Brokers With the Fewest Losing Traders

Which broker has the most profitable traders? Or as some like to put it Рwhich brokers have the fewest losing traders? This is a question that most traders think about and yet seems unanswerable… How and why would brokers reveal this information?

Thanks to the ESMA (European Securities and Markets Authority), brokers are now bound to disclose their percentage of winning/losing traders. This increased transparency has the potential to disrupt the market for binary options, CFDs and FOREX. This article will explore these revelations and assess their impact on the future of retail trading.

Brokers With Most Winning Traders

eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Winning traders: 33%
Forex.com boast a global reputation. Regulated in the UK, US and Canada they offer a huge range of markets, not just forex, and offer very tight spreads and a cutting edge platform.
Winning traders: 21%

In March 2018, the ESMA decided to ban the advertising and distribution of binary options to retail investors. It also restricted the advertising and sale of CFDs. These new changes came into force in July and August 2018. They were accompanied by transparency requirements such as the disclosure of the percentage of winning clients of each broker.

Profitable Traders – Long Term

These figures need to be updated every three months to comply with the regulator. But numbers can shift significantly.

Check out the brokers where the winning % stays high over the long term.

Volatile markets and specific events can also impact these numbers, so always use them to compare ‘like for like’ brokers, rather than from different periods.

A broker with a consistently high number of winning traders is clearly able to make a profit without compromising the trader – either by charging high fees or squeezing margins elsewhere.

It also suggests a brand that values their clients, which is always a positive.

Social Trading

Social trading (or copy trading) has impacted these figures. While some traders will doubtless lose money, they can re-enter the market and follow the trades of profitable traders, and thus get ‘in the black’ themselves.

Many of the brokers with higher figures for winning traders also operate social trading or copy trading schemes, and it is no coincidence.

Increased Transparency – Benefits?

Following these revelations, brokers will start using this number as a marketing device. In other words, retail investors will be more attracted by brokers with the highest percentage of winning accounts.

Therefore, trading platforms will start doing their best to increase this number, especially through the use of educational material and supplementary analytical tools. By providing traders with the necessary information to carry out profitable investments, brokers will be able to increase their percentage of winning accounts and attract more and more users. A win-win situation!