Oanda Labs – Prop Trader

The OANDA Labs Trader Program enables prop trading with limited capital, trading through an OANDA Labs Trader account and partaking in the profits and losses generated. OANDA’s proprietary trading models rely on signals from OANDA Labs Traders for trade placement decisions. As OANDA’s proprietary capital is exposed to risk, aspiring OANDA Labs Prop Traders must complete a Challenge to demonstrate their profit generation and risk management abilities. Although the capital in the OANDA Labs Trader account is virtual, traders receive a 75% share of any profits earned. Though OANDA Labs prop trading, traders gain access to spcialist OANDA technology and market relationships to leverage their trading skills for profit generation.

How to Start Prop Trading with OANDA Labs

Individuals aged 18 and above from the approved list of countries have the opportunity to participate in a Challenge and potentially become an OANDA Labs Trader. To qualify, prospective prop traders must successfully complete a two-phase Challenge utilizing a demo account. During this Challenge, traders must adhere to predefined rules and achieve specific objectives.

Upon successful completion of the Challenge, the next step involves a verification process. This entails providing identification and proof of address, as well as undergoing a liveness check. Additionally, traders are required to open a trading account with OANDA Global Markets (BVI), where any profit and loss (P&L) shares will be distributed.

The OANDA Labs Prop Trader program typically works in the following manner:

1. Application: Interested individuals apply to become a prop trader with OANDA Labs. They must meet certain eligibility criteria, including age requirements and residency in approved countries.
2. Challenge: Once approved, applicants undergo a Challenge process. This often involves trading with a demo account and adhering to specific rules and objectives over two phases. The purpose is to assess the trader’s skills in generating profits and managing risk. You must trade for at least six (total) days to pass Phase 1 and four (total – no need to be consesecutive) days to pass Phase 2
   • Phase 1 challenge = achieve 10% profits, calculated from unrealised P&L on the account. Daily loss limit of 5%, max drawdown (losses) of 10%.
   • Phase 2 challenge = achieve 5% profit target (calculated as per Phase 1).
   • If you miss the targets, the challenge can be taken multiple times – there is no limit (there is a cap on funds allocated though). Fees are charged with a 20% discount in this event.
3. Verification: Successful completion of the Challenge leads to a verification stage. Traders must provide identification documents, proof of address, and may undergo a liveness check to verify their identity.
4. Trading Account: Traders are required to open a trading account with OANDA Global Markets. This account serves as the platform for executing trades and receiving profit and loss (P&L) shares.
5. Trading: Once verified and set up with a trading account, prop traders can start trading using OANDA’s proprietary trading models and technology on platforms MT4 or MT5. They have access to OANDA’s capital, which allows them to trade larger positions than they could with their own funds.
6. Profit Sharing: Traders receive a share of the profits they generate, often up to 75%, depending on the specific terms of the program. Your winnings are moved into a real trading account with OANDA Global.

Prop Trading Fees

To get involved, the prop trader should pay a fee via a credit or debit card to enter the challenge – a 10x stake, ranging from $249 (control $25K) up to $2,400 (control $500K!).

To succeed with OANDA Labs Prop Trading, individuals need to demonstrate strong trading skills, including the ability to analyze markets, execute trades effectively, and manage risk. They must adhere to the rules and objectives set forth in the Challenge and consistently meet performance targets to continue participating in the program. Additionally, traders should stay informed about market developments and adapt their strategies accordingly to maximize profitability.

Prop Trading Strategies

You may not use Copy Trading, but you can adopt a hedging strategy including using expert advisors (EAs). You will trade with maximum leverage of 50:1 trading FX, CFDs on commodities, precious metals, and indices.

Breaking the Rules!

Take care to stay within the OANDA Labs trading rules, to avoid problems. The following may results in a breach and loss of your prop trading account:

1. Account Drawdown Rule: The account drawdown reaches or exceeds 10% (maximum losses on your trading account). Your equity must remain above this limit.
2. Daily Loss Rule: The daily loss equals or exceeds 5%. Measured daily, in account equity.
3. Inactivity Period: If there’s no trading activity for 20 consecutive calendar days, the account will be deemed inactive, resulting in a breach.
4. Maximum Time Limit: Each phase of the challenge must be completed within 120 calendar days; failure to do so will result in a breach of the account.
5. Prohibited Trading Techniques: Traders are prohibited from engaging in techniques such as copy trading, price and latency arbitrage, and other behaviors outlined in our Terms and Conditions.
6. Violation of Forbidden Trading Practices: Any behavior that violates our terms regarding Forbidden Trading Practices, as outlined in the Assessment Terms and Conditions, may result in loss of access.

OANDA Labs Countries Allowed

Pros of the OANDA Prop Trader program:

1. Access to Capital: Traders have the opportunity to access capital provided by OANDA, which allows them to potentially trade larger positions than they could with their own funds.
2. Profit Sharing: Traders are entitled to a significant portion of the profits they generate, often up to 75%. This can provide a lucrative incentive for successful trading.
3. Risk Management Support: OANDA typically provides risk management tools and guidelines to help traders manage their positions effectively and minimize potential losses.
4. Access to Technology: Traders may gain access to OANDA’s proprietary trading technology and tools, which can include advanced charting software, market analysis tools, and trading algorithms.
5. Training and Support: Some prop trader programs offer training and support to help traders improve their skills and adapt to changing market conditions.

Cons of the OANDA Prop Trader program:

1. Capital at Risk: While traders have access to OANDA’s capital, they also bear the risk of losses. If traders are unable to generate profits or manage risk effectively, they may face losses, and in some cases, owe money to the firm.
2. Performance Requirements: Traders typically need to meet certain performance targets to continue participating in the program or receive ongoing funding. Failure to meet these targets could result in the termination of the trader’s participation in the program.
3. Limited Autonomy: Traders may have restrictions on the types of trades they can make or the markets they can access. This can limit their ability to implement certain trading strategies or take advantage of specific market opportunities.
4. Competitive Environment: Prop trader programs often attract a large number of participants, creating a competitive environment where traders must compete for funding and resources.
5. Costs and Fees: Some prop trader programs may charge fees or impose costs on traders, such as profit-sharing arrangements or subscription fees for access to technology and support services. These costs can eat into traders’ profits and reduce overall returns.

In conclusion, while the OANDA Prop Trader program offers traders access to capital, substantial profit-sharing opportunities, and support, it also entails risks, performance requirements, limited autonomy, competition, and potential costs.