OANDA Launches Prop Trading Platform with Up to 75% Profit Share

OANDA enters prop trading, promising profit-sharing and real market exposure. Pass challenges, access tools, and become a signal provider. Stay ahead in the booming proprietary trading trend.

Key Insights

  • OANDA introduced OANDA Prop Trader, a proprietary trading platform offering up to 75% profit share for skilled traders passing its assessment challenges.
  • While accounts use virtual funds, real market positions based on trader signals expose OANDA’s proprietary capital to risk.

MarketsXplora – OANDA has announced its entry into proprietary trading with the launch of OANDA Prop Trader, a platform designed to attract skilled traders with the promise of sharing up to 75 percent of trading profits. The move aligns with growing industry trends and positions OANDA to tap into the booming demand for prop trading services.

The service will operate under OANDA’s Global Markets division, authorized by regulators in the British Virgin Islands. Despite OANDA’s broader regulatory footprint across multiple jurisdictions, the prop trading program will remain exclusive to clients registered under this division.

“Through this program, the most capable traders are empowered with streamlined access to global financial markets across a range of asset classes,” said Kurt vom Scheidt, Chief Operating Officer of OANDA.

Rigorous Assessment Process

Similar to other prop trading platforms, traders must pass a tiered assessment test to qualify. Fees for these tests range from $249 to $2,400, with funding options extending from a minimum of $25,000 to a maximum of $500,000. The two-phase challenge requires traders to achieve a 10 percent profit target in Phase 1 and a 5 percent target in Phase 2. Strict risk management rules apply, including a 5 percent daily loss limit and a 10 percent maximum drawdown.

“In addition to the share they can earn on their profitable trading of virtual funds, traders will receive the necessary tools, such as educational materials and exclusive data-driven features and widgets, to set them up for successful trading,” vom Scheidt added.

Business Model Details

OANDA clarified its business model for the prop trading program, stating that successful traders would technically serve as signal providers. Their trading signals, combined with other input variables, will inform the company’s market positioning strategies. While the capital allocated in traders’ accounts will be virtual, OANDA emphasized that its proprietary capital is exposed to real market risks, as trades are executed based on the traders’ signals.

The company has committed to sharing profits on all trades, even those executed using virtual capital. However, industry observers note that many prop trading platforms generate significant revenue from challenge fees, as the success rates for such challenges tend to be low.

A Growing Trend

OANDA’s foray into proprietary trading comes amid surging interest in the sector. In recent months, several other brokers have launched similar programs to capture the growing demand. However, the business model has faced scrutiny, prompting some companies to avoid branding their offerings explicitly as “prop trading.”

With OANDA’s established reputation in forex and contracts for differences (CFDs), the launch of OANDA Labs Trader marks a strategic diversification, aiming to attract skilled traders while bolstering its presence in an increasingly competitive market.

Samson Ononeme

Meet Samson Ononeme, a dynamic writer, editor, and CEO of marketsxplora.com. With a passion for words and a sharp business acumen, he captivates readers with captivating storytelling and delivers insightful market analysis.