Retail prop trading business FTMO has bought US forex trading platform OANDA from its private equity parent group.
Jersey-based private equity firm CVC Capital Partners has agreed to sell OANDA to FTMO for an undisclosed sum, subject to regulatory approval.
OANDA, founded in 1996, is a digital trading platform for retail and corporate clients. It also launched its own retail prop trading program around six months ago.
It offers multi-asset trading – including foreign exchange (FX), CFDs, crypto and stocks – currency data, and analytics services.
OANDA has offices in major financial hubs around the world including New York, London, and Tokyo.
CVC’s Asia Fund acquired a 98.5% stake in the firm for $160 million in 2018, then valuing it at $175 million. At the time of the deal the broker oversaw more than $70 billion in client assets globally.
As part of CVC’s deal with FTMO, 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, with a funded trader programme typical of retail prop trading businesses.
These work by giving people the chance to pay to trade with the firm’s money through a demo account. You are offered rewards or a share in trading profits for passing sets of challenges.
In reality, most people eventually fail these challenges and lose money, which is why The Good Money guide views such programs as borderline scams, though there are some examples of people making money.
Still, FTMO has a well established presence in the retail prop trading space, earning more than $213 million in turnover last year.
The company offers a 2-step evaluation process with challenge and verification stages.
Upon completion of this process, it promises clients access to an FTMO Account, from which they can receive up to 90% of their trading profits.
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
