US Forex brokers account profitability

Discussion in 'Forex Brokers' started by bugscoe, Oct 18, 2010.

  1. oops ! thanks bstay

    320,000 / q3 2010 accounts of 15,023 = 21.3 trades per account per day

    hmmmm, wonder if they're including demo trades
     
    #11     Nov 6, 2010
  2. bstay

    bstay

    How did forexmagnates site get those numbers and where is the official/regulatory site to view the rest of the brokers' reports? Is it interesting to see FXSOL losing clients quickly, while Oanda seems to have 3 times the number of active non-discretionary accounts (besides showing twice more profitable accounts).
     
    #12     Nov 6, 2010
  3. By signing up for an account (or at least going through most of the process). The brokers are required by law to state their client profitability to new clients at signup.

    That's all of them, and there is no official site other than the NFA that would hold this data, but they don't keep a public record of these statistics (yet).
     
    #13     Nov 7, 2010
  4. interesting, didn't know that

    are 'they' picking on fx brokers do you know Trader KGB, or does the profitability disclosure
    also apply to stocks and futures and options brokers ?
     
    #14     Nov 7, 2010
  5. spd

    spd

    According to this, the 95% of traders fail thesis isnt correct, more like 70% fail.

    I wonder how accurate these figures are?
     
    #15     Nov 7, 2010
  6. bstay

    bstay

    Nowadays with every forex brokers, you get 30 days free demo account and you can jump from one broker to the next broker trying out each firm (after complaining how bad the spreads are, lol). It would be really dumb to lose money learning forex, and that "95%-traders-fail" thesis also included anecdotes that each typical account was under capitalized (over leveraged) and refunded at least 6 times before the trader gave up. Maybe the other losers had no more money and hence account became in-active and not included in the calculations?
     
    #16     Nov 7, 2010
  7. this may in part answer the why of Oanda's 50% client profitability, they have more
    clients with larger account margins than the other brokers in the list

    "In addition to the legally required statistics, FXCM have also released to us
    additional information, breaking down profitability by trading account size:
    Equity Range . . . . . % Profitable
    $0 – $999 . . . . . . . . . .27.89%
    $1,000 – $4,999 . . . . . 40.52%
    $5,000 – $9,999 . . . . . 42.36%
    $10,000+ . . . . . . . . . . 47.74%
    It's interesting, although not unexpected, that traders with larger accounts are
    more often profitable. However it's still true to say that in all categories most
    traders are unprofitable."
    http://trading-gurus.com/fxcm-release-extra-forex-trader-profitability-statistics/

    "To follow up on previous discussion from Monday, here's the profitability by
    account equity range broken down on a quarterly basis (as opposed to previous
    monthly figures)." Jason Rogers FXCM Representative
    Equity Range . . . . . % Profitable
    $0 – $999 . . . . . . . . . .20.91%
    $1,000 – $4,999 . . . . . 33.12%
    $5,000 – $9,999 . . . . . 37.37%
    $10,000+ . . . . . . . . . . 44.09%
    and post #56: "In the weeks ahead we will be releasing more details on profitability
    broken down even further, for example by currency pair, to give you more insight
    into trader profitability."
    http://www.forexfactory.com/showthread.php?p=4116326&posted=1#post4116326
     
    #17     Nov 8, 2010
  8. The former, 100%, as it doesn't apply to eq/fut/options brokers.
     
    #18     Nov 8, 2010
  9. Quarter-to-quarter figures hide the long-term figures. During any given quarter ~70% of the clients at these brokers are losing. Extrapolate that out over many quarters and you'll eventually arrive at >90%.
     
    #19     Nov 8, 2010
  10. I think what ElectricSavant's already said, that the 'Oanda profitability' is directly
    related to leverage, Oanda's maximum leverage has always been 50:1 while the
    other brokers go as high as 500:1

    I just switched back to trading my Oanda account having lost a 500:1 broker, it got
    me thinking again about this thread because in a sense, the 50:1 leverage means
    slower trading, it provides a larger decision time / space

    while I still want high leverage, I think the higher loss rate at the other brokers is
    due to those clients not knowing what they're doing and doing it at high leverage -
    a speed too high for them to control
     
    #20     Nov 22, 2010