Despite a
notable dollar rebound in October from 18-month lows, US investors remained
hesitant to invest. This is evident from the latest retail trader deposits
data, which remained at yearly lows during the reported period, showing only a
modest increase of $1 million compared to September’s figures.

US FX Deposits Hit Lowest
Since December 2023

The latest
report from the Commodity Futures Trading Commission (CFTC ) for October 2024
shows that total FX deposits in the US reached $527.8 million, rising just 0.2%
from $526.7 million reported the previous month.

For another
consecutive month, retail FX deposits in the US remain at yearly lows and their
lowest levels since December 2023, when the same metric stood at just $516.2
million.

It’s worth
noting that this data is reported with a delay and covers October, when the
dollar was bouncing from six-month lows and recovering after three straight
months of decline. Apparently, this wasn’t a compelling enough story for
investors to increase their trading activity.

The decline
in activity during that month was also reflected in the average daily volume
(ADV) of spot currency trading on the Cboe exchange. This metric reached $42.8
billion, compared to $46.87 billion in September. However, October had two more
trading days (23 vs 21). As a result, the total volume was slightly higher at
$984.9 billion, though these are the lowest values since June, significantly
below August’s near-record level of $1.1 trillion.

IG US Shows Strongest
Growth

October’s
statistics could have been worse than September’s if not for a significant
increase in deposits at IG US, which grew by over 8% or $4.2 million to reach
$55 million, bouncing from year-long lows.

Gain
Capital remains the largest player in this ranking, controlling deposits worth
$204.7 million, though these remained virtually unchanged month-over-month.

US Forex Broker Financial
Disclosure Requirements

The United
States regulatory framework for Forex brokers emphasizes financial transparency
through mandatory reporting. The Commodity Futures Trading Commission (CFTC)
requires Futures Commission Merchants (FCMs) and Retail Foreign Exchange
Dealers (RFEDs) to submit detailed financial statements monthly.

These
reports must include:

• Current
  adjusted net capital
• Total
  customer funds held
• Retail
  forex obligations

Retail
forex obligations encompass the aggregate assets managed by FCMs or RFEDs for
their clientele, including any gains or losses. This regulation applies to all
62 registered entities in the US, encompassing well-known names in the industry,
covering firms like Charles Schwab, Gain Capital, IG, Interactive Brokers,
OANDA, and Trading.com.

Recently,
FCMs have been observed making
investments in advanced front-end technologies.