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.