Here is an interesting article that shines some light on the profitability of US brokers.
US forex brokers profitability report Q4 2010 final | Forex Magnates
So according to that, it’s 80% at worst and Oanda Traders are nearly 50/50.
Keep in mind that those are just quarterly figures. They don’t reflect long-run performance. They don’t indicate how good the winners do or how bad the losers get hit. There’s a surviorship bias involved as well. If someone blows up and stops trading, they fall out of the statistics because only active accounts are counted.
interesting article, thanks.
maybe not everyone fails after all.
Lol!
It is interesting in a way, but there are stats, more stats and lies, like Rhodytrader says the losers drop out and the winners don’t, but you could equally say that a big proportion of the losers don’t count anyway because a lot of them could be people throwing a few hundred or even thousands at the pot, giving it a go, losing all their money and giving up.
A more meaningful measure might be, how many people are profitable after 2 or 3 years?
But in the end what matters is that YOU succeed, if you think you might be in the losing percentage you’re in the wrong game.
Absolutely, I hope they produce more figures so that it can be followed more long term.
I see some losers, can this be rely on?