US retail forex deposits stay low in July 2016

US retail forex deposits stay low in July 2016

CFTC

The combined amount of retail deposits of forex brokers in the US posted a slight increase of a monthly 0.9% to $510.5 million in July 2016 and continues to be at very low levels, according to the latest monthly report of the US Commodity Futures Trading Commission (CFTC) published on Thursday. Year-on-year, the figure represents a drop of 14.5%.

Ìn comparison, in 2015, the lowest monthly value was $544.1 million and was reported in December. So far this year, US brokers’ monthly forex deposits have been below that amount.

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.

The CFTC report showed that all brokers kept their positions in respect to monthly deposits. Forex Capital Markets, or FXCM, continues to be market leader with $173.9 million in client funds in July, which is flattish over the month, followed by Gain Capital which also saw its forex deposits somewhat flat at $130.4 million.

Interactive Brokers was the broker with the highest monthly growth in retail client funds of 8.5%. TD Ameritrade Futures & Forex also saw a sensible increase of 5% from the preceding month, while the figures that the rest of the US forex brokers saw were rather unchanged over the month.

On an annual basis, however, the client assets of Interactive Brokers dipped 47.5% and those of FXCM went down 7.6%. Gain Capital and Oanda both posted a double-digit annual growth in July.

There are just five retail forex brokers left in the US after several entities left the market in the past few months. Meanwhile, TD Ameritrade Futures & Forex is the only new market participant this year. On top of this, following regulatory amendments Interactive Brokers discontinued offering leveraged forex trading services to US retail clients with less than $10 million in deposited assets as of the beginning of September, so the US market is yet to experience changes.

More details about the US market’s retail forex deposits statistics for July 2016 follow:

Forex broker

Total retail forex obligation July ‘16

Total retail forex obligation June ‘16

M/M change

Total retail forex obligation July ’15

Y/Y change

Forex Capital Markets LLC

$173,920,320

$174,991,480

-0.6%

$188,154,855

-7.6%

Gain Capital Group LLC

$130,422,644

$129,705,882

+0.6%

$115,839,158

+12.6%

IBFX Inc

$47,638,065

Interactive Brokers LLC

$34,556,079

$31,835,224

+8.5%

$65,803,563

-47.5%

MB Trading Futures Inc

$19,364,792

Oanda Corporation

$127,267,004

$126,991,487

+0.2%

$108,967,198

+16.8%

Wedbush Securities Inc

$49,443,594

RJ OBrien Associates LLC

$1,971,006

TD Ameritrade Futures & Forex LLC

$44,350,905

$42,248,861

+5.0%

TOTAL

$510,516,952

$505,772,954

+0.9%

$597,182,233

-14.5%

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