IG overtakes Schwab as 3rd largest retail FX broker in US

abdelaziz Fathi

The Commodity Futures Trading Commission (CFTC) has released its monthly report for May 2023, providing insights into the U.S. retail forex market. The report covers data for registered Retail Foreign Exchange Dealers (RFEDs) and broker-dealers holding retail forex deposits in the United States.

In May, the total assets of U.S. retail forex traders experienced mild growth, reflecting the overall static performance seen throughout 2023. Despite operating within a highly regulated environment, forex products continue to face challenges in gaining traction in the United States.

However, there is anticipation that lighter regulations could potentially revive interest among foreign brokers in the U.S. market or improve the outlook for the struggling retail industry, which has faced difficulties under the provisions of the Dodd-Frank legislation.

Specifically, retail forex deposits in the U.S. demonstrated positive momentum in May. The total FX funds held at registered brokers reached $528 million, a $14 million increase compared to the previous month’s $514 million.

According to the CFTC’s dataset, four FX firms experienced growth in Retail Forex Obligations: IG US, GAIN Capital, Interactive Brokers (IBKR), and OANDA. Among them, IG US reported the strongest increase in client deposition, rising to $69.8 million by the end of May 2023, up 20% month-over-month.

The US business of Europe’s largest spread better overtook Charles Schwab as the third largest holder of retail FX funds — something that only happened a number of times with Interactive Brokers as both companies duke it out for dominance.

Retail customer deposits at OANDA Corporation and GAIN Capital experienced only marginal growth, while Interactive Brokers saw a rise of 7 percent, reaching $33 million in May 2023. In contrast, the newest player in the U.S. FX industry, Trading.com Markets, witnessed a 16% increase in retail obligation, crossing above the $1 million mark for the first time.

The US arm of forex brand XM provides retail foreign exchange services to US traders amid a tough regulatory environment that has squeezed other providers out of that market. Trading.com first applied for a forex broker license in the US back in January 2019.

Additional findings from the CFTC report indicate that Charles Schwab’s client funds were down $1.25 million, a 2% decrease compared to the previous month.

In terms of market share, GAIN Capital maintained its leadership position with a 37% share, followed by OANDA with a 30% market share. IG US and Charles Schwab held 13% and 12% respectively.

The provided chart details all FCMs that held Retail Forex Obligations in May 2023, along with a comparison to their April 2023 counterparts, offering a comprehensive overview of the disparities observed.

Read this next

Retail FX

Weekly Roundup: eToro links up with Elon Musk, US crackdown on Russian FX

Let’s take a look back at top stories that dominated the financial markets in our Weekly Round coverage. This week’s digest takes a deep dive into the most recent events and trends within the Forex, Fintech, and cryptocurrency.


Must-Watch Top 5 Crypto Picks for Q2 2024 Featuring BlockDAG, Toncoin, Solana and More

Dive into BlockDAG’s meteoric rise and explore other promising altcoins like Pepe, Toncoin, Solana, and Render for superior returns.

Retail FX

Clone of Admiral Markets draws FCA attention

The United Kingdom’s financial markets watchdog today unmasked another fraudulent entity, this time bringing to light a clone firm that has been posing as FCA-‎authorised brand, Admiral Markets UK Ltd.

Digital Assets

Gemini Earn users to recover $2.18 billion in crypto payouts

Cryptocurrency exchange Gemini has agreed to pay $50 million worth of digital assets to investors in its Gemini Earn program as part of a settlement with the New York Attorney General (NYAG), announced on Friday.

Fundamental Analysis, Market News, Tech and Fundamental

Global FX Market Summary: British Pound (GBP) Weakness, US Inflation, Euro, USD June 14 ,2024

British Pound weakens due to lower inflation expectations, potential policy changes from Reform Party, and broader economic concerns.


Q2 2024’s Top 5 Cryptos to Buy: BlockDAG, Pepe, Toncoin, Solana and Render

Learn about 2024’s Q2 top 5 cryptos. Explore potential high-return and advancements of altcoins like BlockDAG, Pepe, Toncoin, Solana, and Render.

Fundamental Analysis, Tech and Fundamental, Technical Analysis

GBPCAD Technical Analysis Report 14 June, 2024

GBPCAD currency pair can be expected to fall further toward the next support level 1.7250, former strong resistance from last year.

Digital Assets

Binance acquitted of tax evasion in Nigeria, now faces AML charges

Nigeria has dropped tax evasion charges against two Binance executives, Tigran Gambaryan and Nadeem Anjarwalla, after the world’s largest cryptocurrency exchange appointed a local representative to handle court processes related to the allegations.

Digital Assets

Trezor launches new hardware wallet ‘Safe 5’ with fresh security features

Crypto hardware wallet manufacturer Trezor announced on Friday the launch of its latest flagship product, the Trezor Safe 5, featuring upgraded security to promote self-custody of digital assets.