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The total retail client deposits of US forex brokers declined in June as the number of market participants continues to fall, indicated the latest monthly report of the US Commodity Futures Trading Commission (CFTC) published on Thursday. In June 2016, the total amount of retail client assets deposited with US brokers stood at nearly $505.8 million, posting a drop of 2% from the previous month and 9.9% from the same period a year earlier.
Overall, 2016 has not proven to be a good year for the US retail forex market. Since the beginning of the year the market has been posting monthly deposit values below the lowest for 2015. The highest client deposits value so far in 2016 was $519 million and was registered in February. In comparison, the lowest monthly value in 2015 was $544.1 million and was reported in December.
Retail 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 be the most popular choice among US forex investors, despite posting the largest drop in client deposits in June, compared to the preceding month. Meanwhile, Gain Capital strengthened its position in June as the second largest forex broker by retail client assets after a month earlier it regained it from Oanda Corp. Gain Capital’s client assets slightly went down by 0.6% from May, while Oanda posted a monthly drop of 2.2% in deposits. 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.
The CFTC’s June report included no statistics about Phillip Capital, which ceased offering forex trading services as of the month. As a result of the broker’s exit, the US retail forex market has shrunk to a total of five participants – FXCM, Gain Capital, Oanda, Interactive Brokers, and TD Ameritrade Futures & Forex. The last one of these commenced offering forex trading services in May this year, shortly after it obtained the last needed authorization documents in February.
In comparison, a year earlier there were eight brokers offering retail forex services.
More details about the US market’s retail forex deposits statistics for June 2016 follow:
Forex broker | Total retail forex obligation June ‘16 | Total retail forex obligation May ‘16 | M/M change | Total retail forex obligation June ’15 | Y/Y change |
Forex Capital Markets Llc | $174,991,480 | $182,071,774 | -3.9% | $188,675,708 | -7.3% |
Gain Capital Group Llc | $129,705,882 | $130,536,391 | -0.6% | $112,320,218 | +15.5% |
IBFX Inc | – | – | $47,142,529 | – | |
Interactive Brokers Llc | $31,835,224 | $32,470,517 | -2.0% | $41,722,892 | -23.7% |
MB Trading Futures Inc | – | – | $17,840,735 | – | |
Oanda Corporation | $126,991,487 | $129,838,726 | -2.2% | $105,158,415 | +20.8% |
Wedbush Securities Inc | – | – | $465,29,540 | – | |
RJ Obrien Associates Llc | – | – | $1,668,707 | – | |
TD Ameritrade Futures & Forex Llc | $42,248,861 | $41,076,541 | +2.9% | – | – |
Phillip Capital Inc | – | $211,418 | – | – | – |
TOTAL | $505,772,954 | $516,205,367 | -2.0% | $561,058,744 | -9.9% |
Source: CFTC