An Expanded View on CFD Traders' Profitability Statistics
- A research in the latest quarterly intelligence report offers a unique insight into the varying profitability values of traders.
Since the new ESMA ESMA European Securities and Markets Authority (ESMA) is an independent Authority of the European Union that is responsible for the safety, security, and stability of the European Unions’ financial system and is charged with protecting the public. The European supervisory authority for the securities sector, ESMA was established on 1 January 2011. The European Securities and Markets Authority is an independent EU authority based in Paris. It aims to contribute to the effectiveness and stability of t European Securities and Markets Authority (ESMA) is an independent Authority of the European Union that is responsible for the safety, security, and stability of the European Unions’ financial system and is charged with protecting the public. The European supervisory authority for the securities sector, ESMA was established on 1 January 2011. The European Securities and Markets Authority is an independent EU authority based in Paris. It aims to contribute to the effectiveness and stability of t Read this Term requirements came into effect, brokers are obligated to reveal the profitability of their clients. Before the first such report was released, nobody knew what to expect from others, and the first publications of profitability statistics received a mixed reception.
In August, Finance Magnates examined the profitability of traders based on the most recent publications from brokers. Within the industry, the report was widely regarded as being the first to touch on this issue.
The most obvious question to ask when looking at the results of our study would be related to the cause of such a state of things. Why do some brokers have more profitable accounts and others don't. Last but not least it should be asked if ESMA requirements are based on correct assumptions.
Four studies to answer the questions
For this reason, Finance Magnates Intelligence conducted deeper research, based on four studies. Each of them was an attempt to better understand which characteristics and features of brokers may influence the final profitability of traders. Results we received are quite interesting and may surprise many of the industry participants. What were the results?
In one of the studies relation between maximum allowed Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term and profitability was examined. As can be seen on the chart relationship is non-linear. Of course the profitability of retail traders depends on many more factors. Our study covered a few of them, uncovering interesting results in each. In the end, what will matter for brokers is how this new situation can be converted into a profitable one.
Want to know more about the status of the industry in Q3 and possible developments for the future? Get the brand-new FM Intelligence Report.
Intelligence Products | Finance Magnates
As always, Finance Magnates Intelligence remains open to your comments regarding topics covered by us. If you would like to contribute to the next issue or have suggestions, please let us know.
Since the new ESMA ESMA European Securities and Markets Authority (ESMA) is an independent Authority of the European Union that is responsible for the safety, security, and stability of the European Unions’ financial system and is charged with protecting the public. The European supervisory authority for the securities sector, ESMA was established on 1 January 2011. The European Securities and Markets Authority is an independent EU authority based in Paris. It aims to contribute to the effectiveness and stability of t European Securities and Markets Authority (ESMA) is an independent Authority of the European Union that is responsible for the safety, security, and stability of the European Unions’ financial system and is charged with protecting the public. The European supervisory authority for the securities sector, ESMA was established on 1 January 2011. The European Securities and Markets Authority is an independent EU authority based in Paris. It aims to contribute to the effectiveness and stability of t Read this Term requirements came into effect, brokers are obligated to reveal the profitability of their clients. Before the first such report was released, nobody knew what to expect from others, and the first publications of profitability statistics received a mixed reception.
In August, Finance Magnates examined the profitability of traders based on the most recent publications from brokers. Within the industry, the report was widely regarded as being the first to touch on this issue.
The most obvious question to ask when looking at the results of our study would be related to the cause of such a state of things. Why do some brokers have more profitable accounts and others don't. Last but not least it should be asked if ESMA requirements are based on correct assumptions.
Four studies to answer the questions
For this reason, Finance Magnates Intelligence conducted deeper research, based on four studies. Each of them was an attempt to better understand which characteristics and features of brokers may influence the final profitability of traders. Results we received are quite interesting and may surprise many of the industry participants. What were the results?
In one of the studies relation between maximum allowed Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term and profitability was examined. As can be seen on the chart relationship is non-linear. Of course the profitability of retail traders depends on many more factors. Our study covered a few of them, uncovering interesting results in each. In the end, what will matter for brokers is how this new situation can be converted into a profitable one.
Want to know more about the status of the industry in Q3 and possible developments for the future? Get the brand-new FM Intelligence Report.
Intelligence Products | Finance Magnates
As always, Finance Magnates Intelligence remains open to your comments regarding topics covered by us. If you would like to contribute to the next issue or have suggestions, please let us know.