IG overtakes Interactive Brokers as US 4th largest retail FX broker

abdelaziz Fathi

Data from the US derivatives regulator for May 2022 shows that IG US has moved past Interactive Brokers in the rankings of the US retail FX brokers.

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.

Charles Schwab was the best performer for the month after it registered an overall rise of $5.4 million to $69 million, compared to only $63 million at the end of April, or an increase by 8 percent month-over-month.

IG US reported a $3.6 million increase in its clients’ assets for May, up 9 percent on a monthly basis. Total retail obligations now stand at $39.3 million, which reflect an 8 percent market share, up one percent over last month.

Further, retail deposits at OANDA Corporation grew $3.1 million in May 2022. The leader in corporate FX solutions also maintained its stance as the second largest in the US with 35.0 percent market share.

Interactive Brokers also added nearly $756,000, or 3 percent on a monthly basis, in retail forex deposits.

Overall, the CFTC’s monthly report shows that the balances of US retail traders have been largely skewed higher in the month of May. According to the agency, the FX funds held at registered brokerages operating in the United States, including FCMs that are registered as Retail Foreign Exchange Dealers (RFEDs) and those included as broker-dealers, came in at $509 million, which is three percent lower month-over-month compared with the $496 million reported in April.

Meanwhile, GAIN Capital’s clients’ funds were virtually unchanged from a month earlier. However, the largest FX broker in the United States remained the leader in terms of market share, commanding a 38 percent share, unchanged from the April ranking.

The newest comer to the US FX industry, Trading.com Markets, continues to take a bigger chunk of the overall retail funds, but at a very limited scale. The broker has boosted its customer deposits to $162,000 in May, up 14 percent from $142,000 a month earlier.

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

Read this next

Institutional FX

State Street launches FIX API for Fund Connect ETF platform

“Expanding from proprietary APIs to the FIX industry standard will bring us closer to our goal of 100% digital interactions. This is another example of innovations we’ve brought to our operating model as we celebrate 30 years of servicing ETFs since the launch of SPY.”

Industry News

HollyWally opens office in Portugal to bring B2B2C wallet-as-a-service platform to Europe

“We looked at a number of centers for startups throughout Europe and were attracted straight away to Lisbon. There is great Government support and enthusiasm for startups, it’s well positioned between our Asian and US offices, it’s a cost-effective city in which to base a fintech and it’s a beautiful place.”

Retail FX

Eightcap integrates Acuity’s economic calendar for trade ideas on MT4 or MT5

“By incorporating Acuity’s cutting-edge AI technology into our platform, we are able to offer our clients a powerful new tool that will help them stay ahead of the markets. We are committed to providing an extensive range of tools and educational resources that will enhance our clients’ trading experience and allow them to trade smarter.”

Inside View

Private Equity Renaissance

Recent years have seen a resurgence in the concept of trading physical equities, with a slew of new arrivals joining the market for what is arguably one of the oldest forms of investing. But what has been the driving force behind this change in momentum?

Digital Assets

Dubai introduces new crypto regulations with fines of up to $135,000

Against the backdrop of a crashing market and burned investors, Dubai has sealed a landmark rulebook that governs how the Emirate will regulate cryptocurrency activities.

Institutional FX

FX volume drops 16pct at Russia’s largest exchange in January

The Moscow Exchange, Russia’s largest exchange group, released its monthly batch of trading volumes and metrics for January 2023 – the latest readings showed a pullback across the board for multiple segments, namely in the FX, given lower volatility and a reduced trading schedule.

Institutional FX

Standard Chartered sets up wholly-owned brokerage arm in China

UK-headquartered bank Standard Chartered said its Hong Kong arm has been granted an in-principle approval for a brokerage license from the China Securities Regulatory Commission (CSRC).

Digital Assets

Revolut offers staking for Ether, Cardano, Polkadot, and Tezo

British fintech and banking firm Revolut has introduced crypto staking — a practice of earning rewards for serving as a transaction validator in the Ethereum blockchain – to its UK and European Economic Area (EEA) customers.

Inside View

Saxo releases Q1 2023 Quarterly Outlook: “The Models Are Broken”

“2023 is likely to prove a rough ride for currencies if the USD bear market fails to continue in a straight line, but EUR and JPY may outperform.”

<