CFTC Data Shows US Retail FX Deposits Shrunk $23M in December

CFTC Data Shows US Retail FX Deposits Shrunk $23M in December

February 3, 2021

The Commodity Futures Trading Commission (CFTC) has published its anticipated monthly report for December 2020, which covers data for FCMs that are registered as retail foreign exchange dealers (RFEDs) and those included as broker-dealers that hold retail forex obligations in the United States.

The latest data shows a total negative change month-over-month from November, though differences amongst each broker were more pronounced. With no major changes recently, the sector is tracking for a subsided start to the new year.

Overall, the FX funds held at registered brokerages operating in the United States came in at $559 million in December 2020, which is 4 percent less than the $582 million reported in November.

Only one of the five FX firms listed notched increases in Retail Forex Obligations, this time was IG US, which saw its clients’ assets grow by $324,000, or nearly one percent month-over-month.

The US subsidiary of the London-based spread better continues to take a bigger chunk of the overall retail funds, after racking up $24.8 in customer deposits in December 2020. This had widened IG US’ market share to 4 percent as the US fifth largest holder of retail FX funds.

According to the CFTC dataset, four FX firms saw their respective retail forex obligations decline at the end of December 2020.

The worst performer for the month was GAIN Capital which saw an overall fall of $10 million to $220.7 million, compared to $217 million at the end of November, or 5 percent lower month-over-month.

Meanwhile, OANDA Corporation’s client assets fell by $9.6 million, to $190 million, down 5 percent over a monthly basis.

In addition, Nebraska-based TD Ameritrade reported a drop over last month’s figure by nearly $1.8 million to $66 million at the end of December 2020, compared with $68 million in the previous month, down by 3 percent on a monthly basis.

Interactive Brokers also saw an overall fall of $1.7 million to $69.7 million, compared to $71.4 million in the month prior, reflecting a 2 percent decrease month-over-month.

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