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US forex broker Gain Capital [NYSE:GCAP] generated a preliminary over-the-counter (OTC) trading volume from retail operations of $210.0 billion in January 2017, posting a double-digit growth of 11% from the preceding month. However, if compared to a year earlier, the figure represents a significant drop of 34.1%.
In the institutional segment, the broker’s trading volume via electronic communication network (ECN) continued to increase, reaching new heights of $266.2 billion in January. The figure is 31.7% higher than in December and 41.3% more than a year earlier.
Gain Capital’s daily trading volume last month stood at $9.5billion in the retail OTC segment and at $12.1 billion in the institutional ECN sector. The figures represent double-digit growth from December.
A total of 127,166 retail clients operated active OTC trading accounts with Gain Capital in January, which is down by 1.4% on the month and 11.5% over the year.
Active futures accounts slightly dropped both on a monthly and annual basis to 8,303in January. However, the number of futures contracts the broker handled last month increased from a month earlier to 691,324, which is a daily average of 32,190.
For the institutional segment, Gain Capital said swap dealer trading volume also increased significantly on the month to $96.6 billion. This represents a growth of 38% from December, while posting an annual increase of 65.6%.
Last week, Gain Capital entered into an agreement with its main competitor in the US, Forex Capital Markets [NASDAQ:FXCM], to purchase all its clients in the US after FXCM was pushed our of the country for fraudulent activities. They buyer will pay either $250 or $500 for each client it acquires from its peer.
FXCM announced earlier this week it is exiting the US market after its local arm Forex Capital Markets LLC got banned by the US National Futures Association (NFA) and agreed to withdraw from registration with the US Commodity Futures Trading Commission (CFTC) and never to seek to register with it. The broker was charged with taking positions against customers, concealing that a key market maker was tightly related to the broker, and misrepresenting its “No Dealing Desk” platform as providing no conflict of interest with customers.
As a result of the deal, Gain Capital will become the largest forex broker in the US in terms of customer assets and trading volume. Currently, FXCM is the market leader.
Gain Capital operates under the trading brands Forex.com and City Index for retail clients and GTX for institutional operations. It offers trading in forex, commodities, bonds, indices, and global equities, among others. The broker is regulated in the UK, the US, Australia, Singapore, Shanghai, Dubai, Hong Kong, and Japan.