US forexdeposits climbed across major retail platforms in August 2025, with theindustry recording a combined 1.86% monthly increase to $506.6 million as thedollar stabilized after months of sharp declines. The rebound follows a periodof weak deposit flows that had pushed industry totalsto multi-year lows.US Forex Deposits Reboundin August as Dollar StabilizesGAINCapital held onto its position as the largest platform with $217.7 million inAugust, up 0.59% from July's $216.4 million. The modest gain represented adeparture from the volatility seen in previous months, when the platformexperienced wider swings in client deposits.CharlesSchwab posted $61.2 million in retail forex obligations, barely budging with a0.08% increase from the prior month. The institutional broker's steadyperformance reflected a client base less reactive to short-term currency movescompared to smaller retail-focused competitors.Recovery Picks Up SteamInteractiveBrokers delivered the strongest performance among major platforms, jumping9.61% to $33.4 million from July's $30.4 million. The surge suggested renewedinterest from the broker's client base as currency markets showed signs ofsettling into a more predictable pattern.OANDArecorded a 3.09% gain to $148.4 million, marking a turnaround after months ofsteady outflows. The platform had previously struggled as prolonged dollarweakness kept retail traders on the sidelines, but August brought some reliefas volatility created new trading opportunities.tastyfxclimbed 0.80% to $43.3 million, while Trading.com jumped 9.89% to $2.6 million.The varied performance across platforms showed how different client segmentsresponded to changing market conditions in the currency markets.Dollar Finds Footing AfterTumultuous PeriodAugustmarked a shift in dollar dynamics after a punishing first half of the year. TheUS Dollar Index traded near 98.2 by late August, down slightly on the month butshowing more stability than earlier in 2025. The greenback had shed nearly 9%year-to-date through August, reflecting a broader structural shift as marketspriced in Federal Reserve rate cuts.Thedollar's volatile August performance created a more complex trading environmentthan the one-way decline seen in previous months. The index swung between 97.6support and 98.5 resistance throughout the month, as traders digested mixedeconomic signals and Fed commentary about potential September rate cuts.Currencypairs showed significant movement during August. EUR/USD traded around 1.17 bylate month, with the euro having gained more than 12% against the dollaryear-to-date. GBP/USD hovered near 1.38, reflecting pound strength as UKinflation remained sticky and reduced expectations for Bank of England easing.Year-Over-Year PressuresRemainDespite themonthly rebound, the industry faced headwinds in annual comparisons. Totaldeposits of $506.6 million represented a 4.44% declinefrom August 2024 levels of $530.1 million. The yearly drop reflectedbroader challenges as retail forex platforms adapted to a changing currencylandscape dominated by dollar depreciation.OANDA'sannual struggles continued, with August deposits down significantly fromyear-ago levels. The platform faced the steepest yearly decline among majorbrokers, highlighting how some client bases remained hesitant despite improvingmonthly trends.CharlesSchwab deposits in August were down from the prior year, while InteractiveBrokers showed resilience with deposits well above August 2024 levels. Themixed annual performance underscored how platform-specific factors influencedclient retention during turbulent currency markets.FederalReserve policy remained the dominant driver for dollar movements. Markets hadpriced in a September rate cut at 97% probability by mid-August, following weakjobs data and signs of cooling economic activity. The combination of easinginflation and slowing growth gave the Fed room to begin trimming rates afterholding them elevated throughout 2024.Regulatory Framework HoldsSteadyAllexamined brokers continued meeting CFTC capital requirements despite marketvolatility. The monthly reporting framework provided transparency into howretail forex platforms performed as currency markets navigated a year ofsignificant dollar weakness.FuturesCommission Merchants and Retail Foreign Exchange Dealers must submit detailedmonthly reports to the Commodity Futures Trading Commission under federal law.These filings track customer fund segregation, capital adequacy, and forexobligations, giving regulators early visibility into potential industry risks.This article was written by Damian Chmiel at www.financemagnates.com.