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  • #4,041
  • Jan 26, 2015 1:45am Jan 26, 2015 1:45am
Why on earth OANDA need this?
As part of our "Know your customer" policy here at Oanda, we are required to have our clients
most up to date employment information on file.

Kindly provide your employers full name, current job title, annual income and net worth.

Thank you in advance for your co-operation, I look forward to your reply.
  • #4,042
  • Jan 26, 2015 1:48am Jan 26, 2015 1:48am
Quoting Jure86
Why on earth OANDA need this? As part of our "Know your customer" policy here at Oanda, we are required to have our clients most up to date employment information on file. Kindly provide your employers full name, current job title, annual income and net worth. Thank you in advance for your co-operation, I look forward to your reply.
risk management/due diligence.

It's actually quite a wonder all brokers don't want that information.
  • #4,043
  • Jan 26, 2015 5:05am Jan 26, 2015 5:05am
Quoting deathbait
{quote} Basically this is a whole rant about not being able to borrow large sums of money for very little collateral. In every other situation, the borrower would be laughed at. Why is it that in the forex community, such rants are agreed with and even supported?
Actually, it's about having the same trading freedom as theREST OF THE WORLD.
  • #4,044
  • Jan 26, 2015 5:09am Jan 26, 2015 5:09am
Quoting xy76
{quote} You do not understand risk management at all.

Lol. So you put up 10x(now20) times the money with your broker to execute the same size tradethan I do, while I keep the other 90% in my own bank account. The NFA regulations do not protect your money with the broker. AND I DO NOT UNDERSTAND RISK MANAGEMENT?
  • #4,045
  • Jan 26, 2015 5:11am Jan 26, 2015 5:11am
Quoting Profit Daily
{quote} Actually, it's about having the same trading freedom as theREST OF THE WORLD.
The 'trading freedom', the way you think of it, is a delusion. There is no free lunch.
  • #4,046
  • Jan 26, 2015 5:13am Jan 26, 2015 5:13am
Quoting Tim_isoara
{quote}\ You do not undestand correlation between leverage and trade size.
Wrong again. trade size is based on amount of funds I have allocated to trade with. leverage is based on the amount I choose to let the broker hold. Which I feel like I keep repeating is only 10% of the total funds I have allocated to trade with.
  • #4,047
  • Jan 26, 2015 5:15am Jan 26, 2015 5:15am
Quoting Profit Daily
{quote} Lol. So you put up 10x(now20) times the money with your broker to execute the same size tradethan I do, while I keep the other 90% in my own bank account. The NFA regulations do not protect your money with the broker. AND I DO NOT UNDERSTAND RISK MANAGEMENT?
You do not, I am afraid. Small deposit, high leverage and your account would easily go red, should another SNB like event happen.
  • #4,048
  • Jan 26, 2015 5:21am Jan 26, 2015 5:21am
I would like to know from those trading live in Oanda now, is Oanda's spread for forex pairs during news spike still that bad? I used to trade in Oanda but had left for more than a year. Those times, AUDJPY often gets spread widening to 30+/- pips during major news release while other STP broker has less than half of what Oanda give. That's the main issue with Oanda that puts me off.
  • #4,049
  • Jan 26, 2015 5:22am Jan 26, 2015 5:22am
Quoting xy76
{quote} The 'trading freedom', the way you think of it, is a delusion. There is no free lunch.
Please elaborate.
  • #4,050
  • Jan 26, 2015 5:25am Jan 26, 2015 5:25am
Quoting xy76
{quote} You do not, I am afraid. Small deposit, high leverage and your account would easily go red, should another SNB like event happen.
But 90% of my trading funds are not with the broker. They would be under NFA. What is it that you are not understanding here. While it may be high leverage on the money with my broker, is only 2% of my trading capital.
  • #4,051
  • Jan 26, 2015 5:26am Jan 26, 2015 5:26am
Quoting BigFisherman
I would like to know from those trading live in Oanda now, is Oanda's spread for forex pairs during news spike still that bad? I used to trade in Oanda but has left for more than a year, those time AUDJPY often gets spread widening to 30+/- pips during major news release while other STP broker has less than half of what Oanda give. That's the main issue with Oanda that puts me off.
I do not trade any Aussie/Kiwi pairs, so cannot comment on that. Oanda's spreads widen during news releases, but it does not bother me much, since I tend to trade long term, with large SL and TP. They list their historical spreads somewhere on their website.
  • #4,052
  • Jan 26, 2015 5:27am Jan 26, 2015 5:27am
Quoting Profit Daily
{quote} Please elaborate.
I already have.
  • #4,053
  • Jan 26, 2015 5:28am Jan 26, 2015 5:28am
Quoting Profit Daily
{quote} But 90% of my trading funds are not with the broker. They would be under NFA. What is it that you are not understanding here. While it may be high leverage on the money with my broker, is only 2% of my trading capital.
And how does it protect you from getting negative balance?
  • #4,054
  • Jan 26, 2015 5:37am Jan 26, 2015 5:37am
I'm not worried about negative balance for events that take place every 40 years. My whole point here is under NFA I need to now put 20 times more money with the broker than the REST OF THE WORLD to execute the same size trade. To boot, the NFA does not protect those funds. It makes much more sense to keep your trading capital in your bank where it is insured and only put with the broker what is required.
  • #4,055
  • Jan 26, 2015 5:49am Jan 26, 2015 5:49am
Quoting Profit Daily
I'm not worried about negative balance for events that take place every 40 years. My whole point here is under NFA I need to now put 20 times more money with the broker than the REST OF THE WORLD to execute the same size trade. To boot, the NFA does not protect those funds. It makes much more sense to keep your trading capital in your bank where it is insured and only put with the broker what is required.
Every 40 years? It was only 3 years ago when SNB did pretty much the same thing, just in opposite direction. It does matter where do you keep the rest of your funds, if your balance goes negative - you will still have to pay it.
  • #4,056
  • Jan 26, 2015 6:07am Jan 26, 2015 6:07am
Quoting BigFisherman
I would like to know from those trading live in Oanda now, is Oanda's spread for forex pairs during news spike still that bad? I used to trade in Oanda but had left for more than a year. Those times, AUDJPY often gets spread widening to 30+/- pips during major news release while other STP broker has less than half of what Oanda give. That's the main issue with Oanda that puts me off.
STP? you mean MM
  • #4,057
  • Jan 26, 2015 6:10am Jan 26, 2015 6:10am
Quoting xy76
{quote} Every 40 years? It was only 3 years ago when SNB did pretty much the same thing, just in opposite direction. It does matter where do you keep the rest of your funds, if your balance goes negative - you will still have to pay it.
for some reason, I don' recall that having quite the same impact. There were no bankrupt brokers and I didn't here anything about individuals with negative balances. Let me provide an actual example. Today, I want to long usdjpy I have 10k allocated for forex trading in my bank account. I want to risk 2% ($200). I am going to use a 40 pip sl. This equates to 5 mini lots. My margin requirement is $100, however since I'm risking $200, this is what I transfer. Now if you are with Oanda or any other NF regulated broker, you need to provide, wait for it.........$1500 in margin. So while I will keep $1300 in my own bank, you will give broker 1500. How is this a better option for ANY TRADER?
  • #4,058
  • Jan 26, 2015 6:19am Jan 26, 2015 6:19am
This is from Oanda's Customer Agreement:

