Interactive Brokers (IB) publishes forex accounts profitability - is the largest and most 'profitable' broker
Update: I've just confirmed it with IB, their numbers include all clients who've traded 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 in a given quarter. Since IB has a massive clients base it means that if someone trades equities for a living and made an fx trade just once in a quarter - they would be included in this list. It explains how come IB has so many clients - most of them are not active forex traders but just traders who've traded forex at least once.
Interactive Brokers (IB) is a large broker providing trading services to retail and institutional traders in the stock, options, futures, bonds and the forex markets.
IB until now, although it was always known that it has a large forex traders base, didn't release forex profitability statistics just like all other forex brokers do every quarter. This may be because IB is registered as an FCM with the CFTC and not as an RFED. However something prompted IB lately and it now released its profitability figures for the first time. And the result is that IB is apparently the largest forex broker in the US and its clients are the most profitable ones. The question is why? 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 is pretty much the same as with other US retail forex brokers so perhaps the difference is the average account size.
PERFORMANCE OF INTERACTIVE BROKERS RETAIL CUSTOMER FOREX ACCOUNTS FOR PAST FOUR CALENDAR QUARTERS:
| Quarter | Forex Accounts | Profitable | Non profitable |
|---|---|---|---|
| Q4 2011 | 45,053 | 51.00% | 49.00% |
| Q3 2011 | 45,058 | 51.20% | 48.80% |
| Q2 2011 | 41,651 | 38.80% | 61.20% |
| Q1 2011 | 40,370 | 40.40% | 59.60% |
The table below sets forth the percentage of non-discretionary retail forex customer accounts maintained by Interactive Brokers LLC that were profitable and unprofitable for the past four calendar quarters. The accounts were identified and these statistics were calculated according to the definitions and interpretations set forth by the CFTC and NFA.
TIME PERIOD NUMBER OF ACCOUNTS PERCENTAGE OF PROFITABLE ACCOUNTS PERCENTAGE OF UNPROFITABLE ACCOUNTS
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.
Update: I've just confirmed it with IB, their numbers include all clients who've traded 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 in a given quarter. Since IB has a massive clients base it means that if someone trades equities for a living and made an fx trade just once in a quarter - they would be included in this list. It explains how come IB has so many clients - most of them are not active forex traders but just traders who've traded forex at least once.
Interactive Brokers (IB) is a large broker providing trading services to retail and institutional traders in the stock, options, futures, bonds and the forex markets.
IB until now, although it was always known that it has a large forex traders base, didn't release forex profitability statistics just like all other forex brokers do every quarter. This may be because IB is registered as an FCM with the CFTC and not as an RFED. However something prompted IB lately and it now released its profitability figures for the first time. And the result is that IB is apparently the largest forex broker in the US and its clients are the most profitable ones. The question is why? 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 is pretty much the same as with other US retail forex brokers so perhaps the difference is the average account size.
PERFORMANCE OF INTERACTIVE BROKERS RETAIL CUSTOMER FOREX ACCOUNTS FOR PAST FOUR CALENDAR QUARTERS:
| Quarter | Forex Accounts | Profitable | Non profitable |
|---|---|---|---|
| Q4 2011 | 45,053 | 51.00% | 49.00% |
| Q3 2011 | 45,058 | 51.20% | 48.80% |
| Q2 2011 | 41,651 | 38.80% | 61.20% |
| Q1 2011 | 40,370 | 40.40% | 59.60% |
The table below sets forth the percentage of non-discretionary retail forex customer accounts maintained by Interactive Brokers LLC that were profitable and unprofitable for the past four calendar quarters. The accounts were identified and these statistics were calculated according to the definitions and interpretations set forth by the CFTC and NFA.
TIME PERIOD NUMBER OF ACCOUNTS PERCENTAGE OF PROFITABLE ACCOUNTS PERCENTAGE OF UNPROFITABLE ACCOUNTS
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.