Oanda does not insure funds in the event of insolvency

Hi all,

I just read this on the Oanda website which I found worrying:

"Your Margin Account with OANDA is not insured under any state or federal insurance program, or by any other entity. In the event OANDA should become insolvent or file for protection under the bankruptcy laws, it is possible that you would lose the entire amount in your Margin Account."

Does anyone know of brokers similar to Oanda (ie which has an online platform) but where there is insurance?

Thanks.

oanda care about taking your money only and there small account is just a trap i deposted small amount they sent me a message saying weried things about trading and that i should trade with all my power and i am not welcomed to deposit again unless i provide them with my income states .they dont care about you what they care about is your money only and they take it by many ways stop loss hunting ,plateform disconnection when you are in profit and green and many other ways high interset and now they want you to trade big or you are not welcomed oanda became very greedy and i dont advice any one to trade with them from my 10 years experiance in market they are a ture bad bucket shop how will write such a statment unless they really want to show you that your money is lost when you deposit it with us even hiyp dont write this or e currenices issuers they are so maen and bad and i dont advice any one to lose money with them
all have a nic day

You're not going to find much "insurance" in the forex industry. In the US you can trade with CitiFX Pro, which used to claim to offer FDIC insurance for funds in your retail forex account NOT being used for margin-trading. Although recently they have taken off all mention of FDIC protection and added a clause in their risk disclosure, "Retail forex transactions are not insured by the Federal Deposit Insurance Corporation." Other than Citi in the US, you’re “SOL” – the NFA has no procedures or documentation on returning client funds back to clients in the case of a bankruptcy (See PFG Best…)

If you're a citizen of the UK and are trading with an FCA-registered brokerage, you're entitled to received 100% of the first 30k pounds you've deposited, 90% of the next 20k pounds to a max of 50k pounds IF your brokerage goes bankrupt.

ASIC in Australia will return all client funds held in segregated bank accounts should a brokerage go bankrupt or be shut down by a regulatory body. Chances are if your brokerage is doing something shady to begin with, your funds aren't going to be in a segregated bank account.

Thanks,

Oanda is an FCA registered brokerage it says on their website which is good.

It's my understanding that Oanda holds your customer account with third party banks, so in the event of an insolvency those funds won't be considered Oanda assets. Your margin account is the money which secures your open trades with Oanda - this money is considered Oanda's which is why it is not protected.

if somebody at xyz forex broker screws around and loses my money, for what ever reason, then i will lose my money..

if somebody at citifxpro screws around and loses my money, which will never happen anyways, citibank would make things right.

if citibank goes broke, everybody is broke.

happy trading,

zero/.

Citibank just about went broke twice.

The banking world is fickle .. seen many a "good" ( household ) name go under

"Your Margin Account with OANDA is not insured under any state or federal insurance program, or by any other entity. In the event OANDA should become insolvent or file for protection under the bankruptcy laws, it is possible that you would lose the entire amount in your Margin Account."

Does their above statement only apply to my open trades? For example, if I have $10,000 USD sitting in my Oanda account, and I have only one "OPEN" trade, which i'm down $100; and Oanda then goes insolvent, do i only loose my $100 (margin trade); and get back my 9,900 USD? Or do I stand to lose my open trade money (-$100) PLUS my balance $9,900?

This is one of my problems with the ESMA ruling. I would rather have the least funds possible in my broker's account, in the event of not being able to get those funds back. Therefore, brokers which offer high leverage are desirable. I just don't want to deposit all of my trading funds in my broker's account. With the ESMA rulings, I have to keep a lot more of my funds in my broker's account if I want to trade the same size as before. Not cool.