Why is Oanda getting sold to FTMO Prop Firm?
I saw a press release on the Oanda website informing the public that Oanda is going to be sold to FTMO Prop Firm. The news is kind of shocking so anyone know why this is happening? Was Oanda in some kind of financial troubles? What happens to Oanda clients?
See press release here https://www.oanda.com/group/media-center/press-releases/cvc-agree-sale-of-oanda-to-ftmo/
CVC Capital Partners had put up Oanda for sale last year: https://financefeeds.com/oanda-put-up-for-sale/
We can only speculate on their reasons for selling. But for FTMO the most likely reason they acquired Oanda is for their industry reputation, which could help them with regulatory compliance. Most regulatory have said that they want to regulate prop firms industry.
There have been news in the past that at some point regulators will regulate prop firms as they are currently totally unregulated: https://www.financemagnates.com/executives/exclusive-prop-trading-will-fall-under-robust-regulation-at-some-point-cysec-chair/ , https://www.financemagnates.com/forex/exclusive-regulators-conducted-preliminary-reviews-on-potential-prop-trading-regulations/
But it is all speculation at this point.