U.S. retail forex trading volumes fell 3.6% in November 2024
compared to October, with IG US recording the sharpest monthly decline among
major brokers, according to the latest report from the Commodity Futures
Trading Commission (CFTC).
IG US Leads Market Downturn in Latest U.S. Forex Deposit Report
Total retail forex trading volume across six major U.S.
brokers dropped to $509.7 billion in November from $527.8 billion in October.
The decline was primarily driven by IG US, which saw volumes plunge 28.6%
month-over-month to $42.8 billion.
Interactive Brokers also posted weaker numbers, with volumes
falling 7.2% to $25.6 billion in November. OANDA, one of the largest retail
forex providers, experienced a 2.2% decline to $170.4 billion.
Market Leaders Hold Steady
Charles Schwab and GAIN Capital, two of the biggest players
in the retail forex space, showed resilience amid the broader market decline.
GAIN Capital’s volumes remained virtually unchanged at $204.6 billion, while
Charles Schwab saw a minor 0.5% dip to $64.4 billion.
Trading.com emerged as the only broker posting growth, with
volumes increasing 4.7% to $1.9 billion, though it remains the smallest player
among the tracked brokers.
The November figures also highlight significant
year-over-year changes in market dynamics. IG US and Interactive Brokers showed
the most substantial annual declines, down 33% and 27% respectively from
November 2023. Meanwhile, Trading.com demonstrated strong annual growth of 30%,
albeit from a smaller base.
Financial Reporting Obligations for U.S. Forex Brokers
The CFTC regulates the financial reporting practices of
Forex brokers operating in the United States. As part of its oversight, the
agency requires Retail Foreign Exchange Dealers (RFEDs) and Futures Commission
Merchants (FCMs) to submit detailed financial reports each month.
These reports must include key financial data such as
adjusted net capital, customer assets, and retail forex obligations. Retail
forex obligations represent the total client assets managed by RFEDs or FCMs,
including any gains or losses realized by customers. This reporting mandate
applies to all 62 registered RFEDs and FCMs in the U.S., which include major
firms like Charles Schwab, Gain Capital, IG, Interactive Brokers, OANDA, and
Trading.com.
The CFTC’s reporting requirements are designed to improve
industry transparency and provide the public with a clearer understanding of
the financial stability of these institutions.
This article was written by Damian Chmiel at www.financemagnates.com.
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