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ASIC: 80% of Binary Options traders, 72% of CFD traders and 63% of Forex traders loose money

#1
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.


Re: ASIC: 80% of Binary Options traders, 72% of CFD traders and 63% of Forex traders loose money

#2
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!
Myfxbook live trading results (new 2019 account coming soon)
Need custom MT4 coding? Send a PM to Mrtools or post here for a quote!

Re: ASIC: 80% of Binary Options traders, 72% of CFD traders and 63% of Forex traders loose money

#5
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;
rep579-published-28-june-2018.pdf
(98.15 KiB) Downloaded 148 times
2018-07-05 17_05_42-Report REP 579 Improving practices in the retail OTC derivatives sector.png


Re: ASIC: 80% of Binary Options traders, 72% of CFD traders and 63% of Forex traders loose money

#8
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

Re: ASIC: 80% of Binary Options traders, 72% of CFD traders and 63% of Forex traders loose money

#9
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?


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