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

These are the top 4 brokers with the most winning traders, and what percentage of their traders are profitable:

  1. IG Group - 30%
  2. Forex.com - 29%
  3. Just2Trade - 27%
  4. eToro USA - 23%

#1 - IG Group

IG is an award-winning broker that has an excellent reputation globally. The brand-US offers spread betting, CFD and forex trading across a comprehensive suite of markets. IG is also multi-regulated, provides a great trading app and has 50 years experience.

"IG offers a superb all-round package. Beginners will appreciate the user-friendly web platform and secure trading environment while established investors will rate the 17,000+ markets and top-tier market research."

- DayTrading Review Team
  • Instruments: CFDs, Forex, Stocks, Indices, Commodities, ETFs, Futures, Options, Crypto, Spread Betting
  • Regulator: FCA, ASIC, NFA, CFTC, DFSA, BaFin, MAS, FSCA
  • Platforms: MT4, AutoChartist, TradingCentral
  • Min. Deposit: $0
  • Min. Trade: 0.01 Lots
  • Leverage: 1:30 (Retail), 1:250 (Pro)

IG Group Profitable Traders

At IG Group 30% of traders are profitable.

CFD Trading

IG offers an impressive suite of 17,000+ CFD instruments. Negative balance protection ensures accounts cannot drop below zero while custom price alerts and the IG Academy enhance the trading experience.

Forex Trading

IG offers currency trading on its award-winning web platform and mobile app. Comprehensive charts and forex analysis tools are also available through ProRealTime.

Stocks Trading

IG offers 13,000+ shares, with more listed firms than most competitors. Fees are low with no commission on US stocks. Extended hours trading is also available alongside ultra-fast execution speeds of 0.014 seconds.

Crypto Trading

11 popular cryptos are available, plus two crypto crosses. A crypto index is also offered, following the value of the top 10 digital currencies by market cap. All cryptos are available via CFDs.

Pros

  • IG is an LSE-listed company with a transparent financial history and a great track record
  • Opening an account takes less than 5 minutes
  • 24/5 customer support is available

Cons

  • Inactivity charge
  • No copy trading platform

#2 - Forex.com

Forex.com boasts a global reputation with multiple awards and 20+ years experience. Regulated in the US, EU, UK and Canada they provide a huge range of markets, not just forex, and offer competitive fees on a cutting-edge platform. The brand also provides a suite of additional tools, from performance analytics and SMART Signals to advanced charts and strategy builders.

"Forex.com is an excellent broker for forex traders with over 80 currency pairs, tight spreads, low commissions and powerful platforms. The brand is also heavily regulated while its parent company is listed on the NASDAQ, giving it a high trust score."

- DayTrading Review Team
  • Instruments: Forex, Spot Metals
  • Regulator: NFA, CFTC
  • Platforms: MT4, MT5, TradingView, eSignal, AutoChartist, TradingCentral
  • Min. Deposit: $100
  • Min. Trade: 0.01 Lots
  • Leverage: 1:50

Forex.com Profitable Traders

At Forex.com 29% of traders are profitable.

Forex Trading

Forex.com is a leading FX broker. The brand offers a wide range of currency pairs and some of the lowest fees in the industry. Spreads on the EUR/USD come in as low as 0.0 with a $7 commission per $100k.

Stocks Trading

Forex.com offers access to thousands of US, EU and UK stocks, with spreads of just 1 point. Speculate on household names as well as new IPOs. US stocks are available from just 1.8 cents per share.

Pros

  • Up to 15% cashback rebates for active traders
  • Free demo account for prospective traders
  • Excellent trading tools including Trading Central, SMART Signals and MetaTrader 4

Cons

  • Investment offering varies between countries
  • No copy trading platform
  • $15 monthly inactivity fee

#3 - Just2Trade

Just2Trade is a reliable multi-regulated broker registered with FINRA, NFA and CySEC. The company has 155,000 clients from 130 countries and stands out for its huge suite of instruments and additional features, including a social network, robo advisors and a funded trader programme.

"Traders seeking a multi-asset broker with an exceptional range of 35,000+ assets, market-leading software and low trading fees should consider Just2Trade. The Try2BFunded program will also appeal to users seeking funded trading accounts."

- DayTrading Review Team
  • Instruments: Stocks, ADRs, ETFs, Futures, Options, Commodities, Bonds
  • Regulator: CySEC, NFA, FINRA, Bank of Russia
  • Platforms: MT4, MT5, TradingCentral
  • Min. Deposit: $100
  • Min. Trade: 0.01 Lots
  • Leverage: 1:20

Just2Trade Profitable Traders

At Just2Trade 27% of traders are profitable.

CFD Trading

With CFDs on 20+ Polish and 30+ US stocks, as well as energies and seven global stock indices covering US, UK, European, Australian and Japanese markets, Just2Trade offers a superb selection of global assets.

Forex Trading

Traders can access a decent range of 60+ major, minor and exotic forex pairs through standard and ECN accounts with tight spreads from 0.5 and 0.0, respectively. Execution speeds are also faster than most competitors at 50ms, which will appeal to active forex day traders.

Stocks Trading

As well as Just2Trade's 50+ stock CFDs, traders can access a huge variety of thousands of stocks traded on US and international exchanges. The chance to build an investment portfolio and benefit from dividends sets Just2Trade apart from most CFD brokers.

Crypto Trading

Traders can speculate on a modest selection of the largest cryptos by market cap including Bitcoin. On the downside, crypto trading is only available to clients from Asia which is more restrictive than many alternatives.

Pros

  • WhoTrades social network and copy trading through Novoadvisor
  • STP/ECN broker with fast execution speeds
  • Competitive fee schedule and high-quality trade executions

Cons

  • Few standard educational resources compared to other brokers
  • Cryptocurrency is only available in Asia
  • Research tools such as stock screeners require third-party applications

#4 - eToro USA

eToro is a social investing platform that offers stocks, ETFs, options, and crypto. The broker is well-known for its user-friendly community-centred platform and competitive fees. With FINRA and SIPC oversight and millions of users across the world, this brand is highly respected. eToro securities trading is offered by eToro USA Securities, Inc.

"eToro is a top pick for users looking for social investing and copy trading. With a low deposit, zero commissions and an intuitive platform, the broker will meet the needs of newer traders."

- DayTrading Review Team
  • Instruments: Stocks, Options, ETFs, Crypto
  • Regulator: SEC, FINRA
  • Platforms: Own
  • Min. Deposit: $10
  • Min. Trade: $10

eToro USA Profitable Traders

At eToro USA 23% of traders are profitable.

Stocks Trading

Trade popular US stocks and ETFs with zero commissions while fractional shares and options are also available. The eToro Academy and excellent market research are also huge bonuses for newer investors.

Crypto Trading

eToro US leads the way in cryptocurrency trading. 1% fee for buying or selling crypto added to the spread (from 0.75% for BTC), with their own wallet service and the largest number of cryptos to trade in the market. eToro copy trading is only for cryptos. Crypto asset investing is highly volatile and unregulated. No consumer protection. Tax on profits may apply.

Pros

  • The $10 minimum deposit and straightforward account opening process means beginners can get started quickly
  • eToro USA Securities is a trustworthy, SEC-regulated broker that is a member of FINRA and SIPC
  • A free demo account means new users and prospective traders can try the broker risk-free

Cons

  • No MetaTrader 4 platform integration
  • Narrower range of instruments than some competitors

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!