If thats the case then there is a real risk that if the other side of the contract cant meet their obligations oanda would go into financial trouble Maybe im being paranoid but in my book paranoia is a quality not a vice I mean look at this guy http://www.post-gazette.com/pg/07217/807090-28.stm
Completely agree with you. I mean - honestly, who keeps their life savings in ONE account???? I feel bad for the guy but he\'s kind of an idiot. I love that consultants remark about how no one reads fine print - we you have to, it\'s YOUR money. When it comes to your money YOU are responsible to diversify it because you can\'t trust anyone. And once again, stay with LARGER institutions. Hence why I don\'t bank with small local banks. Or open FX trading accounts with small firms.
I don't see what one has to do with the other, but Oanda hedges much as most dealers. They hedge notional exposure at x-threshold after netting synthetics/triangular arbitrage.
Why link to a sad story about someone that has their head up their ass, which has nothing to do with the subject at hand? Oanda's "other sides" are the world's largest banks. And the "contracts" are cash, not derivatives. Oanda uses derivatives to hedge their net gold and silver exposures only, not currencies. There are valid reasons to worry about any retail forex dealer, but not anything you mention. Yes, you are being paranoid, although that doesn't mean they aren't after you.