We regularly keep an eye on client assets handled by largest US brokers and the latest US Commodity Futures Trading Commission (CFTC) report on Futures commission merchants (FCMs) reveals an overall shrinking retail forex market. Although FXCM client obligations also fell both YoY and MoM, coming in at $174,991,480 in June, the brokerage continues to be the most popular choice among US traders.
Gain Capital a.k.a. Forex.com, remains a solid second, handling $129,705,882 in client deposits in the sixth month of the year. The figure represents a slight decline by 0.6% compared to the data from May, and an impressive increase of +15.5% YoY. We remind you that in April Gain Capital was outshined by Oanda, but a month later it resumed the second place again.
Here are the relevant data about both companies from the CFTC June report:
Total Retail FX obligations Jun ‘16
Total Retail FX obligations May ‘16
Total Retail FX obligations Jun ‘15
|TOTAL (all US brokers)
June was a weaker period compared with the previous month for the US retail FX trading industry, as shown by the table above. Overall, forex assets dropped 2% to $505.7 million in June after in April they fell below $500 million for the first time in several years.
Earlier this week both Gain Capital and FXCM released monthly business metrics, as well as financial results for the second quarter of 2016. According to the announced data, Gain Capital’s net income rises 28.6% in Q2 2016, while its July retail forex volumes continued its downtrend, coming in at $212.7 billion, 8.2% down MoM and 44.3% YoY.
FXCM, on the other hand, reported FXCM $60.5 million net profit in Q2, and trading revenue of $138.7 million for H1, 8% up compared to last year. As a result, Leucadia expects full repayment of the loan in 2017.
FXCM and GAIN Capital are among the largest forex and CFDs brokerages in the US and worldwide. They are both listed on the New York Stock Exchange.
FXCM has units registered and regulated with the relevant authorities in the US, the UK, Australia, and France. GAIN Capital is active in North America, Europe and the Asia Pacific regions, using the brands Forex.com, City Index, GTX, and Gain Capital.