OANDA has made further improvement on their trading condition by announcing its intention to increase leverage. To meet up its client demand on higher leverage, the US regulated broker decided to double up its maximum leverage from 50:1 to 100:1.

OANDA has made further improvement on trading condition by announcing its intention to increase leverage. The US-headquartered broker had updated its platform by providing MT4 hedging compatibility, and made a move to streamline its trading instruments since July 17th. In notification letters sent to clients, it is also confirmed that the broker is about to double up ith leverage. OANDA has been recognized as a broker that limits leverage only to 50:1.

OANDA Leverage
As reported by FinanceMagnates, OANDA decided to increase leverage because of client demands. The company cited that as a feedback to high demands on higher leverage, 100:1 leverage is now available for forex major pairs. It is actually surprising to see OANDA, a broker known for its consistency to uphold small leverage since its establishment, to suddenly change the condition by rising the leverage up to twice the size of previous one.

The broker recommended its clients to consider limiting their leverage, to a maximum of 20:1, or even 10:1. OANDA exclusively suggested that Trading with too high a leverage ratio is one of the most common errors committed by new forex traders. Thus, the broker's decision to finally raise its leverage is considered as an historical and quite shocking change. What caused the broker that seemed to always underline the importance of small leverage to finally relented with the idea of offering higher leverage?

Regardless of what others speculate about the main driving reason behind this surprising announcement from OANDA, we can only believe at the moment that fulfilling clients' demands is a strong enough cause for OANDA to falter in its small leverage recommendation. Besides, there are some opinions saying that it's probably connected with the need to compete in market share. It is widely known that leverage is one of broker's major specifications researched by potential clients. One of OANDA's rivals, FXCM, provides a default account for its clients with leverage setup of 100:1, except for FXCM US that keeps its leverage to only 50:1.

So far, OANDA hasn't activated this newest update for new clients. At the time this piece is written, there isn't any announcement in the company news section regarding this issue, and some explanations about leverage in its main site still quote 50:1 as the maximum leverage. However, FinanceMagnates has confirmed that OANDA officially sent letters to its clients announcing the soon-to-be-upgraded leverage. So, it can be expected that OANDA's clients will soon be able to apply for higher leverage.

 

OANDA is one of the world's leading broker with numerous licenses to operate in various jurisdictions like US, Singapore, Canada, Europe, Japan, and Australia. Since its establishment in 1996, the broker is well-known for offering small leverage to all of its clients, not only in the US but from all over the world.