The Commodity Futures Trading Commission (CFTC) has released its May 2023 monthly report that provides insight into the US retail foreign exchange market. This report covers data for retail foreign exchange dealers (RFEDs) registered in the United States and broker-dealers holding retail foreign exchange deposits.
In May, U.S. retail forex trader total wealth registered modest gains, reflecting the overall static performance seen throughout 2023. Despite operating within a highly regulated environment, forex products continue to face challenges to widespread adoption in the United States.
However, some hope that deregulation could revitalize foreign brokers’ interest in the U.S. market and improve prospects for the retail industry, which has been challenged by the provisions of the Dodd-Frank Act. be.
Specifically, US retail foreign exchange deposits showed positive momentum in May. Total foreign exchange funds held by registered brokers reached $528 million, an increase of $14 million from $514 million in the previous month.
According to CFTC’s dataset, four FX firms – IG US, GAIN Capital, Interactive Brokers (IBKR) and OANDA – experienced an increase in retail foreign exchange debt. Among them, IG US reported the biggest increase in customer deposits, reaching $11.9 million by the end of May 2023, up 13% month-on-month.
The U.S. business, which boasts Europe’s widest spreads, overtook Charles Schwab to become the third-largest holder of retail FX funds. This has only happened a few times at Interactive Brokers as the two companies have battled for supremacy.
While OANDA Corporation and GAIN Capital private customer deposits grew only modestly, Interactive Brokers grew 7% to reach $33 million in May 2023. By contrast, Trading.com Markets, his newest player in the FX industry in the US, said his retail debt increased by 16%, making him over $1 million for the first time.
Forex brand XM’s US division provides retail forex services to US traders in a highly regulated environment that keeps other providers out of the market. He was in January 2019 when Trading.com first applied for a Forex broker license in the US.
Further findings in the CFTC report show that Charles Schwab’s client funds fell by $1.25 million, down 2% from the previous month.
In terms of market share, GAIN Capital maintained its leadership position with 33% market share, followed by OANDA with 30% market share. IG US and Charles Schwab held 13% and 12% respectively.
The chart provided details all FCMs with retail foreign exchange obligations in May 2023 compared to their corresponding FCMs in April 2023, providing a comprehensive overview of the observed disparities. offers.