US Retail FX Deposits Grow to $648 Million in November

IG US has been slowly but surely clawing market share from traditional big players.

IG US, the US arm of the UK spread better, and the newest comer to the retail FX industry continues to take a bigger chunk of deposits made by the foreign exchange traders.

2019 was IG US breakout year, but 2020 could be the icing on top of the cake as they still have an ace up their sleeve. The company, which operates as a registered RFED and IB with the Commodities Futures Trading Commission, has racked up $16.26 in customer funds by the end of November 2019, up 23 percent from the previous month. This figure was also five times bigger than the $3.5 million it collected when the company re-launched its operations back in June.

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IG US has been slowly but surely clawing market share from traditional big players, such as TD Ameritrade and Interactive Brokers, with the growth of its slice is readily apparent. However, the broker has a long way to challenge the likes of GAIN Capital and Oanda, which are taking a dominant market share and command more than three-fourths of the US retail space.

Before we go any further, let’s point out that the retail FX market in the United States has grown 15 percent year-to-date, allowing other brokers to improve their metrics as far as fundamentals go.

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Gain Capital was the only loser

Elsewhere, Interactive Brokers clients’ funds grew by $8.4 million, or nearly 12 percent month-over-month. The Connecticut-based company was the worst performer over the last few months after recording an overall drop in FX traders’ deposits by nearly 30 percent, which surpassed $100 million for the first time in June 2019.

Furthermore, retail deposits at TD Ameritrade also rose by nearly $453,000 million in November, while Gain Capital was the worst performer, having lost a similar amount in the same month.

Oanda also increased its retail forex deposits by $2.8 million, or less than two percent compared to the figure of October, which stood at $242 million.

Overall, the CFTC’s latest monthly report shows that balances of US retail traders have skewed slightly higher during the reported period. 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 $648 million in November 2019, which is a mild increase of two percent month-over-month compared with the $634 million reported in October.

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