Interactive Brokers Loses 30% of Retail FX Funds in Four Months

IB’s retail FX deposits went down to $70 million after the figure hit its yearly peak at $103 million mark

Data from the US securities regulator for October shows that Interactive Brokers has lost more than $5 million in retail forex deposits. After consecutive drops in its market share, Connecticut-based company was again the worst performer over the last few months after recording an overall drop of nearly 30 percent. IB’s retail FX deposits went down to $70 million after the figure hit its yearly peak at $103 million mark in June 2019.

Overall, the latest data shows a total marginal change month-over-month from September, and even differences amongst each broker were not pronounced.

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According to the agency, the FX funds held at registered brokerages operating in the United States, including FCMs that are registered as Retail Foreign Exchange Dealers (RFEDs) and those included as broker-dealers, came in at $634 million in October 2019, which is a marginal increase of two percent month-over-month compared with the $624.4 million reported in September 2019.

Three brokers notched increases in Retail Funds

Meanwhile, GAIN Capital’s clients’ funds grew by $3.9 million, or nearly two percent month-over-month. Further, retail deposits at OANDA also rose by nearly $10.3 million in October 2019, while IG US added $694,000 in the same month.

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Looking at the market share of different brokers, the distribution slightly changed in October relative to the month prior. GAIN Capital, the largest FX broker in the United States, remained the leader in terms of market share, commanding a 39 percent share, unchanged from the prior month but lower from 46 percent in the 2018 ranking.

OANDA also maintained its stance as the second largest in the US with 38 percent market share, up one percent over last month. Interactive Brokers and TD Ameritrade retained an 11 and ten percent share, respectively.

The chart listed below outlines the full list of all FCMs that held Retail Forex Obligations in the month ending on October 31, 2019 – for purposes of comparison, the figures have been included against their September 2019 counterparts to illustrate disparities.

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