Forex statistics give us important information about how the Forex market works.
They show us trends, trading volumes, and details about who is trading and the technology they use.
Knowing these statistics helps traders make better decisions, brokers offer better services, and analysts predict future market changes.
This post will explain key Forex statistics, including market size, currency trading, technology, trader profiles, and broker performance. Whether you’re an experienced trader or just starting out, these insights will help you understand the Forex market better.
The History of Forex Trading
Forex trading (foreign currency trading) in its current form started in 1973, after the fall of the Bretton Woods system, which was the primary foreign currency exchange rate regulator. However, humans traded currencies with each other long before that, essentially since they used coinage.
Forex trading occurred in ancient Egypt, Babylon, and the Byzantine Empire. In the 15th century, the Italian Medici Family opened European banks to conduct foreign currency trades. The first real forex market was founded roughly 500 years ago in Amsterdam, the Netherlands.
Modern forex trading started with the introduction of the gold standard across countries in the late 19th and early 20th centuries. This system guaranteed the value of national currencies internationally, meaning every coin and note could be exchanged for a certain amount of gold.
However, the high costs countries would incur during The First World War caused them to print money that wasn’t backed by gold, which led to inflation and eventually the abandonment of the gold standard in 1931.
The Bretton Woods Agreement came into force after The Second World War. It pegged the US dollar to gold at $35 per ounce (+—28,3 grams), making it the world’s reserve and reference currency. Additionally, all other national currencies would be traded against the dollar from then on.
However, in 1971, President Richard Nixon abandoned the Bretton Woods system because the United States was facing significant budget and trade deficits, and its gold reserves were decreasing rapidly.
Until the early 1990s, forex trading was not available to retail traders but only to banks, hedge funds, governments, and other large financial institutions with significant capital.
As the internet took off in the 1990s, economies started transitioning into capitalism, technology, and electronic communication networks, revolutionizing the forex industry. Small retail traders could now trade forex online with way less capital from the comfort of their homes.
Forex trading is popular in Dubai and the United Arab Emirates. For this reason, many online forex brokers facilitate retail and professional forex trading for individual traders.
Our experts are still determining what the future will bring. Still, the increasing interest in cryptocurrencies among traders and investors worldwide will eventually significantly affect the forex market.
Size of the Forex Market
The total trading turnover in the global forex markets has reached over $7,5 trillion a day since April 2022, and the forex markets themselves are expected to be worth over $2,4 quadrillion or $2409 trillion. As the global GDP in 2019 was about $142 trillion, the forex market is about 17 times as big.
The global forex market is more significant than the most extensive global stock exchange. It is also the largest and most liquid asset market. For instance, the NASDAQ has a daily trading volume of around $200 billion instead of $7.5 trillion. More than 170 national currencies are traded on the forex market, and more are added frequently. The market is expected to grow by about 6% over the next five years.
Retail forex traders are good for 5,5% of the entire forex market, meaning that financial institutions, such as banks, hedge funds, and trading companies, do most forex trading. The five most prominent players in the forex markets control 40% of the entire global forex market in the following way:
Forex Market Share Rankings
| Rank | Company | Market Share (%) |
|---|---|---|
| 1st | JPMorgan | 9.81% |
| 2nd | Deutsche Bank | 8.41% |
| 3rd | CitiGroup | 7.87% |
| 4th | XTX Markets | 7.22% |
| 5th | UBS | 6.63% |
Forex Trader Statistics and Demographics
27% of all forex traders are between 18 and 34 years old, while people between 35 and 44 represent 28% of all traders. People between 45 and 54 years old account for 21% of all traders, 24% are older than 55, and 9% are older than 65.
Gender-wise, forex traders are split 89.1% men, 10.9% female, and 15% consistently profitable. 66% of all traders use technical analysis and daily charts, meaning they rely heavily on pattern recognition and risk management instead of fundamental analysis.
41% of all traders open between 9 and 20 positions per month, 45% trade for 1 to 2 hours a day, and 14% trade for over 6 hours a day. There are many beginner forex traders, as 18,31% of all traders have been selling the markets for less than a year, and 39% have been trading for between 1 and 3 years.
The experienced forex trader demographic (traders who have traded for between 4 and 9 years) accounts for 23% of the forex trader demographic. Still, just 7% of all traders have traded for over a decade.
