US retail forex market continues to shrink after FXCM’s exit – survey

[mlawson71]

The US retail forex market, one of the largest in the world in volume, continues to shrink, shows a recent survey conducted among 8000 US traders.

According to the results, the number of retail traders as of August 2017 was around 85 000, or at least this is how many placed at least one trade in the preceding 12 months. Compared to a year earlier, this is 20% less. This, according to the research director of the company that conducted the survey, and can be attributed to the recent exit of the once leader FXCM and Interactive Brokers, which was another major player on the US retail forex market.

 

[TradeViper]

The US retail forex market, one of the largest in the world in volume, continues to shrink, shows a recent survey conducted among 8000 US traders.

According to the results, the number of retail traders as of August 2017 was around 85 000, or at least this is how many placed at least one trade in the preceding 12 months. Compared to a year earlier, this is 20% less. This, according to the research director of the company that conducted the survey, and can be attributed to the recent exit of the once leader FXCM and Interactive Brokers, which was another major player on the US retail forex market.

Yeeesh, I've been sayin this for how long now? I think MarketSurfer ran them off.

The Ever Sayin Hey To The Surf VIPER

 

[truetype]

It's his fault that overlevered retail FX traders tap out?

 

[TradeViper]

It's his fault that overlevered retail FX traders tap out?

Nahhhhh, he just hated anything to do with retail FX, and tried to get anything related to such scrubbed from the ET site. But we love the little Nebbish anyway.

The Ever Nothing Better Than Nice Hot Matzo Ball Soup On A Cold Fall Day VIPER

 

[TreeFrogTrader]

I would imagine that Nadex has gotten many/most of its traders from current or former spot forex traders. Both markets being low entry barrier/low end.

 

[zdreg]

bitcoin?

 

[smileypete]

OTT regulation biased towards a futures/exchange monopoly?

Retail spot forex should be a huge market like it is overseas, so why only literally a handful of providers?

 

[MattZ]

OTT regulation biased towards a futures/exchange monopoly?

Retail spot forex should be a huge market like it is overseas, so why only literally a handful of providers?

I would imagine that Nadex has gotten many/most of its traders from current or former spot forex traders. Both markets being low entry barrier/low end.

I think that you are correct on this one.

Some FX Cash guys who have tried to move to Futures or Currency Futures realized that CME margins are way too high for them. Most accounts were very small, yet used to leverage that we simply do not provide in the Futures arena. In Europe, they have CFDs, Spread Betting, Binaries and all kinds of other exotics that are not allowed here. Many of the dealers that offer it, not all, run it as pure ad agencies. Promos for "bonuses", etc. You truly have to do a thorough due diligence to see how the desk is dealing and the liquidity provided.

 

[zdreg]

Binaries and all kinds of other exotics that are not allowed here.

there are good reasons starting with spreads etc. that are a mile wide.
binaries are being outlawed all over the world.

 

[truetype]

bitcoin

Exactly. Lots of bull-market heroes. By contrast, FX has been a tough slog.