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

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

Oanda is highly regarded for its regulation by multiple authoritative bodies, including the ASIC, CFTC, IIROC, FCA, PFSA, MAS in Singapore, FSA in Japan, FSC in BVI. This multi-regulatory oversight underscores its commitment to maintaining high safety and transparency standards.

In this article, we will explore Oanda’s MAS regulation, its importance, the investor protection scheme, and negative balance protection. Additionally, we will provide information on other brokers regulated by the MAS. 

Does Oanda Operate Under MAS Regulation?

Yes, Oanda operates under MAS regulation. The broker’s MAS license number is Unreleased. This regulation ensures that the broker adheres to the high standards set by the MAS, providing a layer of security and trust for its clients. Being MAS-regulated means that Oanda must follow strict guidelines to protect client funds, ensure transparency, and maintain the integrity of its operations.

What is MAS?

MAS regulation refers to the rules and oversight provided by the Monetary Authority of Singapore (MAS), the central bank and financial regulatory authority in Singapore. Established in 1971, MAS is responsible for overseeing financial institutions, including banks, insurance companies, and forex brokers, ensuring the stability and integrity of Singapore’s financial system.

MAS enforces strict regulatory standards to protect investors and maintain a fair market. Financial service providers must hold a Capital Markets Services (CMS) license issued by MAS, ensuring compliance with rigorous capital requirements, risk management protocols, and transparency in operations. MAS also mandates that firms maintain segregated client accounts to safeguard client funds and promotes a strong focus on consumer protection.

With a global reputation for stringent anti-money laundering (AML) and counter-terrorism financing (CTF) measures, MAS plays a vital role in upholding Singapore’s status as a leading international financial hub. It offers negative balance protection to retail clients and limits leverage in retail forex trading to mitigate risk. MAS also adheres to international regulatory frameworks while tailoring its regulations to foster innovation and competitiveness in the financial sector.

Why Do We Trust MAS Regulation?

MAS is trusted due to its stringent regulatory framework, ensuring safety, transparency, and accountability for financial institutions, including forex brokers. Here’s why:

1. Safety of Client Funds:

MAS ensures that a broker holding a Capital Markets Services (CMS) license must safeguard client funds by depositing them into trust accounts. These trust accounts are maintained with reputable institutions, such as banks, merchant banks, or finance companies in Singapore. Additionally, for client assets, MAS permits deposits into trust accounts maintained with specialized institutions, including:

• Depository agents for securities held in the Central Depository (CDP) system.
• Approved trustees for collective investment schemes.
• Companies holding a CMS license to provide custodial services for securities.

2. Reporting Requirements for Forex Brokers:

MAS imposes strict reporting obligations on regulated forex brokers, ensuring transparency and compliance. These include:

• Transaction Reports: Brokers must submit detailed reports of all transactions, ensuring full visibility of their trading activities.
• Audit Reports: Regular audits are mandatory, providing an independent assessment of the broker’s financial health and adherence to regulatory standards.
• Anti-Money Laundering (AML) Reports: Brokers must also comply with MAS’s robust AML policies by filing reports on suspicious activities, ensuring that all transactions are legitimate and that illicit activities are promptly addressed.

How Can I Verify If My Broker is MAS Regulated?

To verify if your broker, such as Oanda, is regulated by the MAS, follow these steps:

Step 1: Obtain the Broker’s License Number or Name

The first step in verifying whether a broker is MAS-regulated is to gather the necessary details from the broker’s official website. Look for the broker’s licensed or reference number, which is typically listed in the footer, legal section, or “About Us” page. If the license number is not available, the broker’s name can also be used for verification. Having the correct license number or name ensures a more accurate search when checking the broker’s regulatory status.

