A big question on the mind of the retail forex industry is what becomes of negative account balances. Oanda has quickly stepped up and announced it won’t be chasing down anyone who is in the red. We hope that many brokers quickly make similar announcements.
Early on January 15, 2015, the Swiss National Bank (SNB) sent global
financial markets into turmoil with a surprise move to eliminate its
three-year-old cap on the franc (CHF).In the wake of this unprecedented market event, OANDA demonstrated its
ongoing commitment to doing right by its clients. Despite suffering
losses and vanishing liquidity in the institutional hedging market,
OANDA remained true to its 14-year legacy of transparency, integrity
and fairness to our clients. OANDA did not re-quote or amend any CHF
cross client trades. We even took the further step of forgiving all
negative client balances that were caused when clients could not close
out their positions fast enough (where permitted by regulations).As a very well capitalized broker, we are proud to report that it is
business as usual at OANDA: client trading, deposits and withdrawals
are processing normally.OANDA is proud of its strong reputation for fairness and integrity. We
thank our customers for their continued loyalty and welcome new
traders who want to experience outstanding service and execution.
Update June 17, 2015:
We've learned that in its latest client updates, Oanda has warned that it won't forgive any negative balances in the future. Any negative account balances will need to be fully reimbursed to Oanda.
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