OANDA Brings In Professional Accounts Ahead Of Regulatory Changes

Ahead of the upcoming Australian Securities and Investments Commission (ASIC) regulation change that is set to take effect on March 29, 2021, OANDA, a global FX brokerage, has announced that it will create a new account specifically for professional traders. However, in order to qualify, investors must meet a strict set of requirements.

Oanda online trading broker

ASIC Regulations

These upcoming regulations will put a limit on the leverage that brokers can offer to retail traders, capping it at a maximum of 30:1. Additionally, the rules will mandate negative balance protection to ensure that traders do not lose more than their initial stake. Furthermore, any type of bonuses will be prohibited in order to prevent overtrading.

The change will align ASIC regulations with those of the European Securities and Markets Authority (ESMA). However, it does not go as far as requiring brokers to disclose the percentage of accounts that lose money trading CFDs, a warning that can be found on EU regulated broker’s pages.

OANDA Professional Trading Accounts

For those traders looking to switch to a professional trading account with OANDA, there is a high threshold that must be met. Investors will need to have an accountant certify that they hold assets of at least AUD2.5 million or have a gross income of at least AUD250,000 for each of the past two financial years.

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