Retail CFD Industry Sees Sharp Decline in Currency Pair Volumes

The retail CFD industry saw a significant decline in currency pair volumes in the second quarter of this year. According to FM Intelligence, FX pairs made up only 13.7% of the total volume reported by brokers in Q2, down from 26.8% a year earlier.

This represents a drop of $1.8 trillion in monthly FX volume across the brokers tracked by FM Intelligence, which fell to $4.2 trillion from $6.4 trillion. Meanwhile, volumes in index, commodity, equity, and crypto CFDs rose significantly to $26.3 trillion from $17.4 trillion.

The five largest brokers now hold 41.8% of the volume attributed to named firms, with IC Markets, IG Group, JustMarkets, TMGM, and EC Markets being the top performers. However, even among these large players, FX volumes have decreased significantly - they generated only 4% of their combined volume from currencies in Q2.