FTMO Makes Move to Aquire Large Retail Broker OANDA

ftmo and oanda

In the past day the world’s leading prop firm has made a move to acquire a large retail broker, OANDA. Whilst we have seen many brokers move into the prop space, this is the first time we have seen a move in the other direction. What made FTMO decide to make this leap? Read on to find out.

Capturing OANDA’s large-scale data for monetization

ftmo ceo

During a finance magnates panel last year, the topic briefly touched on the monetization of the large-scale trading data collected by prop firms. This goes beyond simply A-booking and B-booking and instead looks to derive value through some kind of algorithmic method. Justin Hertzberg, CEO of FPFX Tech, declared he and his team had been working on this and also stated he was aware of FTMO making similar efforts. Unfortunately Otakar steered the topic away, so we don’t have too much information beyond this.

But what would you do if you found a way to monetize large-scale trading data? Get more data.

Could this be the reason why FTMO has made this bold move? Time will tell but it certainly makes sense.

To improve the FTMO infrastructure

For those who have read my previous reviews, I believe the amount of in-house tech is directly linked to a prop firms sustainability.  Firms which have their own broker face lower per-user costs and face less issues caused by third parties.

FTMO have stated that they plan to run OANDA independently from FTMO, so I’m not convinced this is the primary reason for the move. Besides, it would be a lot cheaper to simply launch a brokerage to integrate into the business than fork up $100m+ for the established broker.

There is certainly a lot of synergies which can be made between an established broker and a large prop firm, so there may more to it behind the scenes.

To expand the business in general – FTMO and OANDA

Perhaps the move is simply to expand the overall business operations. A brokerage isn’t a million miles away from a prop firm so FTMO can use their expertise in the industry to advance both entities.

FTMO’s current business is booming and this may simply be an outlet for their profits to expand the company. A great move in any aspect.

I believe we will see more information begin released in the coming days and weeks. To stay up to date, make sure to follow the Prop Traders Club X.

 

 

 

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