OANDA ventures into proprietary trading with the launch of OANDA Labs Trader

OANDA has entered the proprietary trading sector with the introduction of OANDA Labs Trader, marking its foray into prop trading services. The brokerage, well-known for its presence in forex and contracts for differences (CFDs), revealed this development today, offering traders a profit-sharing arrangement of up to 75 percent.

While OANDA holds regulatory oversight in various jurisdictions, the prop trading services are exclusively extended to clients registered under its Global Markets division, duly authorized by regulators in the British Virgin Islands.

Aligning with standard practices in prop trading platforms, prospective traders on OANDA are required to successfully complete an assessment test. The entry fee for this challenge, as specified on the company’s website, ranges from $249 to $2,400. The funding amount is contingent on the challenge tier, ranging from a minimum of $25,000 to a maximum of $500,000.

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Participants in these challenges are mandated to achieve a profit target of 10 percent during Phase 1 and 5 percent in Phase 2. Additionally, stringent risk management measures include a daily loss limit of 5 percent and a maximum drawdown of 10 percent across all phases of the prop trading program.