What Percentage of Forex Traders Lose Money? 2023 Statistics (2024)

FAQs

What Percentage of Forex Traders Lose Money? 2023 Statistics? ›

Using official data from 32 ESMA regulated brokers, my research shows that an average of 72.2% of forex traders lose money.

Around 1% – 20% of traders earn a profitable margin at the end of the day. The low success rate often discourages the newbies who learn new ways from an online course or television. Studies have shown that around 97% of day traders have lost their money in two years.

Aspiring traders are often driven by the lure of making quick money, but the reality is that the vast majority of traders end up losing money. According to statistics, around 90% of traders lose money in the long run.

Most traders fail because they do not invest enough time and effort in learning about the markets and trading strategies. They enter the market without a proper plan or strategy, which leads them to make poor decisions and lose money.

The foreign exchange market size has grown strongly in recent years. It will grow from $752.66 billion in 2023 to $795.91 billion in 2024 at a compound annual growth rate (CAGR) of 5.7%.

Using official data from 30 ESMA regulated brokers, my research shows that an average of 74.9% of Forex traders lose money. Most new traders lose because they trade way too big. Their first loss or string of losses takes them out of the game.

According to research, the consensus in the forex market is that around 70% to 80% of all beginner forex traders lose money, get disappointed, and quit. Generally, 80% of all-day traders tend to quit within the first two years.

There's a saying in the industry that's fairly common, the '90-90-90 rule'. It goes along the lines, 90% of traders lose 90% of their money in the first 90 days.

Many people start trading Forex with the hope of getting rich quick, but the reality is that most Forex traders fail. So, how many people actually succeed in Forex? The exact number is difficult to say, but estimates range from 5% to 10%. This means that the vast majority of Forex traders lose money.

It's not possible to trade without loses at all, but it is possible to minimize the risks. We gathered a couple of most common misconceptions to tell you how to avoid big losses. Read our golden rules, smile on “genius” decisions – and don't make the same mistakes!

How much longer will forex be around? ›

Forex will exist until one world government is formed and we use only one currency, but this probably will never happen. Currency market is a very powerful tool for developed economies. nothing... Forex will exist until one world government is formed and we use only one currency.

A report from the investment platform eToro suggests that 80% of its users lost money over a 12-month period. Other reports offer slightly different numbers, but none come close to suggesting that a majority of traders net a profit over long periods of time. Day trading is a dangerous game.

Profitable day traders make up a small proportion of all traders – 1.6% in the average year.

Day trading has long been touted as a way for people to make a quick buck, with the allure of being your own boss and setting your own schedule. However, the harsh reality is that the vast majority of day traders lose money. In fact, studies have shown that a staggering 97% of day traders end up in the red.

Staggering data reveals 90% of retail investors underperform the broader market. Lack of patience and undisciplined trading behaviors cause most losses. Insufficient market knowledge and overconfidence lead to costly mistakes.