Regulation

Regulation

Financial Conduct Authority (FCA)

Onetrade is authorised and regulated by the Financial Conduct Authority (FCA) in the UK, license number 537787. As a result we are required to comply with the FCA’s Client Assets (CASS) rules.

OneTrade is authorised and regulated as a Matched Principal Broker (i.e. 100% Agency Model), which may not hold any proprietary positions, and is therefore only acting as an intermediary between its Clients and Liquidity Providers. In other words, we have no rights to hold a “B Book” (i.e. Make the Market), hence have no conflict with our clients.

As an FCA regulated firm, Onetrade is obligated to meet the stringent standards set by the FCA, submit financial reports on a regular basis and undertake detailed annual audits. This includes ensuring that client funds are held in a quality Tier 1 bank approved by the FCA.

Upon opening an account with OneTrade, a client will be categorised as a Retail client unless notified otherwise, and all of their funds will be segregated from OneTrade’s own funds. All money received from our retail clients is treated as “Client Money”, and under FCA client money rules, all client money must be kept separate from company funds, in a segregated account and at no point can client money be treated as company assets.

OneTrade performs daily client money reconciliations in accordance with FCA requirements. This process ensures that the segregated client funds accurately reflect retail client assets.

Onetrade passes all trades to the market. It also never uses retail client money to fund any part of its business.

If you prefer to speak to the FCA directly, you can telephone the FCA Consumer Help Line on 0845 606 1234 (8am-6pm Monday to Friday). Alternatively, write to them at:

FCA Consumer Help Line
 25 The North Colonnade
 Canary Wharf
 London, E14 5HS.

Or visit the FCA website www.fca.org.uk/

MIFID II

Overview

MiFID I was applied in the UK from November 2007, but has now been revised by the European Commission who concluded that change was required to address issues identified from the financial crisis, by creating a single market of harmonised protection for investors in financial instruments. This involved more than two years of discussions which took the form of a revised Directive and a new Regulation. MiFID II had been due to enter into effect on 3 January 2017, but was subsequently delayed by twelve months to 3 January 2018.

The new framework will ensure fairer, safer and more efficient markets whilst facilitating greater transparency for all market participants.

The New Regulatory Framework

Commonly referred to as MiFID II and MiFIR, the aim is to ensure appropriate levels of protection for investors and consumers of investment services across the European Union (EU). MiFID II introduces stricter conduct rules to encourage firms to provide improved information for customers about the nature of their products and services, the application of best execution requirements for firms to obtain the best possible result for their clients, regulatory reporting to avoid market abuse, and suitability requirements, pre- and post-trade transparency requirements on a range of investment services.

Reference Data Reporting

The release of MiFID II will create enhanced reporting obligations for OneTrade when we execute trades on behalf of a client. As such we will identify eligible clients who are legal entities or structures by their LEIs and identify clients who are natural persons by their nationality followed by identifiers assigned by their country of nationality.

Best Execution

MiFID II seeks to enhance the best execution framework first introduced under MiFID I where OneTrade was required to take “reasonable steps” to obtain the best possible results for its customers, while under MiFID II the requirement is for OneTrade to take “all sufficient steps”, to obtain the best possible results for its clients.

There are also enhanced requirements for OneTrade to publish data relating to their top five execution venues for the previous year, along with specific data relating to the quality of execution of transactions on that venue.

For further information customers can access our Best Execution Policy.

Disclosures

Under MiFID II OneTrade is required to make cost disclosures to clients both on ex-ante and ex-post basis. The information disclosure will include the total consideration on all costs and charges, clients can access the total consideration via the client portal to generate relevant reports.

For retail clients

  • For more information regarding this matter please refer to our website at the links shown below, and for an explanation on the methodology of costs calculation please refer to cost calculation page here.
  • Further information on our accounts types please our average spreads see www.onetrade.com
  • Swap charges/credit are mentioned on the specifications details of each symbol on the MT4 platform or on the Forex, Indices, and commodities page on www.onetrade.com and are in points per one standard lot.

Key Investor Document (KID)

PRIIPS KID – Under new rules OneTrade has prepared and provided you with a Key Information Document (KID) for retail customers. These documents will provide you with key information about our investment products. The information is required by law to help you understand the nature, risks, costs, potential gains and losses of this product and to help you compare it with other products.

For further information, customers can access our KID page.

National Identifier

MiFID II/MiFIR aims to enhance the efficiency, resilience and integrity of financial markets by greater transparency, strengthening investor protections and ensuring greater cooperation between relevant member states.

A significant change introduced by MiFID II/MiFIR will increase the transaction reporting obligations which OneTrade must submit to the FCA.

