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.
Oanda is regulated by several authoritative bodies such as ASIC, CFTC, IIROC, FCA, PFSA, MAS in Singapore, FSA in Japan, FSC in BVI. However, Oanda is not regulated by the FINMA ( The Financial Market Supervisory Authority). In this article, we will explore Oanda’ regulations, and its features, and provide a list of alternative brokers that are regulated by FINMA.
Does Oanda Operate Under FINMA?
No, Oanda does not operate under FINMA (The Financial Market Supervisory Authority) 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 FINMA in Switzerland.
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 FINMA Regulated Forex Brokers: Alternatives to Oanda
Oanda is one of the leading forex and CFD brokers. The broker is not regulated by FINMA. 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 FINMA regulated brokers that can serve as alternatives to Oanda. These brokers include:
Affiliate Table: 5 FINMA-Regulated Forex Brokers
These brokers operate under FINMA regulation. According to FINMA rules, they offer leverage up to 30:1 and provide negative balance protection for retail traders. To learn more about FINMA-regulated forex brokers, you can read our content on the best FINMA -regulated forex brokers.
How Can I Verify If My Broker is regulated by FINMA or Not?
How Can I Verify If My Broker is FINMA Regulated?
Here’s a detailed explanation of how to verify if your broker is regulated by FINMA, with expanded paragraphs under each subheading:
1. Find the Broker’s Name:
The first step in verifying your broker’s regulatory status is identifying their legal name. This information is typically available on the broker’s official website under sections like “About Us” or “Legal Information.” Make sure you’re using the broker’s full legal name, not just the brand name, as companies often operate under multiple names or subsidiaries. Having the exact name ensures an accurate search when you look up their registration with FINMA.
2. Visit the FINMA Website:
Once you have the broker’s legal name, visit the official website of FINMA. The Swiss Financial Market Supervisory Authority maintains a public register where you can find all authorized institutions and individuals. This register is a reliable source for confirming the legitimacy of brokers and other financial institutions operating under FINMA’s supervision. You can access it through this link: FINMA Licensed Institutions and Persons Page.
3. Enter the Broker’s Name:
On the FINMA website, you will find a search bar designed for checking the authorization status of financial firms. Enter the broker’s full legal name in this search bar. Make sure you input the name exactly as it appears on the broker’s official website. A precise search is crucial to ensure you are checking the correct entity, as some brokers may have similar or overlapping names.
4. Select the Category:
To refine your search and get the most relevant results, choose the appropriate category from the drop-down menu. For forex brokers, you should select “Banks and Securities Firms” as the category. This narrows down the search to firms that are authorized to offer forex and other securities trading services under FINMA’s regulation. Selecting the right category helps avoid confusion with other types of financial service providers.
5. Check the Broker’s Information:
Once the results are displayed, examine the broker’s profile on the FINMA website. Compare the information provided by FINMA with what’s available on the broker’s website. Look for details like the broker’s full name, address, and license status. It’s important to confirm that the broker is authorized as a bank or securities firm by FINMA, as this is a key requirement for offering forex trading services in Switzerland. If the broker is not listed or does not hold the necessary license, you should be cautious, as they may not be legally allowed to provide forex services. In such cases, it’s advisable to avoid dealing with that broker
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. Oanda is not regulated by FINMA. However, The broker is regulated by other reputed regulatory authorities including ASIC, CFTC, IIROC, FCA, PFSA, MAS in Singapore, FSA in Japan, FSC in BVI. These regulations ensure strict compliance with industry standards and provide protection for client funds.
