IG US Racks Up $20 Million in Retail FX Deposits, IBKR Disappoints

The number of deposits made by retail FX traders in the United States, which had cooled off over the past few months, grown slightly in May as the Corona-led volatility has seemingly heightened enthusiasm despite prolonged strict regulations.

According to the CFTC’s monthly report, the FX funds held at brokerages operating in the country, including FCMs that are registered as Retail Foreign Exchange Dealers (RFEDs) and those included as broker-dealers, came in at $571 million. This figure is $15.6 million or three percent higher than the $556 million reported in April.

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Data from the US securities regulator also showed that Interactive Brokers lost nearly $12.3 million in retail forex deposits. The company’s loss was also the biggest on a percentage basis, as the broker lost more than 17 percent of its clients’ deposits.

The Connecticut-based company was the worst performer over the last year after recording an overall drop in FX traders’ deposits by nearly 40 percent, which surpassed $100 million for the first time in June 2019.

Meanwhile, the newest comer to the US FX industry, IG US, continues to take a bigger chunk of the overall retail funds, after racking up $20.8 million in customer deposits in May 2020. This figure is higher by 31 percent from the previous month and was also six times bigger than the $3.5 million it collected when the company re-launched its operations a year ago.

Elsewhere, GAIN Capital’s clients’ funds grew by $15.4 million, or nearly eight percent month-over-month. Further, retail deposits at TD Ameritrade also rose by nearly $2.6 million in May, while OANDA collected additional $5 million, or three percent, in clients’ deposits in the same month.

Looking at the market share of different brokers, distribution changed slightly in May relative to the month prior. GAIN Capital remained the leader in terms of market share, commanding a 39 percent share, virtually unchanged from April. OANDA also solidified its stance as the second largest in the US with 36 percent market share, while Interactive Brokers retained the third rank with 12 percent. TD Ameritrade and IG US acquired 11 and 4 percent share respectively.

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