Despite a notable dollar rebound in October from 18-month lows, US investors remained hesitant to invest. This is evident from the latest retail trader deposits data, which remained at yearly lows during the reported period, showing only a modest increase of $1 million compared to September's figures.
US FX Deposits Hit Lowest Since December 2023
The latest report from the Commodity Futures Trading Commission (CFTC ) for October 2024 shows that total FX deposits in the US reached $527.8 million, rising just 0.2% from $526.7 million reported the previous month.
For another consecutive month, retail FX deposits in the US remain at yearly lows and their lowest levels since December 2023, when the same metric stood at just $516.2 million.
It's worth noting that this data is reported with a delay and covers October, when the dollar was bouncing from six-month lows and recovering after three straight months of decline. Apparently, this wasn't a compelling enough story for investors to increase their trading activity.
The decline in activity during that month was also reflected in the average daily volume (ADV) of spot currency trading on the Cboe exchange. This metric reached $42.8 billion, compared to $46.87 billion in September. However, October had two more trading days (23 vs 21). As a result, the total volume was slightly higher at $984.9 billion, though these are the lowest values since June, significantly below August's near-record level of $1.1 trillion.
IG US Shows Strongest Growth
October's statistics could have been worse than September's if not for a significant increase in deposits at IG US, which grew by over 8% or $4.2 million to reach $55 million, bouncing from year-long lows.
Gain Capital remains the largest player in this ranking, controlling deposits worth $204.7 million, though these remained virtually unchanged month-over-month.
US Forex Broker Financial Disclosure Requirements
The United States regulatory framework for Forex brokers emphasizes financial transparency through mandatory reporting. The Commodity Futures Trading Commission (CFTC) requires Futures Commission Merchants (FCMs) and Retail Foreign Exchange Dealers (RFEDs) to submit detailed financial statements monthly.
These reports must include:
- Current adjusted net capital
- Total customer funds held
- Retail forex obligations
Retail forex obligations encompass the aggregate assets managed by FCMs or RFEDs for their clientele, including any gains or losses. This regulation applies to all 62 registered entities in the US, encompassing well-known names in the industry, covering firms like Charles Schwab, Gain Capital, IG, Interactive Brokers, OANDA, and Trading.com.
Recently, FCMs have been observed making investments in advanced front-end technologies.
