LeapRate Exclusive – US Retail Forex assets make surprise 7% climb in July

Will wonders never cease in the Forex sector.

After seeing a slow and steady decline in the US retail forex sector the past few years – and many in the industry (including us) writing it off as a lost cause – US forex traders made a nice comeback this summer, increasing the amount of their deposits at NFA regulated US brokers during July by more than $41 million, or 7%. Total US retail FX client assets now sit at $632 million – their highest level since early 2013.

US Retail client assets to Jul2014

The one trend staying intact, however, is that the big keep getting (relatively) bigger, with the industry’s ‘Big 3’ – FXCM (NYSE:FXCM), Oanda and Gain Capital’s Forex.com (NYSE:GCAP) – now accounting for 72% for all US retail client assets, and likely a similarly high concentrated market share of trading volume for US retail forex traders.

US Retail client assets Jul2014 long

And we continue to see brokers leaving the heavily and expensively over-regulated market. The #4 broker in the list above, Monex-owned IBFX recently sold out to FXCM. In May we saw FXDD sell its US client base to FXCM for $4.4 million.

So is this a reversal of fortune and the beginning of a new trend in US retail forex? Or, just a blip on a long slow decline of the sector in one of its still-biggest markets? Time will tell…

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