Market Volatility Pushes US Retail Forex Up 4.3% in November

Financial services firms operating in the US margin derivatives segment have reported their November operating metrics through the CFTC. The emphatic end to a moderate year, with a wave of Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term impacting global financial markets, triggered a rise in the total value of funds held at 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 providers.

The value of funds increased by 4.3% on a month-on-month basis, thus signalling positive sentiment among traders due to the spike in market volatility.

The CFTC authorised that firms report monthly data to the watchdog, a practise that came into place post the 2008 recession. Of the nine broker-dealers, three saw an increase in the value of funds which supported the overall figures. Listed broker, FXCM, saw the largest increase with over twenty million dollars in new client funds, the firm taking over FXDD US in May 2014 business, however, according to October’s figures there were no pending funds awaiting migration, thus indicating that FXCM’s MoM increase was all fresh funds.

Apart from FXCM, only Interactive Brokers and KCG saw figures in the green, with both players mainly dealing with institutional business. The remaining six brokers, with three of them holding pure retail books, saw low value reductions in their monthly client deposits. GAIN Capital saw a 0.52% decline with October figures showing $105,716 million in forex funds dropping by $660,863.

The once thriving US forex broking space has taken a sharp U-turn with only nine participants remaining. In the latest CFTC repro, FXDD was removed as the final integration with FXCM took place. The North American FX market has suffered immensely following the 2008 recession which resulted in new rules taking shape and driving brokers away from the world’s largest economy.