So there has been a lot of complaining about the ESMA regulations, but there are some silver linings. One of the ones I’ve been most looking forward to is the bit detailing how many retail traders make or lose money. This is interesting as there have been quite a few posts asking if anybody actually makes money from trading. The answer is yes.
I had a brief look around the different big UK brokers and found between 65% and 90% of traders consistently lose money. I have made a small table to compare a few I have used or have heard about below.
% Losing money
It is interesting that the average is 77%, close enough to the 80% Pareto Principle. These figures come from the Brokers own websites and are correct as of August 2018. Feel free to add to the list of brokers, I may update the list as more information comes by.
Obviously the idea is to open accounts with the best winning ratios from brokers. The table is listed in percentage of losing accounts, so lower is better. So far eToro appears to be the best platform, followed by XM.com.
As a note I am not paid by any brokers and have no interests in them. The information is taken from apparently transparent sources enforced by the new ESMA regulations.