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Forex Brokers Unprofitability (ESMA Rules) — November 2018

November 17, 2018 by

Quite a lot of time has passed since our last review of Forex brokers customers’ profitability report — it had been published with the poll about the possibility of the ESMA CFD/Forex rules renewal. Since then, the rules have been renewed to last at least through February 1, 2019. On October 31, the ESMA has published a report on how their new rules are performing and found out that traders’ profitability is down compared to the previous year, justifying it with increased profits received by many traders in 2017 with the help of a cryptocurrency rally.

Our last report on profitability was for the period of 12 months ending on June 30. This time, EarnForex team gathered broker-reported data from 107 companies (up from 97 last time) for the percentage of their losing traders during the one-year period ending on September 30. The main takeaways are the following:

  • On average, brokers had fewer losers on board than during the previous three months — median, mode, and mean of unprofitability decreased by 2–3%.
  • Each broker’s unprofitability percentage did not change much — brokers who were at the top of the list remained there, and those who were near the bottom did not rise much.
  • The data still remain largely distorted by brokers with too few traders to report on (e.g., a broker signs up most of its clientele under an offshore entity and lets only a handful traders under a EU regulated entity) and by brokers that report some stupid ranges instead of exact numbers (e.g,

Here is the histogram of unprofitability distribution among the studied companies:

Distribution of ESMA-regulated CFD brokers by percentage of losing traders (n = 107) as of November 2018

And here is the list of brokers sorted by unprofitability of traders from lowest to highest:

List of ESMA-regulated Forex brokers sorted by percentage of losing traders - November 2018

You can also get the same list but sorted alphabetically if you prefer.

If you have have any questions regarding this statistics on FX brokers’ losing traders percentage, feel free to ask via the commentary form below.

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