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?