US retail Forex
brokers reported mixed customer deposits in March 2025, with the sector showing
modest overall growth despite significant market volatility and continued
weakness in the US dollar, according to regulatory data provided by the Commodity
Futures Trading Commission (CFTC).
Charles Schwab Leads
Growth in US Forex Market
Total
customer deposits at major US Forex brokers increased to $530.1 million in
March, up 0.6% from February’s $527.0 million. However, the figure represents a
3.6% decline compared to March 2024, when deposits stood at $549.4 million.
Charles
Schwab led the growth among major brokers, with customer Forex deposits rising
3.6% month-over-month to $63.2 million. Gain Capital, the largest player in the
US retail forex market, saw deposits increase by 0.7% to $226.6 million.
Interactive
Brokers reported the strongest percentage growth, with Forex deposits
increasing 10.8% to $32.1 million from February’s $28.6 million. Trading.com
also saw a slight increase of 1.1% to $2.5 million.
However,
not all brokers benefited from the volatile market conditions. IG US
experienced a 5.7% decline in deposits to $44.2 million, while Oanda saw
deposits fall by 1.1% to $161.4 million.
Dollar Weakness Drives
Market Volatility
The changes
in retail forex deposits occurred against a backdrop of significant dollar
weakness. The US Dollar Index (DXY), which measures the greenback against a
basket of major currencies, hit a three-year low in March 2025, declining more
than 3% during the period.
Market
volatility spiked dramatically during the month, with short-dated volatility
nearly doubling at its peak compared to month-end levels, according to data
from Cboe.
The
dollar’s decline accelerated amid growing investor concerns about US trade
policies, economic growth outlook, and potential threats to Federal Reserve
independence. By mid-May, the DXY had recovered slightly to 101.19, but
remained significantly lower than its levels earlier in the year.
Year-over-Year Declines
Despite the
monthly increase, the longer-term trend shows declining retail Forex
participation in the US market. Compared to March 2024, total customer deposits
were down 3.6%.
The most
significant year-over-year decline came from IG US, which saw a 37.2% drop in
deposits. Oanda also experienced a substantial 14.0% decrease compared to the
previous year.
Only two
brokers reported year-over-year growth: Gain Capital, with an 8.0% increase,
and Trading.com, with a 30.7% rise, though the latter operates from a much
smaller base.
Analysts
attribute the overall year-over-year decline to a combination of factors,
including regulatory changes, increased competition from cryptocurrency trading
platforms, and shifting retail investor preferences.
Regulatory Compliance
To ensure
the protection of client funds, the CFTC mandates that all licensed forex
brokers hold significant capital reserves. Recent regulatory disclosures
confirm that all six reviewed firms are currently in compliance with, or
surpass, the commission’s minimum capital standards.
The figures
are based on monthly financial statements submitted to the CFTC by registered
futures commission merchants (FCMs) and retail forex dealers.
This article was written by Damian Chmiel at www.financemagnates.com.
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