Is Oanda having lack of liquidity?

Discussion in 'Forex Brokers' started by talknet, Jan 22, 2009.

  1. talknet


    Is Oanda having lack of liquidity?

    True, due to lack of liquidity most of the brokers are winding up their business and moving back to their places. Seeing the present market condition’s it has become very difficult for brokers to generate brokerage from trading.

    You are right that Oanda and Tradeview are nice brokers but the market conditions are so bad that people are not in a mood to invest money in such a market. Therefore, brokers are just winding up their business and moving. There are few brokers in the market not allowing their customers to keep any position open. They are just having intraday trading and making money.

    NFA has increased minimum capital requirement to $10 Million to $20 Million for Forex brokers operating in USA. If there is lack of liquidity how will Brokers maintain minimum capital with NFA.
  2. Don't know about Oanda but there is a lack of liquidity everwhere. Look at $ yen after the expiry yesterday afternoon.

    Fewer banks trading, black box hedge funds wiped out, credit lines slashed and general nervousness means less participants making prices.

    But it is all cycles, we've been here before. Changing conditions creates huge opportunities.
  3. wavel


    First point of observation... Why do you associate Oanda with a lack of liquidity?

    According to the most recent data released by the National Futures Association (November 2008), Oanda had an excess net capital of $160,000,000.

    Not quite what I would define as "liquidity difficulties".

    And further still, although I don't and never have had an account with Oanda, the "regulation" that the NFA apparently deploys upon forex brokers doesn't appear to have had a tangible impact upon "sudden spikes" and "very wide spreads" according to my observations obtained from the contributers of this forum.

    Therefore, we can arrive at the conclusion that people with an interest in trading will continue to trade with Oanda, even if the NFA raised its "regulatory net cap requirement" to 50 trillion, because quite simply Oanda could decide that they no longer wish to be regulated by the NFA and either continue unregulated (lets face it, regulation doesn't appear to be having a major impact upon those "spikes" and "wide spreads" that I referred to earlier), or alternatively they could gain approval with another "regulatory" organisation.
  4. talknet


    The reason I have written Oanda is that "The bigger they are, the harder they fall".

    Also I think forex traders started suffering big losses from November 2008.

    November & December 2008 and January 2009 have been the worst "business times" in history for the whole business world because of $60 Trillion to $120 Trillion loss which has destroyed world economy.

    Is there any updated data released by the National Futures Association for January 2009.
  5. jamus


    Thread doesnt make sense. Why associate Oanda with lack of liquidity? Have u seen their books?
  6. wavel


    1: Having briefly viewed the statistics within the most recent NFA report, I observe atleast 30 forex brokers that have a larger net cap than Oanda. Therefore, it perplexes me why you choose to associate Oanda with the quote "The bigger they are, the harder they fall" ? It would appear to be illogical ! Why not start a thread pertaining to any of the forex brokers that are "bigger" than Oanda (Atleast 30 of them as far as I can see) ?

    2: You think that forex traders began losing since November 2008 ? Where is your evidence ? Additionally, were most of Oanda's clients not losing before November 2008 ?

    3: I think many people who are still alive that lived through 1929 would disagree.

    4: If you bothered to visit the link that I origionally posted you would be able to determine this answer for yourself.

    And finally, even if the next NFA report shows a 50 % drop in excess net cap, Oanda would still be $80,000,000 in the clear, and remember, all forex broker's always reserve the right to relieve themselves of regulation by the NFA.
  7. talknet


    Then the other big 30 forex brokers must also be having lack of liquidity because of $60 Trillion to $120 Trillion loss which has destroyed world economy.

    "The bigger they are, the harder they fall".
  8. wavel


    I do hope you found an answer to your question. Please post again if you have or ever do.
  9. Boy, your opinion has sure changed since you posted the above in December. Or are you just trying to create some panic to move some accounts to your swiss broker?
  10. How does a bucket shop lack liquidity?
    #10     Jan 22, 2009