Oanda also reports post-Brexit spike in trading

Oanda also reports post-Brexit spike in trading

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Oanda, the second-largest forex broker in the US in terms of client deposits, reported a record-high trading volumes on June 24, amid the extreme market volatility that followed the news of UK’s vote to leave the EU. According to Oanda’s statement, the average daily volume on Friday spiked with a record 340% increase from that on an ordinary trading day, but there were no rejections and requotes.

“The fact that we were able to execute 100% of trades with no rejects or re-quotes, and were back to average spreads across key CFD and FX pairs well before US market open, is a testament to the speed and stability of our trading platform,” commented Courtney Gibson, head of trading at Oanda.

Oanda was among the first forex brokers to announce they are taking measures against the expected market volatility after the EU referendum in the EU, along with FXCM and IG Group. Unlike the apparent unpreparedness of the brokers during the Swiss frank drama of January 2015, this time the brokers were better prepared and most of them rode out the storm. Plus500, for example, reported it got a record number of new clients, while others, like FxPrimus and Admiral Markets came off unaffected.

On Friday a Saxo Bank analyst described it “as the best day for market in 20 years”, while Gain Capital’s institutional arm GTX set a $24.2 billion trading volume record. The retail business of Gain Capital also performed well.

Meanwhile, the US trade group of forex professionals, the Foreign Exchange Professionals Association (FXPA), commended the forex industry for the adequate handling of the situation. But while the companies were doing rather well, some of their bosses, like CMC Markets’ Peter Cruddas, lost significant sums from their personal fortunes, due to the drop of the LSE indices.

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