May 29, 2025 The National Futures Association (NFA) has ordered OANDA Corporation, a New York-based NFA Member retail foreign exchange dealer and futures commission merchant, to pay a $600,000 monetary fine and provide restitution to affected customers following a series of significant regulatory violations. The action stems from a Complaint issued by NFA’s Business Conduct Committee (BCC), which OANDA resolved through a settlement offer. While the firm neither admitted nor denied the charges, it agreed to the penalties and acknowledged findings of violations. Financial and Capital Deficiencies The NFA found that OANDA failed to maintain required levels of adjusted net capital, a fundamental obligation for forex dealer members (FDMs). Specifically, the firm: Failed to increase its net capital by 10% of liabilities owed to an eligible contract participant affiliate (its parent company, OANDA Global Corporation), Improperly offset foreign currency exposure on transactions with its affiliate to reduce capital charges, Failed to collect required security deposits on forex transactions with that affiliate, violating NFA Financial Requirements Sections 11(a), 11(c), and 12(a). These capital deficiencies persisted for at least seven months in 2023, during which time OANDA was engaged in a hedging program involving its parent company that failed to meet regulatory standards. Customer Harm and Restitution In addition to capital issues, the BCC cited a serious pricing display error that impacted approximately 3,900 customers using a third-party trading platform. Due to misconfigured API messages, pricing discrepancies between the external platform and OANDA’s internal system led to execution prices that harmed customers financially. The estimated total harm was $428,592.26. As part of the settlement, OANDA agreed to make a good-faith effort to pay full restitution to the affected customers within 45 days of the decision. Other Violations: Promotional Material and Supervision OANDA was also cited for: Failing to collect proper security deposits from customers on millions of trades involving currency pairs with differing margin requirements, violating Section 12(a), Using misleading promotional materials to advertise a partnership with a non-member cryptocurrency broker, implying regulated oversight where none existed, Failure to supervise—a systemic issue cited in previous examinations and made worse by frequent leadership turnover at the firm. These actions violated NFA Compliance Rules 2-36(c), 2-36(e), and 2-36(g), as well as NFA’s promotional material standards under Rule 2-29. A Pattern of Noncompliance This is not OANDA’s first disciplinary encounter with NFA. The firm previously settled a 2021 Complaint involving similar financial and supervisory shortcomings. According to the current BCC findings, the number and severity of violations have escalated since the firm’s acquisition in 2018 by a private equity affiliate. Enforcement and Oversight The $600,000 fine must be paid within 30 days. In addition to restitution and monetary penalties, the decision may be considered a statutory disqualification under the Commodity Exchange Act for future registration matters. The full text of the Complaint and Decision is available on the NFA’s website.