MetaTrader 4 (MT4) is the most popular forex trading platform, with its successor, MetaTrader 5 (MT5), being the second most popular trading platform. 85% of all forex traders use MT4, while only 6% use MT5.
30% of all forex traders trade with virtual funds on a demo or paper trading account, while 70% conduct live trades only. 72% of people who start trading in forex have yet to experience trading other financial instruments.
There are about 10 million forex traders worldwide, with 3.2 million residing in Asia, 1.5 million in Europe, and 1.5 million in North America. 1.3 million forex traders live in Africa, almost a million in the Middle East, and 600,000 in South America.
Central America and Oceania have 335,000 and 190,000 forex traders, respectively. Forex trading is the most popular in the UK, with more than 280,000 online traders.
Forex Broker Stats
The three largest globally operating forex brokers are IC Markets, XM Group, and Saxo Bank, with daily trading volumes of $18.9 billion, $13.4 billion, and $12.3 billion, respectively.
The largest US-based forex broker is GAIN Capital Holdings Inc.’s Forex.com, with an average daily trading volume of $15,5 billion. Oanda is the second-largest US forex broker, with an average daily trading volume of $10,7 billion.
Pepperstone, the most significant Australian forex broker, has an average daily trading volume of $6,7 billion.
Forex Currencies
The most traded forex currencies are the US dollar, Euro, and Japanese Yen, with 88,3%, 32,3%, and 16,8% of all trades conducted in them. The British Pound Sterling was involved in 12,8% of all forex trades in 2019, while the Australian Dollar accounted for 6,8% of all trades in the same year.
The Swiss Franc and Canadian Dollar represented about 5% of all forex trades in 2019. Asian currencies like the Chinese Renminbi and the Hong Kong Dollar are popular among forex traders, with 4.3% and 3.5% of all forex trades containing these currencies in 2019, respectively.
The New Zealand Dollar has mostly stayed the same regarding forex market share, clocking in at 2,10% of all forex trades involving the currency between 2016 and 2019.
The Japanese Yen’s forex market share has dropped 5% in the last 3 years, while currencies representing emerging markets have collectively increased by 4% to a 24,5% total market share.
Forex Currency Pairs
Forex currency pairs are divided into primary, minor, and exotic pairs. The seven most popular currency pairs belong to the majors, accounting for 67,4% of the total daily forex market trading volume. These include the USD/EUR, USD/JPY, USD/GBP, USD/CHF, USD/CNY, USD/CAD, and USD/AUD forex pairs.
The USD/EUR forex pair is called the “Fiber” and is the most traded currency pair, good for 24% of all forex trades in 2019, up from 23,10% in 2016. USD/JPY forex trades (also called “Gopher”, “Yen”, or “Ninja”) accounted for 13,2% of all forex trades in 2019, up from 17,8% in 2016.
The USD/GBP forex pair is known as “Cable” and represented 9.6% of all forex trades in 2019, up slightly from 9.3% in 2016. The “Aussie” (USD/AUD) accounted for 5.4% of all forex transactions in 2019, up from 5.2% in 2016, while the “Loonie” (USD/CAD) was suitable for 4.4% of all forex trades in 2019, which remained unchanged from 2016.
The USD/CNY currency pair accounted for 4.1% % of all forex trades in 2019, a minor increase from 2016’s 3.8% % share. The Swissy (USD/CHF) accounted for 3.6% % of all forex trades in 2019, remaining nearly the same share as in 2016 (3,5%).
The USD/HKD forex pair’s share increased significantly from 2016 to 2019, from 1,5% to 3,3%. Forex pairs without USD are called “Minors” or “Cross-currency Forex Pairs.” Some examples are GBP/AUD, GBP/JPY, CAD/JPY, EUR/NZD, and EUR/GBP.
All forex pairs that include significant currencies and those of developing or emerging markets are called “Exotics.”
Forex Market by Country
Five countries’ forex sales desks, including the UK, the US, Japan, Hong Kong, and Singapore, represented 79% of all forex transactions in 2019. The UK was the largest forex trading hub, with 43,1% of the global forex turnover.
While Singapore and Hong Kong each account for 6.6% of the global forex market turnover, the United States is good at 16.5% and Japan at 4.5%. The forex market is a distributed electronic marketplace with no central hub, and it is accessible 24/7 globally.
