August Drop in Retail Deposits at US FX Brokers

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The latest figures from the Commodity Futures Trading Commission (CFTC) for Futures commission merchants (FCMs) and retail foreign exchange dealers (RFEDs) highlight a drop in retail deposits from clients in August of 2020. Of the five prominent brokers accounting for most of the market share in retail FX trading in the United States, only two reported a slight increase in deposits.

The decline witnessed in the last month of summer comes as more and more traders are flocking back to opportunities in the US equities markets, fueled by little to no trading fees and commissions offered by the popular US equities brokers, such as Robinhood and Charles Shwab. Nonetheless, relative newcomer, IG US was able to post a slight increase of $191,026 in deposits, while TD Ameritrade grew by $385,751 or 1% of their total deposits.

GAIN Capital, Interactive Brokers, and OANDA all experienced drops in deposits of -1%, -9%, and -2% respectively in August 2020. The change in monthly deposit totals did not affect the current market share of brokers, with GAIN Capital still nudging out OANDA for the top spot with 38% of all client deposits at US RFEDs.

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