CFTC Data Shows Slight Increase in US Retail FX Deposits for September 2017

The US retail FX industry has maintained a tight consolidation in September, skewed slightly positive on better volatility.

The Commodity Futures Trading Commission (CFTC) has published its anticipated monthly report for September 2017, which covers data for FCMs that are registered as Retail Foreign Exchange Dealers (RFEDs) and those included as broker dealers that hold retail forex obligations in the United States.

The latest data shows a total positive change month-over-month from August, though differences amongst each broker were more pronounced. With no major changes recently noted and only three months remaining in the year, the sector is tracking for a stable finish to 2017. However, the prospect of lighter regulations may soon revive interest in the US market among foreign brokers, or at least help brighten the outlook for a retail industry that has struggled for quite some time under the provisions of the Dodd-Frank legislation.

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Retail forex deposits in the US have been largely skewed positively during September. The FX funds held at registered brokerages operating in the United States came in at $531.9 million in September 2017, which is 2 percent more than the $521 million reported in August.

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According to the CFTC dataset, three of the four FX firms listed notched increases in Retail Forex Obligations including GAIN Capital, OANDA Corporation and TD AMERITRADE. The best performer for the month was GAIN Capital which saw an overall rise of $7.0 million to $261.1 million at the end of September 2017, compared to $254 million at the end of August, or an increase by 3 percent month-over-month.

Meanwhile, the single loss was made for the second consecutive month by Interactive Brokers, which saw a drop of $247,000, or nearly -1 percent month-over-month. Interactive Brokers was the notable exception in the July, as the broker dealer saw substantial growth month-over-month across its Retail Forex Obligations. The company notched an increase over June’s figure by $5.23 million, gaining 13.0 percent.

Looking at the market share of different brokers, distribution remained unchanged in September relative to the month prior. GAIN Capital remained the leader in terms of market share, commanding a 49.0 percent share. OANDA also solidified its stance as the second largest in the US with 32.0 percent market share – TD Ameritrade and Interactive Brokers retain a 11.0 and 7.0 percent share respectively.

The chart listed below outlines the full list of all FCMs that held Retail Forex Obligations in the month ending in September 30, 2017 – for purposes of comparison, the figures have been included against their August 2017 counterparts to illustrate disparities.

Source: CFTC
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