From 3 January 2018, OneTrade will be required to provide enhanced information in each transaction report submitted to the FCA such as the buyer/ seller information pertaining to all financial instruments. Under these new reporting obligations, you are required to provide information on your first name, surname, date of birth and relevant ID number, passport number, tax or national insurance number depending on your nationality.

If you have not already provided this information, please access the client area on the website and update your details. This will ensure that you can continue to maintain a trading account with OneTrade.

EEA Registrations of FxStat Ltd (OneTrade)

BaFin – Bundesanstalt für Finanzdienstleistungsaufsicht, Germany.
BaFin, the agency for central oversight of financial services in Germany, is part of the Government of the Federal Republic of Germany. BaFin’s legal status and function are defined in the “Law on Federal Administration of Financial Oversight”, the “Law of the Federal Republic of Germany on Banking Activities”, and other special laws. When performing oversight of banks and investment companies BaFin works closely with the German Federal Bank.

CNMV – Comisión Nacional del Mercado de Valores, Spain.
BaFin, the agency for central oversight of financial services in Germany, is part of the Government of the Federal Republic of Germany. BaFin’s legal status and function are defined in the “Law on Federal Administration of Financial Oversight”, the “Law of the Federal Republic of Germany on Banking Activities”, and other special laws. When performing oversight of banks and investment companies BaFin works closely with the German Federal Bank.

AFM – Netherlands Authority For the Financial Markets, Netherlands.
AFM was founded in 2002 and is the successor of the Securities Board of the Netherlands. Today this regulatory body monitors the majority of the country’s entire financial market. AFM is subordinate to the Ministry of Finances, but it performs independent oversight.

CONSOB – Commissione Nazionale per le Società e la Borsa, Italy.
CONSOB is a government agency responsible for regulating Italy’s securities market, including the Borsa Italiana exchange. CONSOB was founded in 1974, assuming some of the functions of the Ministry of Finance. Initially, its task was essentially to oversee the securities market. The agency’s authority and responsibilities have grown considerably with time.

FI – Finansinspektionen, Sweden.
Finansinspektionen is an agency under Swedish Government. It is responsible for financial regulation. The scope of its control consists of oversight, regulation, and conflict resolution in the financial market. The agency is subordinate to the Swedish Ministry of Finances. It was founded in 1991 to serve as the sole regulatory body in banking, the securities market, and insurance.

KNF – Komisja Nadzoru Finansowego, Poland
Finansinspektionen is an agency under Swedish Government. It is responsible for financial regulation. The scope of its control consists of oversight, regulation, and conflict resolution in the financial market. The agency is subordinate to the Swedish Ministry of Finances. It was founded in 1991 to serve as the sole regulatory body in banking, the securities market, and insurance.

CySec – Cyprus Securities and Exchange Commission, Cyprus
The Cyprus Securities and Exchange Commission (CySEC) is the supervisory and regulatory authority for Investment Services firms in Cyprus and is a member of the Committee of the European Securities and Markets Authority (ESMA).

CNB – Czech National Bank, Czech Republic
The Czech National Bank, (Czech: Česká národní banka, ČNB) is the central bank and financial market supervisor in the Czech Republic with its headquarters in Prague.

ACP – Autorité de Contrôle Prudential, France
The French Prudential Supervisory Authority (Autorité de contrôle prudentiel et de résolution – ACPR) is an independent administrative authority, which monitors the activities of banks and insurance companies in France. It operates under the auspices of the French central bank, Banque de France.

Risk warning: Trading leveraged or "geared" products on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you so before deciding to invest in Forex or CFDs you should consider your investment objectives, expertise and risk appetite. You may lose more than your initial deposit and could be required to deposit additional funds. You should not invest money that you cannot afford to lose and should appraise yourself of all the risks associated with Forex and CFD trading and seek advice from an independent financial advisor if you have any questions.
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Risk warning: Trading leveraged or "geared" products on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you so before deciding to invest in Forex or CFDs you should consider your investment objectives, expertise and risk appetite. You may lose more than your initial deposit and could be required to deposit additional funds. You should not invest money that you cannot afford to lose and should appraise yourself of all the risks associated with Forex and CFD trading and seek advice from an independent financial advisor if you have any questions.

OneTrade is a trading name of FxStat Ltd and is authorised and regulated by the Financial Conduct Authority in the United Kingdom under FCA Firm Reference Number 537787. FxStat is a company registered in England and Wales under registered number: 07212997.

Disclaimer: The information on this site is not directed at residents of the United States and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

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Please also make sure to read all the risk disclosure notice page here.