US regulated broker dealers have provided crucial data relating to net capital and net deposits for the month of May. April 2012 was a disaster as volumes had steep drops due to Easter Holiday and overall negative market sentiment.
Overall FCM's have had an increase in Net Capital thus giving investors confidence in the firms ability to maintain capital adequacy. On the other hand total retail deposits have declined thus confirming the overall trend in a slowdown in volumes.
In relation to net deposits Penson have had a drop in over $9 million of funds, Gain Capital and FXCM suffering a decline of $4 million compared to previous month.
All attention is diverted to PFG, a large broker dealer who filed bankruptcy this week after a major accounting back hole was found.
The data would suggest the firm is financially healthy with net capital slightly increased over April and only a small decline in client deposits.
Post Lehman, OTC markets have faced much scrutiny and the new Dodd Frank rulings, change in US Leverage laws and the need for greater transparency should have strengthened the US's position as a leading financial centre for OTC markets. However the break up of 'another' major broker dealer highlights the many risk factors still affecting the OTC market.
Investors will again ask the same question, where are my funds safe?
Data extracted from CFTC website. Forex Magnates carries out extensive research analsyis in FX brokers monthly trade volumes, these can be found exclusively in our quarterly reports.
| Broker | Adjusted Net Capital | Total Amount of Retail Forex Obligation | ||||
| Apr | May | Change | Apr | May | Change | |
| ADVANCED MARKETS | 20,388,886 | 20,410,329 | 21,443 | 747,614 | 701,084 | -46,530 |
| ALPARI (US) | 21,059,569 | 27,932,207 | 6,872,638 | 12,744,095 | 15,302,208 | 2,558,113 |
| FXCM | 37,300,522 | 42,731,671 | 5,431,149 | 152,763,756 | 147,791,624 | -4,972,132 |
| FOREX CLUB | 22,049,314 | 23,076,201 | 1,026,887 | 3,260,876 | 3,349,961 | 89,085 |
| FX SOLUTIONS | 26,479,415 | 26,327,006 | -152,409 | 17,835,963 | 17,463,768 | -372,195 |
| FXDD | 23,640,224 | 24,931,286 | 1,291,062 | 39,743,498 | 40,146,634 | 403,136 |
| GAIN CAPITAL | 49,636,362 | 41,154,509 | -8,481,853 | 104,134,362 | 100,130,419 | -4,003,943 |
| GFT | 69,468,438 | 63,862,026 | -5,606,412 | 87,147,164 | 85,228,372 | -1,918,792 |
| IBFX, INC | 25,173,900 | 26,250,081 | 1,076,181 | 69,133,804 | 70,209,562 | 1,075,758 |
| ILQ | 21,385,148 | 21,918,038 | 532,890 | 12,445,037 | 14,431,077 | 1,986,040 |
| MB Trading | 23,730,634 | 23,358,991 | -371,643 | 33,339,357 | 32,931,920 | -407,437 |
| OANDA | 131,948,887 | 153,489,312 | 21,540,425 | 190,370,147 | 196,733,340 | 6,363,193 |
| PENSON | 117,321,179 | 100,672,571 | -16,648,608 | 32,313,315 | 23,179,482 | -9,133,833 |
| PFG | 30,703,127 | 31,256,900 | 553,773 | 33,387,563 | 32,739,674 | -647,889 |
| RJ OBRIEN | 184,629,930 | 194,786,928 | 10,156,998 | 2,058,324 | 1,984,070 | -74,254 |
| XPRESSTRADE | 22,987,039 | 22,986,326 | -713 | 962,423 | 1,034,923 | 72,500 |
| Totals | 827,902,574 | 845,144,382 | 17,241,808 | 792,387,298 | 783,358,118 | -9,029,180 |
