Gain Capital (NYSE:GCAP) is one of the two US forex brokers, besides Oanda, that has increased its client deposits in March 2016, compared to the same month last year.
Unlike the majority of the six active companies offering such services, the deposits of Gain’s clients rose by 25% over the year and reached $137 342 681, shows the monthly report filed with the US Commodity Futures Trading Commission (CFTC).
The total retail deposits (a.k.a. forex obligations) amount includes the combined sum of all money, securities and property deposited by a retail forex client into his/her retail forex account with the broker, adjusted for the realized and unrealized net profit or loss.
Compared to February this year, the rise in forex obligations was much more modest – a mere 6.7%. Still, Gain Capital ranks second after Oanda with its 37.5% rise and before Interactive Brokers with barely 3.7%. The market leader FXCM reported a drop of 4.7% over the month, while IBFX, which was fined $1 million by the CFTC and expelled by the National Futures Association (NFA) in mid-March, continues its downward spiral with a 99.6% drop.
Overall, the data shows that Oanda might be the big winner from IBFX’ woes and the acquisition of its US and Australian clients in the end of February and might overtake Gain Capital and displace it from its second position.
The CFTC report shows as of the end of March 2016 Gain Capital had an adjusted net capital of $43 089 863. At the same time the excess net capital above the requirement reached $15 345 264.
In March Gain Capital had 136 559 active retail OTC clients amounted to 136,559 last month. The number was 5% lower than in the February, but 37.9% more than in March 2015. The active futures accounts were 8 890 in March this year, or slightly up by 0.8% from February and 3.8% higher on an annual basis.
Earlier Gain Capital reported that its March 2016 retail and institutional trading volumes plunged. In April they continued to fall.
In spite the dropping trading volumes, however, the company reported a significant increase of 52.7% in its Q1 2016 net income, over the year.
Gain Capital Group was established in 2003 and went public on the NYSE in 2010. The company serves retail and institutional clients under the trading brands Forex.com, City Index, GTX, and Gain Capital. It is active in North America, Europe and the Asia Pacific regions. The broker offers trading in forex, commodities, and global equities. Its largest retail forex broker, Forex.com, also offers white label solutions for other forex brokers, operating throughout the world.