16. Maximum Losses. OANDA warrants and represents that the fxTrade System has been designed so that your total aggregate Realised Loss can never exceed the sum of the total aggregate deposits made to your Account and your total aggregate Realised Profit.

and

19. Set-off and Withdrawal by OANDA. OANDA is entitled, and you hereby irrevocably authorise OANDA without notice to you, from time to time to deduct from and retain out of your Account any amount necessary in satisfaction of any Realised Loss and/or any other moneys then due and payable by you to OANDA under this Agreement.
  • #4,059
  • Jan 26, 2015 6:30am Jan 26, 2015 6:30am
Quoting Profit Daily
{quote} for some reason, I don' recall that having quite the same impact. There were no bankrupt brokers and I didn't here anything about individuals with negative balances. Let me provide an actual example. Today, I want to long usdjpy I have 10k allocated for forex trading in my bank account. I want to risk 2% ($200). I am going to use a 40 pip sl. This equates to 5 mini lots. My margin requirement is $100, however since I'm risking $200, this is what I transfer. Now if you are with Oanda or any other NF regulated broker, you need to provide,...
FX brokers were not hit that badly, I agree, but there was some slaughter in London's City investment banks and hedge funds. Your reasoning is all fine and well based on the premise that an event of such magnitude will not happen again soon. It is foolish, IMHO.
  • #4,060
  • Jan 26, 2015 6:36am Jan 26, 2015 6:36am
Quoting TheBody
This is from Oanda's Customer Agreement: 16. Maximum Losses. OANDA warrants and represents that the fxTrade System has been designed so that your total aggregate Realised Loss can never exceed the sum of the total aggregate deposits made to your Account and your total aggregate Realised Profit. and 19. Set-off and Withdrawal by OANDA. OANDA is entitled, and you hereby irrevocably authorise OANDA without notice to you, from time to time to deduct from and retain out of your Account any amount necessary in satisfaction of any Realised Loss and/or...
Kinda contradicted these paragraphs, aren't they?
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