Currency deposits jump 12% at Interactive Brokers in August
The Commodity Futures Trading Commission (CFTC) has released its scheduled monthly report for August 2022, which covers data from FCMs registered as retail foreign exchange brokers (RFEDs) and those included as brokers who hold retail bonds on Forex in the United States.
Total assets owned by US retail forex traders increased only slightly in August, limited by the overall static performance seen throughout 2022. With no major changes recently noted and a few months left in the year, the sector was looking for a stable finish this year. Yet forex products are still difficult to sell in the United States, despite the obvious advantages that a highly regulated environment can offer traders.
This should come as no surprise, although the prospect of lighter regulation in July will soon revive interest in the US market among overseas brokers, or at least help brighten the outlook for a retail sector that struggled for some time under the provisions of the Dodd- Frankish Legislation.
US retail currency deposits were largely positively skewed during the month of August. FX funds held in registered brokerages operating in the United States totaled $515 million in August 2022, up $2.4 million from the $512.6 million reported in July.
According to the CFTC dataset, three exchange firms recorded increases in retail Forex bonds, including Charles Schwab, Interactive Brokers and IG US. Interactive Brokers had the best performance of the month, with an overall increase of $2.8 million to $23.4 million at the end of August 2022, a 12% increase month over month.
Other highlights from the CFTC’s monthly report show IG US racked up $1.01 million in additional deposits, up 2% on a month-to-month basis to $26.3 million in August.
The newest comer to the US forex industry, Trading.com Markets, saw its client deposits drop to $367,000, down 26% from $495,000 the previous month.
Meanwhile, funds from GAIN Capital clients were down $2.6 million, or 1%, from the prior month. Additionally, retail deposits at OANDA Corporation fell by $1.3 million in August 2022.
Regarding the market share of the various brokers, the overall distribution changed slightly in August compared to the previous month. GAIN Capital lost 1% but remained the market share leader with a 37.0% share. OANDA also cemented its position as the second largest in the US with 33.0% market share – Charles Schwab and IG US retain 15.0 and 10.0% market share respectively.
The table below shows the full list of all FCMs that held retail Forex bonds during the month ending August 31, 2022 – for comparison purposes, figures have been included against their July 2022 counterparts to illustrate the differences.