If you trade Forex, or are considering the opportunity to do so, the key Forex industry statistics for 2020 should be an important part of your decision-making process. Daily Forex has created a detailed report to help traders prioritize their strategies and exceed their goals. This report includes data from more than 3,100 retailers around the world, as well as insights and forecasts from our leading retailers and partners. Take a look inside. If you trade Forex, or are considering the opportunity to do so, the key Forex industry statistics for 2020 should be an important part of your decision-making process. Daily Forex has created a detailed report to help traders prioritize their strategies and exceed their goals. This report includes data from more than 3,100 retailers around the world, as well as insights and forecasts from our leading retailers and partners. Take a look inside.
Advertisem*nt
READY TO MAKE YOUR MONEY WORK FOR YOU?
START TRADING NOW
The Daily Forex research team turned to our massive database of over 120,000 subscribers, mostly Forex traders, and asked questions about their challenges and strategies in trading Forex.
We surveyed 3,127 forex traders from 32 countries to understand how they analyze data, how they trade, what they find challenging and what works well. Below we outline some interesting facts, statistics, trends and charts about the massive $6.6 trillion Forex market.
Forex market statistics
The size and daily turnover of the global foreign exchange market
The Forex market is the largest financial market in the world, larger than stocks, bonds andcommodity markets. Daily foreign exchange market activity has increased from $1.2 trillion in 2001 to $6.6 trillion in 2019.The global Forex trading market is worth $2,409,000,000,000 (that's $2.4quadrillion).
Forex is the only market open 24 hours a day (except weekends). The forex market is three times larger than the derivatives market and a whopping 35 times larger than the stock market.
Who are the biggest players in the Forex market?
Forex traders and investors come from a wide spectrum of backgrounds. Most of the market volume in the Forex market is generated by financial institutions such as commercial banks, central banks, hedge funds, investment managers and multinational corporations. Retail Forex trading represents only 5.5% of the entire Forex market worldwide.
The World's Most Popular Forex Currencies
There are over 170 different currencies around the world that make up the Forex market today. The US dollar is the most traded currency in the world. The US dollar, also called the 'greenback', makes up almost 73% of global trade.
Most popular Forex currencies have thatdaily trading signalsfor beginners and experienced traders.
- The euro is the second most traded currency, participating in 39.7% of transactions.
- The Japanese yen (JPY) is the third most traded currency, participating in 25.7% of trades.
- The British Pound (GBP) is the fourth most traded currency, participating in 20.7% of transactions.
- The Australian dollar (AUD) is the fifth most traded currency, participating in 11.48 of the trades.
- The Canadian dollar (CAD) is the sixth most traded currency, participating in 8.0% of trades.
- The Swiss franc (CHF) is the seventh most traded currency, participating in 7.0% of transactions.
- The New Zealand dollar (NZD) is the eighth most traded currency, participating in 5.7% of trades.
What are the most traded currency pairs?
More than 70% of global forex market transactions take place in just 7 currency pairs known as the majors (EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CAD, USD/CHF and NZD/USD ).
EUR/USD
The United States dollar (USD) is the currency of the world's largest economy and the world's most dominant reserve currency. The European Union Euro (EUR) ranks second in terms of dominanceEUR/USDpair (called “Fiber”) is the world's most traded currency pair and accounts for the lion's share of the market action.
USD/JPY
The second most popular pair to trade is the USD and Japanese Yen (JPY).USD/JPY, also known as "The Ninja", typically reflects the political situation between the two economies at a given time. This pair is also called "gopher".
GBP/USD
Moving down the list of the most popular pairs to trade, the next link on the list is the British Pound (GBP) and the USD. ThatGBP/USDcommonly called "the cable" (because of the submarine cables that used to carry the buying and selling rates across the Atlantic Ocean). The pair tends to positively correlate with EUR/USD.
AUD/USD
The fourth most popular currency pair is the Australian dollar (AUS) and the USD. ThatAUD/USDis commonly called "Aussie". Aussie is heavily influenced by mining, beef, wool and wheat farming.
USD/CAD
USD to Canadian dollar (CAD)is next on the list of the most popular currency pairs to trade. This pair is influenced by oil, timber and natural gas and tends to correlate negatively with AUD/USD, GBP/USD and EUR/USD.
USD/CHF
USD to Swiss Franc (CHF) is commonly referred to asThe Swiss". When uncertainty enters the market, traders tend to bid higher on the Swiss franc, which is considered a safe haven for traders because the Swiss economy is considered lower risk. The pair tends to negatively correlate with the EUR/USD and GBP/USD pairs.
NZD/USD
The last pair on our list of the seven majors to trade is the New Zealand Dollar (NZD) versus USD. ThatNZD/USDis also called 'Kiwi'. Changes in monetary policy by the Federal Reserve and the Reserve Bank of New Zealand could lead to NZD/USD volatility.
Which markets do traders trade in?
97% of respondents trade Forex, 43% gold, 24% stock indices and 9% cryptocurrencies.
Forex trader
According to our research, women make up only 12.4% of all traders.
The majority of shoppers are between 25 and 34 years old, as shown below:
Can you get rich trading forex?
As we know, all forex traders lose money on some trades. George Soros and Stanley Druckenmiller are known for making huge profits from Forex trading – but that doesn't mean every trade they ever made was a winner.
