# What is the percentage of profitable traders?

**URL:** https://tradingqna.com/t/what-is-the-percentage-of-profitable-traders/44924
**Category:** General
**Created:** [August 19, 2018, 1:15pm UTC](https://tradingqna.com/t/what-is-the-percentage-of-profitable-traders/44924 "2018-08-19T13:15:20Z")
**Posts on this page:** 20
**Page:** 1

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### Author: ![TraderVenk](https://tradingqna.com/user_avatar/tradingqna.com/tradervenk/32/28490_2.png) [@TraderVenk](https://tradingqna.com/u/TraderVenk)
#### Post date: [August 19, 2018, 1:15pm UTC](https://tradingqna.com/t/what-is-the-percentage-of-profitable-traders/44924/1 "2018-08-19T13:15:20Z")

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Authentic data from EU based forex brokers about % of winning traders with them. This data is required to be submitted by brokers as part of new EU regulations (European Securities and Markets Authority (ESMA).

The data does not look all that bad. 25% success rate looks in line with many other trades/business. CAN ZERODHA TELL US WHAT % traders stay profitable with them @nithin

Also look at the difference between European regulation and Indian style babudom. Europe want to educate investors/traders about risks. Here babudom wants to strangulate traders.

 ![Win%20rates](https://tradingqna.com/uploads/default/original/2X/b/bd6978c865a931aa47ee5a4433a22c9e777d6672.JPG)

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### Author: ![nithin](https://tradingqna.com/user_avatar/tradingqna.com/nithin/32/5_2.png) [@nithin](https://tradingqna.com/u/nithin)
#### Post date: [August 20, 2018, 3:52am UTC](https://tradingqna.com/t/what-is-the-percentage-of-profitable-traders/44924/2 "2018-08-20T03:52:45Z")

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> [@TraderVenk](#):
>
> The data does not look all that bad. 25% success rate looks in line with many other trades/business. CAN ZERODHA TELL US WHAT % traders stay profitable with them @nithin
> 
> Also look at the difference between European regulation and Indian style babudom. Europe want to educate investors/traders about risks. Here babudom wants to strangulate traders.

I think we should be able to share this. Will speak to our team. @siva-reddy can you add it on your list of things to do.

This 25% and over number seems ridiculously high though. [Reading the original article](https://www.financemagnates.com/forex/brokers/which-brokers-house-the-most-winning-clients-post-esma/), don’t see how is this calculated (is it per day/month/year, amount of profits/losses etc). Let me know if you find that detail.

Btw CFD markets don’t have any overhanging issues like us, no taxes on a trade (apart from brokerage commissions) and almost unlimited amounts of liquidity (no impact cost).

As Zerodha we collect and pay more than Rs 3.5 crores as STT, Exchange charges, GST, Stamp, etc daily. That means in a year over Rs 700 crores. Liquidity in contracts outside Nifty and Bank nifty is really less. We had done an experiment where we figured that conservatively traders lose almost as much in impact cost additionally to the taxes. So over Rs 1500 crores, just from clients at Zerodha. Unless the other charges come down, impact cost is going to keep increasing over time, assuming product suitability framework does come up sometime reducing retail volumes.

So net off charges, the number of profitable vs losing traders in a yearly period, I think in India will be not more than 1 to 2%.

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### Author: ![vicky\_kothari](https://tradingqna.com/user_avatar/tradingqna.com/vicky_kothari/32/30333_2.png) [@vicky\_kothari](https://tradingqna.com/u/vicky_kothari)
#### Post date: [August 20, 2018, 4:23am UTC](https://tradingqna.com/t/what-is-the-percentage-of-profitable-traders/44924/3 "2018-08-20T04:23:49Z")

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haha so maximum number of traders just provide liquidity to investors.

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### Author: ![chintan\_sodha](https://tradingqna.com/user_avatar/tradingqna.com/chintan_sodha/32/19070_2.png) [@chintan\_sodha](https://tradingqna.com/u/chintan_sodha)
#### Post date: [August 20, 2018, 9:15am UTC](https://tradingqna.com/t/what-is-the-percentage-of-profitable-traders/44924/4 "2018-08-20T09:15:11Z")

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And what about 3 to 5 years period ?

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### Author: ![TraderVenk](https://tradingqna.com/user_avatar/tradingqna.com/tradervenk/32/28490_2.png) [@TraderVenk](https://tradingqna.com/u/TraderVenk)
#### Post date: [August 20, 2018, 1:50pm UTC](https://tradingqna.com/t/what-is-the-percentage-of-profitable-traders/44924/5 "2018-08-20T13:50:54Z")

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> [@nithin](#):
>
> So net off charges, the number of profitable vs losing traders in a yearly period, I think in India will 5be not more than 1 to 2%.

