Top US FX Partnerships — Both OANDA and FXSpotStream Find New Ventures

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Forex Partnership Ventures Between Forex Firms
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OANDA announced on Wednesday that they partnered with Currencycloud to bring new services to their clients. Currencycloud is a Canadian based company that offers financial technology to companies in North America.

Born in 1996, OANDA is a multi regulated broker compliant with US regulations, therefore accepting American clients. It is ranked as one of the top 7 Forex brokers in the United States due to its highly competitive trading conditions and untainted reputation.

Additionally, it will now offer a new service called OANDA FX Payments, a new international money transfer service. This was made due to a joint effort made with Shift Connect, the London based foreing exchange consultant and international bank transfers provider.

Clients will be able to access this new service from the company’s subsidiary OANDA Business Information and Services Inc in order to securely transfer over 35 currencies internationally.In this way, OANDA will bring together their expertise in Foreign Exchange with Currencycloud’s finest financial technology.

Lucian Lauerman, Head of OANDA FX Data Services, expressed his satisfaction from this partnership. He says in a press release published by the company, that as a broker they are committed to helping clients have the most ideal, fast and secure cash flow possible.

“One of the world’s leading FX authorities, OANDA is dedicated to helping companies optimize cash flow, manage currency risk and build their bottom line. As such, we’re delighted to be partnering with Shift Connect and Currencycloud in order to add OANDA FX Payments to our best-in-class range of corporate currency solutions, which are trusted by audit firms, tax authorities and multinational corporations all over the world”, said Lucian.

The firm that will now provide OANDA FX Payments also has a wide range of Foreign Exchange Data Services. One of these is the OANDA Exchange Rates Application Programming Interface (API), established in the 1990s.

The company’s API offers real time exchange data rate, daily averages, central bank exchange rates and tick level data for over 38,000 pairs. It even has over 200 currencies, including commodities and precious metals.

Richard Arundel, Currencycloud’s Co-founder and North American General Manager, described this as “unique” and said “this is a unique proposition for OANDA and its corporate FX clients. By working closely with our existing partner, Shift Connect, in North America we have been able to create a one-of-a-kind cross-border payment solution for OANDA.”

Other positive collaborations with Currencycloud​

The partnership with OANDA and Currencycloud has been received with positive reactions. One of the reasons is the good results that this cross border B2B payments company has.

One of these good experiences came from the association of Contis and Currencycloud in August of 2020. Contis is an issuing and processing online trading platform. This e-money licensed platform collaborated with the Candaian bases B2B company in order to bid over 1 million accounts international transfer.

In this way, customers were allowed to convert the British pound to over 30 different currencies. Also, transfer cash to more than 50 countries in five continents. During that summer, Currencycloud had already made agreements with three other firms.

With this background Shift Connect’s CEO, Dave Kelcher, was looking forward to OANDA and Currencycloud saying that “As we have started to expand into new territories across the globe, and our partnership with Currencycloud expands, we were uniquely placed to create new solutions for OANDA’s corporate FX clients who make international payments.”

Other US compliant partnerships​

FXSpotStream communicated to their clients and the forex community that they will add a number of foreign exchange algorithm and allocation strategies. These will begin to be offered during the second quarter of this year. Clients will be able to access these new strategies through their application programming interface (API).

The previous information was announced Thursday via a press release. At the moment, the FXSpotStream platform will include more than 70 algorithms and over 200 parameters offered by their FFS liquidity providers.

As for the foreign exchange allocations, clients will be able to pre and post trade basis simultaneously from numerous accounts. In other words, they will be able to access all the steps before placing or executing and order and then match, convert, clear, etc from different accounts at the same time.

FXSpotStream was founded in 2011. It is a bank that operates a market utility that provides the necessary infrastructure to facilitate multibank API. It also allows GUI to route trades for clients to liquidity providers.

This bank changed the forex trading scene when it eliminated the cost of execution for price takers, thus allowing price makers to pay a specific fee. In this way, price makers would have a standard fee when providing for their clients.

So, from co-location sites in New York, London and Tokyo clients can connect to both GUI or API and communicate with Liquidity Providing banks that are affiliated to FXSpotStream.

FXSpotStream Reactions​

Co-founder and CEO of FXSpotStream, Alan Schwarz commented that the services that will soon be released are a natural extension of the services that the company already has. However, there is a growing demand from them of both banks and clients.

Because of this he describes this moment as exciting and says the company is “extremely excited to announce these significant enhancements to our current offering. Last year we raised capital from our founding banks to support this project and other initiatives we are progressing. We remain grateful for the support we have from our founding banks and all our LPs. We are committed to delivering more solutions that satisfy their needs and those of our mutual clients.

The company has had substantial growth during 2020. Compared to 2019 they had an increase of 18.52% which is approximately 38.983 billion US dollars. The growth of the company’s volume also coincides with the fact that the number of clients increased 19.64% in a year. Since the first time they launched a service, they are breaching the 11 trillion USD mark in terms of supported volume.

Because of this, Alan Schwarz said that they “continue to see tremendous growth in terms of volume, client acquisition and the addition of LPs since we formed the business over 9 years ago. Adding support for the FX Algos and the pre- and post-trade Allocation functionality supported by our LPs will contribute to the continued growth of our business. The addition of FX Algos and Allocations will be an invaluable tool for the Asset Management and Hedge Fund community as well as others that currently access our Service.”

How the market reacting to FX Algos​

The demand for FX Algos is steadily growing in the market. It might not be as popular as equities, but the future is clear, FX Algos are getting more popular. Especially between asset managers and hedge funds.

In the CEO’s words “While the volume is still not what we see in Equities, as an example, the amount of volume that is transacted using FX Algos has and will continue to increase for the foreseeable future”.

Algos are getting attention in the industry, especially after the GameStop and ACM rally saga in the last weeks. Both social media activism and algos are taking part in this “war on Wall Street.” However, the question is now within retail traders will be able to maintain momentum and, therefore, sustain the rally.

According to a research published by Coherent Market Insights, Algorithmic trading is responsible for around 60–73% of all United States equity trading, and it is expected to grow approximately 10.1 percent between 2018 and 2016, to surpass 21,685.53 million dollars by 2026.