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Options12
 

Registered: Sep 2011
Posts: 550

 

03-15-12 01:50 PM

These are very high profitability figures for forex. However, IB has apparently not released it's method of calculation.

More discussion here:

http://forexmagnates.com/interactiv...roker/#comments

CFTC guidance on how brokers should calculate forex customer profitability:

http://www.nfa.futures.org/news/new...?ArticleID=3746

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Hurricane
 

Registered: Jan 2003
Posts: 766

 

03-17-12 08:02 PM

My guess is IB's customer profile is radically different than your typical forex retail customer profile. Average account size at IB is ~ $120k (per their annual report) and their whole approach to handling forex transactions is different than the bucket shops many use. Spreads, as well, are lower than many bank platforms that allow forex trading. So whether or not their figures have been impacted by their calculation methodology, I'm not surprised that they look better than 95% lose.

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Options12
 

Registered: Sep 2011
Posts: 550

 

03-18-12 02:33 AM


Quote from Hurricane:

So whether or not their figures have been impacted by their calculation methodology, I'm not surprised that they look better than 95% lose.



Yeah. It looks like the broker with the largest percentage of forex customer losses is TradeStation where 72% lose.

http://forexmagnates.com/forex-brok...-profitability/

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