@nithin 1-2% OMG. Shocking!!. I dont know if this is due to impact cost as you mentioned.

But this is not the first time I have come across this 25-30% figure. Please see the citi bank research done sometime back which available on European Central Bank website.

> **[Retail\_FX.pdf](https://www.ecb.europa.eu/paym/groups/pdf/fxcg/2301/Retail_FX.pdf?8b9766f1bbf56797757c4c2cb391f305)**
>
> 1275.00 KB

 ![Capture](https://tradingqna.com/uploads/default/original/2X/a/ad41ae1f3a3005b8cc340b0d51cb0c0af822dbf1.JPG)

Again this reports speaks about 30% trader being profitable. Also note higher profitability for IB and Citi where the minimum deposit is higher. This also shows the brokerages with more experienced/serious traders do well.

One thing is for sure, I always felt I am better with Currencies than with stocks or Nifty, Bank Nifty.

I am not sure if many other traders felt this way.

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### Author: ![AkashKB](https://tradingqna.com/user_avatar/tradingqna.com/akashkb/32/10252_2.png) [@AkashKB](https://tradingqna.com/u/AkashKB)
#### Post date: [August 26, 2018, 4:49am UTC](https://tradingqna.com/t/what-is-the-percentage-of-profitable-traders/44924/6 "2018-08-26T04:49:49Z")

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Dear @nithin Can you please throw some light… What is the %age of retail traders in India who trades only in FNO with just few lacs rupees (active retail derivative traders). May be from 2 lac rupees to 40 lac rupees of trading capital.

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### Author: ![nithin](https://tradingqna.com/user_avatar/tradingqna.com/nithin/32/5_2.png) [@nithin](https://tradingqna.com/u/nithin)
#### Post date: [August 26, 2018, 2:52pm UTC](https://tradingqna.com/t/what-is-the-percentage-of-profitable-traders/44924/7 "2018-08-26T14:52:33Z")

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> [@AkashKB](#):
>
> Can you please throw some light… What is the %age of retail traders in India who trades only in FNO with just few lacs rupees (active retail derivative traders). May be from 2 lac rupees to 40 lac rupees of trading capital.

We will soon put out a detailed report on this.

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### Author: ![AkashKB](https://tradingqna.com/user_avatar/tradingqna.com/akashkb/32/10252_2.png) [@AkashKB](https://tradingqna.com/u/AkashKB)
#### Post date: [August 26, 2018, 3:30pm UTC](https://tradingqna.com/t/what-is-the-percentage-of-profitable-traders/44924/8 "2018-08-26T15:30:54Z")

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Thank you so much for the reply @nithin

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### Author: ![CarryGolen](https://tradingqna.com/user_avatar/tradingqna.com/carrygolen/32/11959_2.png) [@CarryGolen](https://tradingqna.com/u/CarryGolen)
#### Post date: [August 29, 2018, 9:52pm UTC](https://tradingqna.com/t/what-is-the-percentage-of-profitable-traders/44924/9 "2018-08-29T21:52:50Z")

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If the percentage of successful forex tradrers is 25%, then it is a very good ratio. Forex trading is one of the most complicated place to invest in. If one out of four trader sees success in it, then they should be very grateful. I hope that this percentage will rise in the upcoming time.

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### Author: ![Keyur\_Beladiya](https://tradingqna.com/user_avatar/tradingqna.com/keyur_beladiya/32/18164_2.png) [@Keyur\_Beladiya](https://tradingqna.com/u/Keyur_Beladiya)
#### Post date: [September 24, 2018, 7:56am UTC](https://tradingqna.com/t/what-is-the-percentage-of-profitable-traders/44924/10 "2018-09-24T07:56:09Z")

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@nithin @siva-reddy would like to see the report

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### Author: ![vikas1989](https://tradingqna.com/letter_avatar_proxy/v4/letter/v/7993a0/32.png) [@vikas1989](https://tradingqna.com/u/vikas1989)
#### Post date: [April 9, 2019, 5:44am UTC](https://tradingqna.com/t/what-is-the-percentage-of-profitable-traders/44924/11 "2019-04-09T05:44:14Z")

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@nithin

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### Author: ![Ishwar](https://tradingqna.com/letter_avatar_proxy/v4/letter/i/f475e1/32.png) [@Ishwar](https://tradingqna.com/u/Ishwar)
#### Post date: [April 10, 2019, 4:04am UTC](https://tradingqna.com/t/what-is-the-percentage-of-profitable-traders/44924/12 "2019-04-10T04:04:32Z")

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> [@nithin](#):
>
> We had done an experiment where we figured that conservatively traders lose almost as much in impact cost additionally to the taxes.

