Interest in the Forex market in the USA is coming back

The end of the year 2018 turned out to be extremely successful for the Forex industry in the United States. At a time when the European market is experiencing a crisis as a result of the restrictions imposed by ESMA, the currency business is beginning to revive behind the Atlantic.

Be sure to read: IDM: Fall in retail customers in the EU

A record number of clients for many years

As a result of restrictive regulations introduced by the American regulator NFA (National Futures Association) in 2008-2010, the development of the Forex industry in the United States significantly slowed down. Even then, the leverage was limited to a maximum of 1:50 for major currency pairs, and a US citizen could only use the services of brokers who met the requirements of the American supervisor. However, we have reached the point where the leverage in Europe has been reduced even more. The result is an outflow of clients to brokers outside the jurisdiction of the European Union.

Compared to the rest of the world, the Forex market in the US seems to be microscopic in terms of the number of brokers compared to potential customers. Currently there are only four key players: Gain Capital (Forex.com), Interactive Brokers, Oanda and TD Ameritrade.

In the last quarter of 2018, there was an increase in the interest in Forex by American citizens. In percentage terms, these values ​​are not spectacular, but there are many indications that the observed trend will continue.

Number of active retail clients in 2018 on the Forex market in the USA, source: Finance Magnates

The British broker listed on the London Stock Exchange - IG Group also saw an opportunity to enter this market. A subsidiary, IG US, has been established and is expected to appear on the US Forex scene later this year.