Trading.com triples client deposits, OANDA sees $8 million drop

abdelaziz Fathi

The Commodity Futures Trading Commission (CFTC) has published its anticipated monthly report for June 2022, which covers data for FCMs that are registered as Retail Foreign Exchange Dealers (RFEDs) and those included as broker dealers that hold retail Forex obligations in the United States.

The total assets belong to the U.S. retail forex traders grew only slightly in June, limited by the overall static performance seen throughout 2022. With no major changes recently noted and six reported months remaining in the year, the sector was tracking for a stable finish to the first half. Yet, forex products are still a tough sale in the United States, despite the obvious benefits that a highly regulated environment can offer to traders.

That should come as no surprise, though the prospect of lighter regulations may soon revive interest in the US market among foreign brokers, or at least help brighten the outlook for a retail industry that has struggled for quite some time under the provisions of the Dodd-Frank legislation.

Retail forex deposits in the US have been largely skewed positively during June. The FX funds held at registered brokerages operating in the United States came in at $510 million in June 2022, which is $1.1 million more than the ‎$509 million reported in May.

According to the CFTC dataset, four FX firms notched increases in Retail Forex Obligations including Charles Schwab, Interactive Brokers, IG US and Trading.com Markets. The best performer for the month was IG US which saw an overall rise of $3.7 million to $6 million at the end of June 2022, or an increase by 14 percent month-over-month.

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 $540,000 in June, up 232 percent from $162,000 a month earlier.

Other highlights from the CFTC’s monthly report shows that Interactive Brokers LLC (NASDAQ:IBKR) has racked up $836,000 in additional deposits. This stood at $26.3 million in June 2020.

Meanwhile, GAIN Capital’s clients’ funds were down $2.36, or one percent, from a month earlier. Further, retail deposits at OANDA Corporation dropped $8 million in June 2022.

Looking at the market share of different brokers, the overall distribution saw a slight change in June relative to the month prior. GAIN Capital lost 1 percent but remained the leader in terms of market share, commanding a 37.0 percent share. OANDA also solidified its stance as the second largest in the US with 33.0 percent market share – Charles Schwab and IG US retain a 14.0 and 10.0 percent share respectively.

The chart listed below outlines the full list of all FCMs that held Retail Forex Obligations in the month ending on June 30, 2022 – for purposes of comparison, the figures have been included against their May 2022 counterparts to illustrate disparities.

Read this next

Retail FX

Weekly Roundup: John Oliver rips into MetaTrader, Binance to pay $10 billion

Welcome to this week’s roundup, where we delve into the latest developments in the Forex, Fintech, and cryptocurrency markets. Stay ahead of the curve with our comprehensive overview of the week’s most impactful events and trends across these dynamic sectors.

Retail FX

Lark Funding reopens to US traders, MyFundedFX picks cTrader

Canada-based prop trading firm Lark Funding announced it will once again welcome clients from the United States.

Institutional FX

Cboe FX volume falls to lowest level since summer

Cboe’s institutional spot FX platform, known as Cboe Spot, today announced its trading volume for the month ending February 2024, which took a step back after a strong rebound in December.

Retail FX

ThinkMarkets secures lucrative DFSA license in Dubai

Melbourne-based broker ThinkMarkets has secured a license from the Dubai Financial Services Authority (DFSA) after it has already incorporated its new subsidiary in the Dubai International Financial Center (DIFC).

Digital Assets

New Horizen Lays Out Its Vision Of A Modular, Proof Verification Layer For Web3 Networks

Horizen is forging a new path for the future of blockchain with its New Horizen initiative, which is building a modular Proof Verification layer that’s dedicated to verifying cryptographic proofs for any settlement layer, beginning with Ethereum. 

Digital Assets

Karma3 Labs Raises a $4.5M Seed Round Led By Galaxy and IDEO CoLab to Build OpenRank, a Decentralized Reputation Protocol

Using OpenRank, developers and web3 companies can build consumer apps where people can discover, use, fund, read, or buy something on-chain without worrying about getting spammed or scammed.

Digital Assets

Worldcoin down as Elon Musk sues OpenAI CEO Sam Altman

Worldcoin’s (WLD) token dropped following news of a lawsuit against related company OpenAI. The lawsuit was filed by Elon Musk and accused OpenAI and CEO Sam Altman of breach of contract.

Institutional FX

Exegy’s Liquidity Lamp adds intraday data to outperform S&P 500 by 31.8%

Exegy has incorporated intraday signals into its AI-powered iceberg order detection tool, Liquidity Lamp. By adding intraday data to a baseline mean reversion strategy, Exegy’s model outperformed the baseline by 10.5% and the S&P 500 (SPY) by 31.8%, respectively in the out-of-sample testing.

Industry News

Think Elon Musk backed your crypto exchange? ASIC’s latest reveal may shock you

In an absolutely shocking turn of events that nobody could have possibly seen coming, the Australian Securities and Investments Commission (ASIC) has bravely stepped forward to reveal that, yes, those videos of Elon Musk passionately endorsing a cryptocurrency exchange are as fake as a three-dollar bill.

<