Each trading day is divided into three major segments, representing regional market hours of significant marketplaces, including the Tokyo, London, and New York sessions.
The United States Forex Market
The United States dollar is used in most forex trades (89% of all US forex market trades in 2019, up 2% from 87% in 2016). The European Euro is the second most traded currency in the United States, with 36% of all forex trades, including the EUR, up from 13% in 2016.
Top Traded US Forex Market Currency Pairs
The most traded US forex market currency pairs are the following:
| Forex Currency Pair | % of Entire Forex Market Daily Turnover (in 2019) |
|---|---|
| USD/EUR | 27% |
| USD/GBP | 12% |
| USD/JPY | 11% |
| USD/CAD | 7.5% |
The United Kingdom Forex Market
The United Kingdom is officially the most significant financial hub of the forex market, suitable for 43% of the entire global forex turnover in 2019, up from 37% in 2016.
In 2019, 90% of all forex trades were conducted in US dollars, and the net average volume turnover of the UK forex market was roughly $3,5 trillion. Conversely, the Euro was involved in 36% of all trades and the British Pound Sterling 17%.
The Swiss Franc and Australian Dollar accounted for 6% and 5% of all forex trades, respectively, while the Japanese Yen represented 15% of the entire United Kingdom’s forex market turnover.
Top Traded UK Forex Market Currency Pairs
In the United Kingdom, the EUR/USD forex pair is the most traded and represents 28% of the country’s daily forex market turnover, which is good for more than a trillion US dollars each day.
23% of all UK forex trades involve the US dollar and a currency other than EUR, GBP, AUD, or JPY, totaling $822 billion daily. On the other hand, the Japanese Yen was present in 13% of all forex trades in 2019.
The USD/GBP forex pair is one of the most stable and unchanged currency pairs. In the last decade, it has accounted for over 1% of the UK forex market’s daily turnover and still represents 13% of the average daily turnover.
In 2016 and 2019, USD/AUD represented 5% of the average daily forex turnover in the United Kingdom.
The Australian Forex Market
The US dollar is the most traded currency in the Australian forex market, involved in 93% of all trades. The Australian Dollar is the world’s second most popular currency, representing 52% of all forex trades. Additionally, 90,42% of all trades in the Australian forex market are conducted in currencies other than EUR, AUD, and USD.
The European Euro comes in third, with 13% of all forex trades including this currency.
Top Traded Australian Forex Market Currency Pairs
The “Aussie,” or USD/AUD, is the most traded forex pair in the Australian financial markets. It accounts for 47% of the currency’s daily turnover, about $66 billion.
USD/EUR is Australia’s second most traded forex pair, accounting for 11% of its daily forex turnover, equivalent to roughly $15 billion. USD/JPY is suitable for 10% of Australia’s daily forex turnover, clocking in a bit lower at $13,5 billion daily.
Exotic and minor forex pairs involving the US Dollar and minor Asian currencies represent 6% of the daily forex market turnover, which equals about $9 billion. USD/GBP, on the other hand, only sees 5% of all forex trades, turning over roughly $6,3 billion daily.
The Japanese Forex Market
Naturally, the most traded currency in the Japanese forex markets is the country’s Yen, which is involved in 39,9% of all forex trades and nets a daily turnover of nearly $300 billion. The US Dollar follows closely, being present in 38% of all forex trades and generating a daily turnover of just over $285 billion.
While all international countries, excluding the British Pound, account for 9.7% of all trades in the Japanese forex market, adding $72,6 billion to the market, the British Pound is involved in 3.4% of all forex trades in the Japanese market, topping it up to a turnover of over $25 billion.
Top Traded Japanese Forex Market Currency Pairs
The most commonly traded currency pair in Japan is USD/JPY. As of 2019, it represented 55,8% of the country’s forex market’s average daily turnover, down from 62,3% in 2016. USD/JPY accounted for just over $200 billion every day.
EUR/JPY, clocking in second, accounted for 9,6% of all Japanese forex trades in 2019, a substantial increase from 5,5% in 2016. According to one of the forex surveys held by the Bank of Japan, this pair’s total daily average turnover can be more than $35 billion.
The USD/EUR forex pair is the third most traded pair in Japanese markets. In 2019, it represented 9.2% of all currency trades in the country, up 0.6% from 2016’s 8.6%, with a daily market turnover of nearly $35 billion.
