The U.S. retail forex market experienced a 3.6% drop in trading volumes during November 2024, reaching $509.7 billion, down from $527.8 billion in October. The decline was led by IG US, which posted a significant 28.6% decrease in monthly trading volume, according to the latest data from the Commodity Futures Trading Commission (CFTC).
Sharp Decline for IG US, Mixed Results for Other Brokers
IG US recorded the steepest monthly contraction among major brokers, with volumes plummeting to $42.8 billion. Interactive Brokers also saw a notable decline, with volumes falling 7.2% to $25.6 billion. Meanwhile, OANDA, a key player in the retail forex space, reported a smaller 2.2% dip, ending November with $170.4 billion in trading volumes.
In contrast, market leaders GAIN Capital and Charles Schwab exhibited stability during the downturn. GAIN Capital’s volumes remained nearly unchanged at $204.6 billion, while Charles Schwab recorded a minor 0.5% decrease, settling at $64.4 billion.
Notably, Trading.com was the only broker to achieve growth in November, with a 4.7% increase in trading volumes to $1.9 billion. Despite this improvement, the firm remains the smallest among the tracked brokers.
Year-over-Year Trends Highlight Shifts in the Market
On a year-over-year basis, IG US and Interactive Brokers reported the most substantial declines, with trading volumes down 33% and 27%, respectively, compared to November 2023. In contrast, Trading.com showed remarkable annual growth of 30%, albeit from a smaller operational base.
CFTC’s Reporting Requirements Ensure Transparency
The CFTC mandates monthly financial reporting from all U.S. retail forex brokers, ensuring transparency and providing insight into their financial stability. Retail Foreign Exchange Dealers (RFEDs) and Futures Commission Merchants (FCMs) are required to disclose key metrics such as adjusted net capital, client assets, and retail forex obligations.
These reports include the total assets managed for retail clients, encompassing realized gains or losses. The data, sourced from all 62 registered RFEDs and FCMs, offers a comprehensive view of the industry’s health, covering major players such as Charles Schwab, GAIN Capital, IG US, Interactive Brokers, OANDA, and Trading.com.
The November data underscores ongoing shifts in the retail forex market, with IG US facing headwinds while smaller brokers like Trading.com seize growth opportunities.
