Forex (FX) deposits of retail investors from the USA grew for the fourth month in a row, according to the latest data from the Commodity Futures Trading Commission (CFTC). As per the statistics for March 2024, the total client deposits grew to over $549 million, gaining 1.3% compared to the results from February.

Fourth Month of Growth in Total Forex Retail Obligations in the USA

According to the CFTC data, the total value of FX deposits in the US amounted to $549,389,183 in March 2024, growing by over $7 million compared to $542,302,015 reported the previous month. This is the strongest value in over a year and the fourth consecutive increase in deposits since December when they recorded a local bottom.

The decline at that time was quite low, and apart from that, deposits have been growing since September 2023, when they hit bottom at the level of $516 million.

The leader of the ranking remains the broker Gain Capital, for which deposits amounted to $208.4 million after a modest decrease of 0.5% from the level of $209.4 million reported in February. Forex obligations Obligations In finance, an obligation is a financial responsibility where the terms of a contract must be met. Should an obligation between parties fail then the party who is at default may face legal action. In this scenario, the guilty party will not only have to agree to pay the set amount to fulfill the contractual arrangement but may also be responsible for covering all legal proceedings cost. Routine payments or outstanding debt of any kind are considered financial obligations, so if someone owes you In finance, an obligation is a financial responsibility where the terms of a contract must be met. Should an obligation between parties fail then the party who is at default may face legal action. In this scenario, the guilty party will not only have to agree to pay the set amount to fulfill the contractual arrangement but may also be responsible for covering all legal proceedings cost. Routine payments or outstanding debt of any kind are considered financial obligations, so if someone owes you Read this Term also slightly slipped in the case of Charles Schwab, falling by less than $300,000 to the level of $62.4 million.

However, the remaining brokers included in the report recorded an increase in retail deposits. Trading.com recorded the strongest percentage increase, gaining 8.9% to $1.8 million. OANDA recorded the nominally largest increase, $4.2 million (2.3%), increasing deposits to $183.9 million. OANDA is currently the second-largest broker after Gain Capital regarding retail forex obligations.

CFTC Regulatory Reporting Requirements

The Commodity Futures Trading Commission mandates that Retail Foreign Exchange Dealers (RFEDs) and Futures Commission Merchants (FCMs) provide monthly financial status reports. These obligatory submissions must detail key financial metrics such as adjusted net capital, client assets, and total retail forex commitments. 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 commitments include all assets held by FCMs or RFEDs on behalf of their clients, adjusted for any gains or losses.

Among the 62 registered RFEDs and FCMs, notable entities like Charles Schwab, Gain Capital, IG, Interactive Brokers, OANDA, and Trading.com must disclose their financial commitments publicly.

A Finance Magnates report highlights that FCMs invest significantly in front-end technologies to boost operational efficiencies and maintain competitiveness in the tightly contested derivatives market.