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Forex Deposits in the US Hold Steady at Multi-Month Highs

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After four
months of uninterrupted growth, retail investor Forex deposits in the US
experienced a modest correction but still remained at multi-month highs.
According to the latest data from the Commodity Futures Trading Commission
(CFTC) for April 2024, the total value of client deposits was over $547
million, dropping by $1.6 million compared to the previous month.

The exact
value of Forex deposits in the US in April 2024 amounted to $547,759,474,
shrinking by 0.3% from
$549,389,183 in March
. However, this does not change the fact that values
still remain at the highest levels in over a year, and the marginal correction
follows four months of continuous growth, maintaining a good streak.

Thus, it
can be considered that deposits have been increasing in value since September
2023, when they hit a
local low of around $516 million
.

Consistently,
as in previous months, Gain Capital led the tally with total deposits of $204.4
million, although it dropped nearly 2% compared to April. OANDA, ranking
second, also recorded a loss of 0.9%, with its reported total forex retail
obligations falling to $182.4 million.

Interactive
Brokers, however, noted the highest percentage and nominal increase. Its FX
deposits grew by $3.7 million (11.4%) from $32.2 million reported in March to
$35.8 million reported in April 2024.

CFTC Regulatory Reporting Requirements

CFTC
requires that Retail Foreign Exchange Dealers (RFEDs) and Futures Commission
Merchants (FCMs) submit monthly financial status reports. These reports must
include essential financial metrics such as adjusted net capital, client
assets, and total retail forex commitments. Retail forex commitments encompass
all assets held by FCMs or RFEDs for their clients, adjusted for any gains or
losses.

Among the
62 registered RFEDs and FCMs, well-known entities like Charles Schwab, Gain
Capital, IG, Interactive Brokers, OANDA, and Trading.com are obligated to
publicly disclose their financial commitments.

According
to a recent report by Finance Magnates, FCMs are investing
heavily in front-end technologies
to enhance operational efficiencies and
remain competitive in the fiercely competitive derivatives market.

After four
months of uninterrupted growth, retail investor Forex deposits in the US
experienced a modest correction but still remained at multi-month highs.
According to the latest data from the Commodity Futures Trading Commission
(CFTC) for April 2024, the total value of client deposits was over $547
million, dropping by $1.6 million compared to the previous month.

The exact
value of Forex deposits in the US in April 2024 amounted to $547,759,474,
shrinking by 0.3% from
$549,389,183 in March
. However, this does not change the fact that values
still remain at the highest levels in over a year, and the marginal correction
follows four months of continuous growth, maintaining a good streak.

Thus, it
can be considered that deposits have been increasing in value since September
2023, when they hit a
local low of around $516 million
.

Consistently,
as in previous months, Gain Capital led the tally with total deposits of $204.4
million, although it dropped nearly 2% compared to April. OANDA, ranking
second, also recorded a loss of 0.9%, with its reported total forex retail
obligations falling to $182.4 million.

Interactive
Brokers, however, noted the highest percentage and nominal increase. Its FX
deposits grew by $3.7 million (11.4%) from $32.2 million reported in March to
$35.8 million reported in April 2024.

CFTC Regulatory Reporting Requirements

CFTC
requires that Retail Foreign Exchange Dealers (RFEDs) and Futures Commission
Merchants (FCMs) submit monthly financial status reports. These reports must
include essential financial metrics such as adjusted net capital, client
assets, and total retail forex commitments. Retail forex commitments encompass
all assets held by FCMs or RFEDs for their clients, adjusted for any gains or
losses.

Among the
62 registered RFEDs and FCMs, well-known entities like Charles Schwab, Gain
Capital, IG, Interactive Brokers, OANDA, and Trading.com are obligated to
publicly disclose their financial commitments.

According
to a recent report by Finance Magnates, FCMs are investing
heavily in front-end technologies
to enhance operational efficiencies and
remain competitive in the fiercely competitive derivatives market.



Read More: Forex Deposits in the US Hold Steady at Multi-Month Highs

2024-06-20 13:41:42

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