Breaking: US Retail Forex Industry Weathers FXCM Storm, Deposits Flat MoM

The single drop was held by IB which saw a MoM loss of $2,951,690, falling -8.0 percent.

The Commodity Futures Trading Commission (CFTC) has released its monthly composite of key figures and data for Futures Commission Merchants (FCMs), this time for the month ending in February 2017.

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The statistics show a variety of findings, notably after the US biggest Forex broker, FXCM, has been shut down by regulators, and permanently banned from future membership, including the firm itself and several officers, including its founder Drew Niv.

According to the CFTC dataset, three of the four FX firms listed notched increases in Retail Forex Obligations. However, the FXCM’s exit entailed an overall drop to $507,370,302 at the end of February 2017, compared to $532,415,005 at the end of January 2017, or a decrease by -4.7 percent MoM.

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By transferring its business to another US regulated entity, it appears that most of FXCM accounts were housed at Gain Capital and a few have either moved funds to other jurisdictions or exited the market.

Out of the four reporting FCMs that hold Retail Forex Obligations, three of them GAIN CAPITAL, OANDA Corporation and TD AMERITRADE reported higher figures in February. The largest single increase was definitely made by GAIN CAPITAL, which saw a meteoric surge of $144,521,178, or more than 113.0 percent MoM.

Conversely, Interactive Brokers yielded a decline MoM in Retail Forex Obligations. The company held the single drop after saw a MoM loss of $2,951,690, falling -8.0 percent compared to January’s metrics.

The report covers data for FCMs that are registered as Retail Foreign Exchange Dealers (RFEDs) and those also included as broker dealers that hold retail forex obligations in the United States.

The chart listed below outlines the full list of all FCMs that held Retail Forex Obligations in the month ending in February 28, 2017 – for purposes of comparison, the figures have been included against their January 2017 counterparts to illustrate any disparities.

Total Amount of Retail Forex Obligation for FEB 2017, Source: CFTC


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