Brokers by percentage of losing accounts

[AriaS]

12 forex brokers:

• Darwinex - 64%
• Tickmill UK - 71%
• AVA Trade - 71%
• HotForex - 71%
• Forex.com - 73%
• Saxo Bank - 74%
• Oanda - 75%
• IC Markets - 76%
• IG Markets - 76%
• Pepperstone - 76%
• XM Group - 78%
• FxPro - 85%

 

[tomorton]

Just to add, UK spreadbetting brokers -

• CMC Markets - 76%
• IG - 76%
• OvalX - 76%
• City Index - 74%

 

[Sharky]

And some UK CFD brokers -

• Capital.com - 80%
• FXPro - 77%
• CMC Markets - 76%
• IG - 76%
• OvalX - 76%
• Oanda - 76%
• Pepperstone - 74%
• City Index - 74%
• XM Group - 74%
• Fineco Bank - 70%
• IBKR - 68%

 

[Sharky]

And some UK CFD brokers -

• Capital.com - 80%
• FXPro - 77%
• CMC Markets - 76%
• IG - 76%
• OvalX - 76%
• Oanda - 76%
• Pepperstone - 74%
• City Index - 74%
• XM Group - 74%
• Fineco Bank - 70%
• IBKR - 68%

Correct, FxPro UK is 77%. The one that I mentioned above is probably the FxPro Global Markets Ltd (85%)

 

[gka]

Is Intertrader missing from the list at 68%?

So the million dollar question is...why is there such a spread of percentage from 64% through 85%?

Is the answer......

1. Percentages of losing accounts quoted by forex brokers are manipulated or outright false.
2. Some forex brokers have better charting facilities.
3. Some forex brokers have bigger spreads.
4. Advertising from some forex brokers attracts clients with worse trading abilities.
5. Response time to process trades is better with some forex brokers.
6. Some forex brokers display quotes which are not always realtime.
7. Some forex brokers have better trading facilities.
8. And so on.............................

The range 64% through 85% is too big to be ignored and not questioned.

 

[gka]

And the final question is ...why is DarwinAYC providing a link to Darwinex's website? Is this thread just an advert for Darwinex UK?

 

[Trader333]

It would be interesting to know out of the above listed brokers which ones are DMA and which are not. IBKR which has the lowest listed losing rate is DMA. More information is needed on the percentage breakdown of markets traded by customer. So if say one broker has 70% of clients trading FX where another has only 50% then that can affect the losing percentages especially if one broker has a high number of clients trading stocks on a long term strategy. The figures on their own do not give a clear picture in my view.

 

[tomorton]

It would be interesting to know out of the above listed brokers which ones are DMA and which are not. IBKR which has the lowest listed losing rate is DMA. More information is needed on the percentage breakdown of markets traded by customer. So if say one broker has 70% of clients trading FX where another has only 50% then that can affect the losing percentages especially if one broker has a high number of clients trading stocks on a long term strategy. The figures on their own do not give a clear picture in my view.

Agreed. The data is so general its dangerous to draw conclusions. Certainly its not valid for selecting this or that broker.

On DMA, I'm thinking no SB or CFD can be DMA, they're both derivatives, the trade is a private bet with the broker.

 

[Trader333]

Agreed. The data is so general its dangerous to draw conclusions. Certainly its not valid for selecting this or that broker.

On DMA, I'm thinking no SB or CFD can be DMA, they're both derivatives, the trade is a private bet with the broker.

Yes that is the point I was making in that if you are betting against the company who hold your funds then you would expect the percent of losers to be higher than a DMA broker.

 

[tomorton]

Yes that is the point I was making in that if you are betting against the company who hold your funds then you would expect the percent of losers to be higher than a DMA broker.

I don't see much opportunity for preferring DMA brokers over others from the data we've got up here, even if assuming that only the best scores from DarwinAYC were DMA.

I think its likely there would be a difference for a professional and heavily invested trader with a specialised style, but I've never thought that DMA was enough to make the difference between winning and losing for new traders - they're mostly going to lose anyway.

 

[AriaS]

Is Intertrader missing from the list at 68%?

So the million dollar question is...why is there such a spread of percentage from 64% through 85%?

Is the answer......

1. Percentages of losing accounts quoted by forex brokers are manipulated or outright false.
2. Some forex brokers have better charting facilities.
3. Some forex brokers have bigger spreads.
4. Advertising from some forex brokers attracts clients with worse trading abilities.
5. Response time to process trades is better with some forex brokers.
6. Some forex brokers display quotes which are not always realtime.
7. Some forex brokers have better trading facilities.
8. And so on.............................

The range 64% through 85% is too big to be ignored and not questioned.

Interesting insights. I doubt that regulated brokers would manipulate these numbers, because they can be easily verified by the regulator. Also, if they manipulated, the spread would be small - they all would want to keep close to the numbers of each other. We can see that tier 1 brokers' numbers are smaller. So most of your assumptions are probably correct.

 

[BigDeal]

Don't forget this data only relates to retail, not professional clients.

I don't think many people choose their broker taking this data into account.

 

[AriaS]

Btw, I don't know why the links on most of them have disappeared. It's probably automatic.

 

[BigDeal]

When you hover over the IG link you'll note an affiliate link with T2W

 

[AriaS]

When you hover over the IG link you'll note an affiliate link with T2W

Yes, as for IG, I know that they are sponsors here. But I also (for equality's sake) attached links to all the brokers. But now most of it disappeared. Only Darwinex still has the link.

 

[AriaS]

And the final question is ...why is DarwinAYC providing a link to Darwinex's website? Is this thread just an advert for Darwinex UK?

I attached the links to all the brokers, when I saw that IG gets the link automatically. But now I see that all the links were deleted, except Darwinex and IG. I didn't do it. I will remove the Darwinex link as well.

 

[salsamoves]

ig has a habit of trading against you on fast moving markets and blocking you out. I know a number of professional investors that have been caught out by them. Or they move the spreads, especially if you have stops…

 

[cassiopeia]

Some companies have the resources to market their product, and invest in offering easy access to a user friendly interface and charts. This entices relative novices with little experience and who haven't tested strategies.

Also if more accounts lose, this doesn't necessarily mean that most money goes on losing 'bets'. Some longer term traders may benefit from the upward trend of the market, just like fund managers, but this doesn't mean beating the market average.

 

[trade2bpro]

• Darwinex - 64%
• Tickmill UK - 71%
• AVA Trade - 71%
• HotForex - 71%
• Forex.com - 73%
• Saxo Bank - 74%
• Oanda - 75%
• IC Markets - 76%
• IG Markets - 76%
• Pepperstone - 76%
• XM Group - 78%
• FxPro - 85%

How do you know these numbers? It's interesting but I doubt its credibility.

 

[joyny]

How do you know these numbers? It's interesting but I doubt its credibility.

Every broker website provides this info at the front

Why darwinex significant better performance? Because they provide analytical tools to test strategies and metrics to monitor performance. Cant see doing that other brokers..