US Retail Forex Funds Down, April 2016 FCM Data Shows

Monday, 13/06/2016 | 20:56 GMT by Avi Mizrahi
  • The latest CFTC report shows that the size of the American retail forex industry is contracting.
US Retail Forex Funds Down, April 2016 FCM Data Shows
Bloomberg, OANDA's commitment to offer raw spreads to US clients might pay off well

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 funds suffered a decline in April 2016.

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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.

U.S-Retail-Forex-Obligation-April-2016

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.

U.S-Retail-FX-Market-April-2016

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 funds suffered a decline in April 2016.

The new world of Online Trading , 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.

U.S-Retail-Forex-Obligation-April-2016

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.

U.S-Retail-FX-Market-April-2016
Topics
CFTC
fcm
fxcm
gain capital
ibfx
Interactive Brokers
oanda
About the Author: Avi Mizrahi
Avi Mizrahi
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Azi Mizrahi, expert in fintech trends and global markets, enriches readers with deep insights.

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