US Forex brokers account profitability

[olias]

Quote from Wallace:

I think what ElectricSavant's already said, that the 'Oanda profitability' is directly
related to leverage, Oanda's maximum leverage has always been 50:1 while the
other brokers go as high as 500:1

I just switched back to trading my Oanda account having lost a 500:1 broker, it got
me thinking again about this thread because in a sense, the 50:1 leverage means
slower trading, it provides a larger decision time / space

while I still want high leverage, I think the higher loss rate at the other brokers is
due to those clients not knowing what they're doing and doing it at high leverage -
a speed too high for them to control

That is a very intelligent argument.

 

[Trader KGB]

OANDA’s high profitability numbers explained – include interest

 

[NY0BScalper]

I have an Oanda account with $50 sitting in it. I haven't touched it in a year. It's been earning interest all these quarters, so it's profitable.

 

[Peternam]

Quote from Trader KGB:

Quarter-to-quarter figures hide the long-term figures. During any given quarter ~70% of the clients at these brokers are losing. Extrapolate that out over many quarters and you'll eventually arrive at >90%.

Is it correct to state that after 4 quarters , only 0.3*0.3*0.3*0.3 = 0.81 % make money ?

 

[ElectricSavant]

I may be wrong...it may be that interest payments affect the statistics...or maybe a combination of what I stated and the interest paid. Thank you Trader KGB for the link to the article.

Quote from ElectricSavant:

I will tell you why Oanda has profitable traders.

Oanda from the beginning has always offered 1:50 leverage(effective 1:100).

Now what kind of trading does this encourage...? I will let that "little voice in your head" answer this.

ElectricSavant

P.S. New traders- Ask yourselves what this means...How should you trade to be profitable? You answer....

 

[Peternam]

Quote from Trader KGB:

Quarter-to-quarter figures hide the long-term figures. During any given quarter ~70% of the clients at these brokers are losing. Extrapolate that out over many quarters and you'll eventually arrive at >90%.

Trader KGB ,



Is my extrapolation on page 4 correct ?

 

[achilles28]

Those numbers seem too high.

 

[Trader KGB]

Quote from Peternam:

Trader KGB ,



Is my extrapolation on page 4 correct ?

On the surface, no, but probably not too far off the mark.

 

[ASusilovic]

Quote from NY0BScalper:

I have an Oanda account with $50 sitting in it. I haven't touched it in a year. It's been earning interest all these quarters, so it's profitable.

Smart investment.