US retail
foreign exchange (FX) dealers reported a collective decline in customer
deposits for December 2024, with most major brokers seeing outflows while Interactive
Brokers emerged as a bright spot in the sector.
US Retail FX Deposits Fall
3.7% as Major Brokers See December Outflows
Total
customer assets held by US forex brokers fell 3.7% to $491.3 billion in
December from
$509.7 billion in November. The decline marks a 5% drop compared to
December 2023 levels, highlighting ongoing challenges in the retail trading
sector.
GAIN
Capital, the largest US retail FX broker by customer deposits, saw its assets
decrease by 3.4% month-over-month to $197.9 billion. OANDA, another major
player, experienced a 5.3% decline to $161.8 billion in customer funds.
Charles
Schwab’s forex division recorded the steepest monthly decline among major
brokers, with customer deposits falling 8% to $59.7 billion. IG US continued
its challenging year with a 6.8% monthly drop to $40.1 billion, representing
a substantial 36% year-over-year decline.
Interactive Brokers FX Deposits Rise 14% Counter
to Trend
Interactive
Brokers showed resilience with a 14.1% monthly increase in customer deposits to
$29.8 billion. However, this still represents a 4% decrease from the previous
year. In December, Interactive Brokers also held $7.9 billion in client assets
in segregated accounts.
Trading.com
emerged as the standout performer, growing its customer deposits by 9.2% to
$2.1 billion in December. The broker has also demonstrated remarkable growth
throughout 2024, with deposits up 39% year-over-year.
This does
not change the fact that it is the smallest entity on the list of all those
required to report the above data, accounting for only a small percentage of
the nearly $500 million in total deposits.
US Forex Broker
Financial Reporting
Every
month, forex brokers in the United States must share their financial details
with the Commodity Futures Trading Commission (CFTC). This process affects all
62 registered companies, including well-known names like Charles Schwab, OANDA,
and Interactive Brokers.
These
monthly reports paint a clear picture of each broker’s financial health by
showing three main things: how much capital they have available, how much
client money they’re managing, and what their current forex trading obligations
are. For example, if a broker is holding $10 million in client funds and their
clients have made $500,000 in profits, both amounts must be reported.
The goal is
straightforward – these reports help everyone understand exactly how
financially stable these brokers are, making the entire forex trading industry
more transparent and trustworthy. Think of it as a regular financial check-up
that ensures these companies are healthy enough to handle their clients’
investments.
US retail
foreign exchange (FX) dealers reported a collective decline in customer
deposits for December 2024, with most major brokers seeing outflows while Interactive
Brokers emerged as a bright spot in the sector.
US Retail FX Deposits Fall
3.7% as Major Brokers See December Outflows
Total
customer assets held by US forex brokers fell 3.7% to $491.3 billion in
December from
$509.7 billion in November. The decline marks a 5% drop compared to
December 2023 levels, highlighting ongoing challenges in the retail trading
sector.
GAIN
Capital, the largest US retail FX broker by customer deposits, saw its assets
decrease by 3.4% month-over-month to $197.9 billion. OANDA, another major
player, experienced a 5.3% decline to $161.8 billion in customer funds.
Charles
Schwab’s forex division recorded the steepest monthly decline among major
brokers, with customer deposits falling 8% to $59.7 billion. IG US continued
its challenging year with a 6.8% monthly drop to $40.1 billion, representing
a substantial 36% year-over-year decline.
Interactive Brokers FX Deposits Rise 14% Counter
to Trend
Interactive
Brokers showed resilience with a 14.1% monthly increase in customer deposits to
$29.8 billion. However, this still represents a 4% decrease from the previous
year. In December, Interactive Brokers also held $7.9 billion in client assets
in segregated accounts.
Trading.com
emerged as the standout performer, growing its customer deposits by 9.2% to
$2.1 billion in December. The broker has also demonstrated remarkable growth
throughout 2024, with deposits up 39% year-over-year.
This does
not change the fact that it is the smallest entity on the list of all those
required to report the above data, accounting for only a small percentage of
the nearly $500 million in total deposits.
US Forex Broker
Financial Reporting
Every
month, forex brokers in the United States must share their financial details
with the Commodity Futures Trading Commission (CFTC). This process affects all
62 registered companies, including well-known names like Charles Schwab, OANDA,
and Interactive Brokers.
These
monthly reports paint a clear picture of each broker’s financial health by
showing three main things: how much capital they have available, how much
client money they’re managing, and what their current forex trading obligations
are. For example, if a broker is holding $10 million in client funds and their
clients have made $500,000 in profits, both amounts must be reported.
The goal is
straightforward – these reports help everyone understand exactly how
financially stable these brokers are, making the entire forex trading industry
more transparent and trustworthy. Think of it as a regular financial check-up
that ensures these companies are healthy enough to handle their clients’
investments.
This post is originally published on FINANCEMAGNATES.
