de | cn | ru

Brokers News

U.S. Retail Forex Assets Keep Shrinking, FXCM Registers Growth

The U.S. Commodity Futures Trading Commission (CFTC) has released its FCM data for May 2013 already, and the first thing that one notices is the overall decrease in customer assets held with brokers: compared to April this year, in May U.S. Retail traders kept about $3 million less in their trading accounts. 

 
This figure is indeed quite small given that it reflects the client money held by all 12 retail brokers in the USA, however it's the second month in a row when there's a decrease so we could be witnessing an indication for a shrinking market. 
 
Of course, some brokers still report growth – but at a very lethargic rate. As usual, FXCM is at the front and leads with an increase of 2.1% compared to the previous month – which is a tad disappointing, considering that according to recent reports America chose precisely that brokerage to be its favorite. Honestly, I expected a little more from FXCM's clients. Then again, May's markets were quite volatile so I'm willing to cut traders some slack. 
 
Forex.com is another broker that was happy to report a slight rise in customer assets – and when I say slight, I mean 0.3%-slight. Then again, in May the broker didn't acquire any other brokerage so that makes sense (I'm kidding, of course). 
 
OANDA was the broker that took the biggest hit this May – it registered a decrease of 6%, followed by Interactive Brokers (5.8% down) and Alpari US (a 3.5% fall in customer assets). 
 
Obviously, the retail forex market in the USA is far from glorious but at least it does remain sustainable for now. Objectively, it does possess all the characteristic required to grow and develop, so one has to wonder what's preventing it from doing so. 
 
FCM Data - May 2013
 
I'm not going to point any fingers here but it seems to me that all the obstacles both brokers and traders are facing come from regulators – the National Futures Association (NFA) is relentless in its effort to suggest more and more restrictions to financial services providers, and the CFTC doesn't wait too long to accept. While the US forex market is perhaps the one with strongest regulation, it also tends to suffer from that same regulation. Frankly, if I were in the NFA's or CFTC's shoes, I would look for a golden mean  between overseeing the market and allowing traders enough opportunities for profitable trading. After all, there are many other jurisdictions and regulatory bodies that the States can learn from – take the UK and the Financial Conduct Authority (FCA) there for example, or the Australian Securities and Investments Commission.
 
Don't get wrong, though – I'm not worried for the future of brokers like FXCM or Forex.com. I am sure that whatever constraints regulators impose on the US retail market, they would continue thriving on a global scale but then again, why make things hard when they can be easy? Just sayin'. 
 
 

About FXCM

 
FXCM is a global online provider of foreign exchange (forex) trading and related services to retail and institutional customers world-wide.
 
At the heart of FXCM's client offering is No Dealing Desk forex trading. Clients benefit from FXCM's large network of forex liquidity providers enabling FXCM to offer competitive spreads on major currency pairs. Clients have the advantage of mobile trading, one-click order execution and trading from real-time charts.
 
FXCM's U.K. subsidiary, Forex Capital Markets Limited, also offers CFD products with no re-quote trading and allows clients to trade oil, gold, silver and stock indices along with forex on one platform. In addition, FXCM offers educational courses on forex trading and provides free news and market research through DailyFX.com.
TAGS: forex  forex trading  forex broker  retail forex  CFTC  NFA  FXCM  Forex.com  OANDA  Interactive Brokers  IBFX  forex growth 

