Analysis: Record Activity of Retail FX/CFD Traders

The last quarter of 2022 exhibited visible changes in key operational metrics related to retail traders. Finance Magnates Intelligence dives deeper into CPattern data for October to see if there is hope for any significant turnaround in the industry data.

The first month of the last quarter witnessed an increase in all three metrics that we often look at in our analysis. First of all, the size of average single deposits grew to $2,120 from $1,605. The size of a deposit closed again at the average size of a withdrawal which also increased in October to $2,367.

Additionally, Growth was seen in total monthly values, which show the cumulative size of capital that was deposited or withdrawn from a single trading account. In October, we observed an increase in the deposit value from $11,429 to $12,779. When it comes to withdrawals, growth increased from $7,428 to $7,992.

Retail Traders Active Again

Not only has the value of capital metrics improved from stagnation but we have also seen more trading activity from retail traders. In October, the average number of transactions per trader grew from 259.7 seen in September to 300.9, breaking the symbolic barrier of ‘300’. Thus, we have achieved the highest reading ever.

And, which country was the most active? Unsurprisingly, it was China again, where on average a single trader made 314 transactions in October. Obviously, we do not know the size of the transactions, but it is not a secret. Due to the local regulatory situation, many Chinese clients trade through IBs and Money Managers who often use algo trading and/or manage several clients in one account. China has been the subject of the ‘Featured Country’ in the most recent Finance Magnates Quarterly Industry Report (QIR3 2022).

Finance Magnates Intelligence will be monitoring industry activity in the upcoming months. Stay tuned for more industry-related research, or reach us directly for additional research requests.