US Retail Forex assets drop 2% in June as industry consolidates

CFTC data from US retail forex brokers is out for June, showing a drop across-the-board besides a slight tick up from TD Ameritrade. Moreover, this report completes the removal of Phillips Capital from the USA FCM list, as their NFA/CFTC Retail FX license became null after a ruling stating companies holding dual licenses as Broker-dealers and FCMs cannot service FX traders.

Overall, forex assets dipped  2% to $505.7 million in June from $516.2 million in May… these last two months hitting over $500 consecutively after April saw the industry total fall below $500 million for the first time in several years. The year-over-year comparison shows June 2015’s $561 million in assets were 9.9% higher over this year.

Each of the largest retail forex brokers in the US – FXCM Inc (NYSE:FXCM), Gain Capital Holdings Inc (NYSE:GCAP) and its brand, and Oanda remain in firm control of market share within the U.S with Interactive Brokers catering to a higher net worth clientele used to trading multiple assets, but firmly carving out their niche.

As noted in the previous report, the top three providers of retail forex trading in the US market now account for 86% of the industry total – meaning that US retail forex traders have less choice than traders almost anywhere else. Heavy handed government regulations meant to protect US traders have apparently had the opposite effect, with the lack of competition clearly hurting US traders.

It might be some time before we get a new entrant into the market, but it would be tremendously welcome to those stateside.

US retail forex client assets, and the comparison to May 2016, break down as follows:



GAIN Capital keeps a slight lead for the #2 spot over OANDA. OANDA had got a boost in client assets during the last couple months after absorbing TradeStation Forex accounts.

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