FCA-regulated forex broker OANDA is now offering share CFDs (contracts for difference) in the UK.
The broker has rolled out share CFDs on US and European listed stocks through its UK-regulated subsidiary OANDA Europe.
CFDs allow traders to speculate on the price of assets without actually owning them, though most retail investors lose money when using these derivatives.
The platform roll-out of share CFDs for UK traders comes amid a larger update by the firm in which it has launched a new “OANDA One” sub-account. This account allows traders to use the latest version of the MetaTrader platform, MT5.
The firm’s managing director for Europe Marcin Niewiadomski said the update will bring “leveraged access to a diverse selection of leading companies from the US and multiple European markets” to the platform, which gives its clients “valuable diversification opportunities across sectors and geographies”.
OANDA, which was founded in 1996, also provides trading on indices, forex, commodities, metals, bonds and crypto. It has offices in major financial hubs around the world including New York, London, and Tokyo.
The latest addition of share CFDs to the platform comes shortly after OANDA was acquired by retail prop trading firm FTMO from its Jersey-based private equity parent group CVC Capital Partners.
CVC’s Asia Fund acquired a 98.5% stake in OANDA for $160 million in 2018, valuing it at $175 million at the time. That year it oversaw more than $70 billion in client assets around the world.
Its sale to FTMO comes around six months after OANDA launched its own retail prop trading program.
As part of the deal,, OANDA’s existing management team including its CEO Gavin Bambury, who was appointed in 2019, will join the latter firm. FTMO said it plans to keep OANDA as a standalone business.
FTMO is based in the Czech Republic and bills itself as providing educational and training services for aspiring traders, offering a funded trader programme typical of retail prop trading businesses.
Robin has more than six years of experience as a financial journalist, most of which were spent at Citywire, and covers the latest developments in the investing, trading and currency transfer space. Outside of work, he enjoys reading literature and philosophy and playing the piano.
You can contact Robin at robin@goodmoneyguide.com
