Despite volatility in financial markets, the summer period brought lower engagement from individual investors in the US and a decrease in the value of their deposits. According to the latest results, they have reached their lowest levels in nearly half a year.

FX Deposits Shrink by $12 Million in a Month

According to the latest data from the Commodity Futures Trading Commission (CFTC) for July 2024, the total value of FX deposits in the US amounted to $545.5 million, falling 2.2% from the $557.5 million reported in June. In nominal terms, this translated to a decrease of $12 million and gave the worst result since February 2024.

As seen in the chart below, this also breaks the upward trend observed since the end of last year, which had provided a rebound from medium-term lows.

The data doesn't align with separate FX volume data reported by Cboe. In the case of the exchange , volumes grew to $1 trillion from the $950 billion reported in June.

Everyone Down Except Interactive Brokers

The declines were reflected in the results of individual firms, with the strongest percentage drop seen in the case of Trading.com, amounting to 7.5%. However, it should be noted that nominally it was also the most modest, translating to just under $156 thousand.

The largest nominal decline was recorded by OANDA, losing $8.5 million in FX deposits, or 4.6%. Compared to June, the value slipped to $184 million.

At the same time, Gain Capital, which holds the largest market share, lost 0.8% to $206 million, increasing its lead over OANDA.

The only broker that increased the value of FX deposits in July 2024 turned out to be Interactive Brokers. In its case, they grew by 7.3% to almost $30 million, up from $27.7 million reported a month earlier.

Regulatory Financial Reporting for Forex Brokers in the US

CFTC plays a vital role in monitoring the financial stability and transparency of US-based Forex brokers. Retail Foreign Exchange Dealers (RFEDs) and Futures Commission Merchants (FCMs) are required to submit comprehensive monthly financial statements to the regulatory body.

These reports must encompass key financial metrics, including:

• Financial Indicators
• Adjusted net capital
• Client assets

Retail forex obligations reflect the aggregate assets held on behalf of clients by FCMs or RFEDs, taking into account any realized profits or losses. This mandate applies to all 62 registered RFEDs and FCMs operating in the United States. Notable entities such as Charles Schwab, Gain Capital, IG, Interactive Brokers, OANDA, and Trading.com are among those required to comply. These firms must make their financial commitments publicly available, fostering industry-wide transparency.

Recent trends indicate that FCMs are making significant investments in advanced front-end technologies. This strategic initiative aims to boost operational efficiency and enhance their competitive position in the ever-evolving derivatives market.