Gain Capital overtakes Oanda as second largest US forex broker by client assets in May 2016

Gain Capital overtakes Oanda as second largest US forex broker by client assets in May 2016

The combined retail client deposits of forex brokers in the US went up by 4.7% on the month to $516.2 million in May 2016, according to data published on Monday by the US Commodity Futures Trading Commission (CFTC). The figure, however, represents an annual decline of 9.2%.

deposits include funds that would be obtained by combining all money, securities and property deposited by a retail forex customer into a retail forex account, adjusted for the realized and unrealized net profit or loss.

Forex Capital Markets, or FXCM, continues to lead the list with client deposits of $182.1 million at the end of May, posting a growth of 8.1% from the previous month and by 5.4% over the year.

Meanwhile, Gain Capital has slightly outperformed Oanda Corp. and regained in May its position as the second largest broker in the US by client assets. Gain Capital posted a monthly increase in deposits of 3.6% to $130.5 million in May, while Oanda had total deposits of $129.8 million, which is 2% higher than in April. If compared on the year, both brokers saw an increase of about 14.7%. The two brokers started competing for the second rank after Oanda acquired as of March this year the US forex clients of peer IBFX, after it exited the market.

Forex broker

Total retail forex obligation May ‘16

Total retail forex obligation Apr ‘16

M/M change

Total retail forex obligation May ’15

Y/Y change

FOREX CAPITAL MARKETS LLC

$182,071,774

$168,524,258

+8.1%

$172,793,299

+5.4%

GAIN CAPITAL GROUP LLC

$130,536,391

$126,048,571

+3.6%

$113,835,817

+14.7%

IBFX INC

$47,682,176

INTERACTIVE BROKERS LLC

$32,470,517

$33,507,509

-3.1%

$56,987,489

-43%

MB TRADING FUTURES INC

$18,309,509

OANDA CORPORATION

$129,838,726

$127,263,901

+2%

$113,089,638

+14.8%

WEDBUSH SECURITIES INC

$45,141,839

RJ OBRIEN ASSOCIATES LLC

$954,180

TD AMERITRADE FUTURES & FOREX LLC

$41,076,541

$37,895,336

+8.4%

PHILLIP CAPITAL INC

$211,418

TOTAL

$516,205,367

$493,239,575

+4.7%

$568,793,947

-9.2%

All but one forex broker, Interactive Brokers, saw their retail client assets growing both on a monthly and an annual basis. Despite that, since the beginning of the year all combined monthly client deposits have been below 2015’s monthly lowest of $544.1 million.  The low overall performance may be explained with the declining number of market participants.

In May 2015 the number of active US forex brokers was eight, while now the have decreased to five, if we exclude Phillip Capital, which ceased offering forex trading services as of 1 June, 2016. The latest CFTC report includes data about the broker, which is mainly focused on futures instruments and was not very active, if at all, in the forex market, anyways. Its leaving is a good example of the ongoing trend.

Source: CFTC


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