In a significant move, OANDA, a well-established brokerage specializing in forex and contracts for differences (CFDs), has entered the proprietary trading arena with the launch of OANDA Labs Trader. The announcement made on Monday revealed a unique profit-sharing model, where the broker will distribute up to 75 percent of profits with participating traders.
While OANDA operates under multiple regulatory jurisdictions, the proprietary trading services will be exclusively available to clients registered under its Global Markets division. This division is authorized by regulators in the British Virgin Islands, showcasing OANDA’s strategic approach to offering this innovative trading service.
Kurt vom Scheidt, the Chief Operating Officer of OANDA, highlighted the program’s objective, stating, “Through this program, the most capable traders are empowered with streamlined access to global financial markets across a range of asset classes.”
To participate in OANDA’s prop trading program, traders are required to undergo an assessment test, a standard practice in prop trading platforms. As outlined on the OANDA website, the challenge initiation fee starts at $249 and can go up to $2,400. The funding amount is tiered based on the challenge level, ranging from a minimum of $25,000 to a maximum of $500,000.
This strategic foray into proprietary trading positions OANDA as an industry trailblazer, providing skilled traders with an opportunity to access global financial markets seamlessly. The profit-sharing model introduces a novel dimension to the conventional trading landscape, reinforcing OANDA’s commitment to innovation and fostering a collaborative environment with its trading community.
