US active retail accounts fell below 90,000 for the first time since Forex Magnates began to track these statistics in 2011 as part of our US Forex Profitability Account, while trader profitability declined.
Volatility was back in the fourth quarter of 2014 in the Forex industry. With volatility come opportunities but also greater risk for losses. The latter was apparent in our Q4 US Retail Forex Profitability and Active Trader report.
During the just-ended quarter, weighted total customer averages show that 35.3% of US forex traders were in the black, compared to 37.8% in Q3 2014. On a broker weighted calculation, the average broker showed profitability of their clients at 35.6%, a 1.7% drop from Q3 2014’s 37.3% level.
The findings appear to show that despite greater opportunities for large profits, retail customers performed worse in a high volatile environment. Weighted customer profitability peaked at 39.5% during the slow Q2 period and has since fallen in back-to-back quarters as volatility has increased.
Also reported is a contraction in the US retail forex market to below 90,000 active traders, the lowest level since Forex Magnates began to track these figures in Q1 2011. Overall, during the quarter active traders declined by 6,491 to a total of 89,162. Affecting the US market has been an exodus of brokers from the country, with names such as GFT, FX Club and FX Solutions no longer in the market.
During Q4, affecting the total active traders figure was the sale of IBFX’s retail MetaTrader 4 accounts to FXCM, the broker's customers in the report declining by 5,345 traders to 1,801. Interestingly, those lost accounts didn’t have much impact on FXCM where active traders grew, but by only 358, for a total of 26,975 accounts. The account growth, though, was enough to keep FXCM at the top of the list of US brokers by retail traders.
It is known that FXCM was actively marketing to IBFX its positive features and even introduced lower spreads to attract those new clients. The lack of meaningful account growth may have shown that former IBFX customers decided not to continue with FXCM, or were non-US traders that were transferred to other regulated units of the broker. Hints of the answer may be revealed when FXCM releases its Q4 2014 financial results, which are now much awaited following the disclosing of Swiss franc volatility-related losses and new financing from Leucadia National Corporation.
Returning to the profitability side of the report, once again, InteractiveBrokers topped the list of having the most profitable percentage of traders in the US at 44.1%, followed by CitiFX at 43.0%. As reported in the past, InteractiveBrokers average account sizes are well above those at other retail brokers, and their customers are, as well, more risk averse.
Looking ahead, with both InteractiveBrokers and FXCM having reported large losses by their Forex Trading clients from last week’s move in the Swiss franc, it will be interesting to see how the volatility affects the overall Q1 2015 profitability report.
Volatility was back in the fourth quarter of 2014 in the Forex industry. With volatility come opportunities but also greater risk for losses. The latter was apparent in our Q4 US Retail Forex Profitability and Active Trader report.
During the just-ended quarter, weighted total customer averages show that 35.3% of US forex traders were in the black, compared to 37.8% in Q3 2014. On a broker weighted calculation, the average broker showed profitability of their clients at 35.6%, a 1.7% drop from Q3 2014’s 37.3% level.
The findings appear to show that despite greater opportunities for large profits, retail customers performed worse in a high volatile environment. Weighted customer profitability peaked at 39.5% during the slow Q2 period and has since fallen in back-to-back quarters as volatility has increased.
Also reported is a contraction in the US retail forex market to below 90,000 active traders, the lowest level since Forex Magnates began to track these figures in Q1 2011. Overall, during the quarter active traders declined by 6,491 to a total of 89,162. Affecting the US market has been an exodus of brokers from the country, with names such as GFT, FX Club and FX Solutions no longer in the market.
During Q4, affecting the total active traders figure was the sale of IBFX’s retail MetaTrader 4 accounts to FXCM, the broker's customers in the report declining by 5,345 traders to 1,801. Interestingly, those lost accounts didn’t have much impact on FXCM where active traders grew, but by only 358, for a total of 26,975 accounts. The account growth, though, was enough to keep FXCM at the top of the list of US brokers by retail traders.
It is known that FXCM was actively marketing to IBFX its positive features and even introduced lower spreads to attract those new clients. The lack of meaningful account growth may have shown that former IBFX customers decided not to continue with FXCM, or were non-US traders that were transferred to other regulated units of the broker. Hints of the answer may be revealed when FXCM releases its Q4 2014 financial results, which are now much awaited following the disclosing of Swiss franc volatility-related losses and new financing from Leucadia National Corporation.
Returning to the profitability side of the report, once again, InteractiveBrokers topped the list of having the most profitable percentage of traders in the US at 44.1%, followed by CitiFX at 43.0%. As reported in the past, InteractiveBrokers average account sizes are well above those at other retail brokers, and their customers are, as well, more risk averse.
Looking ahead, with both InteractiveBrokers and FXCM having reported large losses by their Forex Trading clients from last week’s move in the Swiss franc, it will be interesting to see how the volatility affects the overall Q1 2015 profitability report.
58% of UK Investors Choose Professional Guidance over 'Finfluencers’
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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