We asked the participants if they think they can become rich by trading Forex.88% answered affirmatively.
Can Forex Trading Be a Full-Time Job?
While 88% of participants believe they can get rich trading Forex, only 12% say trading can be a full-time job. 8% of participants responded that they spend less than 1 hour per day and 52% spend 3-4 hours ondaily trading. Don't expect to start an account with a few hundred dollars and spend just 1 or 2 hours trading a day and expect to become a millionaire or even make a livingDay trading.
What monthly returns do you think you can achieve with trading currencies?
Trading experience
Forex trading is not a game! As you can learn from the data we've collected below, experience is one of the most important factors for successful trading. Experience and Education One of the great things about forex trading is that there is a lot of free information, videos and other information availablefree forex ebookswhether it is available online.
Do traders have any other trading experience before Forex?
72% of forex traders had no experience trading other markets before trading forex.
How long have you been trading Forex?
When we divide the total number of traders by their trading experience, we see a clear majority (92%) of beginners with less than 3 years of experience. This number (as well as the increasing search volume on our website) indicates that many people are entering the trading world especially lately.
39% have been trading for 12 months or less, 53% have been trading for less than 1 year and 1% have been trading for more than 10 years.
Do traders trade on live or demo accounts?
70% of survey respondents trade via a live account.
How many transactions do traders make 'on average' per month?
43% of traders make 9-20 trades per month. 35% make 4-8 transactions per month and 22% make more than 20 transactions per month.
How many traders are successful and what is the success rate of forex traders?
Is it true that 90% of traders lose money? We asked participants whether they generally lose or win money. According to our research, 85% of Forex retail traders are unsuccessful.
So why do most traders fail?
85% of those who have been trading for more than 4 years claim to win.To become a successful trader, you need a good understanding of the market. Only then can you develop a trading strategy and discipline. Professional traders often say that they lose a lot of money at the beginning of their trading journey because they lack the knowledge, strategy or discipline to succeed. The majority ofprofitable traderslost money for at least four years before they were able to do sobuild a winning trading plan. If you don't have a professional background in financial markets, it can be even more difficult.
What percentage of your total budget do you spend on forex trading?
The majority of traders we surveyed risk less than 5% of their total budget on forex trading.
When making a budget decision, how confident are you that you are investing in initiatives that impact revenue?
What are the main media forms used in your Forex trading strategy?
A majority of retail traders (52.6%) rely on news sites as part of their main trading strategy. Case studies, e-books and white papers are complementary as part of the educational process.
There is no one-size-fits-all way to understand the market: every country, region and location has unique needs, terminology and ways of consuming information.
What channels do you use for Forex market updates?
The majority of traders rely on financial websites to learn and update about the Forex market. 13.7% of shoppers actively participate in social media such as Facebook, LinkedIn and Telegram.
What kind of videos are you interested in?
Forex market technology
Forex trading is highly competitive and even very small delays in trade execution can be very expensive. There's no doubt about thatTechnology impacts forex trading. Below you will find informative statistics aboutForex trading platformsand tools.
What Technology Do You Use to Find a Forex Broker?
More than 78% of traders search for a broker via a mobile device or tablet.
Shoppers prefer Android over iOS. 59.2% of shoppers have an Android phone, while 40.8% use iOS.
What to look for in a Forex tool
What is the most popular Forex trading platform?
MT4 is the most popular Forex trading platform in the world.57% of people who took our survey traded with MT4.Many Forex brokers offer their clients the option to use MT4as their trading platform.The closest competitor is MT5, which is also built by MetaTrader. 6% responded that they use cTrader, and 18% use others, which are likely a broker's own platform.
85% of salespeople use Windows Desktop.
How likely are we to use a mobile trading app in 2020?
83% of Forex traders surveyed are very or somewhat very likely to use a Forex trading app in 2020.
The main features of the mobile trading app:
Do you think artificial intelligence and machine learning will optimize trade execution?
65% of traders believe that machine learning and artificial intelligence optimize trade execution.
What are the most useful Forex trading and data tools?
What types of online calculators save you time doing basic calculations?
Traders would like to know how to do thatcalculate the grainsvalue of various currency transactions. 94% of traders who responded to the survey stated that they use a currency pip calculator.
Do you use robots to help you shop?
88% of successful forex traders today use robots to help them make money.
Final thoughts
The Forex trading market is larger than the futures and stock markets. Millions of people around the world are trying to make profits from trading Forex. Some of them speculate and others manage a calculated risk of exchange rate fluctuations. Possess practical knowledge andtrading strategyis essential when entering the Forex market. Despite the outbreak of COVID-19, the Forex trading sector seems stable in 2020. We hope this research will help Forex traders identify and better understand trends, techniques and expectations, and become better traders.
Frequently Asked Questions
Can I trade Forex with €100?
Yes, you can even start forex trading with just $10!. The amount you need to get started depends on your situationForex broker
What is the success rate of forex traders?
According to our research, 85% of Forex retail traders fail.
Who is the richest forex trader in the world?
George Sorose is considered the best andthe richest Forex trader in the world.
You may also be interested in reading the articles below:
- Which Forex Pair Achieves the Most?
- Which Forex pairs are the most popular
- How to count pips on GBP/JPY
- Wat is beter: futures of forex?
- Which Forex pairs are moving the most?
