Forex Brokers Profitability for Q2 2013

The numbers are out! Forex industry website Forex Magnates recently released the data on profitability and accounts growth for Q2 2013, and a quick look at the figures reveals that the rebound in Q1 2013 carried on for another quarter.

On average, 35% of these brokers’ retail clients turned out profitable last quarter, slightly lower than the average profitability recorded in Q1. Overall, the total number of active retail accounts increased by 1,336 to 100,543, marking its second consecutive quarter of accounts growth.

Q2 2013 Profitability

A closer look at the figures will reveal that there was greater variance with regards to individual profitability last quarter, as rates ranged between 28% and 46.5%. Once again, top gun Interactive Brokers came out on top, with client account profitability rising 3.2% to lead the pack at 46.5% during Q2 2013.

Interestingly, on the other side of the spectrum, FXCM, which I previously singled out for record trading activity last quarter, had the lowest percentage of profitable trading accounts.

Also worth noting is MB Trading, which actually had the largest number of unprofitable clients at 26.9% during Q1 2013. This past quarter though, the broker posted an improvement of 5.1%, with client account profitability rising to 32.0%.

All in all, it appears that the swings in volatility last month benefitted some traders but proved to be a stumbling block for others.

Moving on to the number of accounts on hand, the “Big 5” still remained on top of the leaderboard, with their rankings unchanged. Oanda, FXCM, Interactive Brokers, Forex.com, and IBFX all maintained their dominance in the industry, as they hold 87% of active, tradeable accounts on their books in the U.S.

It’s starting to seem that with the recent push for more regulation, the forex broker industry is really starting to belong to the big fish, leaving the smaller brokers to desperately scrap their way for a larger market share. It still remains to be seen though, whether these developments will benefit retail traders like you and I.


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