Saxo Bank's Clients Lead FX/CFD Market with 38% Profitability in December 2023

Monday, 22/01/2024 | 09:23 GMT by Damian Chmiel

The profitability of FX/CFD brokers increased in the second half of 2023.

In December, the best results were achieved by clients of Saxo, TeleTrade, and Hantec.

Clients of Saxo Bank were the ones who most frequently profited in the FX/CFD market towards the end of 2023, according to the latest report by Finance Magnates Intelligence. The profitability level was 38%, increasing by two percentage points over the last two months and standing 11.5% higher than the average for the top twenty brokers in terms of retail volumes.

Saxo Bank Clients Lead in FX/CFD Market Profits as of December 2023

The Quarterly Industry Report by Finance Magnates Intelligence was used to analyze the 20 largest FX/CFD brokers by volume, examining their monthly profitability and loss levels. Since mid-last year, a steady increase in profitability has been observed. To recall, the average profitability in August 2023 was 25.6%, gradually increasing to 27.4% in October and reaching a slightly higher 27.5% in December 2023.

There were changes in the top rankings. Saxo Bank (profitability 38%) once again surpassed TeleTrade (36.6%) to take the top spot, while Hantec Markets (34%) moved up to third place, dethroning CFI (30%), which is now in fourth position.

Fifth place is held by CMC Markets (29%). For 50% of the firms considered, values remained unchanged, 25% noted increases, with the largest being recorded by Hantec Markets and Libertex, both exceeding 5% over two months. Profitability levels declined for 25% of FX/CFD brokers, with CFI leading the drop 4%.

Lower Profitability in Four Firms

Compared to previous months, there's a decreasing number of firms achieving low profitability levels, defined as below 25%. In the latest report, there are four such firms compared to five reported in October. They include Axi (24.5%), XTB (22.0%), GBE Brokers (21.3%), and Plus500 (18%). Notably, the profitability level for Plus500's clients usually falls below 20%.

Finance Magnates Intelligence published a report last month on October's average deposits in the FX/CFD market. That month saw another period of growth in average values, with data from CPattern showing that the average deposit increased to $15,248 from $13,504.