Q2 2012: profitability of forex traders keeps dropping, OANDA back on top

4 Comments

In Q2 2012 profitability of US forex traders kept dropping albeit the change was less than in Q1 2012: -1.1% and -1.9% respectively.

GFT’s profitability ‘plummeted’ meaning it lost its crown to OANDA again and dropped 5 places in this ranking.

Number of forex accounts dropped by almost 2,000 (excluding Interactive Brokers which still didn’t report) and the only ones able to grow were Alpari, ILQ, Forex Club and Advanced Markets. It’s possible that May’s volatility had something to do with this.

For obvious reasons PFG is excluded from this chart..

 

  •  CitiFX Pro, ILQ and Advanced Markets aren’t considered in the accounts and profitability calculations as their account sizes are big
  • Weighted average calculates the relative change in profitability to reduce impact of smaller brokers

We now have enough data to show a chart of profitability over time (for the 10 brokers and excluding Citi, ILQ, IB and AM):

Links to previous reports start here.







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More information on this subject is found in the latest Forex Magnates Quarterly Report


4 Comments on this post

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  1. Alexander Collins said:

    That is why I always advice Oanda as a broker to my clients. Great post to be linked when someone ask me why Alpari US is not the best choice.

    July 25th, 2012 at 10:30 am
  2. Greg said:

    Alexander, please explain how these numbers help your clients. Since Alipari’s customers are 9% less profitable compared to Oanda’s does that mean they provide worse service?

    Also, Michael, when you write “GFT’s profitability ‘plummeted’”, isn’t that a bit misleading since you aren’t talking about GFT’s profit directly rather that of their customers?

    July 27th, 2012 at 10:11 am
  3. Michael Greenberg said:

    yes it is a bit misleading, but it’s NFA’s definition of profitability.. not sure what word would be better?

    July 27th, 2012 at 2:54 pm
  4. Jon said:

    PFG should have been included, although this would be the last report to include them in :)

    July 29th, 2012 at 10:44 am

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