Oanda Has Highest Profitability Rate

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The new CFTC rules come into effect now, and US forex brokers release the profitability rates, as required. Oanda stands out with a positive profitability rate, while others lag behind. How is your broker doing?

Michael Greenberg collected the profitability reports from the US brokers. In addition to the profitability percent, the brokers also released the number of active traders. The count is based on traders who made at least one action during the quarter, and that are controlled solely by the broker – not institutional accounts.

It’s also important to note that three important US brokers still haven’t released their figures: FXDD, Advanced Markets, and IG Markets. The figures are for Q3 2010.

So, Oanda has almost 50,000 active traders, leaving IBFX (18,579) and FXCM (15,023) far behind. Gain (forex.com) is fourth with 11,344 and GFT is fifth with 10,358.

As written in the title, Oanda is far above others regarding profitability – 51% of Oanda traders were profitable in Q3. Also here, the others are far behind. GFT reports 33% and the rest are between 21% to 29%.

I’ll update this post when more data emerges. Check out your broker in Michael’s article.

The leverage limit has created anger among traders. At least the CFTC also gave us a peak into important industry data. And how do you deal with the new leverage? There are quite a few things to take into account as this regulation comes in to effect. You’re welcome to read the article about How To Get Ready For the New CFTC Rules.

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About Author

Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned the significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

9 Comments

  1. Confirms my thoughts. I have been with Oanda for several years now and have been of the opinion that Oanda is the choice of professional traders for a number of reasons.

  2. What your article fails to mention is Oanda was the only broker offering 50:1 max. So next quarter I am willing to bet you will see higher profitability from the other outfits that now cannot go above 50:1. Which of course makes a pretty good case for the new rules IMHO.

  3. I like Oanda for its spreads and trading platform, but I’ve had some glitches where the stop loss was ignored or even stopped out when it wasn’t supposed to be.

    To their credit, I’ve usually got a refund on the stop loss problems, but the other situations where I got a stop that wasn’t supposed to happen and lost potential money–well that’s a different story.

    I’m a small trader so my losses (or phantom gains)aren’t very important, but I can’t imagine what would happen with a large trader.

    Still, the Devil you know and all that…

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  8. This only confirms what I’ve suspected. OANDA pays daily interest and pays you money for carry trades. That’s the REAL SECRET – forget trying to guess short-term price fluctuations , you can’t and you’ll lose money. Put on a CARRY TRADE – hold it, for years if necessary. That’s what stock investors do – don’t trade – invest. THAT’S how you make money!!