Other forex pairs account for roughly 25% of Japan’s daily forex market turnover, roughly valued at $100 billion daily.
Forex Trading and Cryptocurrency Trading Compared
Cryptocurrency trading is relatively new compared to forex trading. Most (potential) traders and investors know digital assets and their possible high returns and unpredictable volatility, leading to significant price fluctuations.
Digital tokens have already impacted the global forex markets and will continue to do so as the years pass. However, cryptocurrency trading will likely not become mainstream for quite some time as the market is still developing and primarily unregulated.
On the other hand, suitable trading and investing practices have pointed to a brightly-looking future. Below, our experts will shed light on what they think will be the next big thing in forex trading:
- The total market capitalization of over 5,000 cryptocurrencies is estimated to be over $200 billion.
- The largest and most popular cryptocurrency, Bitcoin, has a market capitalization of at least $128 billion.
- Ethereum, the second most-traded cryptocurrency, has over $20 billion market capitalization.
- The third-largest cryptocurrency is Ripple’s XRP, with a total market capitalization of over $8 billion.
- There are more than 40 million cryptocurrency traders and investors globally, of which more than 11.3 million are European, and 15 million are from the United States.
- The total trading volume of the cryptocurrency spot, futures, and derivatives markets totaled nearly $9 trillion in Q1 of 2020.
- Nearly 99% of all cryptocurrency trades are conducted on so-called “centralized exchanges.”
- Binance, the world’s biggest cryptocurrency exchange, had average daily trading volumes of nearly $3 billion in 2019 and has over 15 million registered users worldwide.
- The most popular crypto-to-fiat pairs to trade are BTC/USD, LTC/USD, ETH/USD, and XRP/USD.
- Cryptocurrency CFDs, offered by many forex brokers and available to Dubai and UAE traders, allow users to speculate on the price movements of digital wallets without owning or managing a hardware or software non-custodial cryptocurrency wallet.
Trading performance is crucial when trying to make money trading the forex markets. Opinions should often be overlooked, and data should always be prioritized. Each data point or statistic can be extremely valuable, as it can be the difference between profit-making or losing money in forex trading.
Currency Stats
The United States Dollar is the most traded currency globally, represented in 90% of all forex trades; other forex pairs are present in the following amount of trades:
- The British Pound – is the fourth most traded currency, in 11,8% of trades.
- The Euro is the third most traded currency, featured in 33,4% of all forex trades.
- The Japanese Yen – is the third most traded currency, representing 23% of all trades.
- The Australian Dollar – is the fifth most traded currency, featured in 8,6% of all trades.
- The Swiss Franc – is the sixth most traded currency, in 5,2% of all forex trades.
- The Canadian Dollar – is the seventh most traded currency, representing 4,6% of all trades.
- The Mexican Peso – is the eighth most traded currency, featured in 2,5% of all forex trades.
- Chinese Renminbi – is the ninth most traded currency, in 2,2% of all trades.
- The New Zealand Dollar is the tenth most traded currency, representing 1,4% of all forex trades.
Forex Technology Stats
MetaTrader 4 is the most popular forex trading platform globally, with MetaTrader 5, its successor, following suit. More than 35% of all forex traders use a mobile phone or tablet to trade, of which 56,10% use an Android device and 41,8% use an iOS device. Among Android users, Samsung is the most popular brand.
90% of all forex traders use Expert Advisors and other trade automation software to automate their trades and ensure profitability. In binary options trading, each trade lasts between 10 and 19 minutes.
85% of all traders use a Windows desktop, 60% of all forex trades are conducted in the United Kingdom or United States, and the five most traded forex pairs are EUR/JPY, EUR/GBP, EUR/CHF, GBP/JPY, and GBP/CHF.
Trading Statistic #1: You Better Have This Under Control
One of our top-rated forex brokers, FXCM, studied traders with an adverse risk vs. reward ratio versus traders who traded with an edge of 1:1 risk: reward ratio or higher. The risk: reward ratio in forex trading indicates the amount of funds in your trading account that you are willing to risk on a single trade versus your potential profit on that trade. A few examples include:
- Imagine a trader who wants to risk $1,000 on their next trade. If the take-profit ratio is set at $1,000, the risk: reward ratio is 1:1.
