US Forex Deposits Drop to $462M, Lowest Since 2023

Retail forex client funds in the United States continued to shrink in June, with total deposits at CFTC-registered brokers falling to $462.31 million. That marks a third consecutive monthly decline and the lowest level since at least September 2023, according to data from the Commodity Futures Trading Commission. Since March, the industry has shed $26.29 million, a 5.38% drop that erased the first-quarter recovery reported in May.

The latest figure also sits $10.65 million below January's $472.96 million, which had already drawn attention as a multi-year low. All six brokers reporting to the CFTC ended June with less client money than they held in March, signaling a broader contraction in retail participation.

OANDA and Charles Schwab set fresh lows. OANDA's US entity held $132.89 million, down 2.10% month-over-month and 3.62% lower than a year earlier. Charles Schwab's forex unit fell for a third month to $54.09 million, down 12.91% year-over-year. Gain Capital (Forex.com) remained the market leader with $197.09 million, controlling 42.6% of all US retail forex deposits, though that balance is at its lowest since October 2023. The top three firms together control 83.08% of the market, a 1.11 percentage point decline year-over-year.

OANDA's decline comes amid significant internal changes. Since FTMO acquired the broker from CVC, management has shifted, with the prop firm's founders stepping in as co-CEOs in March. OANDA also moved proprietary trading clients to FTMO's platform and raised margin requirements on MetaTrader 4 in Japan, though those changes do not directly affect the US entity. The broker has not explained the drop in American balances.

Not all brokers are losing ground. tastyfx, IG Group's US brand, held $47.98 million, down 1.92% on the month but up 23.86% year-over-year, buoyed by Prime accounts offering up to 6% interest on idle cash. Trading.com, the smallest of the six, was the only month-over-month riser, up 2.08% to $2.92 million, a 24.67% annual gain. In contrast, Interactive Brokers' forex balances fell 21.31% year-over-year to $27.33 million, even as its broader brokerage business expanded.

The steady decline in US retail forex deposits could suggest reduced risk appetite among traders or a shift toward other asset classes. For retail traders, this may mean tighter liquidity or increased competition among brokers for a smaller pool of clients, potentially leading to changes in fees or leverage offerings. The CFTC data provides a transparent snapshot of industry health, and continued declines may prompt regulatory attention or strategic adjustments by brokers.

This is information, not investment advice.