US Retail Forex Deposits Flat in November: CFTC FCMs Data
- There was a broad consolidation for the retail forex industry in November.
Despite the sharp increase in trading activity and trading volumes in November, retail 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 deposits remained flat in the US. The election of Donald Trump that triggered a sharp spike in FX 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 is yet to materially change the fortunes of retail brokerages.
The effects of the Dodd-Frank Act continue to hamper an industry which was once very vibrant in the US. The total amount of retail forex obligations has reached
[gptAdvertisement]$523 million during the month of November. The figure marks a tiny increase of about $3.3 million amounting to a monthly rise of 0.65 percent.
The funds held at different brokerages in the industry didn’t move sharply, except for Interactive Brokers, where the retail forex obligation future declined almost 13 percent. FXCM marked an increase of 1.6 percent, GAIN Capital’s numbers increased by 1.7 percent, while OANDA’s figure remained flat.
TD Ameritrade was the notable exception on the positive side with funds at the brokerage increasing by just over 5 percent.
CFTC FCMs Data for November 2016, Source: US CFTC
Looking at the market share of different brokers, the distribution has remained broadly unchanged. FXCM retained first spot with 34 percent of the market. OANDA and GAIN Capital have remained clinched for second spot. The former is narrowly ahead in this competition with 26 percent of the market, which translates to about $6 million.
TD Ameritrade has increased its market share to 9 percent, which puts the company further ahead of Interactive Brokers with 7 percent.
The final data for 2016 is to be published next month, however no major surprises are expected. This year could bring a major shift in the general direction of the retail forex industry in the US. With Donald Trump promising to change certain aspects for the industry, big banks are the most likely benefactors. Will this translate into better conditions for the retail forex industry? We should know soon enough.
Despite the sharp increase in trading activity and trading volumes in November, retail 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 deposits remained flat in the US. The election of Donald Trump that triggered a sharp spike in FX 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 is yet to materially change the fortunes of retail brokerages.
The effects of the Dodd-Frank Act continue to hamper an industry which was once very vibrant in the US. The total amount of retail forex obligations has reached
[gptAdvertisement]$523 million during the month of November. The figure marks a tiny increase of about $3.3 million amounting to a monthly rise of 0.65 percent.
The funds held at different brokerages in the industry didn’t move sharply, except for Interactive Brokers, where the retail forex obligation future declined almost 13 percent. FXCM marked an increase of 1.6 percent, GAIN Capital’s numbers increased by 1.7 percent, while OANDA’s figure remained flat.
TD Ameritrade was the notable exception on the positive side with funds at the brokerage increasing by just over 5 percent.
CFTC FCMs Data for November 2016, Source: US CFTC
Looking at the market share of different brokers, the distribution has remained broadly unchanged. FXCM retained first spot with 34 percent of the market. OANDA and GAIN Capital have remained clinched for second spot. The former is narrowly ahead in this competition with 26 percent of the market, which translates to about $6 million.
TD Ameritrade has increased its market share to 9 percent, which puts the company further ahead of Interactive Brokers with 7 percent.
The final data for 2016 is to be published next month, however no major surprises are expected. This year could bring a major shift in the general direction of the retail forex industry in the US. With Donald Trump promising to change certain aspects for the industry, big banks are the most likely benefactors. Will this translate into better conditions for the retail forex industry? We should know soon enough.