Forex Facts

Are you a student that needs to make a university report on the forex markets? Are you an investor who wishes to start up a forex brokerage, but needs authentic information on its feasibility? or a news publication that requires original facts on the retail currency markets? We have jotted down a list of forex market facts and figures that should help anyone wanting citations and references.

  1. The governments in Europe and Australia make millions of dollars per year by taxing retail forex brokers.
  2. The California Gold Rush (1848–1855), made and destroyed quite a number of millionaires, as they kept betting their claims with brokers in a format that closely resembled forex.
  3. Though, the media closely connects this product to the Casino Industry; it is actually far from it. Banking institutions have been offering forex look-alikes to large corporations, commodity giants and high-end investors.
  4. Stephen Girard, worth approximately $10 billion in the 18th century ran a de-facto forex type operation trading against the gambling sea merchants after the War of 1812. He owned sea fleets ultimately being responsible for much of the trade moving around the world.
  5. The retail form of this industry been around since the 80s.
  6. There are over 600 active brokers around the world operating in virtually all countries.
  7. The modern version of forex platform was coded by MetaQuotes (MT4 and MT5). However, nowadays many brokers have their own in-house software.
  8. Platform makers earn upwards of $5 million per year in licensing fees alone from their broker clients.
  9. MetaQuotes handled billions worth of forex trades in 2017 for hundreds of brokers.
  10. It costs anywhere between $1 to $2 million of start-up capital to become a successful forex broker.
  11. An average forex trader is just 25 years old. The entire industry is gaining rapid popularity among the younger crowd.
  12. About 35% of the traders prefer to always short-sell the market, compared to 65% that always buy into the market.
  13. Most traders prefer Forex when it comes to online trading.
  14. A successful broker can earn at least $2 million in commissions per month.
  15. A mid-sized forex broker has on the average 40 dedicated staff members; this includes analysts, risk-assessment professionals and a multi-lingual customer support team.
  16. Majority of the brokers are dependent on marketing affiliates to introduce them to new clients.
  17. At the moment, there are over 47,000 active affiliate websites promoting online forex trading.
  18. Even the traditional brokerages are upgrading their products to offer forex to their client base.
  19. The number 1 searched term for forex related queries in Google is: Best forex brokers. It reflects their popularity.
  20. Traders prefer customer support representatives to be located inside the country.
  21. A typical forex broker handles over 500 customer service calls per day.
  22. Brokers can get up to 5,000 demo signups per day from all over the world.
  23. A popular forex broker can open up 1000 to 1500 real-money accounts per day.
  24. Traders can make an average initial deposit of $500; later taking it to at least $25,000 over the course 6 months.
  25. The common method of deposit is a credit card used by 70% of the clients, followed by Bitcoin which comes in the second place at 20%.
  26. Most used method for Funds Withdrawal is a direct bank transfer, followed by credit and pre-paid cards.
  27. The profit margins of a forex broker is at 7% to 20% on all executed trades.
  28. Brokers have an edge of 3% to 5% over the trader, which means that they can easily be beaten with shrewd trading strategies.
  29. Forex Brokers protect themselves from market risks through a process called hedging; the same technique is used by banks and money exchangers in the U.S. to prevent themselves from Forex risks.
  30. The largest recorded winning of a forex trader came out of Australia, and it was $6 million. The individual was fully paid in 3 equal installments of $2 million each month.
  31. The brokers are expecting hundreds of billions worth of forex trades in 2018.
  32. Forex traders make an average bet of $100.000 per trade, or a standard lot.
  33. Most forex brokers offer up to 500 different assets classes, that includes Forex (EURUSD, GBPUSD etc.), Stocks (Apple, Google, Microsoft etc.), and Commodities (Gold, Silver, Oil etc.).
  34. Around 20% of all retail forex trading activity originates from the United Kingdom.
  35. Australia, Indonesia, Malaysia, Singapore, Thailand, Vietnam, Pakistan, UAE, Saudi Arabia, Germany and Canada collectively make up 80% of all the retail (non-bank) forex trading volumes. These countries have millions of forex traders that power up this multi-trillion dollar market. Nigeria, Russia and China also have tens of millions of traders and must be given an honorable mention.
  36. Women constitute 16% of total clients while men fill the rest of the percentage.
  37. Prominent deposits come from retirees (60+ years). Their deposits range from $20,000 to $100,000.
  38. Most forex brokers also offer crypto-currencies as a part of their offerings.
  39. Around 68% of the clients use their cell phones to trade the markets, making mobile apps the preferred choice of traders.
  40. Up to 10% of the profits generated by traders come trading the EURUSD currency symbol.
  41. Brokers also offer privileged access groups, where traders can get personalized analysis of the markets from currency analysts.
  42. Only 33% of the traders are consistently profitable.
  43. Forex traders made over 100 million trades in 2017.
  44. Average lifespan of a forex trader is 3.5 years; which is higher than the traditional stocks and commodities markets.
  45. Around 87% of the people who open a demo account with a broker setup a real money account within 2 days.
  46. Close to 32% of the people create a real money forex account within their first 10 visits to a broker’s website.
  47. Around 69% of people with no prior experience in markets open a trading account.
  48. 78% of all traders, who have placed bets on sports have also traded forex.
  49. A well-known broker can receive around 17,000 unique visits per day.
  50. The largest percentage of investors, who open $50,000+ in initial deposit accounts are in the age group of 65 and older (27%).
  51. Around 36% of the people who trade forex have a high school diploma.
  52. But 29% of them also have a college degree.
  53. Around 81% of the traders believe that forex are a legitimate trading tool.
  54. Trading forex online is one of the fastest growing financial activity in the world.
  55. Forex brokers contribute tens of millions of dollars into charity causes every year.
  56. One of the leading brokers was listed of the 10 most admired companies in Forbes magazine.
  57. Few popular brokers have hundreds of millions of dollars worth of line of credit with top American banks.
  58. A few brokers have had successful IPOs in the European and Asian stock exchanges; thus welcoming institutional investments from pension funds and university endowments.
  59. Many brokers have a team of analysts, that help newbies in making informed decisions for trading in the Forex markets. Demand for live forex signals in has increased from 19% in 2009 to 80% in 2018.
  60. Automated forex robots are in high demand and many traders prefer to use them over taking manual action.

Forex Brokers List