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According to a new report by Forex Magnates, the number of US forex accounts dropped by 2.5% to 101,020 in Q3 2012.

The profitability level remained almost unchanged: +0.3% on average and -0.6% on a weighted basis.

Michael Greenberg compiled the data and shows that CitiFX Pro has the best profitability rate, 45%, with Interactive Brokers just behind with 44.6%.  Regarding the number of accounts, OANDA has the lead with 22,814 followed by FXCM with 20,071.

Volatility has been relatively low throughout most of the period, and especially during the vacation month of August. So far in Q4, volatility hasn’t risen too much. Greenberg notes that lower volatility doesn’t imply higher profitability. It does usually translate into lower volume though.

As mentioned here, the FX VIX indicator for volatility is just off its 5 year lows. Will volatility rise after the US elections? Or around the “fiscal cliff” issue?

The European debt crisis seems to have a lower impact on currencies than it used to. The world’s most popular pair, EUR/USD, is “incredibly average” as Jamie Coleman shows.

Does the low volatility impact your trading?

Further reading:  Range Trading: Which Pairs Work Best?