CFTC Forex Dealers Data: GAIN Capital & FXCM Mark Increases in November

GAIN Capital and FXCM have both solidified their leadership positions on the U.S. retail foreign exchange market.

GAIN Capital (NYSE:GCAP) and FXCM Inc (NYSE:FXCM) have enjoyed a positive month in November, as retail client funds deposited with both brokerages ticked up in November. The data publicized by the U.S. Commodity Futures Trading Commission revealed a stagnant market, with both leaders of the pack maintaining their solid positions.

With a limited number of brokers operating in the U.S. market we are seeing more consolidation in the industry every passing year. In May 2014 we saw the exit of FXDD, with MB Trading following this year after the acquisition by GAIN Capital.

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The figures which are published by the CFTC typically lag a month, with the November report being the first that reflects the exit of MB Trading and futures broker RJ O’Brien from the retail forex market.

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Looking at the total deposits which clients held with the brokers, they have remained more or less flat. The total figure increased by about $2.9 million which is a half per cent higher than the number reported at the end of October 2015.

CFTC FCM Data, US Forex Brokers, CFTC, FCM, RFED
FXCM and GAIN Capital were the top gainers in November, Source: U.S. CFTC

FXCM Inc had the biggest gains during the month with total client funds increasing by 3.35 per cent month-on-month. November has also been positive for the second largest holder of funds, GAIN Capital – the company has bettered its position with an increase of almost 2.2 per cent.

Looking at the state of play amongst all major players in the industry, Interactive Brokers (NYSE:IBKR) registered a notable decline in November, shedding almost 17.3 per cent of client funds. This particular brokerage typically registers the biggest change on a monthly basis due to the fairly large clients which it caters to.

FXCM Inc and GAIN Capital remain in the lead, with 33 and 24 per cent of the client deposits in the U.S. respectively, while OANDA is in distant third spot, holding 18 per cent. The race heats up if we look at the fourth spot by market size with Interactive Brokers, IBFX with the TradeStation platform and Canadian Wedbush Securities all showing very similar performances.

FXCM, GAIN Capital, Interactive Brokers, forex dealers
U.S. forex brokers’ market share according to the November 2015 CFTC Report, Source: U.S. CFTC
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