CFTC-Registered Brokerages Witnessed an Upswing in Forex Funds in July 2023

Based on the latest monthly report from the Commodity Futures Trading Commission (CFTC), retail FX deposits demonstrated a growth of 1.42 percent in July 2023 when compared to the preceding month.

The data presented in the report includes information gathered from various registered Retail Foreign Exchange Dealers (RFEDs) and broker-dealers that have retail Forex obligations within the United States. These entities consist of well-known companies such as Gain Capital Group LLC, IG US LLC, Interactive Brokers LLC, OANDA Corporation, CHARLES SCHWAB Futures & Forex LLC, and Trading.com Markets.

In July 2023, the total FX funds held at the six registered brokerages reached around $518.5 million, indicating a 1.42 percent increase compared to the reported amount of $511 million in June 2023. Notably, if we exclude Trading.com Markets, the combined retail FX deposits of the remaining five established brokers amounted to $517 million. The following chart provides a comprehensive overview of the data from the six brokers over the past 12 months.

Registered Brokerages Witness Recovery in FX Funds

Among the six listed brokers, only two experienced growth in their Retail Forex Obligations during July 2023: Gain Capital and IG US. Gain Capital saw an increase of $2.3 million, reaching a total of $198.8 million. This represents a 1.1 percent growth compared to the end of June 2023 when the total was $196.5 million.

IG US observed a significant rise of $9.15 million in its Retail Forex Obligations, resulting in a total of $68.7 million. This represents a noteworthy 15 percent increase compared to the end of June 2023 when the total was $59.5 million.

However, Interactive Brokers experienced a decrease of 5.5 percent in its retail FX deposits from June 2023 to July 2023. The total dropped from $33.3 million to $31.5 million during this period.

OANDA witnessed a decline of $1.36 million, reaching $155.1 million compared to $156.5 million in the previous month, reflecting a 0.87 percent decrease. CHARLES SCHWAB's retail FX deposits also experienced a 1.53 percent decline, reaching $63.4 million from the previous month's $64.4 million. Trading.com Markets witnessed a 3.39 percent decline, reaching $1.1 million.

IG US Gained in Market Share

In July 2023, the market share distribution among four brokers underwent changes compared to the previous month. 

Interactive Brokers, OANDA, and Charles Schwab all experienced a decrease in their market share, with each losing approximately 1 percent. Currently, Interactive Brokers holds 6 percent of the market share, OANDA holds 30 percent, and Charles Schwab holds 12 percent.

On the other hand, IG witnessed an increase in its market share, gaining nearly 1 percent. IG's current market share stands at 13 percent.

Gain Capital and Trading.com Markets, however, maintained their market share, remaining unchanged from the previous month. Gain Capital continues to hold 38 percent of the market share, while Trading.com Markets holds less than 1 percent share in July 2023.