IBKR’s FX deposits drop 10%, market share shrinks to 5%

abdelaziz Fathi

Retail FX deposits at US brokerages, which have been struggling to eke out a profit in a strict regulatory environment, rose slightly in July 2022 by less than $2 million, CFTC data showed.

The brokers, including FCMs that are registered as Retail Foreign Exchange Dealers (RFEDs) and those included as broker-dealers, saw a total positive change month-over-month from June, though differences amongst each broker were more pronounced.

Back to the figures, the FX funds held at registered brokerages operating in the United States came in at $512 million in July, which was more than the $510 million reported in June 2021.

According to the CFTC dataset, four of the six FX firms listed notched increases in retail forex obligations including GAIN Capital, OANDA Corporation, IG US and Charles Schwab.

The best performer for the month was IG US which saw an overall rise of $2.4 million to $51.3 million at the end of July, compared to $48.9 million at the end of June, or an increase by five percent month-over-month. The US business of Europe’s largest spread better overtook IBKR as the fourth largest holder of retail FX funds —something that only happened a number of times with Charles Schwab as both companies duke it out for dominance.

Meanwhile, the most notable loss was made for the second consecutive month by Interactive Brokers, which saw a drop of $2.7 million, or nearly 10 percent month-over-month.

The newest comer to the US FX industry, Trading.com Markets, saw its customer deposits drop to $495K in July, down 8 percent from $540K a month earlier.

Looking at the market share of different brokers, the distribution slightly changed in July relative to the month prior. GAIN Capital remained the leader in terms of market share, commanding a 38 percent share. OANDA also solidified its stance as the second largest in the US with 33 percent market share – Charles Schwab and IG US retain a 14 and 10 percent share respectively.

The chart listed below outlines the full list of all FCMs that held Retail Forex Obligations in the month ending on July 31, 2022 – for purposes of comparison, the figures have been included against their June 2021 counterparts to illustrate disparities.

Read this next

Institutional FX

CLS FX volume continues downward trend in August

Total daily traded volume submitted to CLS for settlement took yet another step back in August.

Digital Assets

Huobi taps AstroPay to facilitate fiat-to-crypto payment in Latin America

Huobi, the world’s sixth-largest crypto exchange by trading volume, has recently partnered with payment solution provider AstroPay to launch local currency account deposits and withdrawals in Latin America.

Digital Assets

Crypto exchange FTX to raise $1 billion at flat valuation of $32 billion

FTX is reportedly in discussions with a clutch of heavyweights from traditional finance to raise up to $1 billion in fresh funding to fuel more deal-making.

Digital Assets

Revolut US launches trading on Avalanche, Solana, and Dogecoin

British fintech and banking firm Revolut has further expanded its cryptocurrency offering in the US with the addition of 29 new tokens.

Digital Assets

Bahrain greenlights eazyPay to launch Binance Pay

The Central Bank of Bahrain has blessed a new partnership inked by Binance with Eazy Financial Services ‘eazyPay’, a local POS and online payment service provider. The greenlight enables EazyPayto to launch Bitcoin and cryptocurrency payments in the region.

Digital Assets

Coinbase approved to offer crypto for Dutch users

Nasdaq-listed crypto exchange operator Coinbase has been handed regulatory approval to operate as a crypto service provider in the Netherlands.

Metaverse Gaming NFT

AC Milan partners with Solana-based NFT football game MonkeyLeague

“Partnering with champions like AC Milan, an absolute iconic Club throughout footballs history, is another testament to what we are building and where we are headed as a game and game studio. It also represents a key step in our plans to bridge the Web2 and Web3 worlds.”

Digital Assets

Shariah-compliant Islamic Coin to support SDG-compliant ventures, green projects, and philanthropy

Shariah-compliant Islamic Coin has recently launched a collaboration with the World Green Growth Organization and the International Youth Conference 6, taking place on September 22-25th and September 30th-October 1st, 2022, in New York. 

Market News

Week ahead: US core PCE and eurozone CPI 

We heard from a range of central banks last week and the update sparked big moves in the markets, and the bulk of the volatility was in currencies.