OANDA forex broker customer agreement

So I’m still wrapped up in the forex trading project even though someone I contacted asking for advise about opening a forex trading account replied back referring to people who sign up for accounts with online forex brokers as idiots for thinking they can make money trading forex. I am looking at FXCM and OANDA as possible brokers; but I keep finding accusations about them both being scams. I can’t seem to find any broker that’s not being accused of being a scam.

Today I came across some of the text in the OANDA customer agreement and it almost sounds as if OANDA has it written into their contract that they can take your money and do whatever they want with it. Like they can withdraw from your account to take a trip to the Caribbean and you can’t do anything about it because you gave them permission when you signed the contract. Of course it doesn’t say they can take your money and go to the Caribbean on vacation; but it basically says they can withdraw your money and use it to cover their asses regardless if the trouble they are in has anything to do with you or not. So they could always pretend they had a valid reason to withdraw your money then take a 2 week cruise with a bunch of sexy ladies.

Here’s the exact text:

Additionally, OANDA may, and the Customer hereby irrevocably authorizes OANDA without notice to the Customer, from time to time to deduct from, withdraw from and retain out of the Margin Account and appropriate for OANDA’s use any amount up to and including the amount of the Margin Requirement, which OANDA may loan, rehypothecate or post as margin in respect of transactions entered into by OANDA or its affiliates with parties other than the Customer for the purpose of hedging OANDA’s exposure in relation to transactions with its customers.

Of course I could be interpreting it wrong but it basically sounds to me like they’re saying they have the right to use your deposit for any reason they deem fit without needing your permission or even needing to alert you. Please correct me if I’m wrong and if I’m not wrong, help me understand why that is even remotely acceptable?


OANDA customer agreement text vanishes

Leave a Reply