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Screenshot of a breaking news alert e-mail from Q2 2017
CFTC monthly November data show a further 4% decline in client assets held by US forex brokers.
(Over-) regulation continues to take its toll in the US retail FX business. CFTC’s just-released November data showed continued erosion of assets held by US retail FX traders at their brokers. This wasn’t a case of clients migrating from one broker to another. Virtually all US retail FX brokers lost client funds in November in the 3%-7% range, save for tiny RJ O’Brien, as shown in the chart below.
At about $608 million, US retail FX client assets are now down 7% from where they were at the beginning of the year, and 18% from start of 2012 levels. And this in a year where globally the forex industry had a very nice comeback in trading volumes — our Retail FX Volume Index shows that global volumes in 2013 were more than 20% above 2012.
2013 has also seen a decline in choice facing US traders, with two known brokers — FX Solutions and Alpari US — withdrawing from the US market. FXCM acquired Alpari’s US clients, while Gain Capital picked up FX Solutions’ US business, the US arm of UK spreadbetting firm City Index.