CFTC Posts January FCM Financials
The CFTC has posted financial figures for FCMs. During January, overall retail forex funds grew to $657 million from $641
The CFTC has posted financial figures for FCMs. During January, overall retail forex funds grew to $657 million from $641 million. Despite the increase in overall client funds, among retail focused firms, only Interactive Brokers and FXCM experienced a rise in forex customer funds. The decline in customer holdings may have been the result of volatile trading during January which may have caught traders by surprise or simply the weaker firms continuing to struggle in the US market.
Among the notable noves, net forex funds rose nearly 40% at InteractiveBrokers from $34.4 million to $47.8 million. With a large base of multi-asset traders, IB’s forex division could be benefiting from clients moving funds to the product as trading have become more active this year. Also, customer funds at Alpari were weak and fell 15% to just above $13 million. The seemingly real lack of interest among US traders for Alpari’s offering appears to be the reason the broker announced that it was launching trading schools in the country.
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How does IB distinguish FX funds from the others? There is only a ‘universal account’ with access to all asset classes. Seems a bit arbitrary. When you trade foreign equities (which involves FX transactions) does that count too?
Good question – will work on getting an answer
I could be wrong, but I recall hearing they do have separate accounts in the back office and just do some accounting magic to make it appear as one account to the user. Part of why SPIC protection only kicks in when you trade ‘mostly’ stock, (vs futures, which typically aren’t SPIC protected with futures brokers) since your capital is in the ‘equity’ account in the back end that’s covered. That being said, I heard this from someone else, and while it makes logical sense, I have no idea if it’s the case. It would be awesome if you guys… Read more »
Can you explain the Alpari numbers. 13 mio in retail funds and 26+ mio in adjusted net capital?
What is complicated about that RTisa? They have $13 mil in deposits from clients in their U.S. entity and they have a bank account with $26 mil in it to show the NFA and meet their requirements.