- If a trader wants to put $1,000 on the line on their next trade and the Take-Profit is set at less than $1,000, the risk: reward ratio becomes negative, indicating that the chances of losing money are becoming more significant than the chances of winning it.
- On the other hand, if a trader risks $1,000 with a Take-Profit set at $2,000, then their risk: reward ratio becomes 1:2.
Overall, the FXCM study found that only 17% of all forex traders had a chance of winning money forex trading with an adverse risk: reward ratio (lower than 1:1). On the flip side, trading strategies with a 1:1 risk: reward ratio or higher would have a 53% chance of being profitable over the long run.
However, traders and investors can lose more than 300% of their invested funds if their trading strategy has an adverse risk: reward ratio. To keep this in mind, forex market participants should set achievable profit targets and develop a consistently profitable trading strategy, which consists of the following:
- A risk: reward ratio of at least 1:1 on every single trade.
- To not sacrifice any portion of one’s risk: reward ratio (and make it harmful) to increase the overall success rate.
Trading Statistic #2: The Risk of Ruin
| Win Ratio % | Payoff Ratio 1:1 | Payoff Ratio 2:1 | Payoff Ratio 3:1 | Payoff Ratio 4:1 | Payoff Ratio 5:1 |
|---|---|---|---|---|---|
| 10% | 100 | 100 | 100 | 100 | 100 |
| 15% | 100 | 100 | 100 | 100 | 100 |
| 20% | 100 | 100 | 100 | 100 | 0.0485 |
| 25% | 100 | 100 | 100 | 0 | 0 |
| 30% | 100 | 100 | 0 | 0 | 0 |
| 35% | 100 | 0.701 | 0 | 0 | 0 |
| 40% | 100 | 0 | 0 | 0 | 0 |
| 45% | 100 | 0 | 0 | 0 | 0 |
| 50% | 100 | 0 | 0 | 0 | 0 |
| 55% | 0 | 0 | 0 | 0 | 0 |
| 60% | 0 | 0 | 0 | 0 | 0 |
| 65% | 0 | 0 | 0 | 0 | 0 |
| 70% | 0 | 0 | 0 | 0 | 0 |
| 75% | 0 | 0 | 0 | 0 | 0 |
| 80% | 0 | 0 | 0 | 0 | 0 |
| 85% | 0 | 0 | 0 | 0 | 0 |
| 90% | 0 | 0 | 0 | 0 | 0 |
The Risk of Ruin (RoR) is one of the most crucial trading statistics, as it will mathematically tell traders whether they will be profitable or lose money from their trading accounts.
The Risk of Ruin statistic takes the trader’s overall payoff ratio into the equation (Avg.+R per trade), your current hit rate, and risk percentage per trade. When sufficient data is aggregated (usually over a hundred trades), one can assess one’s risk of ruin and know whether one will be profitable or blow up one’s account.
The table below shows the risk of ruin per 1% of risk per trade, using multiple payoff ratios and accuracy rates.
Whenever the table column is red, traders blow up their forex trading accounts 100% of the time. If the table column is green, one will likely make money in forex trading. The numbers inside depict the statistical chance of blowing up one’s account.
The ideal Risk of Ruin ratio is 0, meaning one has a 0% chance of blowing up one’s forex trading account. One has to know one’s Risk of Ruin to be a successful forex trader.
Trading Statistic #3: Trading Strategy Durability
The durability of trading strategies is of significant importance when trading in the forex markets. The markets constantly move, meaning your hit rate and performance will do the same. Almost every profitable trading strategy operates within a specific range.
If your trading strategy has an average accuracy rate of 60% due to both winning and losing streaks, it will most likely be very volatile in terms of accuracy, ranging from 50% to 70%.
One of the most important aspects of forex trading is a strategy that can underperform yet still leave one with enough margin of error to profit from trading.
Using the Risk of Ruin table above, one can notice patterns regarding overall profitability. When one goes further to the right on both the vertical and horizontal axes and increases one’s payoff ratio, one will quickly notice that the chances of blowing up the account are reduced. In contrast, the possibility of making money for forex trading is increased.
In other words, you have more ways to book a loss at lower payoff ratios and significantly fewer ways to make money forex trading. The main reason is that the greater your payoff ratio becomes, the more ways you can make money from trading. This leads to a smaller window for losing funds or capital.
