US Retail Forex Funds Dropped in June, Latest FCM Data Shows

June was a weaker period compared with the previous month 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 Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term 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 June 2016.

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For the month ending June, total retail FX obligation went down by about 2% MoM from May 2016. Moreover, except for TD AMERITRADE, each and every individual broker has reported a decrease in the amounts of FX funds they held over the period. As can be seen from the chart, the worst performance was from FXCM whose retail FX funds declined about 3.9% in April 2015 month-over-month.

May figures from Phillips Capital were dropped from the chart as the firm was removed from the FCM list by the CFTC in June and they were small enough to be practically insignificant. This was just another small step in the overall centralization of the American retail forex industry brought about by overbearing regulations making it exceedingly hard for smaller firms to compete in the market.