Shifting Tides: Notable Changes in Retail Forex Obligations for US Brokers in August 2023

The most recent monthly report released by the Commodity Futures Trading Commission (CFTC) reveals that retail FX deposits experienced a growth of 1.24 percent in August 2023 when compared to the previous month.

This report includes data collected from various registered Retail Foreign Exchange Dealers (RFEDs) and broker-dealers operating in the United States. Among the well-known companies included in this data are Gain Capital Group LLC, IG US LLC, Interactive Brokers LLC, OANDA Corporation, CHARLES SCHWAB Futures & Forex LLC, and Trading.com Markets.

During August 2023, the combined total of FX funds held by these six registered brokerages reached approximately $525 million, indicating a 1.24 percent increase compared to the reported amount of $518.5 million in July 2023. Notably, when excluding Trading.com Markets, the combined retail FX deposits of the remaining five established brokers amounted to $524 million. The following chart provides a comprehensive overview of the data from these six brokers in 2023.

Registered Brokerages Witness Changes in FX Funds

Among the six brokers listed, there were notable changes in the Retail Forex Obligations of three companies during August 2023.IG US saw a significant increase of $5.2 million in its Retail Forex Obligations, bringing the total to $73.8 million. This represents a 7.55 percent rise compared to the end of July 2023 when the total stood at $68.7 million.

Interactive Brokers experienced a $2.1 million increase in its retail FX deposits, reaching $33.6 million from $31.5 million in July 2023, reflecting a 6.7 percent growth. OANDA witnessed a modest increase of $1.3 million, reaching $156.4 million compared to the previous month's $155.1 million, representing a 0.82 percent rise.

However, Gain Capital experienced a decline of $1.4 million, bringing the total to $197.4 million, which equates to a 0.73 percent decrease from July 2023's total of $198.8 million. CHARLES SCHWAB's retail FX deposits also saw a decline of 1.04 percent, reaching $62.7 million from the previous month's $63.4 million. Trading.com Markets witnessed a larger decline of 3.84 percent, reaching $1.067 million.

Market Share Remained Stable in August 2023

In August 2023, the market share distribution among the listed brokers remained relatively stable compared to the previous month, with only one broker experiencing a notable change.

IG US emerged as the sole gainer, increasing its market share by 1 percent. Despite this shift, Gain Capital maintained its position as the market share leader with 38 percent, demonstrating its strong presence in the industry.

OANDA secured the second-largest market share with 30 percent, showcasing its significant market influence. Following closely behind are IG US and CHARLES SCHWAB, each holding 14 percent and 12 percent market share, respectively.

Interactive Brokers captured 6 percent of the market share, solidifying its standing among the brokers. On the other hand, Trading.com Markets continued to hold a minimal market share, remaining at the bottom with less than 1 percent.