Step 2: Search the MAS Financial Institutions Directory

Once you have the broker’s license number or name, visit the official MAS Financial Institutions Directory at https://eservices.mas.gov.sg/fid. Enter the license number or the broker’s name into the search bar and hit enter. This directory contains all MAS-regulated entities, and your search results should show the broker’s profile if they are indeed regulated. This step is critical for confirming that the broker you are considering operates legally under MAS oversight.

Step 3: Check License Type and Status

After locating the broker in the MAS directory, carefully review their profile. Look specifically for the license type and status to ensure that the broker is authorized to offer the services you need. If you are trading forex, verify that the broker is licensed to provide “Spot Foreign Exchange Contracts for Leveraged Forex Trading” under “Dealing in Capital Markets Products.” This step confirms that the broker has the necessary permissions to legally offer forex trading and other related financial products.

Step 4: Verify Broker Contact Details

Another essential step is to ensure that the contact details listed on the MAS website match those provided by the broker on their own site. Pay close attention to details such as the broker’s website URL, email address, and phone number. If the contact details differ, it could indicate that you are dealing with an unauthorized broker or a clone firm that is pretending to be MAS-regulated. Verifying these details helps protect you from potential scams or unauthorized firms.

Step 5: Stay Away from Unlisted Brokers

If you cannot find the broker in the MAS directory, this is a red flag. Brokers that are not listed are likely unauthorized, and trading with them can put your funds at serious risk. Unauthorized brokers often operate without regulatory oversight, meaning they may not adhere to client fund protection rules, leaving your investments exposed. Always stay away from brokers that are not listed in the MAS directory to ensure your money remains safe.

MAS-Regulated Forex Brokers: Who Else Is on the List?

Oanda is one of the leading MAS-regulated forex brokers. However, there are other MAS-regulated forex and CFD brokers that can serve as alternatives to Oanda. These alternatives include:

These brokers operate under MAS regulation. According to MAS rules, they offer leverage up to 20:1 and provide investor protection and negative balance protection for retail traders. To learn more about MAS-regulated forex brokers, you can read our content on the best MAS-regulated forex brokers.

What Other Regulations Does Oanda Have?

FCA (Financial Conduct Authority)

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.

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: https://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.

Frequently Asked Questions

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 Under MAS Regulation?

Yes, Oanda is considered safe under MAS regulations. Besides MAS the broker is also regulated by several 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.

What is the Maximum leverage of Oanda Under MAS Regulation?

The maximum leverage offered by Oanda under MAS regulation is 30:1 for retail traders. However, leverage may vary based on the tradable assets.

Here are the Oanda leverage limits under MAS regulation:

• 30:1 for major currency pairs (e.g., GBP/USD, EUR/USD,)
• 20:1 for non-major currency pairs, gold, and major indices (e.g, S&P 500, Nasdaq 100 (US)
• 10:1 for commodities other than gold and non-major equity indices
• 5:1 for individual equities and other reference values

What is the minimum Deposit of Oanda under MAS Regulation?

The minimum deposit for Oanda is as low as $0. This low entry requirement makes it accessible for traders with low levels of capital.

Does Oanda Offer Negative Balance Protection under MAS regulation?

Yes, Oanda offers Negative Balance Protection under MAS regulation. This means that traders cannot lose more money than they have deposited in their trading accounts. If a trade results in losses that exceed the account balance, this protection ensures that the account balance does not go below zero, so the trader does not owe the broker any extra funds. This safeguard is important for retail investor safety and is in line with MAS’s regulations to protect traders in Singapore.

Does Oanda Offer an Investor Protection Scheme under MAS regulation?

No, Oanda does not have an investor protection scheme under the regulation of the Monetary Authority of Singapore (MAS). This is primarily because MAS itself does not provide an investor protection scheme.While there is no dedicated scheme, MAS requires brokers like Oanda to keep client funds in trust accounts with reputable banks or financial institutions, ensuring that client money is safeguarded. Additionally, brokers must submit Transaction Reports, Audit Reports, and Anti-Money Laundering (AML) Reports to maintain transparency and accountability