CFTC data on US retail forex client assets is now out for December 2014, and it shows a marked drop in  activity among US forex traders.
Overall, US retail forex client assets fell 13% in December to $550.6 million from November’s $630.5 million. Part of the decline was the removal of KCG from the list, with its client assets now redefined as institutional. However December still saw a marked natural decline, primarily at FXCM Inc (NYSE:FXCM), which reported a 12% drop in US client assets.
On our industry-concentration watch, the Top-3 of FXCM, OANDA and Gain Capital Holdings Inc (NYSE:GCAP) moved even further to an all-time high of 80.1%, up from about 75% over most of the previous year. US traders continue to be over-regulated and have less and less choice each day.
It will be very interesting to see next month’s data and how the events of January 15 – which sent the entire global forex industry into temporary chaos after a spike in the value of the Swiss Franc – affected the accounts of US retail forex traders. Stay tuned to LeapRate.