US forex brokers’ retail client funds reach yearly low in December 2015

US forex brokers’ retail client funds reach yearly low in December 2015

The combined deposited funds of the clients of the six retail forex brokers working on the US market dropped to $544.1 million in December 2015, reaching their record low value for the year, shows the report of the US watchdog Commodity Futures Trading Commission (CFCT). Compared to November 2015, the sum decreased 4.7%. On an annual basis the decline was 1.1%.

The combined funds include the combined money, securities and property deposited by a client in his or her retail forex account, adjusted for the realized or unrealized net profit or loss.

The highest sum of combined client funds was reached in July 2015 – a total of $597.2 million for all eight (then) US retail forex brokers.

The three best performing brokers, in terms of retail forex obligations throughout 2015, were Gain Capital, Forex Capital Markets (FXCM), and Oanda.

The best performer – Gain Capital – saw his clients’ deposits grow steadily throughout the year – almost 29% – from $103.1 million in January to $132.8 million in December, when the company’s clients operated 146 977 accounts.

FXCM’s performance has remained almost flattish with minor fluctuations in 2015. In December 2015 the assets of FXCM’s clients were over $175.6 million, 7% less than in the preceding month. In the last month they had 177 847 active over-the-counter (OTC) forex trading accounts.

Even though Oanda is on the list of the best performers, its clients’ deposits have been decreasing throughout the year – from $126.7 million in January 2015 to a little over $98 million in the end of the year.

In December 2015 Oanda’s clients had deposits for a little over $98 million, by 2.9% less than in the previous month, when the sum was almost $101 million. The company hasn’t reported the number of active trading accounts.

The list of US retail forex brokers for December is completed by Ibfx, Interactive Brokers and Wedbush Securities.

The CFTC is a US government agency regulating the futures and options markets in the country. It was established in 1974 after the 1973-74 stock market crash. Its main mission is to protect market users and their funds, the public from fraud, manipulation and abusive practices on the commodity market. After the financial crisis of 2007-2008, a new legislation from 2010 gave CFTC authority to bring more transparency and stricter regulation to the dollar swaps market. By law the CFTC also regulates and oversees the operations of the companies active on the US financial markets, including forex brokers. It requires them, as well as the futures commission merchants to file monthly reports, some of which are available to the general public.

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