Thread: Percent Profitable Traders by Broker

Profitability of 2010 in Q4. Number in parenthesis is open discretionary accounts, defined as an account that has executed as least one commerce at the period of time.

Advanced Markets: 46 percent (108 low sample size!))
Oanda: 43.5 percent (48,886)
GFT: 32% (9878)
FX Direct: 32% (7893)
Alpari US: 30% (1547)
Interback FX: 28 percent (13699)
GAIN: 28 percent (14628)
FX Solutions 27 percent (5481)
MB Trading: 26 percent (4478)
IG Markets: 26 percent (378)
Forex Capital Markets: 23 percent (18362)
Primary Financial: 21.3 percent (1791)
Forex Club: 19% (2465)

CFTC asks brokers to calculate profitability based on this forumula, but it is not guaranteed that brokers use this formula:

Profitibility = End Balance - Beginning Balance Withdrawals - Deposits Commissions and fees

Source: All About Forex Trading by Jagerson and Hansen (their sources are the Risk Disclosure statement of each broker)


One thing I do not like about the equation is that it provides back commissions and fees. In the conclusion of the afternoon, I do not care how many pips or dollars I created in the trade, I care about how much more money I've accumulated, i.e End Balance - Beginning Balance Withdrawals - Deposits

One possible bias I could see is that non-commission brokers (for instance, Oanda) can exaggerate their prices in the equation by overstating their profits from the spread.

Ideas?

http://forexmagnates.com/us-forex-br...t-for-q2-2011/

Thanks. Any reasons Oanda consistently has greater % of traders?

Should have investigation for that....surely! Perhaps coz they have the biggest total accounts/ customers....

Originally Posted by ;

Must have investigation for this....surely! Perhaps coz they have the largest total accounts/ customers....

The amount of accounts could not make effect on ratio profit | loss.

Originally Posted by ;

http://forexmagnates.com/us-forex-br...t-for-q2-2011/

Very interesting information.

Thanks for sharing

Josef