes this turnover weakened the company’s ability to maintain steady and effective oversight.

OANDA chose to settle the case without admitting or denying the claims. Under the agreement, the company must pay the $600,000 fine within 30 days and complete customer refunds within 45 days.

The NFA stressed that the fine, while significant, is meant to push OANDA to strengthen its operations and rebuild trust with clients. The regulator plans to keep a close eye on the broker in the coming months to ensure it follows through on required improvements.

This enforcement action comes at a critical moment for OANDA. In July 2024, private equity firm CVC Capital Partners put the broker up for sale. By February 2025, a deal was struck to sell OANDAs retail forex division to FTMO Group, a Czech-based company, pending regulatory approval. The financial terms of the sale remain undisclosed.

About OANDA

Founded in 1995, OANDA is a global online trading platform that provides access to forex, stocks, commodities, and cryptocurrency markets. Operating in over 120 countries, the company has offices in key financial centers like the United States, the United Kingdom, and Japan. While OANDA has long been seen as a reliable name in retail trading, this recent NFA fine underscores the challenges even established firms face in todays complex financial world.

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