To conclude, try developing a trading strategy with a payoff ratio higher than 1:1. With one in place, you can handle draw-downs and recover faster when the market moves against you, guaranteeing the durability of your trading account over the long run.
Trading Statistic #4: Most Beginner Traders Do Not Want to Learn
As our website has been online for quite a few years and has referred many people to online brokerage firms, we have collected a lot of data from our users, including trade performance data of traders and how they go on their trading educational journey.
Our experts found many interesting statistics, but one that stood out the most was that beginner traders do not want to learn and learn incorrectly. Although we are not strongly in favor of online trading courses, resources state that less than 20% of all applicants take the time to watch the introductory video.
Only 27% of all applicants watch the lessons chronologically, and most only watch part of the course. Remember that when you read books, you read by the word, not the chapter. One should refrain from learning how to trade advantage.
Trading Statistic #5: Proper Risk Management
Of the 1,000 live trading accounts opened via Business24-7.ae, only 30% apply consistent and adequate risk management, meaning these account holders always risk the same percentage of their total trading capital per trade.
Simply put, whenever you risk more of your total trading capital per trade or a percentage, you can lose more than you gain by risking more on your losses, risk less on your wins, and, therefore, profiting less.
Although it sounds simple, many beginner traders constantly change their risk percentage per trade. Our experts advise you to have a solid risk management strategy and a fixed rate of risk per trade before trading the forex markets on live accounts.
Trading Statistic #6:Causes of Failing at Trading
Over the last couple of years, our experts have reviewed thousands of our referred traders’ accounts, performance, and statistics. In the same period, Business24-7.ae has taught many students how to make money online by consistently profitably trading forex.
However, only some of our students would have succeeded with proper risk management, technical analysis, and personal guidance. We advise against trading without strategy, data, analysis, algorithms, or statistics to support your positions and trades.
Forex Statistics – The Bottom Line
To be a successful forex trader over the long run, you must know your stats and access trading performance data. The most common ways to obtain such data and statistics are myfxbook and fx blue.
Apart from excellent dynamic charting and technical analysis software and tight forex trader communities, it is crucial to seek an experienced trading mentor or coach to evaluate your trades and give you feedback on improving your trading game.
Lack of personal guidance, discipline, and feedback can lead to poor trading performance. However, having access to the best forex trading features, fees, and conditions on the market often leads to forex trading success.
Please browse our selection of best forex brokers in the UAE in 2024 to find one that perfectly suits your needs.
Major Forex Market Players
Although many different forex market participants exist, large financial institutions, such as commercial and central banks, hedge funds, investment managers, and multinational corporations, generate most of the forex market’s volume.
The global forex market includes 170 different currencies. The US Dollar (“Greenback”) is the most traded currency globally, accounting for more than 73% of all forex trades.
According to our extensive research, the following currencies are traded the most. They are suitable for the following percentages of the total forex market:
- The Euro (EUR) is the second most traded currency globally, representing 39,7% of all forex trades.
- The Japanese Yen (JPY) is the third most traded currency, making up 25.7% of all forex trades.
- The British Pound (GBP) is the fourth most traded currency worldwide, participating in 20,7% of all forex trades.
- The Australian Dollar (AUD) – is the fifth most traded currency and is represented in 11,48% of all forex trades.
- The Canadian Dollar (CAD) – is the sixth most traded currency and is present in exactly 8% of all forex trades.
- The Swiss Franc (CHF) – is the seventh most traded currency and is present in precisely 7% of all forex trades.
- The New Zealand Dollar (NZD) – is the eighth most traded currency, participating in 5,7% of all forex trades.
Forex Traders by Gender
Our experts’ extensive research and due diligence concluded that 87,6% of all forex traders are male, with 12,4% naturally female.
Forex Traders by Age
Our experts found that most traders are between 25 and 34 years old. As you can see from the image below, the demographics clearly show that most traders are between 25 and 34, with those between 35 and 44 taking second place and those 18 to 24 following third.
Forex Trading Experience
Forex trading experience differs between traders. Some traders achieve incredible returns, while others are unprofitable over the long run. Not every trade is a winner, and according to industry participants, they think they can get rich by forex trading in 88% of all cases.
