LeapRate Exclusive… LeapRate had learned from updated CFTC data that cash held in US retail forex trading accounts fell to a multi-year low in June 2014. Total clients assets were $591 million, down 2% from May’s $599 million. Looking back a while, the US retail forex industry has shrunk more than 20% from year end 2010.
Virtually all US-regulated retail forex brokers saw a drop in client asset during June, including industry leaders FXCM (-3%), Oanda (-0.5%), and Gain Capital / Forex.com (-2%). Only Interactive Brokers registered an increase.
The US Retail Forex industry continues to shrivel under the very heavy and expensive regulatory burden which governs US regulated brokers. Most international retail forex brokers have left the US market behind, focusing their energy and capital elsewhere. The latest firm to leave was FXDD, which sold its US client base to FXCM back in May for $4.4 million.