Last month data from the CFTC revealed that Futures Commission Merchants who act as Retail Foreign Exchange Dealers had a combined $629 million in forex obligations which hovered steady over the previous month.
The amount of total retail Forex obligations held at US Futures Commission Merchants (FCM) that act as Retail Foreign Exchange Dealers (RFED) was little changed from July to August 2013.
According to a CFTC report published for selected FCM data, a drop of roughly one-eighth of a percent from $629.7 million to $628.9 million occurred during the period, when combining the retail forex obligations held by the 11 dealers reporting at the end of August.
From the eleven registered RFEDs in the August list below, there was a gross increase of $5.52 million from seven of the companies and offset by a decrease of $6.31 million from the remaining four which resulted in a net $793K decrease for the combined 11 dealers' total.
And More Than Little Changed
The dollar increases were largely driven by a $2.08 million increase for Gain Capital Group LLC representing a 1.91% increase month-over-month for its retail forex obligations, and Forex Capital Markets LLC with a $1.4 million increase at just under 1 percent growth month-over-month for its forex obligations according to the August figures.
The largest decreases for August in the dollar amount of retail forex obligations was from Interactive Brokers LLC which had a $4.1 million drop representing a 10.79% month-over-month decrease for its retail forex obligations, followed by MB Trading Futures LLC which had $1.29 million less in August over July and represents a 3.3% drop month-over-month for the company, followed by IBFX Inc with an $800K decrease in its retail forex obligations which represents a 1.11% drop since July. The changes for the remaining dealers are highlighted in the diagram below.
The total retail forex obligation values are the total amount of funds at a FCM RFED that would be obtained by combining all money, securities and property deposited by a retail forex customer into a retail forex account or accounts, adjusted for the realized and unrealized net profit or loss. This can be seen below in the August diagram.
Net Capital Ratios in August
With regards to the ratio of excess net capital to net capital requirement, Knight Capital Americas LLC comes in first with 17.48 times excess capital to that of the required amount during August, and followed by Interactive Brokers LLC at 5.68 times, Oanda Corporation at 4.41 times, and Forex Capital Markets LLC at 2.39 times excess capital. The lowest ratio was held by FXDirectDealer LLC at 0.12 times, and the remaining RFEDs were also under a one-to-one ratio (e.g. less than 1.0) except for Gain Capital Group LLC at a ratio of 1.06.
The slight change in August over July data follows the net decrease seen in July over June, when the amount of Retail Forex Obligations held at RFED firms in July had decreased overall, with the exception of Interactive Brokers LLC which had an increase of $9.7 million. That amount partially offset the combined decrease of $15.1 million seen in the remaining 10 firms in July when comparing with June 2013 data.
This was covered by Forex Magnates in greater detail in a previous article last month, where the largest dollar decrease was from Forex Capital Markets LLC which had retail forex funds fall by $5 million in July to $146 million from just above $151 million in June. Also the largest percentage decrease was seen in Alpari(US) LLC which had retail forex obligations decrease to $10.3 million in July representing a 10.53% drop or $1.2 million from $11.5 million in June, as the broker prepared to make a shift in strategy.
Comparison To July Over June Data
Forex Magnates has covered on multiple occasions the consolidation of the retail FX Market in the US, which is attributed mainly to regulatory constraints during a time where other jurisdictions are seeing record growth in retail FX. August numbers having little changed may precede a more positive September if amounts can pick-up.
Apparently, the important driver of the future for the US retail FX industry is the repose of how regulators and those who are regulated adapt to uncertainties that lay ahead, ensuring a conducive environment for end customers to easily participate in the world's most liquid market. This is an obvious, yet incredibly challenging endeavor for both sides as traders watch.
The amount of total retail Forex obligations held at US Futures Commission Merchants (FCM) that act as Retail Foreign Exchange Dealers (RFED) was little changed from July to August 2013.
According to a CFTC report published for selected FCM data, a drop of roughly one-eighth of a percent from $629.7 million to $628.9 million occurred during the period, when combining the retail forex obligations held by the 11 dealers reporting at the end of August.
From the eleven registered RFEDs in the August list below, there was a gross increase of $5.52 million from seven of the companies and offset by a decrease of $6.31 million from the remaining four which resulted in a net $793K decrease for the combined 11 dealers' total.
And More Than Little Changed
The dollar increases were largely driven by a $2.08 million increase for Gain Capital Group LLC representing a 1.91% increase month-over-month for its retail forex obligations, and Forex Capital Markets LLC with a $1.4 million increase at just under 1 percent growth month-over-month for its forex obligations according to the August figures.
The largest decreases for August in the dollar amount of retail forex obligations was from Interactive Brokers LLC which had a $4.1 million drop representing a 10.79% month-over-month decrease for its retail forex obligations, followed by MB Trading Futures LLC which had $1.29 million less in August over July and represents a 3.3% drop month-over-month for the company, followed by IBFX Inc with an $800K decrease in its retail forex obligations which represents a 1.11% drop since July. The changes for the remaining dealers are highlighted in the diagram below.
The total retail forex obligation values are the total amount of funds at a FCM RFED that would be obtained by combining all money, securities and property deposited by a retail forex customer into a retail forex account or accounts, adjusted for the realized and unrealized net profit or loss. This can be seen below in the August diagram.
Net Capital Ratios in August
With regards to the ratio of excess net capital to net capital requirement, Knight Capital Americas LLC comes in first with 17.48 times excess capital to that of the required amount during August, and followed by Interactive Brokers LLC at 5.68 times, Oanda Corporation at 4.41 times, and Forex Capital Markets LLC at 2.39 times excess capital. The lowest ratio was held by FXDirectDealer LLC at 0.12 times, and the remaining RFEDs were also under a one-to-one ratio (e.g. less than 1.0) except for Gain Capital Group LLC at a ratio of 1.06.
The slight change in August over July data follows the net decrease seen in July over June, when the amount of Retail Forex Obligations held at RFED firms in July had decreased overall, with the exception of Interactive Brokers LLC which had an increase of $9.7 million. That amount partially offset the combined decrease of $15.1 million seen in the remaining 10 firms in July when comparing with June 2013 data.
This was covered by Forex Magnates in greater detail in a previous article last month, where the largest dollar decrease was from Forex Capital Markets LLC which had retail forex funds fall by $5 million in July to $146 million from just above $151 million in June. Also the largest percentage decrease was seen in Alpari(US) LLC which had retail forex obligations decrease to $10.3 million in July representing a 10.53% drop or $1.2 million from $11.5 million in June, as the broker prepared to make a shift in strategy.
Comparison To July Over June Data
Forex Magnates has covered on multiple occasions the consolidation of the retail FX Market in the US, which is attributed mainly to regulatory constraints during a time where other jurisdictions are seeing record growth in retail FX. August numbers having little changed may precede a more positive September if amounts can pick-up.
Apparently, the important driver of the future for the US retail FX industry is the repose of how regulators and those who are regulated adapt to uncertainties that lay ahead, ensuring a conducive environment for end customers to easily participate in the world's most liquid market. This is an obvious, yet incredibly challenging endeavor for both sides as traders watch.
Nomura's Q4 Income Soars 123% on Strong Revenue Growth
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now π https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now π https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
π£ Stay updated with the latest in finance and trading!
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africaβs premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now π https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
π£ Stay updated with the latest in finance and trading!
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africaβs premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now π https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
π£ Stay updated with the latest in finance and trading!
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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