If only you knew how bad it looks when first (or few) time posters starts spamming. I wouldn't go near that site now.
Wrong! It's only 70%! http://online.wsj.com/article/BT-CO-20110531-715481.html FXCM Is Latest Sign Of Hedge Funds' Retail FX Push 5:34 PM ET 5/31/11 | Dow Jones By Chana R. Schoenberger Of DOW JONES NEWSWIRES NEW YORK (Dow Jones)--Hedge funds reported stakes in online retail currency brokerage FXCM on Friday in the latest sign of accelerating interest in the fast-growing market for retail foreign-exchange trading. Yet this corner of the currency market carries significant risks, both for brokerage shareholders and for retail traders themselves. Only about 30% of trading customers make money, according to data released by those brokerages that are publicly held. That loss rate means the brokerage houses must spend considerable time and money finding new customers to replace disillusioned investors who lose their shirts. Investors tied to hedge funds Citadel, Maverick Capital, FrontPoint Partners, Samlyn Capital, Alyeska Investment and Seneca Capital all reported positions in FXCM as of the end of March, according to a research note released by LeapRate, which follows the online foreign-exchange trading industry. The investments indicate that some traders think FXCM's stock is undervalued, LeapRate's analysts wrote. In addition, they wrote, "it also reveals to us that some very keen and experienced investors have been keeping their eyes on the sector, waiting for the right time to buy in." Part of the demand might stem from the desire to cash in on the "white label" business, in which FXCM and competitors like Gain Capital Holdings run the currency trading systems that banks provide their customers, says Javier Paz, a research analyst at Aite Group. As foreign-exchange trading grows--the total market now tops $4 trillion in daily volume, according to the most recent data from the Bank for International Settlements--the retail segment has become an increasingly large segment. At the same time, new regulations, including the Dodd-Frank rules in the U.S., are honing in on trading houses. As of July 21, U.S. banks will have more freedom to offer currency trading to individual clients, under new rules from the Office of the Comptroller of the Currency. Rather than set up these services themselves, banks may "white label" foreign-exchange retail services from FXCM and its rivals. "I don't anticipate banks will flock to it right away, but I think they will want to," said Paz, noting that financial institutions recently have been buying Aite's reports on the structure of the online currency trading industry. "They're starting to put it on their radar screen." -By Chana R. Schoenberger, Dow Jones Newswires; 212-416-4803; chana.schoenberger@dowjones.com
I think this article is overestimating the % of traders profitable. Can't be 3 in 10 long-term. Almost all other sources say much lower.
It's the long termers that win. The new ones that come in, the smell of money in their nostrils, the fast cars etc, they get taken out before they learn the game. Those that persist... win. Yes, I'm generalising.
Wow...They are well-dressed, self-confident, have gold watches, multiple screens, they are... they are traders...ROTFLMAO
No no the one with the gold watch is just an ordinary person whose gold we trade. Aaanyway the video should only be "inspiring" to wannabees. That's not what a trader is like per se at all. That is the idea of a trader and I find their expressions kind of funny, especially the old guy. Why so serious?
ya agreed... guy with gold watch is definitely not a trader. The video is making fun of the corporate types that look down on traders. Old guy definitely has a mean stare... lol... but then again u gotta have ur game face on when ur trading. But i totally Disagree with the fact that this is only inspiring for wannabes. Wannabes are the ones that don't even know what trading is truly all about... this is more for the traders that truly know and take pride in it.