Let’s say you are looking to get into a niche for example. Something like dog grooming in your local town you are going to want to know how many other businesses are out there especially for competition concerns. So now let’s take a look at forex if you are looking into getting into trading the forex market you may want to know how many traders there actually are. This is a good questions since you are actually in competition with all the traders out there when somebody wins a trade that means somebody loses.
So how many people are there out trading forex in the world? Although this isn’t an easy question to answer I have found the average is around 10 million active online traders in the world. I cannot verify this just the info I have gathered from a multitude of sources.
Why is this information so hard to gather? Mainly because there are regulated and unregulated brokers around the world. There is no one way to track it if all the brokers reported everything correctly it would be pretty easy to have a centralized information system setup. But to my knowledge and research, this doesn’t exist as of yet. Hopefully it will in the near future. So is this number accurate probably not but it may be the only estimate in existence.
There are new people signing up to trade everyday and also those you stop trading for various reasons one of those is blowing their account. You can honestly be setup for trading by tomorrow just take a look at our FOREX QUICK START GUIDE by CLICKING HERE that is 100% FREE. The one thing about forex is you don’t really have to hide strategies because us as retail traders make such a small dent and the banks are never going to change their trading ways. The only issue are those who fake everything then sell people a crap product that never worked.
I feel if you are getting into forex all you need to do is the math from a technical standpoint, but (and this is a BIG BUT) most will fail not because of the trading side but because of their mindset. So always be working on your mindset. I personally average over a book a week. I do both read and audible along with daily mindset exercises. How do I find the time? Each of us all have the same 24 hours a day. If you want to find time just read one book the one I am reading right now called “Can’t Hurt Me” By David Goggins. A true eye opener and will immediately get kick your mind into shape. What you are doing now is form most only 40% of their true potential. I wish this book came out years ago I feel like I would have succeeded in my 20’s instead of my 30’s. But it is never too late to start.
So who are these so-called Forex Traders?
The Banks
AKA the power players that make up the bulk of all forex trading. This is where the greatest volume comes from and it is banks of all sizes that trade currencies. They also have clients like you and I. Yes when you get a big enough trading account you can trade straight through the banks. I can’t wait for that day for sure instead of using all these different brokers.
Central Banks
These may be the most important players in the market. They have a big influence on things such as the open market operations along with interest rates. They also have a big hand in fixing the pricing that you see when trading.
Whenever they perform in the forex market their is economical reasons for it like bring stability to their currency.
Hedge Funds
This is the second biggest collection of Forex traders next to banks. These are the ones in control of things such as pension funds and foundations so they use crazy big trading accounts.
Corporations
If A Corporations is involved in importing/exporting they are likely involded with forex transactions. So if something comes into the U.S. from Germany for example and then is sold to China. That final sale needs to be converted to Chinese yuan then back to USD where it is purchased from German using the EURO.
Companies also hedge with forex to protect themselves. So the U.S. firm might purchase EURO in the spot market or obtain the EURO in advance to lock in the price.
Individual Investors (AKA RETAILERS)
This is actually quite low compared to the others above something like 3% last time I checked I believe (don’t quote me on that). It is growing at a rapid rate mostly due to everyone out there getting access to the internet since that is really all you need along with a computer (I know people who trade 100% off their phone not me).
Retail Traders are just like you and me and anyone getting involved in forex on their own. Most beginning traders combine fundamental with some technical skills to help. There are those that trade straight off price action although I don’t believe in that myself. Check out the NAKED TRADER if you want to learn a lot about price action. I have seen a lot of individuals who trade just price action and volume which seems to be a great way to confirm that what is on the charts in the price action is correct and not a fake out.
To Trade or Not Trade?
Yes that is the question. If you are reading this I believe you should take a shot at it since you can start 100% free all you need is an internet connection and a computer.
There is obviously a reason why Forex is the largest market in the world. I mean it is not even close at 5.3 Trillion dollars being moved every day. The worst thing you can do is waste your time. This could be what takes you too the top and if you like it and it is fun then that is all you need to know. So dive in take a chance and you never know where you could end up. Forex is here to stay and it will only get bigger especially with Crypto coming up the ranks. Although it is now a bear market it is still getting stronger from a perspective of more and more currencies coming out.
Yes you can trade Crypto and make tons of money from that as well. You can trade forex 24/5 a week and guess what a lot of brokers that trade crypto are open on the weekend. So you can get your VOT (volume of trades) in during the week and weekend. 24/7 if that isn’t enough to make you jump in then I don’t know what is. You shouldn’t have any excuses you can trade right from your bed, from the kitchen table, out in the woods, at truck stops, I could go on and on. Trust me I know I am a stay at home dad living on a small farm. I am up before my wife and daughter are up and most days up after they go to bed just so I can get some trading and learning time in.
Related Questions:
(From Our Free Facebook Group)
What Percentage Of Forex Traders Make Money?
Hard to say an exact percentage. From the numbers I have gathered around 96% of all traders fail for one reason or another. 80% of them usually quit in the first 2 years. Around 40% quit after the first month. There are many reasons for this but it is because they are not mentally prepared for the most part.
Does Anyone Make Money Trading Forex?
Yes of course millions of people make money off of Forex. Unfortunately that leaves millions losing money. The odds are not your favor if you look at the statistics but things are changing the educations platforms out there are becoming very high quality. The one I use is IML and this is mainly due to one individual Steve Gregor who has been coaching and trading forex for over 15 years.
