US retail foreign exchange (FX) dealers reported a collective decline in customer deposits for December 2024, with most major brokers seeing outflows while Interactive Brokers emerged as a bright spot in the sector.
US Retail FX Deposits Fall 3.7% as Major Brokers See December Outflows
Total customer assets held by US forex brokers fell 3.7% to $491.3 billion in December from $509.7 billion in November. The decline marks a 5% drop compared to December 2023 levels, highlighting ongoing challenges in the retail trading sector.
GAIN Capital, the largest US retail FX broker by customer deposits, saw its assets decrease by 3.4% month-over-month to $197.9 billion. OANDA, another major player, experienced a 5.3% decline to $161.8 billion in customer funds.
Charles Schwab's forex division recorded the steepest monthly decline among major brokers, with customer deposits falling 8% to $59.7 billion. IG US continued its challenging year with a 6.8% monthly drop to $40.1 billion, representing a substantial 36% year-over-year decline.
Interactive Brokers FX Deposits Rise 14% Counter to Trend
Interactive Brokers showed resilience with a 14.1% monthly increase in customer deposits to $29.8 billion. However, this still represents a 4% decrease from the previous year. In December, Interactive Brokers also held $7.9 billion in client assets in segregated accounts.
Trading.com emerged as the standout performer, growing its customer deposits by 9.2% to $2.1 billion in December. The broker has also demonstrated remarkable growth throughout 2024, with deposits up 39% year-over-year.
This does not change the fact that it is the smallest entity on the list of all those required to report the above data, accounting for only a small percentage of the nearly $500 million in total deposits.
US Forex Broker Financial Reporting
Every month, forex brokers in the United States must share their financial details with the Commodity Futures Trading Commission (CFTC). This process affects all 62 registered companies, including well-known names like Charles Schwab, OANDA, and Interactive Brokers.
These monthly reports paint a clear picture of each broker's financial health by showing three main things: how much capital they have available, how much client money they're managing, and what their current forex trading obligations are. For example, if a broker is holding $10 million in client funds and their clients have made $500,000 in profits, both amounts must be reported.
The goal is straightforward: These reports help everyone understand exactly how financially stable these brokers are, making the entire forex trading industry more transparent and trustworthy. Think of it as a regular financial check-up that ensures these companies are healthy enough to handle their clients' investments.