While 88% think they can consistently make money trading forex, only 12% think forex trading can be done full-time. 8% of all forex traders said they trade just 1 hour a day, while 52% of all forex traders spend at least 3 to 4 hours trading.
One should have reasonable expectations about forex trading. Becoming a millionaire trading 1 to 2 hours a day is nearly impossible with an account containing a few hundred dollars.
Although experience is one of the most crucial factors for a trader’s success, education is often overlooked. It is freely available through guides, tutorials, videos, webinars, seminars, courses, and e-books.
Our experts found that 72% of all forex traders had no previous trading experience in other markets, such as stocks, ETFs, or cryptocurrencies. 92% of all forex traders have less than three years of experience and can be labeled “beginner traders.”
This, combined with the high popularity of our website, indicates that many people are interested in forex trading in Dubai, the United Arab Emirates, and the rest of the world. 39% of all forex traders have been trading for less than a year, and 53% have traded for less than a year. A single percentage of traders has traded the forex markets for over ten years.
Another interesting fact or statistic is that 70% of all forex traders trade on a live account, with 30% trading on a demo or paper trading account instead. 43% of traders make between 9 and 20 trades per month, while 35% make 4 to 8 trades per month, and 22% place more than 20 trades per month.
Out of all forex traders, roughly 85% fail. However, after four years of trading experience, 85% becomes profitable. The main reasons for initial failure are more knowledge, discipline, a trading plan, and a strategy to succeed. Most forex traders trade with about 5% of their overall budget.
Most traders (more than 52%) rely on news sites to identify and execute profitable trades. Others educate themselves through e-books, case studies, white papers, guides, webinars, and other available forex trading educational material.
Forex Market Technology
The forex markets are highly competitive, and trade execution speeds are vital. More than 78% of all forex traders trade from their fingertips, using a mobile phone or tablet, of which 59,2% are Android users and 40,8% use iOS.
MetaTrader 4 is the most popular platform among forex traders, with 57% of all forex traders using the software. Its successor, MetaTrader 5, is the second most used trading platform. 6% of all forex traders use cTrader, while 18% use brokers’ proprietary trading platforms.
83% of all forex traders have used a forex trading app or are likely to do so. The most sought-after features in mobile trading apps are analysis tools, dynamic charting, live market news, an economic calendar, and the availability of both demo and real accounts.
65% of traders think artificial intelligence and machine learning will optimize trade execution speeds. The Image below shows which other trading platform features are highly sought after by forex traders.
Most forex traders (over 94%) use calculators to perform their calculations. The most commonly used forex calculators are currency pip, volatility, profit, and currency converter calculators. 88% of all forex traders use robots, Expert Advisors, and other trade automation software to automate their trades.
Final Thoughts On Forex Statistics
The forex market is more significant than the stock and futures markets and has millions of participants. Most traders speculate while others manage calculated risk on exchange rate fluctuations. Experience and a working strategy are crucial when trading. Forex trading has become popular since COVID-19.
We hope that the key facts, insights, trends, and figures provided by our experts help you better identify and understand trends, techniques, and expectations while becoming better traders.
Frequently Asked Questions about Forex Statistics
Our experts recently received questions about forex statistics, facts, trends, and figures. As we want our guides to be as inclusive as possible, we shall answer the most frequently asked questions about forex statistics below.
What is the 90% rule in forex?
The 90% rule in forex states that 90% of all forex traders lose 90% of their money within the first 90 days of trading.
What is the success rate of forex trading?
According to resources, 5% to 10% of forex traders succeed in long-term, consistently profitable forex trading.
What percentage of forex traders win?
Like the success rate of forex trading, between 5% and 10% of forex traders win, according to resources. However, other outlets state that 85% of those who have traded forex for over 4 years claim to remain profitable.
How do you use statistics in trading?
Statistics are used in trading to analyze and identify market trends, apply proper risk management strategies, and identify patterns and correlations in market data. Additionally, statistics can be used to develop trading algorithms and other trade automation software.
Disclaimer
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 51% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money
This communication is intended for information and educational purposes only and should not be considered investment advice or investment recommendation. Past performance is not an indication of future results.
Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.
Giles Thomas is the CEO of Business24-7 and has considerable experience in the financial industry as Executive Director and Head of Asia for the Family Office Industry focused business FOE.Global. He is also a veteran internet marketer with 13 years of experience in SEO and digital asset M&A.