This is very useful info to estimate the hidden impact costs. Thanks Nithin!

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### Author: ![Raz](https://tradingqna.com/letter_avatar_proxy/v4/letter/r/9f8e36/32.png) [@Raz](https://tradingqna.com/u/Raz)
#### Post date: [April 10, 2019, 7:48am UTC](https://tradingqna.com/t/what-is-the-percentage-of-profitable-traders/44924/13 "2019-04-10T07:48:20Z")

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I have lost more money to theta decay in options trading rather than a position going against me…

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### Author: ![Vinay\_S](https://tradingqna.com/user_avatar/tradingqna.com/vinay_s/32/75956_2.png) [@Vinay\_S](https://tradingqna.com/u/Vinay_S)
#### Post date: [April 10, 2019, 7:54am UTC](https://tradingqna.com/t/what-is-the-percentage-of-profitable-traders/44924/14 "2019-04-10T07:54:29Z")

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This statistics is not going to help in anyways ,boldly we can say 1of 2 percent and focus on investing

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### Author: ![Vinay\_S](https://tradingqna.com/user_avatar/tradingqna.com/vinay_s/32/75956_2.png) [@Vinay\_S](https://tradingqna.com/u/Vinay_S)
#### Post date: [April 10, 2019, 7:56am UTC](https://tradingqna.com/t/what-is-the-percentage-of-profitable-traders/44924/15 "2019-04-10T07:56:09Z")

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True currency is quite easy and accurate to predict and catch the direction

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### Author: ![PureTopics](https://tradingqna.com/user_avatar/tradingqna.com/puretopics/32/14885_2.png) [@PureTopics](https://tradingqna.com/u/PureTopics)
#### Post date: [April 17, 2019, 9:18am UTC](https://tradingqna.com/t/what-is-the-percentage-of-profitable-traders/44924/17 "2019-04-17T09:18:00Z")

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I am still looking and looking and looking at that. If all that is true it’s really motivational. Especially liked to see stats from eToro cause will use them a lot, just created the acount cause heard many real positive reviews and now I see it’s really true. It means market is still there as well as money to be made.

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### Author: ![CoolBird](https://tradingqna.com/user_avatar/tradingqna.com/coolbird/32/16775_2.png) [@CoolBird](https://tradingqna.com/u/CoolBird)
#### Post date: [April 17, 2019, 10:58am UTC](https://tradingqna.com/t/what-is-the-percentage-of-profitable-traders/44924/18 "2019-04-17T10:58:37Z")

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yes as commonly known …99% traders lose money but still keep trading ! ofcourse that may be one of the reason why zerodha is no 1 😃…

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### Author: ![Default](https://tradingqna.com/letter_avatar_proxy/v4/letter/d/48db29/32.png) [@Default](https://tradingqna.com/u/Default)
#### Post date: [June 19, 2020, 6:23pm UTC](https://tradingqna.com/t/what-is-the-percentage-of-profitable-traders/44924/19 "2020-06-19T18:23:08Z")

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Any updates on this? @siva-reddy

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### Author: ![Ragavendran\_V](https://tradingqna.com/user_avatar/tradingqna.com/ragavendran_v/32/28191_2.png) [@Ragavendran\_V](https://tradingqna.com/u/Ragavendran_V)
#### Post date: [October 29, 2020, 1:42pm UTC](https://tradingqna.com/t/what-is-the-percentage-of-profitable-traders/44924/20 "2020-10-29T13:42:31Z")

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Hi @nithin, @siva-reddy

```
Can we get an answer to this question? Thanks.
```

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### Author: ![Avi\_Garg](https://tradingqna.com/user_avatar/tradingqna.com/avi_garg/32/35865_2.png) [@Avi\_Garg](https://tradingqna.com/u/Avi_Garg)
#### Post date: [October 29, 2020, 1:46pm UTC](https://tradingqna.com/t/what-is-the-percentage-of-profitable-traders/44924/21 "2020-10-29T13:46:57Z")

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Trading is easier than playing Cod mobile. That much I can say.
