US Forex brokers account profitability comparison | Page 2 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Spread volatility comparison between several brokers 1 reply

US Forex brokers profitability report for Q1 2011 14 replies

forex trading platform comparison 10 replies

automatic forex trading software battle aka comparison 0 replies

Comparison between Managed account and Self trade account 3 replies

Attachments: US Forex brokers account profitability comparison
Exit Attachments

US Forex brokers account profitability comparison

  • #21
  • Oct 20, 2010 4:28am Oct 20, 2010 4:28am
Quoting DKallDAY
These numbers just further the point that the market is rigged for big firms and banks to become bigger. I bet those profitable account percentages would be even lower for equities brokers such as E*Trade, TDA, and Scottrade.

It's a zero sum market... the sum of all losers = the sum that all the winners make.

This could be why it's very difficult to get system profitability or percentage of winners vs losers over the 80% mark.

The biggest advantage a bank holds is knowing where the stops are. More or less the same advantage the house holds in casino gambling.
  • #22
  • Oct 24, 2010 2:04pm Oct 24, 2010 2:04pm
Quoting pip_seeker
It's a zero sum market... the sum of all losers = the sum that all the winners make.

This could be why it's very difficult to get system profitability or percentage of winners vs losers over the 80% mark.

The biggest advantage a bank holds is knowing where the stops are. More or less the same advantage the house holds in casino gambling.

Financial markets are intrinsically less than zero sum games because you have to deduct spreads, commissions, exchange fees etc. from the sum of all losses - whatever is left over is then shared among all the winners.

At first glance the figures in the table indicate that some brokers have much smarter clients than others, but a previous poster is right in pointing out that even a tiny profit (0.1 pip or whatever) still counts as a profit. And account size and absolute profit are presumably not taken into account. It would be interesting to see a breakdown of relative profitability by account size (in bands).

Interesting figures, but I'm not sure how significant they really are!
  • #23
  • Mar 11, 2011 4:51am Mar 11, 2011 4:51am
http://forexmagnates.com/wp-content/...2010-final.png


DATA LINK
  • #24
  • Mar 11, 2011 5:03am Mar 11, 2011 5:03am
pip seeker , thats an old report , now the method have changed ... waiting for the next report ...
  • #25
  • Mar 11, 2011 10:08am Mar 11, 2011 10:08am
Quoting tar
pip seeker , thats an old report , now the method have changed ... waiting for the next report ...

yeah I know, but the new one should be out in another month or so and no one posted 2010 Q4 to this thread so we can compare them.
  • #26
  • May 25, 2011 6:12am May 25, 2011 6:12am
Oanda forced to dump accounts that are interest only which changes the landscape a bit.

It appears 70% is more realistically the magic number, but I would imagine that the 10% of the 30% that make money make more of it than the bottom 20%... the world may never know for sure.

Data Link
Attached Image
  • #27
  • May 25, 2011 11:44pm May 25, 2011 11:44pm
wow this thread is so depressing. Its seems like everyone is going to fail and the broker is going to do everything in his power to make sure you do.

Why trade forex at all I guess.
  • #28
  • Nov 1, 2011 8:50am Nov 1, 2011 8:50am
http://forexmagnates.com/wp-content/...10/Q320111.jpg
  • #29
  • Nov 1, 2011 10:15am Nov 1, 2011 10:15am
Quoting tommbstone
wow this thread is so depressing. Its seems like everyone is going to fail and the broker is going to do everything in his power to make sure you do.

Why trade forex at all I guess.
have same feelings

and general situation with forex brokers looks more and more similar

to the bursting process of "dot com" era
  • #30
  • Nov 2, 2011 9:10am Nov 2, 2011 9:10am
Quoting alstural
have same feelings

and general situation with forex brokers looks more and more similar

to the bursting process of "dot com" era
These are interesting numbers but how were they derived? How many people who were profitable in Q1 lost money in Q2, Q3 etc? I suppose the real measure would be to compare starting balance to current balance excluding deposits/withdrawals.
  • #31
  • Nov 2, 2011 2:10pm Nov 2, 2011 2:10pm
Quoting PIN Trader
These are interesting numbers but how were they derived? How many people who were profitable in Q1 lost money in Q2, Q3 etc? I suppose the real measure would be to compare starting balance to current balance excluding deposits/withdrawals.

There's really no way to know exactly what the numbers mean, but as you can see there was only a gain of 111 accounts.

That's really not stalwart growth IMHO, of course we don't know how many of the new accounts lost blew their wad and left fx all together.

All it really shows you in the simplest of detail is that FX is hard and the majority lose. With an average of 108,000 accounts and 111 growth per quarter that is anemic growth of less than a half percent per year.
  • #32
  • Nov 7, 2011 3:04am Nov 7, 2011 3:04am
Quoting pip_seeker
There's really no way to know exactly what the numbers mean, but as you can see there was only a gain of 111 accounts.

That's really not stalwart growth IMHO, of course we don't know how many of the new accounts lost blew their wad and left fx all together.

[size=3]All it really shows you in the simplest of detail is that FX is hard and the majority lose. With an average of 108,000 accounts and 111 growth per quarter that is anemic growth of less than a half percent per year....
Retail forex exists to fleece people, I'm surprised that many are making money with all the tricks the brokers are pulling.
  • #33
  • Nov 20, 2011 8:45am Nov 20, 2011 8:45am
Quoting PIN Trader
Retail forex exists to fleece people, I'm surprised that many are making money with all the tricks the brokers are pulling.
Even with an average of 70% losing accounts IBFX has been losing money for the past 2 years.

I think it's likely simple math... the 30% who make money... make more than the penny a pip people who lose money.

The NFA and CFTC shut off the spigot of new accounts which is probably the cause of all the red ink.

How much you wanna bet more consolidation in the US is on the way?
Attached Image (click to enlarge)
Click to Enlarge Name: IBFX_to_tradestation.jpg Size: 116 KB
  • #34
  • Nov 21, 2011 2:38am Nov 21, 2011 2:38am
As I keep saying the whole 99% of traders fail is just broker properganda and retail traders fall for it every single time because so called gurus here say so. I generally keep quiet because I don't want to create a scene but a lot of the statistics people talk about seem like absolute junk.

I haven't used oanda but I do know that I personally cannot make money on 50:1 leverage but with 400:1 I can consistently net 10 - 20% per month. I have been doing this since I started in forex and had I not been paying myself a wage every month and compounded I'd probably be somewhat rich now.

Unfortunately the majority of us cannot realise the dream of compounding our profits because forex is our job and thus we must pay ourselves every month!

Of course a growing account and a wage is the sweetspot and surefire path to ultimately being rich. Isn't it every traders goal to "get out of the game and retire"? It sure as hell is mine!
{Promotion Removed}
  • #35
  • Last Post: Edited 4:25pm Nov 22, 2011 2:59pm | Edited 4:25pm
Interesting stats:

FXCM growth is up by 10.3% in Q3, despite having been sued; i wonder how they calculated their 10.3% for that Q !!!

an overall increase of just 111 accounts, ......hmmm, perhaps a reflection of the increased difficulty and uncertainty due to Euro crisis

an av. of 70% are losers, i doubt its this low; 70% from Q to Q perhaps, but if the calculations were based upon where each individual trader is in 2 years from start date, the figure might be say 80%, in 3 years, 90%, in 4 years, 95%
1 trader viewing now