IG US sees 15% jump in retail FX deposits

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 2023 by $7.2 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 collective positive change in clients’ deposits month-over-month from June, though differences amongst each broker were more pronounced.

Specifically, the FX funds held at registered brokerages operating in the United States came in at $518 million in July 2023, which is one percent higher than the $511 million reported in June.

According to the CFTC’s dataset, Interactive Brokers LLC (NASDAQ:IBKR) reported $31.4 million in total deposits. This figure was down by $1.8 million, or 3 percent, from $33.3 million in the prior month. This decrease, however, is attributed to customers’ actions related to settling leveraged FX positions, rather than outflows Brokers. When clients pay down the debit side of their positions, their cash balances transition from retail forex obligations to securities cash. Importantly, these changes in balance are independent of trading volume and should not be misconstrued as indicative of such activity.

The newest comer to the US FX industry, Trading.com Markets, racked up $1.098 million in customer deposits in July, down 3 percent from $1.13 million a month earlier.

Other highlights from the CFTC’s monthly report show that IG US was the best performer with nearly $9.1 million in additional deposits, or 15 percent higher on a monthly basis, coming in at $68.6 million in total.

Meanwhile, GAIN Capital also reported an overall increase of $2.3 million to $199 million at the end of July 2023, or a rise by one percent month-over-month from $196 million in June.

After consecutive increases in its market share, Oanda shows lackluster performance in retail deposits in July. Specifically, the Canada-headquartered FX broker’s net balances dropped by $1.36 million, to $155 million.

Additional findings from the CFTC report indicate that Charles Schwab’s client funds were down $0.99 million, a 2% decrease compared to the previous month.

GAIN Capital held the top position in market share with 38%, followed by OANDA with 30%. IG US and Charles Schwab accounted for 13% and 12%, respectively.

The following chart provides a comprehensive list of all FCMs (Futures Commission Merchants) that held Retail Forex Obligations in the month ending July 31, 2023. To offer a clear comparison, the figures for June are included alongside to highlight any differences.

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.

blockdag

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.

blockdag

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.

<