Registered: Sep 2011
03-03-12 05:47 PM
Interesting article on how various brokers calculate profitability metrics:
NFA has received a number of questions regarding what it means to be an open account for purposes of this calculation. For example, there is some confusion regarding whether an account that maintained a cash balance, but had no open positions and no trading during quarter, should be included in the calculation.
After consultation with CFTC staff, NFA provides the following information:
The calculation, including determining the total number of non-discretionary retail forex customer accounts maintained by the RFED and FCM that quarter, should include only accounts that executed any trades during the quarter and/or had an open position at any time during the quarter. Any account that did not execute any trades or have an open position during the quarter should not be included in the calculation regardless of whether the account maintained a cash balance and/or was paid interest or charged any fees during the quarter.
2011 Q4 Profitability reports from brokers.
IB's profitability stats are strong in comparison to other firms listed in the report, but it's possible that there are differences in how IB calculates forex profitability.