DislikedI 39. Client Money (a)OANDA will hold your money (including cash deposited, realised profit and unrealised profit) as trustee in a segregated account at a bank or other financial institution chosen by us in accordance with the FCA Client Money Rules subject to and in accordance with this Agreement. (b) OANDA may hold client money in a client bank account located outside the EEA. The legal and regulatory regime applying to any such bank will be different from that of the EEA and in the event of the insolvency or any other equivalent failure of that...Ignored
With FCA rules if the money is in segregated account as required by the FCA, in case of broker insolvency you will get your money (or most of it) back after couple of months, as we've seen in an example with Alpari. I think it was a very valuable test of FCA efficiency. I hope FCA itself doesn't change it in the future, but keeps it they way it handled the SNB crisis related bankruptcies.
But if Oanda or you put your money into a bank outside European Economical Area and that bank goes belly up, you've lost your money and Oanda tells you "we wash our hands clean, it's not our fault".
If Oanda goes belly up and your funds are in a bank outside EEA,... I don't know how would that look like. If the bank decides it's more profitable for them to go belly up than to return all Oanda's clients money, then nothing can be done (?).
or a banck or "other financial institution" made a deal with Oanda how they will handle such an event... well, that's just a coscpiracy theory, yet not improbable in reality.
Now, what is "other financial institution"? A lot would depend on that too. A lot.
But if your money are within EEA bank it should be safe. Should be - that doesn't say must be or will be.
Yet, how do we, clients, know where exactly our money is?
Is this information "transparently" disclosed, "not publicly shared", or not-so-transparently "undisclosed"?
Because basically it means "we can screw with you as we want, if you don't agree just go somewhere else".
About interest payment: they state that what they used to do, they don't do any longer. Years ago Oanda paid us clients little interest on our funds, and no account was inactive. They've changed that I think this or last year. Simply they are doing nothing different from other bucket shops. Well, we should not expect anything better, that's what they are telling us.
Would be nice for Oanda's representative to answer us, their clients, as what exactly these legal terms stand for.
Cheers, hava a good weekend.