Retail loss percentages: what do you make of your broker's number?
Your broker publishes the percentage of its retail clients who lose money — often a sobering number. It's the most honest statistic in the industry and the least discussed.
What's your read?
- your broker's published percentage
- what it tells you about the client base
- how it shapes your own expectations
The retail loss guide explains the calculation.
Background: What the “% of retail accounts lose money” warning actually means
Regulated CFD brokers must publish the share of their retail clients who lose money. How the figure is calculated, what it tells you and what it doesn't.
Why do most retail CFD traders lose money?
CFDs are leveraged, so small price moves cause large gains or losses relative to the deposit, and trading costs add up. Regulators require brokers to publish the share of their retail accounts that lose money for this reason.
Is a broker with a lower loss percentage better?
Not necessarily. The figure depends on the broker's mix of clients and products. It is a reminder of risk, not a measure of the broker's quality or of your own likely result.
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