Why Financial Institutions Use OANDA FXTrade

Financial Institutions typically come to OANDA and FXTrade for two reasons:

  1. A Lower Cost of Doing Business. OANDA is determined to deliver tight spreads with a high quality of execution. For clients, this means improved efficiency and control.

  2. Technical Excellence. Our robust FXTrade platform processes tens of thousands of tickets and billions of dollars of trades every day. As a technology firm, OANDA has world-class expertise in the operation of trading platforms.

OANDA offers a variety of services and products to Financial Institutions based on our FXTrade Platform, including:

  • White label trading platform licensing
  • Real-time Spot Currency Hedging
  • Trading Automation

FXTrade clients can include Banks, Equity and Forex Brokers and Online Payment Solution Providers.

What Does Your Business Require?

Banks require a trading platform with:

  • State-of-the-art, front-end client interface with the bank's own branding
  • Scalability to support a large number of users and high transaction throughput
  • STP with automated hedging and record-keeping to reduce personnel costs
  • Adaptable business rules for market-making, margin requirements, interest rates, etc., to meet their own requirements
  • Smooth integration with existing infrastructure and seamless interfacing with liquidity providers

FXTrade delivers:

By licensing OANDA FXTrade technology, you can offer a superior trading platform to your clients. The bank licenses FXTrade but runs the platform as its own in its own data center. The bank is responsible for setting prices, hedging, meeting all regulatory requirements, and for managing clients and associated administrative functions. OANDA is responsible for system operation.

However the bank chooses to integrate FXTrade into its native environment and business, the OANDA FXTrade platform offers speed to market, with significantly lower IT development cost and efficient transaction processing.

Moreover, the FXTrade platform can easily be extended to trade commodities, indices, energy, bonds, or anything else for which there is an active market.

Forex brokers require:

  • tight spreads
  • high quality of execution
  • electronic interface
  • many currency pairs

FXTrade delivers:

OANDA FXTrade can offer fx traders tighter spreads and unsurpassed quality of execution. With the FXTrade API, Straight-through Processing solutions are efficient and cost-effective.

Online payment services require:

  • tight spreads
  • STP solution
  • real-time currency hedging

FXTrade delivers:

OANDA FXTrade allows hedging at a granularity down to $1, second-by-second, reducing currency exposure and risk with a fully automated system.

Example: A New York buyer pays a London merchant 37 British Pounds online through a payment service. In less than a second, the service automatically hedges the 37 Pound transaction using the FXTrade API.

Brokers trading foreign equities require:

  • tight spreads
  • real-time STP solution
  • overlay strategy to hedge foreign currency exposure

FXTrade delivers:

FXTrade removes the fluctuating value of currency from the investment equation. Instantaneous hedging of a precise exposure is automatic, at a total cost of no more than the spread.

Example: A broker in Amsterdam buys 100 shares of IBM in USD for her Euro-based client. The client is speculating that IBM shares will appreciate, but does not want to speculate on the USD. To eliminate currency exchange risk, an overlay strategy is used, where simultaneous with the equity transaction the broker hedges the USD exposure by going long EUR/USD. She does this automatically for the client by using the FXTrade API. If IBM shares go up, the client is guaranteed a positive return, regardless of what the USD does.

Contact us for more information

Contact an OANDA Customer Service Agent
Phone: +1 416 593 9436
24 hour live customer service from Sunday 4 pm EST to Friday 4 pm EST
Or submit your questions using our online form.

OANDA is registered with the U.S. Commodity Futures Trading Commission (CFTC) and is a member of the National Futures Association (NFA).

OANDA continuously meets stringent financial requirements, including minimal capital requirements based on customers' open positions. OANDA compiles financial data every day and submits it to the CFTC and the NFA on a weekly and monthly basis. Both the operational and the financial aspects of OANDA are audited by the NFA and by private financial auditors.