US Retail Forex client assets hit multi-year low in December 2014 at $551 million

CFTC data on US retail forex client assets is now out for December 2014, and it shows a marked drop in  activity among US forex traders.

Overall, US retail forex client assets fell 13% in December to $550.6 million from November’s $630.5 million. Part of the decline was the removal of KCG from the list, with its client assets now redefined as institutional. However December still saw a marked natural decline, primarily at FXCM Inc (NYSE:FXCM), which reported a 12% drop in US client assets.

US Forex assets Dec2014

On our industry-concentration watch, the Top-3 of FXCM, OANDA and Gain Capital Holdings Inc (NYSE:GCAP) moved even further to an all-time high of 80.1%, up from about 75% over most of the previous year. US traders continue to be over-regulated and have less and less choice each day.

US Forex assets graph Dec2014

It will be very interesting to see next month’s data and how the events of January 15 – which sent the entire global forex industry into temporary chaos after a spike in the value of the Swiss Franc – affected the accounts of US retail forex traders. Stay tuned to LeapRate.

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