winning traders: from + 23.5% up to + 39.9% profitable

Discussion in 'Trading' started by Wallace, Jun 16, 2011.

  1. that old adage that 90 or 95% of traders lose must be another chestnut from brokers —
    'give Us your money, WE won't lose it, but You will'

    the attached is a report compiled I presume by Forex Magnate's Michael Greenberg
    who compiled the aggregated results from individual brokers

    the report is presumed accurate, broker reporting is a requirement of CFTC regulations:
    "Regulation 5.5 requires RFEDs, FCMs and IBs engaging in OTC retail forex transactions
    to provide customers opening an account with a prescribed written disclosure statement
    and its profitability report for most recent four calendar quarters, during which the RFED
    or FCM acting as the counterparty, maintained retail forex accounts (prepared pursuant to
    Regulation 5.18(i)(1))."

    11 US-only forex brokers are listed, GFT has client accounts which are 39.9% Profitable
    and 60.1% Loss, then Oanda, and FXDD, Alpari and Interbank FX all at 30%, Gain Capital
    FXCM, MB Trading, FX Solutions, FX Club with an oddball Advanced Marekts who have 50
    accounts: "In February Advanced Markets reported $3.4 million in client capital which divided
    by 50 accounts results in an astonishing average $68,544 balance per account – 18 times
    higher the US industry average of $3800"
    incidentally Oanda's drop from their previous 50% Profits is a result of Not including
    accounts that weren't trading, but were being credited/debited with interest paid on
    the account balance, Oanada remains the leading ? broker with the 25% of the list's
    total clients

    ok, so the 90/95% losers is a fallacy, or, is it only fx traders who are so profitable ?

    it would be very interesting to have similar reports from futures, stock etc brokers and
    compare results, but even at 23.5% it's a pretty good return, and although an average
    of all accounts, it would also be interesting to know the Big winners % Profits
  2. Thanks for sharing.

    From here, it is so easy to know which posters are "broker sponser" , see how quiet the thread can be when it is conflict with the broker's interest :D
  3. spd


    I think a large percentage of people fail at any endeavor that requires some quick critical thinking and logic without the safety net of a locked in salary. Carving out a life as a trader has the same challenges of carving out a life as an independent contractor or suchlike. Even if you are really good at one aspect, you will not succeed unless you are able to step back and manage the bigger picture effectively.

    I dont think its a 95%/5% split. A good chunk of people will succeed, an even bigger chunk will go back to whatever they were doing before.
  4. Visaria


    V interesting. Emg will have to change his slogan to "23.5% of small traders lose! They lose in a spectacular fashion!"

  5. Did this report consider only active accounts or also those accounts that are liquidated or ruined and finally terminated?


    It all makes sense now. Emg is simply a mole for the full service brokerage industry intended to bring down the elite here.

    Shame on you emg.
  7. I think the 90% rule probably applies to small intraday traders. Those who trade 10+ trades a day. If you include those who do very little "trading" and more holding, then those numbers above are believable.
  8. Successful accounts keep going, but 90% unsuccesful are churned newbies. That's the discrepancy. The statistics lie in this case.
  9. Shame on EMG! :mad:
  10. The report shows percentage of profitable accounts after 1 quarter. Looks like the average percent of profitable accounts around 30%. What is it going to be after 4 quarters? About 5% to 10%. No fallacy here.
    #10     Jun 16, 2011