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by Damian Chmiel
- Most brokerage clients lost money in August 2023, but how much?
- Finance Magnates launches a new series of monthly analyses.
Investingis a zero-sum game where one person's win is another's loss. The majority ofretail investors lose money, a fact underscored by risk warnings on nearlyevery regulated broker's website. But, how many clients are actually profitable,and which investment firms have the highest percentage of such traders? FinanceMagnates Intelligence set out to find out, and the results are detailed inthis article.
FinanceMagnates publishesa quarterly list of the largest retail CFDs brokers by volume (subscribe to theQuarterly Industry Report for full access). Based on this list, we selected 20of the largest retail brokers who publish their clients' profit-loss ratios andupdate them monthly.
From thegathered data, only one in four investors made a profit (or did not lose)during August. Nearly 75% incurred losses, indicating that the number ofprofitable traders is relatively small, and most investors remain 'capitaldonors'.
The rankingshows that clients of the brokers TeleTrade and Saxo Bank achieved the highestprofitability at 35%. Hantec Markets came in third with profitability of29.38%, closely followed by Tickmill and OANDA at 29%.
The dataalso suggests that for the vast majority of surveyed brokers, profitabilityremained above 25%. For eight firms, however, it was lower. XM Markets had aprofitability of 24.67%, and XTB had 23%. Only three brokers fell below 20% inthe last month: Axi at 17.3%, Plus500 at 18%, and Pepperstone at 18.8%.
Accordingto a recent study by Capital.com, individual traders looking to boost theirprofitability should focus on diversifying their investments and timing themproperly. Most investors concentrate on just a few asset classes, butdiversification across five different significantly increases averageprofitability.
Methodology and FuturePublications
Asmentioned earlier, Finance Magnates Intelligence chose the 20 largestbrokers by volume who publish monthly information on the percentage ofprofitability and losses. The list was then sorted by brokers where the highestpercentage of clients were profitable.
This is thefirst publication of this kind of report. In the future edition, we will comparedynamic changes between individual months, quarters, and years. The list ofanalyzed brokers may also change over time due to fluctuating monthly volumesamong different brokers.
You can check our recent report describing the change in monthly spot volumes of the most popular centralized crypto exchanges.
Investingis a zero-sum game where one person's win is another's loss. The majority ofretail investors lose money, a fact underscored by risk warnings on nearlyevery regulated broker's website. But, how many clients are actually profitable,and which investment firms have the highest percentage of such traders? FinanceMagnates Intelligence set out to find out, and the results are detailed inthis article.
FinanceMagnates publishesa quarterly list of the largest retail CFDs brokers by volume (subscribe to theQuarterly Industry Report for full access). Based on this list, we selected 20of the largest retail brokers who publish their clients' profit-loss ratios andupdate them monthly.
From thegathered data, only one in four investors made a profit (or did not lose)during August. Nearly 75% incurred losses, indicating that the number ofprofitable traders is relatively small, and most investors remain 'capitaldonors'.
The rankingshows that clients of the brokers TeleTrade and Saxo Bank achieved the highestprofitability at 35%. Hantec Markets came in third with profitability of29.38%, closely followed by Tickmill and OANDA at 29%.
The dataalso suggests that for the vast majority of surveyed brokers, profitabilityremained above 25%. For eight firms, however, it was lower. XM Markets had aprofitability of 24.67%, and XTB had 23%. Only three brokers fell below 20% inthe last month: Axi at 17.3%, Plus500 at 18%, and Pepperstone at 18.8%.
Accordingto a recent study by Capital.com, individual traders looking to boost theirprofitability should focus on diversifying their investments and timing themproperly. Most investors concentrate on just a few asset classes, butdiversification across five different significantly increases averageprofitability.
Methodology and FuturePublications
Asmentioned earlier, Finance Magnates Intelligence chose the 20 largestbrokers by volume who publish monthly information on the percentage ofprofitability and losses. The list was then sorted by brokers where the highestpercentage of clients were profitable.
This is thefirst publication of this kind of report. In the future edition, we will comparedynamic changes between individual months, quarters, and years. The list ofanalyzed brokers may also change over time due to fluctuating monthly volumesamong different brokers.
You can check our recent report describing the change in monthly spot volumes of the most popular centralized crypto exchanges.
Topics
About the Author: Damian Chmiel
- 1456 Articles
- 29 Followers
About the Author: Damian Chmiel
Damian's adventure with financial markets began at the Cracow University of Economics, where he obtained his MA in finance and accounting. Starting from the retail trader perspective, he collaborated with brokerage houses and financial portals in Poland as an independent editor and content manager. His adventure with Finance Magnates began in 2016, where he is working as a business intelligence analyst.
- 1456 Articles
- 29 Followers
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