CFTC Data Shows US Retail FX Deposits Shrunk $23M in December

The Commodity Futures Trading Commission (CFTC) has published its anticipated monthly report for December 2020, which covers data for FCMs that are registered as retail foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term dealers (RFEDs) and those included as broker-dealers that hold retail Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term obligations in the United States.

The latest data shows a total negative change month-over-month from November, though differences amongst each broker were more pronounced. With no major changes recently, the sector is tracking for a subsided start to the new year.

Overall, the FX funds held at registered brokerages operating in the United States came in at $559 million in December 2020, which is 4 percent less than the $582 million reported in November.

Only one of the five FX firms listed notched increases in Retail Forex Obligations, this time was IG US, which saw its clients’ assets grow by $324,000, or nearly one percent month-over-month.

The US subsidiary of the London-based spread better continues to take a bigger chunk of the overall retail funds, after racking up $24.8 million in customer deposits in December 2020. This had widened IG US’ market share to 4 percent as the US fifth-largest holder of retail FX funds.

According to the CFTC dataset, four FX firms saw their respective retail forex obligations decline at the end of December 2020.

The worst performer for the month was GAIN Capital which saw an overall fall of $10 million to $220.7 million, compared to $217 million at the end of November, or 5 percent lower month-over-month.

Meanwhile, OANDA Corporation’s client assets fell by $9.6 million, to $190 million, which is down 5 percent over a monthly basis.

In addition, Nebraska-based TD Ameritrade reported a drop over last month’s figure by nearly $1.8 million to $66 million at the end of December 2020, compared with $68 million in the previous month, which is down by 3 percent on a monthly basis.

Furthermore, Interactive Brokers saw an overall fall of $1.7 million to $69.7 million, compared to $71.4 million in the month prior, reflecting a 2 percent decrease month-over-month.