PFSA Report: Most investors are losing on the Forex market. Surprised?

Yesterday, the report of the Polish Financial Supervision Authority regarding retail investors on the Polish Forex market and their results was released. The conclusions are clear - most traders lose their money. But the data provides much more information.

More earners than last year

According to the published data, more people achieved a positive result than in the previous period, but at the same time the average customer score deteriorated. In the first half of 2017, 7 Polish traders made a profit. This is 768 more people than in the corresponding period of 208. The number of losing people has also decreased - in the last six months there were 2016 people, and a year earlier by less than 22 people more (330). Looking at the data in percentage terms, we are dealing with 400% losing investors and 22% gaining ones.

KNF report on the results of Polish clients on the Forex market

Let's move on. The average realized loss in the last half-year amounted to 14 661 PLN, and the accumulated value gives a dizzying amount of 327 million. Interestingly, the average profit per person was higher by less than 1,5 thousand PLN and amounted to 16 018 PLN. The sum of the average result of Polish investors is a loss of 6 742 PLN (in the previous year it was -6572 PLN).

3 / 4 retailers are losing on Forex. Surprised?

Numbers, but let's analyze what the report actually tells us. Is it certainly negative for him? Finally, the report The NIK published in March this year said that we are dealing with 80% losers. The KNF in regular quarterly reports shows that in the short term we are dealing with 65% losing. The semi-annual report verifies data on 75%. Is this a bad result in the case of the market where the interests of central banks, hedge funds, large investment banks and retail traders from all over the world are crossed with diverse experience and level of knowledge? Expecting that the ratio of losing to earners in the case of individual investors will ever approach 50% seems to be a dream away from reality.

We should also remember that the data includes only clients of Polish brokerage houses (currently there are six), that is, about PLN 30. customers. It is estimated, however, that the Polish Forex market is about 60 thousand. traders, which means that the latter trades so much by using the services of foreign brokers often perceived as more competitive and chosen by conscious, experienced investors.