US Sees 10% Increase In Forex Deposits, Highest In Over A Year
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After two months of decline, US retail Forex deposits have surged, reaching their highest point in over a year. Despite the typically quiet summer period, the currency markets have remained volatile, prompting traders to commit more funds to daily trades. This unexpected rise shows strong activity in the Forex market, even during a time when things usually slow down.
The recent data from the Commodity Futures Trading Commission for June 2024 shows that the total value of FX deposits in the US reached $557,549,710, increasing by 1.8% from May. This rise of almost 10 million dollars is the highest in recent months.
Gain Capital Aims To Maintain Its Leading Position FX Market
Last year, in the US, FX deposits were $511 million, about 10% lower than now. This increase matches the rise in institutional FX trading volumes from the US market in June, including at CME Group. At this top derivatives marketplace, FX volumes grew by 25% that month, benefiting from global currency market volatility.
Moreover, the foreign exchange market is very active, especially with carry trade. Investors are seeing big changes in the exchange rates of the Japanese yen and Swiss franc.
Gain Capital stays on top with FX deposits of nearly $228 million. However, it was the only one to see a slight drop in June, with funds decreasing by just 0.2% from the previous month.
Additionally, IG US saw the biggest percentage rise, up 5.2% to $64.3 million. OANDA had the largest dollar increase, rising by over $6 million (3.1%) to $193 million. If this keeps up, OANDA might soon surpass Gain Capital.
The CFTC Aims To Improve Operational Performance And Market Integrity
The CFTC is important for making sure Forex brokers in the U.S. stay financially healthy and transparent. This group needs Futures Commission Merchants (FCMs) and Retail Foreign Exchange Dealers (RFEDs) to send detailed financial reports every month.
Retail forex obligations show the total assets that FCMs or RFEDs hold for clients, including any gains or losses made.
This reporting rule applies to all 62 registered FCMs and RFEDs in the US, including big names like OANDA, Interactive Brokers, IG, Charles Schwab, Gain Capital, and Trading.com. These companies must share their financial details publicly to keep the industry transparent.
Recent trends show that FCMs are spending a lot on new front-end technologies. This strategy is meant to improve their operations and boost their competitiveness in the changing derivatives market.
