Oanda CySEC Regulation 2024: Supervision, Investor Protections, and More

Oanda is a forex and CFD broker offering online trading services to traders and investors worldwide. The broker provides a diverse range of trading instruments, including Forex, indices, metals, share, commodities, cryptocurrencies. It also supports multiple trading platforms and tools such as MT4, MT5, WebTrader, NinjaTrader, MotiveWave, MultiCharts, TradingView and more.

Although Oanda is regulated by several authoritative bodies such as ASIC, CFTC, IIROC, FCA, PFSA, MAS in Singapore, FSA in Japan, FSC in BVI,  it is not regulated by CySEC (Australian Securities and Investments Commission). In this article, we will explore Oanda’ regulations, and its features, and provide a list of alternative brokers that are regulated by CySEC.

Does Oanda Operate Under CySEC?

No, Oanda does not operate under CySEC (Cyprus Securities and Exchange Commission) regulation. However, the broker is regulated by several other reputable financial authorities including ASIC, CFTC, IIROC, FCA, PFSA, MAS in Singapore, FSA in Japan, FSC in BVI. These regulatory bodies ensure compliance with various standards for financial stability, transparency, and investor protection, though they do not provide the specific protections offered by the CySEC in the EU.

What Other Regulations Does Oanda Have?

FCA (Financial Conduct Authority)

Oanda is regulated by the Financial Conduct Authority (FCA) in the UK under license number 684312. The FCA, established in 2013, is responsible for regulating financial markets and firms in the United Kingdom.

The FCA requires Oanda to adhere to strict guidelines for financial conduct, including maintaining adequate capital, safeguarding client funds, and ensuring transparency in its operations. This includes keeping client money separate from company funds and providing regular financial reports. FCA regulation helps ensure that Oanda operates securely and fairly, offering a high level of protection and trust for clients in the UK and across Europe.

ASIC :

Oanda is regulated by ASIC. Founded in July 1998, the Australian Securities & Investments Commission (ASIC) is Australia’s national corporate regulator, overseeing corporations, markets, and financial services in accordance with the Australian Securities and Investments Commission Act 2001. Being based in Australia, ASIC regulation ensures that the broker complies with Australian laws on financial services, including responsible conduct, risk management, and financial reporting. Client money is kept in segregated accounts, and there is an emphasis on risk disclosure and trader protection.

CFTC:

Oanda is regulated by the Commodity Futures Trading Commission (CFTC) for its operations involving U.S. clients. The CFTC, established in 1974, is an independent U.S. government agency that regulates the futures and options markets.

The CFTC requires Oanda to adhere to strict standards for financial conduct, including maintaining sufficient capital, segregating client funds from company assets, and ensuring transparency in trading practices. The CFTC’s oversight helps protect U.S. investors by ensuring that brokers like Oanda operate with integrity and comply with regulatory requirements.

IIROC

Oanda is regulated by the Canadian Investment Regulatory Organization (CIRO). CIRO, formed in 2023 through the merger of IIROC (Investment Industry Regulatory Organization of Canada) and the MFDA (Mutual Fund Dealers Association), oversees all investment dealers and trading activity in Canada.

CIRO requires Oanda to meet strict standards for financial stability, transparency, and investor protection. This includes maintaining sufficient capital, safeguarding client funds by segregating them from company assets, and adhering to regular reporting and compliance checks. CIRO’s regulation ensures that Oanda operates securely and responsibly, providing a trusted trading environment for Canadian clients.

FCA:

Oanda is regulated by the Financial Conduct Authority (FCA) in the UK. The FCA, established in 2013, is responsible for regulating financial markets and firms in the United Kingdom.

The FCA requires Oanda to adhere to strict guidelines for financial conduct, including maintaining adequate capital, safeguarding client funds, and ensuring transparency in its operations. This includes keeping client money separate from company funds and providing regular financial reports. FCA regulation helps ensure that Oanda operates securely and fairly, offering a high level of protection and trust for clients in the UK and across Europe.

MAS in Singapore

Oanda is regulated by the Monetary Authority of Singapore (MAS). MAS, founded in 1970, is the government body responsible for overseeing financial institutions in Singapore, ensuring financial stability and investor protection.

Under MAS regulation, Oanda must follow strict rules, including maintaining enough capital, keeping client funds separate from company assets, and providing regular financial reports. MAS supervises forex trading and limits the maximum leverage to 1:20 to manage risk. Although there is no specific protection scheme, MAS’s oversight ensures that Oanda operates safely and transparently. For more details, you can visit their website: http://www.mas.gov.sg.

FSC in BVI:

Oanda is regulated by the Financial Services Commission (FSC) in the British Virgin Islands (BVI). The FSC, established in 2001, is the regulatory authority overseeing financial services and institutions in the BVI.

