How many people earn in the Forex market? 30 ranking of EU brokers

The new ESMA regulations are not just a limitation of leverage. It is also an obligation to present a report on the percentage of earning / losing clients from brokers from EU territory. This is to increase market transparency, assess the chances of success and profitability of participation in such investments by traders, as well as to monitor trends in statistics. In a sense, it will also increase the competitiveness between entities.

Ranking from 30 companies - earning 23,9%

The Finance Magnates portal has prepared a list presenting the results achieved by clients from 30 EU brokers, which, according to ESMA, are key for retail investors. The range of results is large - from 36,3% to just 14% of profiters. The average result is 23,9% of earners. The first place was taken by the British market maker - AETOS - a company practically unknown in Central and Eastern Europe. Only one Polish broker was included in the ranking - XTB.

Companies themselves, especially those from the upper part of the rate, may also try to use image statistics and attract traders' attention in this way.

On the other hand, it must be admitted that the amount of data is relatively poor. There is no information on the number of active clients, the average amount of profit or loss, the period of data collection and other details that would allow to draw more objective conclusions. So was the goal, which was to stop the manipulation of forex advertising, achieved?

Social Trading a recipe for profit?

Two of the five brokers who found themselves at the top of the previous table have in their offer social trading, or its derivative (copy trading, PAMM). Broker eTorowhose foundation is social trading, placed second in the ranking with up to 35% of earning clients. In the fourth place is Darwinex with the result of 31%, which also in its main assumption focuses on combining traders and investors.

Case? There are some very interesting conclusions to be drawn from this. Social trading has a beneficial effect on the profitability percentage of traders.

Prognosis for the future

New regulations are valid for less than 3 weeks. Therefore, we are waiting impatiently for further reports. It is they who will show whether we actually observe a clear relationship between the reduction of leverage and the increase in the percentage of people earning.

It is worth remembering that in Poland from July 2016 the leverage was limited to 1: 100, while in the rest of Europe you could still get the 1 lever: 200, and even 1: 500. A sudden reduction to the value of 1: 30 may also contribute to a temporary decline in the activity of traders in other EU countries, or even their migration outside this area.