Will the wall street crises have a drastic impact on forex brokers?

Beginner Questions
1

Hello.

I am a newbie. I am planning to open a live account with Oanda but I am worried that now is not the right time because of the banking/mortgage crisis.

…Will forex trading firms like Oanda be greatly impacted by this?

Thanks.

2

I’m suprised nobody has ventured an answer on this one yet.

I can’t say for sure, but my understanding is that fx brokers [I]should[/I] have a certain amount of cash liquidity. Oanda has quite a bit of cash on hand (like $50M?). So fx brokers aren’t like investment firms that have their cash tied up in less liquid instruments. Now if the economy gets so bad that the banking systems fall under some sort of scary shutdown regulation or all money movement stops, well then there wouldn’t be much you could do with your money anyway.

This more opinion on my part as I’m no economics wizard by far…

3

Thanks, for our response edacsac, I’ll keep that in mind :slight_smile:

4

Hello let me state my point of view like any other financial company, the stock market will also be effected since it does deal with currency. So my guess would be that something will happen!

5

oh… the financial crisis, could drive them crayzy�s
It surely is affecting the Forex Market and mostly because Brokers haven�t been expecting something like what have happened with the fundamentals, anyway there are so many variables on the “game” m now, such as the interest rate cuts made by the banks around the world.

6

I just hope that Oanda doesn’t have our funds tied up in their own investments though i’m sure they do.

7

You just remind me a bank advertisement: �in this moment, your Money could be in the wrong place�

8

I don’t think they would, they are a retail broker for individuals and business. In a sense, they [I]are[/I] a liquidity provider. An I was mistaken, they actually have $150M in excess capitol.

9

Oanda is commissioned based they arent going anywhere

10

Oh…ok… I just figured that with a 150 million capital, they would use some of that capital for investment objectives. But don’t they hedge???

11

Not think, that over a crisis will bring to bankruptcy of brokers