The new year brought renewed vigor to the financial markets in the USA, with a noticeable upsurge in client deposits among the six largest FX brokers. The Commodity Futures Trading Commission (CFTC) reported that the total value of these deposits exceeded $529 million in January, marking a 2.5% increase from the $516 million recorded in December.
January 2024 witnessed a significant boost in Forex deposits in the USA, with the total value reaching $529,721,236. This represents a substantial increase of over $13 million from the previous month, contrasting the lower deposit levels at the end of the prior year.
Gain Capital retained its position as the broker with the largest client deposits, despite a 1.8% decrease in December. Its deposits stood at $204.9 million, with a notable nominal increase of nearly $4 million.
Trading.com exhibited the most remarkable percentage growth, rising by 6.3%. However, it held the smallest total deposit value at $1.4 million, increasing nominally by just $90,000.
Charles Schwab was the only broker among the major six to report a slight decline in FX deposits, with a 0.7% drop, bringing its client funds down to $60.9 million from $61.3 million in the previous month.
The CFTC requires all Retail Foreign Exchange Dealers (RFEDs) and Futures Commission Merchants (FCMs) to submit monthly reports detailing their financial status. These reports provide crucial information on financial metrics such as adjusted net capital, customer holdings, and total retail forex obligations.
Retail forex obligations represent the total value of assets, including cash and securities, managed by FCMs or RFEDs for their retail forex clients, adjusted for profits and losses.
Among the 62 registered RFEDs and FCMs, only a select group of six, including Charles Schwab, Gain Capital, IG, Interactive Brokers, OANDA, and Trading.com, are involved in activities that necessitate the disclosure of their obligation figures.
As per Finance Magnates’ recent coverage, FCMs are increasingly investing in front-office technology to improve operational resilience and gain a competitive edge in the increasingly competitive and condensed derivatives market.