US regulated broker dealers have provided crucial data relating to net capital and net deposits for the month of May. April 2012 was a disaster as volumes had steep drops due to Easter Holiday and overall negative market sentiment.

Overall FCM's have had an increase in Net Capital thus giving investors confidence in the firms ability to maintain capital adequacy. On the other hand total retail deposits have declined thus confirming the overall trend in a slowdown in volumes.

In relation to net deposits Penson have had a drop in over $9 million of funds, Gain Capital and FXCM suffering a decline of $4 million compared to previous month.

All attention is diverted to PFG, a large broker dealer who filed bankruptcy this week after a major accounting back hole was found.

The data would suggest the firm is financially healthy with net capital slightly increased over April and only a small decline in client deposits.

Post Lehman, OTC markets have faced much scrutiny and the new Dodd Frank rulings, change in US Leverage laws and the need for greater transparency should have strengthened the US's position as a leading financial centre for OTC markets. However the break up of 'another' major broker dealer highlights the many risk factors still affecting the OTC market.

Investors will again ask the same question, where are my funds safe?

Data extracted from CFTC website. Forex Magnates carries out extensive research analsyis in FX brokers monthly trade volumes, these can be found exclusively in our quarterly reports.

Broker Adjusted Net Capital Total Amount of Retail Forex Obligation
Apr May Change Apr May Change
ADVANCED MARKETS 20,388,886 20,410,329 21,443 747,614 701,084 -46,530
ALPARI (US) 21,059,569 27,932,207 6,872,638 12,744,095 15,302,208 2,558,113
FXCM 37,300,522 42,731,671 5,431,149 152,763,756 147,791,624 -4,972,132
FOREX CLUB 22,049,314 23,076,201 1,026,887 3,260,876 3,349,961 89,085
FX SOLUTIONS 26,479,415 26,327,006 -152,409 17,835,963 17,463,768 -372,195
FXDD 23,640,224 24,931,286 1,291,062 39,743,498 40,146,634 403,136
GAIN CAPITAL 49,636,362 41,154,509 -8,481,853 104,134,362 100,130,419 -4,003,943
GFT 69,468,438 63,862,026 -5,606,412 87,147,164 85,228,372 -1,918,792
IBFX, INC 25,173,900 26,250,081 1,076,181 69,133,804 70,209,562 1,075,758
ILQ 21,385,148 21,918,038 532,890 12,445,037 14,431,077 1,986,040
MB Trading 23,730,634 23,358,991 -371,643 33,339,357 32,931,920 -407,437
OANDA 131,948,887 153,489,312 21,540,425 190,370,147 196,733,340 6,363,193
PENSON 117,321,179 100,672,571 -16,648,608 32,313,315 23,179,482 -9,133,833
PFG 30,703,127 31,256,900 553,773 33,387,563 32,739,674 -647,889
RJ OBRIEN 184,629,930 194,786,928 10,156,998 2,058,324 1,984,070 -74,254
XPRESSTRADE 22,987,039 22,986,326 -713 962,423 1,034,923 72,500
Totals 827,902,574 845,144,382 17,241,808 792,387,298 783,358,118 -9,029,180

US regulated broker dealers have provided crucial data relating to net capital and net deposits for the month of May. April 2012 was a disaster as volumes had steep drops due to Easter Holiday and overall negative market sentiment.

Overall FCM's have had an increase in Net Capital thus giving investors confidence in the firms ability to maintain capital adequacy. On the other hand total retail deposits have declined thus confirming the overall trend in a slowdown in volumes.

In relation to net deposits Penson have had a drop in over $9 million of funds, Gain Capital and FXCM suffering a decline of $4 million compared to previous month.

All attention is diverted to PFG, a large broker dealer who filed bankruptcy this week after a major accounting back hole was found.

The data would suggest the firm is financially healthy with net capital slightly increased over April and only a small decline in client deposits.

Post Lehman, OTC markets have faced much scrutiny and the new Dodd Frank rulings, change in US Leverage laws and the need for greater transparency should have strengthened the US's position as a leading financial centre for OTC markets. However the break up of 'another' major broker dealer highlights the many risk factors still affecting the OTC market.

Investors will again ask the same question, where are my funds safe?

Data extracted from CFTC website. Forex Magnates carries out extensive research analsyis in FX brokers monthly trade volumes, these can be found exclusively in our quarterly reports.

Broker Adjusted Net Capital Total Amount of Retail Forex Obligation
Apr May Change Apr May Change
ADVANCED MARKETS 20,388,886 20,410,329 21,443 747,614 701,084 -46,530
ALPARI (US) 21,059,569 27,932,207 6,872,638 12,744,095 15,302,208 2,558,113
FXCM 37,300,522 42,731,671 5,431,149 152,763,756 147,791,624 -4,972,132
FOREX CLUB 22,049,314 23,076,201 1,026,887 3,260,876 3,349,961 89,085
FX SOLUTIONS 26,479,415 26,327,006 -152,409 17,835,963 17,463,768 -372,195
FXDD 23,640,224 24,931,286 1,291,062 39,743,498 40,146,634 403,136
GAIN CAPITAL 49,636,362 41,154,509 -8,481,853 104,134,362 100,130,419 -4,003,943
GFT 69,468,438 63,862,026 -5,606,412 87,147,164 85,228,372 -1,918,792
IBFX, INC 25,173,900 26,250,081 1,076,181 69,133,804 70,209,562 1,075,758
ILQ 21,385,148 21,918,038 532,890 12,445,037 14,431,077 1,986,040
MB Trading 23,730,634 23,358,991 -371,643 33,339,357 32,931,920 -407,437
OANDA 131,948,887 153,489,312 21,540,425 190,370,147 196,733,340 6,363,193
PENSON 117,321,179 100,672,571 -16,648,608 32,313,315 23,179,482 -9,133,833
PFG 30,703,127 31,256,900 553,773 33,387,563 32,739,674 -647,889
RJ OBRIEN 184,629,930 194,786,928 10,156,998 2,058,324 1,984,070 -74,254
XPRESSTRADE 22,987,039 22,986,326 -713 962,423 1,034,923 72,500
Totals 827,902,574 845,144,382 17,241,808 792,387,298 783,358,118 -9,029,180