The beginning of the new year attracted fresh capital to financial markets, and nearly all of the six largest FX brokers in the USA reported an increase in their clients' deposits. In total, the value of deposits reached over $529 million, growing 2.5% compared to the December results published by the Commodity Futures Trading Commission (CFTC).

Forex Deposits in the USA Up at the Start of 2024

The total value of deposits in January amounted to $529,721,236, an increase of over $13 million (2.5%) from the $516 million reported in the previous month. This marks a significant rebound after a relatively weak end to the previous year when deposits were historically low.

Gain Capital remains the broker with the highest client deposits, totaling $204.9 million, representing a decrease of 1.8% in December. However, this was the highest nominal increase, at almost $4 million.

Trading.com reported the highest percentage improvement, at 6.3%. However, it had the smallest total value of deposits, at $1.4 million, with a nominal incline of only $90,000.

Only Charles Schwab experienced a modest decline in FX deposits of 0.7%, with client funds falling to $60.9 million from the $61.3 million reported in the previous month.

Finance Magnates independently examined retail investor behaviors, utilizing insights from CPattern. This investigation aimed to observe the historical changes in average deposits, withdrawals, and initial deposits. The latest findings indicated a persistent upward trend, with the average monthly deposit rising from $13,504 to $15,248.

Overview of CFTC Regulatory Reporting

The CFTC mandates that all Retail Foreign Exchange Dealers (RFEDs) and Futures Commission Merchants (FCMs) must report monthly financial conditions. These reports, required by the CFTC, provide vital financial information, including adjusted net capital, customer holdings, and aggregate retail forex obligations.

Retail forex obligations encompass the total amount of resources, such as cash, securities, and other valuables, managed by FCMs or RFEDs for retail forex clientele, adjusted for both profits and losses.

Among the 62 registered RFEDs and FCMs, a select group of six (Charles Schwab, Gain Capital, IG, Interactive Brokers, OANDA, and Trading.com) engage in operations that require them to disclose their obligation figures.

As recently reported by Finance Magnates, FCMs are ramping up investment in front-office technology to bolster operational resilience and gain a competitive edge, on the more condensed and competitive derivatives market.