US Forex Brokers Report Mixed Results in March

According to the CFTC, retail forex brokers in the United States saw both good and not-so-good results in March. Deposits from customers were $530.1 million, which was a small 0.6% rise from February. But the total was still 3.6% below where it was last year, showing that the industry is still going through a tough time.

Charles Schwab led the way among the major brokers in March. The company said its forex deposits increased by 3.6% to $63.2 million compared to February. Schwab added that its steady growth came from strong client activity and trust in the platform.

Volatility Plays A Major Role In Trading Activity

IG US reported the largest year-over-year drop among the six major brokers, the company said. Deposits fell by 37.2% from March last year. Oanda also saw a steep 14.0% decline over the same period. These numbers highlight how some firms are struggling more than others as the market shifts.

Volatility increased sharply in March, according to reports. Short-term price swings nearly doubled at their peak, compared to levels seen later in the month. Cboe said such rapid changes in the market often pull in more active traders, but can also push away cautious ones. The result was a mix of high engagement and sudden exits.

Despite the small monthly gain, the long-term trend still points downward for retail forex in the United States. The CFTC said compared to March last year, total deposits are down 3.6%. This drop reflects growing interest in other markets like cryptocurrency, along with new rules and competition.

Retail Brokers In The U.S. Share Results For March

The U.S. dollar reached its lowest level in three years during March, which changed the forex market. Experts said the Dollar Index (DXY), which checks the dollar against other important currencies, fell by more than 3% during the month. This drop was likely caused by worries about U.S. trade rules and the economy.

According to the update, Interactive Brokers reported the highest growth in March. The firm said its loyal users completed 10.8% more deposits than in February, from $28.6 million to $32.1 million.

Interactive Brokers said this impressive record came from focusing on bringing in more traders who love taking advantage of market changes. The company also improved its trading platform.

Gain Capital, the largest U.S. retail forex broker, also posted a slight gain in deposits. The firm shared that its customer deposits increased to $226.6 million in March. This is a 0.7% rise from February. Gain Capital shared that it witnessed this growth at a time when the market was highly unstable. Its large user base also contributed to this growth.

Not all brokers had a positive month in March. One of them is IG US, which saw its forex deposits fall by 5.7% to $44.2 million. The firm gave a few reasons why many of its traders pulled back, including market uncertainty.

Similarly, Oanda experienced a 1.1% drop in deposits to $161.4 million. The firm said the overall environment made it harder to keep deposit levels steady.