Alpari US Customer Contraction Continues in July CFTC FCM Financials

The CFTC has posted financials for US FCM’s for the month of July. Similar to other months, there were few surprises in the figures, as all 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 brokers were holding adequate capital. Among forex firms, the data showed a decline in customer deposits. During the month, total Retail Forex Funds dropped 1.2% to $629.75 million from June.

In individual names, the largest drop was seen at FXCM, whose $146 million total of Retail Forex Funds declined slightly more than $5 million from June. The largest percentage drop was seen at Alpari. The broker continues to experience weakness in its US retail customer deposits, as total figures dropped $1.22 million (10.5%) to $10.33 million. For perspective, Alpari ended 2012 by reporting $15,568,447 in Retail Forex Funds. The decline comes even as the broker tries to revitalize its US operations with the launch of trading schools. Among US brokers, following the exits of GFT, FX Solutions, and FX Club from the US, Alpari’s name has been raised among other possible firms that could exit.

Among new additions, FIXI Americas was added to CFTC’s list of reporting FCM’s. The firm is the newly launched US division of London Prime Broker Prime Broker Prime brokers are the designation given to individuals handling a package of services offered by investment banks, wealth management firms, and securities dealers to hedge funds which need the ability to borrow securities and cash in order to be able to invest on a netted basis and achieve an absolute return.There are two types of prime brokers - bank and non-bank corporations. Traditionally major global investment banks have been the predominant players in the space, however recent years have p Prime brokers are the designation given to individuals handling a package of services offered by investment banks, wealth management firms, and securities dealers to hedge funds which need the ability to borrow securities and cash in order to be able to invest on a netted basis and achieve an absolute return.There are two types of prime brokers - bank and non-bank corporations. Traditionally major global investment banks have been the predominant players in the space, however recent years have p Read this Term, FIXI.