Q3 2012 US forex traders profitability report: number of US accounts keeps plummeting, CitiFX Pro on top

Despite the less than volatile Q3 2012 the number of accounts didn't grow as expected and neither did the traders' profitability. Apparently low Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term doesn't necessarily mean improved traders survival.

Not only did one more US broker depart the market today but the total number of US Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term traders dropped by over 2,500 while profitability almost didn't change (+0.3% on average and -0.6% when calculating weighted average). There are still over 100,000 active US forex traders left however this number may go below the 100k mark if the trend continues into the next quarter.

CitiFX Pro is now the number one US forex brokers in terms of clients' profitability with Interactive Brokers only slightly behind it. ILQ showed the biggest increase of the quarter when its clients' profitability jumped by almost 10% placing it third.

Interesting to note is that with the exception of FXCM the brokers with most profitable clients were the only ones able to grow in terms of accounts. FXCM posted the biggest growth in accounts while growing over $200 million in customer deposits in May-June 2012.

Q2 2012 profitability report can be found here. Q1 2012 and the rest here.