People often say that 95% of traders lose money, but I've always wondered just how accurate that number is. Now we finally have some official data:

According to survey done by the Australian Securities and Investments Commission 80% of Binary Options traders lose money, while the percent with CFD and forex traders is 72 and 63 respectively.

That is not as bad as I imagined it would, but it's still quite bad.

Also, the same recent ASIC review of 57 of forex, CFD and binary options brokers identified a number of risks associated with the financial instruments offered to retail investors.

mlawson71 wrote: Tue Jul 03, 2018 11:35 pm People often say that 95% of traders lose money, but I've always wondered just how accurate that number is. Now we finally have some official data:

According to survey done by the Australian Securities and Investments Commission 80% of Binary Options traders lose money, while the percent with CFD and forex traders is 72 and 63 respectively.

That is not as bad as I imagined it would, but it's still quite bad.

Also, the same recent ASIC review of 57 of forex, CFD and binary options brokers identified a number of risks associated with the financial instruments offered to retail investors.

Those are surprising stats and good info lawsy. Thanks for this!

Not surprising. Most knew it was somewhere around 80%+ and that for all kind of trading, not just Binaries or FX CFD's.

Luckily not affecting me as I have the Holy Grail MT4 arrow

I actually expected the stats to be a lot worse. Either Australian traders are doing better than everyone or we're all underestimating ourselves.

Great news and falls within my expectations. Always thought that the assumption of 99.99% lose money is an overkill. If that's the case, we should not see so many experienced users in all the forums around.

Also, read somewhere that the edge for Casino is only 5 to 10%, meaning they have 55:45 ratio or 60:40 ratio. With that, they are making billions.

So, Fx brokers making a winning ratio of 63:37 is a good point. (at least not 99% as many claims) (means their business is better than the casino)

Another good point is 97% of the customers are retail.

found the orginal statement here;
https://asic.gov.au/about-asic/media-ce ... practices/

The ASIC report;

What surprised me was the Binary Options losses statistic. Considering the FCA survey, according to which Brits lose GBP 87,000 per day to Binary Options scams, I thought the percentage of losses would be a lot bigger.

It is good that the lowest percentage of losers is from Forex. Probably the reasons are, that the Forex pairs could be traded with better conditions (spreads, liquidity, commissions, swaps...). I think it is not very hard to become on the other side of the winners (37%)

More data coming from Australia - the Australian Competition & Consumer Commission (ACCC) has issued its Scamwatch report for the first half of 2018, which marks a troubling rise in investment scams. The report reveals that Australians are collectively losing $4.3 million a month to scams in the sphere of cryptocurrency, binary options trading, as well as traditional investment markets like stocks, real estate and commodities

The European Securities and Markets Authority (ESMA) has come out with an official statement on Friday, , saying that it will extend the prohibition on binary options for a further three-month period from October 2, 2018. The European regulator initially banned the marketing, distribution or sale of binary options to retail clients as of July 2, 2018 due to investor protection concerns.

They're going to be doing this indefinitely, aren't they?

Statistics make sense.