Forex (FX)
deposits of retail investors from the USA grew for the fourth month in a row,
according to the latest data from the Commodity Futures Trading Commission
(CFTC). As per the statistics for March 2024, the total client deposits grew to
over $549 million, gaining 1.3% compared to the results from February.
Fourth Month of Growth in
Total Forex Retail Obligations in the USA
According
to the CFTC data, the total value of FX deposits in the US amounted to
$549,389,183 in March 2024, growing by over $7 million compared to $542,302,015
reported the previous month. This is the strongest value in over a year and the
fourth consecutive increase in deposits since December when they recorded a
local bottom.
The decline
at that time was quite low, and apart from that, deposits have been growing
since September 2023, when they hit bottom at the level of $516 million.
The leader
of the ranking remains the broker Gain Capital, for which deposits amounted to
$208.4 million after a modest decrease of 0.5% from the level of $209.4 million
reported in February. Forex obligations also slightly slipped in the case of
Charles Schwab, falling by less than $300,000 to the level of $62.4 million.
However, the remaining brokers included in the report recorded an increase in
retail deposits. Trading.com recorded the strongest percentage increase, gaining 8.9% to $1.8 million. OANDA recorded the nominally largest increase, $4.2 million (2.3%), increasing deposits to $183.9
million. OANDA is currently the second-largest broker after Gain Capital regarding retail forex obligations.
CFTC Regulatory Reporting
Requirements
The
Commodity Futures Trading Commission mandates that Retail Foreign Exchange
Dealers (RFEDs) and Futures Commission Merchants (FCMs) provide monthly
financial status reports. These obligatory submissions must detail key
financial metrics such as adjusted net capital, client assets, and total retail
forex commitments. Retail forex commitments include all assets held by FCMs or
RFEDs on behalf of their clients, adjusted for any gains or losses.
Among the
62 registered RFEDs and FCMs, notable entities like Charles Schwab, Gain
Capital, IG, Interactive Brokers, OANDA, and Trading.com must disclose their financial commitments publicly.
A Finance
Magnates report highlights that FCMs invest significantly in front-end technologies to boost operational efficiencies and maintain
competitiveness in the tightly contested derivatives market.
This article was written by Damian Chmiel at www.financemagnates.com.
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