Oanda Traders Most Profitable

[Justaguy 10]

Under the new regulations in the FX industry, brokers are required to publish the profitability rates of their customers. One of the most interesting statistics is that Oanda (I posted a review about them a while back), out of all the brokers reported, has the most number of traders that are profitable.

 

Could it be that Oanda has had their leverage clocked at 50:1 for the majors for ions and this has caused more profitable traders?

 

They also have the most traders of any FX broker that has reported. I find this very interesting. I hardly ever see Oanda advertise while the others, love to have bonuses and other incentives to sign up.

 

As well, we hear the number 95% of traders fail. Most brokers reported about 25% of profitable accounts. Oanda had just over 50%.

 

So, in the end, has allowing traders crazy leverage been the demise of the majority of them? I would have to add that there are many as well, I am sure, who understood leverage and it never burnt their account.

 

Anyhow, interesting numbers and a nice look inside the brokers and how their traders are doing.

 

This is NOT my blog nor affiliated in any way. It just has the list:

http://forexmagnates.com/us-forex-brokers-account-profitability

[MadMarketScientist 11]

That's incredibly fascinating.

 

Didn't realize these numbers were on the way --- with the new regs it's actually very interesting.

 

I think you make a good point with Oanda and their restriction of margin - probably reduced the number of blowouts substantially and attracted a higher level trader perhaps. Also, from feedback I've heard there are less games with the executions and truer fills.

 

I do think it might even be encouraging to see in the 25% level as profitable -- I actually would have guessed it was a bit lower overall - of course these stats don't include all the accounts that have come and gone - I assume it's just active accounts now.

 

Thanks for sharing that.

 

MMS

[BlowFish 10]

Good find. I have always though Peratos principle a good rule of thumb (80:20) most of these are close. Oanda seems to be a rare exception to the 'rule'. They always had a good reputation way back but I recall people having some difficulties a while back.

 

One has to wonder about the reporting criteria, presumably the account has to be 'active' for the period in question for example. Do 'free' accounts (e.g. the ones that the broker will fund with $100 for you) count? etc.

 

The real big question (I guess) is of those that are profitable, how many are 'marginal' (of course marginal is a pretty vague term).

[WorldTrader 10]

Thanks Justaguy! I have talked to several people at Oanda and they are happy. My account just left FXCM UK, so I think it is time to move to them. So, take one profitable trader away from FXCM.

BW

[FXGirl 10]

I've had my account with Oanda for about 2 1/2 years. I've always been very pleased with spreads, execution and service.

[The Vulcan 10]

OANDA is like that. I have been with them for years since they first came on the scene. and yes I'm a professional full time trader and I have been profitable since 2000.

[Cory2679 11]

Do any of you guys who sing Oanda's praises do any day-trading?

 

If so, how do you deal with the double-digit spread-spikes around news, which often occur multiple times per day?

 

I like Oanda, it's just that those spread-spikes make it difficult/inconvenient to trade the intraday swings.

 

I'd be interested to hear your thoughts.

 

-Cory

[FXGirl 10]

I'm a day trader. I just don't trade around the news - I'm out before the news and wait until the market settles down before I get back in.

[Justaguy 10]

Hey Cory

 

For sure, Oanda can have some very short lived but large spikes. I have a rule...if I am not in a trade 5-10 minutes before the news, I skip any new positions until the same amount of time afterwards.

[Ksat 10]

Sorry, but giving some value to three months of performance means having no idea of the role of random. Three months with a big trend and trendfollowers are up, then it's somebody else turn. Also, remember that success brings more confidence, and more confidence brings ruin.

One year would be somehow indicative, and still far too weak an information. Statistically, in a large number of dumb traders you have some lucky ones that perform well for lengths of time that look amazing,

Most of those who made money in the quarter, will end the year as losers. Most of those who make money in the year, they'll lose the following one. The Pareto distribution is inbuilt in any business - and possibly in nature in general - and if financial markets are an exception, they are for an excess of failures, not success (as it is known since long). Anyway, the news on Oanda is interesting ideed. These guys make no ads but think, and the ads comes for free.

[vegasfoster 10]

I saw a schedule on another forum, but I thought the most interesting thing was the change in the number of accounts they were reporting. During the past year, FXCM went from 22,371 to 15,023 and FX Solutions went from 12,575 to 5,687, while Oanda went from 41,466 to 49,584. All the others were about the same.

[Cory2679 11]

FXCM went from 22,371 to 15,023

 

I would imagine that part of the reason FXCM has lost so many accounts in the past year is the fact that they doubled/tripled the spreads on FXCM Micro.

[KalixMOR 10]

actually I thought the are no profitable forex trader in the long run.

[zdo 20]

My ‘review’ of Oanda

 

Basically, I’m glad they are around.

 

For many years now, the primary reason I keep a 10:1 account open and funded at Oanda is infinite sizing. Some systems really benefit from precision MM / sizing.

 

Service: good

User interface: good, seamless. I personally like their reporting ‘style’ – the Trades, Orders, Positions, Activity tabs, etc.

btw – I would never use their charts or data unless nothing else was available and am not saying you should rely solely on their charts for data

Fills: Across time – acceptable (… but then again, I’ve worked many years on learning to take advantage of wildness instead of inwardly suffering about slippage).

 

Twice in the last 3 years I have been able get business done with Oanda when currenex and bank connections were inaccessible…

 

Anecedotally, I would venture that if a beginner can’t trade the cost levels of an Oanda account successfully, there ain’t much sense in trying to trade any other account. It’s the perfect way to train on a live account instead of some sim / paper bullshi

hth