The Retail FX market in the US saw an uptake in the amount of client funds regulated brokerages held for the month of May. According to data compiled by the country’s financial watchdog, the overall amount of client money increased from figures reported for the month of April. The change comes on the back of rapid price movements in major global financial instruments as political tensions in the Middle Eastern region showed signs of exhilarated volatility.

The highlight of the month was the continued contraction in the retail FX market with two more brokers calling it a day, FXDD & ILQ. Although the brokers had reported their departure earlier, the figures were formally represented in May’s financials.

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The number of retail FX providers in the US has shrunk to a mere ten, 50% of the firms reported a drop in retail Forex funds with the remaining half seeing an uptake, overall the brokers’ client funds were up by 0.8% month-on-month, by $4,757,791 with total funds recorded as $599 million. GAIN Capital saw the highest organic rise with over $3 million in new client funds reported.

FXCM’s US domination continued with the acquisition of FXDD’s client data, the firm reported that it acquired FXDD’s client base, a total of $27 million of client funds were migrated with approximately 7,000 traders, thus resulting in an average deposit of $3857.

CFTC May Financials

The US government’s onslaught on OTC instruments has completely altered the operating environment. A number of harsh changes impacting leverage and order types has diminished a once thriving sector. The number of firms is expected to further reduce as capital requirements put pressure on brokers bottom-line. However, after years of doom and gloom for the US retail market, Singapore headquartered, Phillip Futures has reported that it will be joining the small herd of US brokers offering Spot FX, after gaining authorization from the CFTC the broker reported that it will commence operations in the latter stages of 2014.