Last month,
the profits earned by clients of the 20 largest retail FX/CFD brokers by volume
increased modestly by just under 2%. However, losing traders still dominate the
market, with nearly 73% of them in September. For the second consecutive month,
the easiest profits were made at TeleTrade and Saxo Bank, although the two
companies switched places on the podium.
Finance
Magnates publishes
a quarterly list of the largest retail CFD brokers by volume (subscribe to our Quarterly
Industry Report for access). Based on this list, we selected 20 of the
largest retail brokers who publish their clients’ profit-loss ratios and update
them monthly.
While only
one in four investors made a profit in August, this figure increased by 1.81%
to 27.39% in September. The long-term trend remains the same, showing that
usually only 20-30% of a given broker’s clients make profits, while the rest
are considered “capital donors.”
The highest
profitability for another month in a row was observed at Saxo Bank and
TeleTrade, with 36% and 35.4%, respectively. The only difference is that TeleTrade
was in the first position in August. Third place in September went to CFI with
a result of 34%, followed by CMC Markets with 31% and IC Markets with 29.2%.
Plus500 Below 20% Profitability Mark
Compared to
August, the number of companies with profitability below 25% decreased from
eight to five. Only one broker reported a profitability ratio below 20%, and
that was Plus500, with a result of 18%.
The results
for seven out of the 20 reported companies remained the same. The largest
percentage change was recorded by CFI, whose profitability rose from 20.3% to
34%, an increase of 13.7%. The most significant drop in this indicator was
recorded by Libertex, where profitability shrank from 22.3% in August to 20.9%
in September, a decrease of 1.4%.
brokers profit and loss september 2023
How to Boost Profitability
Based on a recent analysis by Capital.com, individual investors aiming to enhance their profit margins should consider spreading their investments across various asset classes and timing their entries and exits wisely. While many traders usually focus on a limited range of assets, expanding one’s portfolio to include at least five different asset classes can notably improve average returns.
The report also revealed that novice traders earn higher profits when trading in commodities, FX and indices than equities. From May 2022 to April 2023, beginners who initiated their trading journey with commodities saw profits in 58% of their positions. In contrast, those who started with equities experienced profits in a lesser 46% of their trades.
Want to read more reports from Finance Magnates Intelligence? Check out our October analysis of spot volumes on the largest cryptocurrency exchanges.
Last month,
the profits earned by clients of the 20 largest retail FX/CFD brokers by volume
increased modestly by just under 2%. However, losing traders still dominate the
market, with nearly 73% of them in September. For the second consecutive month,
the easiest profits were made at TeleTrade and Saxo Bank, although the two
companies switched places on the podium.
Finance
Magnates publishes
a quarterly list of the largest retail CFD brokers by volume (subscribe to our Quarterly
Industry Report for access). Based on this list, we selected 20 of the
largest retail brokers who publish their clients’ profit-loss ratios and update
them monthly.
While only
one in four investors made a profit in August, this figure increased by 1.81%
to 27.39% in September. The long-term trend remains the same, showing that
usually only 20-30% of a given broker’s clients make profits, while the rest
are considered “capital donors.”
The highest
profitability for another month in a row was observed at Saxo Bank and
TeleTrade, with 36% and 35.4%, respectively. The only difference is that TeleTrade
was in the first position in August. Third place in September went to CFI with
a result of 34%, followed by CMC Markets with 31% and IC Markets with 29.2%.
Plus500 Below 20% Profitability Mark
Compared to
August, the number of companies with profitability below 25% decreased from
eight to five. Only one broker reported a profitability ratio below 20%, and
that was Plus500, with a result of 18%.
The results
for seven out of the 20 reported companies remained the same. The largest
percentage change was recorded by CFI, whose profitability rose from 20.3% to
34%, an increase of 13.7%. The most significant drop in this indicator was
recorded by Libertex, where profitability shrank from 22.3% in August to 20.9%
in September, a decrease of 1.4%.
brokers profit and loss september 2023
How to Boost Profitability
Based on a recent analysis by Capital.com, individual investors aiming to enhance their profit margins should consider spreading their investments across various asset classes and timing their entries and exits wisely. While many traders usually focus on a limited range of assets, expanding one’s portfolio to include at least five different asset classes can notably improve average returns.
The report also revealed that novice traders earn higher profits when trading in commodities, FX and indices than equities. From May 2022 to April 2023, beginners who initiated their trading journey with commodities saw profits in 58% of their positions. In contrast, those who started with equities experienced profits in a lesser 46% of their trades.
Want to read more reports from Finance Magnates Intelligence? Check out our October analysis of spot volumes on the largest cryptocurrency exchanges.
