US Retail Forex Funds Down, April 2016 FCM Data Shows

April was rather disappointing for the American retail FX trading industry, as shown by the recently released monthly report by the Commodity Futures Trading Commission’s (CFTC). According to the latest data filed by US Futures Commission Merchants (FCMs) and Retail Foreign Exchange Dealers (RFEDs), firms’ retail Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term funds suffered a decline in April 2016.

The new world of Online Trading Online Trading Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Read this Term, fintech and marketing – register now for the Finance Magnates Tel Aviv Conference, June 29th 2016.

For the month ending April, total retail FX obligation went down by 3.4% MoM from March 2016. Moreover, except for FXCM each and every broker has reported a decrease in the amounts of FX funds they held over the period. As can be seen from the chart, the worse performance was by GAIN Capital whose retail FX funds crashed about 8.2% in April 2015 month-over-month.

The most important change in the report compared with previous months is the deletion of IBFX from the FCMs list. A few months ago the NFA ordered the RFED subsidiary of TradeStation, IBFX, to withdraw from its membership with the regulator. TradeStation, which itself is owned by Japanese Monex Group has sold its retail foreign exchange accounts in the U.S. to OANDA. OANDA gained about $35 million in client funds, gaining 37.5 per cent to a total of 94.8 million in retail forex obligations in March.