The FSC requires Oanda to comply with strict regulations, including maintaining adequate capital, protecting client funds by keeping them separate from company assets and ensuring transparent financial reporting. This regulation helps ensure that Oanda operates securely and reliably, providing a trustworthy trading environment for clients in the BVI and internationally.

PFSA

Oanda is regulated by the Polish Financial Supervision Authority (PFSA), which oversees financial markets and firms in Poland. The PFSA is responsible for ensuring the stability, transparency, and integrity of the financial system, providing a robust regulatory framework for the operation of financial institutions.

Under PFSA regulation, Oanda is required to comply with strict guidelines that include maintaining sufficient capital reserves, safeguarding client funds, and ensuring transparency in its operations. This regulation mandates the segregation of client funds from the company’s assets, enhancing the safety of client investments. By adhering to these standards, Oanda demonstrates its commitment to providing a secure trading environment, fostering trust and confidence among clients in Poland and throughout Europe. The oversight by the PFSA further reinforces Oanda’s dedication to operating with integrity and accountability in the dynamic forex market.

FSA in Japan,

FSA regulation refers to the rules and oversight provided by the Financial Services Agency (FSA) of Japan. Established in 2000, the FSA supervises financial institutions including banks, insurance companies, and forex brokers to ensure the stability and fairness of Japan’s financial system. It works to protect investors and maintain confidence in the market.

Financial service providers, such as forex brokers, must be licensed by the FSA to operate in Japan. The FSA enforces strict standards on capital requirements, risk management, and transparency. It requires firms to segregate client funds to ensure their protection and implement robust measures to prevent financial misconduct. By enforcing these regulations, the FSA plays a key role in upholding market integrity and safeguarding investor interests.

Best CySEC Regulated Forex Brokers: Alternatives to Oanda

Oanda is one of the leading forex and CFD brokers. The broker is not regulated by CySEC. It is regulated by other top-tier regulators including ASIC, CFTC, IIROC, FCA, PFSA, MAS in Singapore, FSA in Japan, FSC in BVI. There are several CySEC  regulated brokers that can serve as alternatives to Oanda. These brokers include: 

These brokers operate under CySEC regulation. According to CySEC rules, they offer leverage up to 30:1 and provide negative balance protection for retail traders. To learn more about CySEC-regulated forex brokers, you can read our content on the best CySEC-regulated forex brokers.

How Can I Verify If My Broker is CySEC-regulated or not?

You can find a CySEC-regulated broker’s profile on the CIF Regulated Entities List on the CySEC website. To verify if your broker, such as Oanda, is regulated by the CySEC follow these steps:

1. Get Broker Details

Start by finding the broker’s license number or name. This info is usually on the broker’s website. Having the right details is key for the next steps.

2. Visit the CySEC Website

Go to the CySEC Regulated Entities List. This is where you can verify if your broker is regulated.

3. Conduct the Search

Enter the license number or broker name into the search bar. This will bring up the broker’s profile on the CySEC website, showing important details about their regulatory status.

4. Check Authorization

Make sure the broker is authorized to offer specific services:

• Look for “9 – Financial contracts for differences” under Investment Services.
• Check for “Foreign exchange services connected to investment services” under Ancillary Services. This confirms they can legally offer forex and CFD trading.

5. Match Firm Details

Finally, ensure that the information on the CySEC website matches what you see on the broker’s site. Check the website, email, and other contact info. If anything doesn’t match, it could mean the broker isn’t authorized, and you should stay away to protect your money

Frequently Asked Questions ( FAQs)

What is Oanda?

Founded by Drs. Stumm and Olsen in the USA in 1996, Oanda is one of the oldest and most experienced forex brokers in the world. The broker expanded into Asia in 2007, opened its London office in 2011, and its Sydney office in 2014. On its platforms, you can trade over 3000 forex, CFDs, and even real stocks.

Is Oanda Considered Safe?

Yes, Oanda is considered safe. The broker is regulated by multiple top-tier regulatory authorities, including ASIC, CFTC, IIROC, FCA, PFSA, MAS in Singapore, FSA in Japan, FSC in BVI. It offers negative balance protection and holds client funds in segregated bank accounts. 

Does Oanda Offer Negative Balance Protection?

Yes, Oanda offers negative balance protection. All CySEC-regulated brokers must offer negative balance protection. Negative balance protection means that traders are protected from losing more money than they have in their trading accounts. If a trade results in losses that exceed the amount of funds in the account, negative balance protection ensures that the trader’s balance cannot go below zero. This prevents the trader from owing the broker any additional money.

Is Oanda regulated in Cyprus?

No, Oanda is not regulated in Australia. The broker is not regulated by CySEC, the Australian regulator. However, it accepts Australian clients under its global entity. Oanda is regulated by several other authorities, including ASIC, CFTC, IIROC, FCA, PFSA, MAS in Singapore, FSA in Japan, FSC in BVI.