The value
of funds deposited by retail FX clients in the USA with the six largest brokers
in the local market has fallen for the second consecutive month to $516
million, according to the latest data published by the Commodity Futures
Trading Commission (CFTC) for December 2023.
US FX Deposits Shrunk at
Year-End
The total
value of deposits in December amounted to $516,235,266, dropping almost $2
million (0.4%) compared to November’s value of $581.2 million. This marks the
second consecutive decrease in value and one of the lowest readings recently.
Gain
Capital remains the largest firm in terms of FX deposits, collecting nearly
$202 million in December. OANDA came in second with $167 million, and Charles
Schwab third with $61 million.
In December
2023, nearly all of the six retail firms operating in the American market
experienced a decrease in deposit values. The exceptions were Gain Capital,
which saw an increase of 0.9% ($1.8 million), and OANDA, with an increase of 0.6% ($0.9 million).
The most
significant decline was noted by IG US, with deposits shrinking $2.1 million
to just under $55 million, and Interactive Brokers, where the decrease was 4.4%
($1.4 million).
Finance
Magnates independently
analyzed retail investor trends using CPattern’s insights. The analysis focuses
on tracking the historical fluctuations in average deposits, withdrawals, and
initial deposits. The recent study revealed a continued growth trend, with the
average monthly deposit increasing from $13,504 to $15,248.
CFTC Report Data Overview
According
to the regulations established by the CFTC, all Retail Foreign Exchange Dealers
(RFEDs) and Futures Commission Merchants (FCMs) must submit monthly financial
status reports. These CFTC reports include crucial financial details like
adjusted net capital, customer assets, and total retail forex obligations.
Retail
forex obligations refer to the total funds, including cash, securities, and
other assets, held by an FCM or RFED on behalf of retail forex customers, after
adjustments for gains and losses.
Out of the
62 registered RFEDs and FCMs, only six, namely Charles Schwab, Gain Capital,
IG, Interactive Brokers, OANDA, and Trading.com, are involved in activities
necessitating the publication of obligation data.
This article was written by Damian Chmiel at www.financemagnates.com.
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