Retail Traders See No Profit Bump in October, FX/CFD Brokers' Data Shows

<p><span>The
profitability of FX/CFD broker clients in October remained at the same level as
the previous month. Most of the 20 largest companies in terms of volumes
reported an unchanged profit-loss ratio, and we only noted differences in the
case of 25% of all companies. For another consecutive month, Saxo Bank and
TeleTrade exchanged the leader's position, and currently, the latter has the
highest retail trader profitability.</span></p>
<h2><span>Retail Trader
Profitability Unchanged in October</span></h2>
<p>Based on
data from the <em><a href="https://www.financemagnates.com/intelligence/products/" target="_blank" rel="follow">Quarterly Industry Report</a> </em>prepared by<em> Finance Magnates
Intelligence</em>, we selected the 20 largest FX/CFD brokers regarding volumes
and checked their monthly profitability and loss levels.</p>
<p><a href="https://www.financemagnates.com/forex/analysis-75-of-retail-investors-are-essentially-capital-donors/" target="_blank" rel="follow">In August</a>,
an average of 25.6% of retail clients were profitable, and this value jumped almost 2% <a href="https://www.financemagnates.com/forex/saxo-bank-teletrade-lead-in-forex-client-profits-in-september-2023/" target="_blank" rel="follow">in September to 27.4%</a>. As October's calculations show, this area had
no significant changes over the month.</p><figure data-media-><img src="https://images.financemagnates.com/images/Profit%20and%20loss_id_94e9da0b-6172-4799-90e6-bd7edca91209_original.jpg" alt="Profit and loss" wrapper-="wrapper-" data-src="https://images.financemagnates.com/images/Profit%20and%20loss_id_94e9da0b-6172-4799-90e6-bd7edca91209_original.jpg" /></figure><p><span>The podium
composition also remains unchanged. Saxo Bank, TeleTrade and CFI still hold the
top spots. However, the difference is that the profitability of TeleTrade
clients grew 1.2% in October, while Saxo Bank remained unchanged. As a
result, TeleTrade is back in first place with a result of 36.6%. Saxo scored
36%, and CFI 34%.</span></p>
<figure data-media-><img src="https://images.financemagnates.com/images/profit%20and%20loss_id_72445b39-7c66-41d0-acf2-3ab3daa1b219_original.jpg" alt="profit and loss" wrapper-="wrapper-" data-src="https://images.financemagnates.com/images/profit%20and%20loss_id_72445b39-7c66-41d0-acf2-3ab3daa1b219_original.jpg" /></figure><h2><span>5 Firms Below 25%
Profitability Threshold</span><br></h2>
<p><span>The worst
monthly profitability in October 2023, which includes brokers with a result
below 25%, was recorded by five companies. Among them were Axi (24.5%), XTB
(22%), GBE Brokers (21.3%), Libertex 21% and Plus500 (18%). The latter has kept
its clients' profitability below 20% for another consecutive month.</span></p><figure data-media-><img src="https://images.financemagnates.com/images/profit%20and%20loss_id_0398e74f-ad01-4f8b-b654-553c8fbf2115_original.jpg" alt="profit and loss" wrapper-="wrapper-" data-src="https://images.financemagnates.com/images/profit%20and%20loss_id_0398e74f-ad01-4f8b-b654-553c8fbf2115_original.jpg" /></figure><p><span>It is worth
emphasizing that the values ​​did not change this time for as many as 14 out of 20 companies. Moreover, in the case of two, where changes were observed,
they were marginal at 0.1%.</span><br></p>
<p>This week, <em><a href="https://www.financemagnates.com/intelligence/" target="_blank" rel="follow">Finance
Magnates Intelligence</a></em> also published the latest analysis regarding <a href="https://www.financemagnates.com/forex/analysis/analysis-pakistan-led-the-fxcfd-activity-rank-in-the-summer/" target="_blank" rel="follow">the
change in the average value of deposits</a>, withdrawals, and first deposits of
FX/CFD brokers' clients. The indicators during the summer period seemed to move
flatly. However, the value of the first deposit fell to its lowest level in a
year.</p>
<h2><span>The Pareto Principle
Applies to Financial Markets</span></h2>
<p><span>The 80/20
rule, also known as the Pareto principle, states that 80% of outcomes come from
20% of causes. This principle applies to many areas, including economics and
investing. It suggests that 80% of the profits are made by 20% of retail
traders.</span></p>
<p><span>This is
likely due to greater skill, risk-taking, resources, diversification, and
emotional discipline. Although the exact ratio of 80/20 should not be taken
literally, as it is simply a principle rather than a mathematical law, the
results historically reported by brokers are usually very close to this ratio.</span></p><p><br></p>

This article was written by Damian Chmiel at www.financemagnates.com.