More news about FXCM

Broker Country Regulation Platform Min Deposit Review
US CFTC, NFA MT4, Web,
in-house
$50 Review Website
US NFA, CFTC MT4 $250 Review Website
Cyprus, UK, Mauritius CySec, FCA, IFSC MT4, MT5, Web $10 Review Website
Cyprus, Australia CySec, ASIC MT4, Web,
Mobile app
$100 Review Website
Australia, Cyprus ASIC, CySEC MT4, MT5,
IRESSTrader
$100 Review Website
UK, Cyprus, Australia FCA, CySec, ASIC MT4, MT5 $5 Review Website
UK, Australia FCA, ASIC MT4, Trading
Station,
NinjaTrader
$50 Review Website
UK, Cyprus, UAE, South Africa FCA, CySEC, DFSA, FSB MT4, MT5, FxPro
Markets,
cTrader
$100 Review Website
Cyprus CySEC MT4, MT5, Web $1 Review Website
Belize IFSC MT4, MT5 $100 Review Website
Cyprus, UK, South Africa, UAE CySec, FCA, FSCA, DFSA MT4, MT5, Web $5 Review Website
Cyprus, UK CySEC, FCA MT4, MT5 $1 Review Website
Australia ASIC MT4, MT5 $100 Review Website
UK FCA MT4, Web, MT4
for Mac
$100 Review Website

More Forex Brokers News

FXTM appoints Han Tan as a Market Analyst for Southeast Asia region

Apr 19 2019 13:28:36

  Global award-winning forex broker FXTM has just announced the appointment of Tan Chung Han (Han Tan) as a Market Analyst. Read more

FXTM gets a license from Mauritius’ FSC

Mar 28 2019 09:59:36

  Award-winning forex brokerage  FXTM (ForexTime) continues its ongoing global expansion. The broker announced it has acquired a license from the Financial Services Commission (FSC) of the Republic of Mauritius previous week. Read more

Fortrade is the first broker to get an ASIC license in nearly 2 years

Mar 20 2019 15:03:35

  Fortrade acquired a financial services license from the Australian Securities and Investments Commission (ASIC), which hasn’t been very welcoming of new retail forex broker applicants lately. Read more

FP Markets launches a suite of cutting-edge MT4 tools for traders

Mar 06 2019 14:31:42

  FP Markets, a market-leading Forex and CFD provider, launches MT4 Trader Toolbox, a suite of twelve online trading tools which will take their clients’ trading to the next level. Read more

Major broker IG launched its US website

Jan 31 2019 13:15:37

  Global brokerage IG launched its website intended for US retail clients (www.ig.com/us). Residents of the US (with the exception of those in Arizona or Ohio) can now register on the broker’s website in less than 5 minutes and start trading. Read more

FOREX.com announced important updates to its Web Trading platform

Jan 25 2019 15:13:43

  Major forex brokerage  Forex.com  proudly announced important updates of its in-house Web Trading platform, which will take your trading experience to the next level.   Accessible from all browsers and operating systems, Web Trading was launched in 2017. Read more

HotForex parent gets licensed by UK’s FCA

Jan 21 2019 12:31:59

  Less than a month after HotForex acquired license to operate in the UAE, the trading services provider gets an authorization by the Financial Conduct Authority of the UK. The UK subsidiary of the HF Markets Group, HF Markets (UK) Ltd. Read more

Rakuten Securities offers HK$700 prepaid cards as a welcome gift

Jan 18 2019 10:26:57

  Hong Kong forex broker Rakuten Securities offers up to HK$700 Spending Limit Prepaid Card as a welcome gift to new account registrants. Here are all the details you need to know about the company’s promotional offer, which is valid from now until the end of March 2019. Read more

XM applies for a forex dealer license in the US

Jan 11 2019 13:39:14

  The US subsidiary of major forex brokerage XM has applied for a membership with the National Futures Association (NFA). This became clear from a filing by the broker’s US entity Trading.com Markets Inc. (previously Trading Point US Inc.) with the NFA dated January 3, 2019. Read more

HotForex acquired DFSA license, commences operations in the UAE

Jan 08 2019 10:45:37

  HotForex is now licensed by the Dubai Financial Services Authority (DFSA) and announced it commences operations in the United Arab Emirates (UAE). The Dubai arm of the HF Markets Group, HF Markets (DIFC) Ltd., acquired the DFSA license in December last year. Read more

de | cn | ru