triples client deposits, OANDA sees $8 million drop

The Commodity Futures Trading Commission (CFTC) has published its anticipated monthly report for June 2022, which covers data for FCMs that are registered as Retail Foreign Exchange Dealers (RFEDs) and those included as broker dealers that hold retail Forex obligations in the United States.

The total assets belong to the U.S. retail forex traders grew only slightly in June, limited by the overall static performance seen throughout 2022. With no major changes recently noted and six reported months remaining in the year, the sector was tracking for a stable finish to the first half. Yet, forex products are still a tough sale in the United States, despite the obvious benefits that a highly regulated environment can offer to traders.

That should come as no surprise, though the prospect of lighter regulations may soon revive interest in the US market among foreign brokers, or at least help brighten the outlook for a retail industry that has struggled for quite some time under the provisions of the Dodd-Frank legislation.

Retail forex deposits in the US have been largely skewed positively during June. The FX funds held at registered brokerages operating in the United States came in at $510 million in June 2022, which is $1.1 million more than the ‎$509 million reported in May.

According to the CFTC dataset, four FX firms notched increases in Retail Forex Obligations including Charles Schwab, Interactive Brokers, IG US and Markets. The best performer for the month was IG US which saw an overall rise of $3.7 million to $6 million at the end of June 2022, or an increase by 14 percent month-over-month.

The newest comer to the US FX industry, Markets, continues to take a bigger chunk of the overall retail funds, but at a very limited scale. The broker has boosted its customer deposits to $540,000 in June, up 232 percent from $162,000 a month earlier.

Other highlights from the CFTC’s monthly report shows that Interactive Brokers LLC (NASDAQ:IBKR) has racked up $836,000 in additional deposits. This stood at $26.3 million in June 2020.

Meanwhile, GAIN Capital’s clients’ funds were down $2.36, or one percent, from a month earlier. Further, retail deposits at OANDA Corporation dropped $8 million in June 2022.

Looking at the market share of different brokers, the overall distribution saw a slight change in June relative to the month prior. GAIN Capital lost 1 percent but remained the leader in terms of market share, commanding a 37.0 percent share. OANDA also solidified its stance as the second largest in the US with 33.0 percent market share – Charles Schwab and IG US retain a 14.0 and 10.0 percent share respectively.

The chart listed below outlines the full list of all FCMs that held Retail Forex Obligations in the month ending on June 30, 2022 – for purposes of comparison, the figures have been included against their May 2022 counterparts to illustrate disparities.