No good news at all.... :(
Francesc
Q3 2012 US forex traders profitability report: number of US account...by Michael Greenberg at Forex Magnates
Despite the less than volatile Q3 2012 the number of accounts didn’t grow as expected and neither did the traders’ profitability. Apparently low volatility doesn’t necessarily mean improved traders survival.
Not only did one more US broker depart the market today but the total number of US forex traders dropped by over 2,500 while profitability almost didn’t change (+0.3% on average and -0.6% when calculating weighted average). There are still over 100,000 active US forex traders left however this number may go below the 100k mark if the trend continues into the next quarter.
ADVANCED MARKETS WITHDRAWS FROM DIRECT RETAIL FX MARKET
Firm to Concentrate on Wholesale, Institutional Solutions Businesses
CHARLOTTE, NC-October 25, 2012—Advanced Markets LLC has relinquished its US retail broker registration. The move enables the firm to focus on its primary business providing wholesale liquidity, credit and technology Direct Market Access (DMA) solutions to broker, banks and institutional foreign exchange market participants. The change took effect September 30 pending final regulatory approval.
The strategy shift comes as the firm is rolling out UltimtTM, a new liquidity, credit and technology solution for MetaTrader brokers, and working with wholesale clients to launch additional foreign exchange DMA products. The Ultimt introduction alone is fueling sharp growth. The firm’s client pipeline for the product is expected to grow monthly trading volumes by $50 billion by year end
“As much as we value our loyal individual and managed account traders, we think it is important to focus our entire enterprise on providing leading edge DMA solutions for the wholesale and institutional markets,” said Anthony Brocco, Founder and CEO, Advanced Markets. “We have a number of wholesale partnerships coming online and are developing new DMA products with key institutional buy and sell-side partners.”
A significant portion of the firm’s retail accounts were managed accounts in which trading was managed by third-party professional fund managers. Advanced Markets will continue to offer DMA trading and credit solutions and services to hedge fund managers, institutional asset managers, commodity trading advisors and commodity pool operators as well as eligible contract participants and their non-US equivalents.
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About Advanced Markets, LLC
Advanced Markets is a wholesale provider of liquidity, credit and technology solutions to banks and brokers globally. It also provides FX trade execution and prime brokerage solutions and services to fund managers, commodity trading advisors and corporate FX market participants.
The firm specializes in direct market access (DMA) to streaming foreign exchange rates from leading global FX banks. Its liquidity pool is one of the deepest, most transparent in the spot FX market.
Advanced Markets’ DMA model goes beyond “no dealing desk,” STP, multibank RFQ and ECN models, enabling low latency, unfiltered, anonymous trading on live spot FX prices.
Live, executable bid/offer rates can be viewed at www.advancedmarketsfx.com.
On a wholesale basis, Advanced Markets serves more than 15,000 institutional and individual clients in more than 30 countries globally. The company is privately held. Outside investors include Macquarie Americas Corp Inc., a wholly owned subsidiary of Macquarie Bank and GFI Group Inc.
For more information, please visit www.advancedmarketsfx.com. Media Contact: Peter Burton, Delta Markets Group, +1 732 546 3700, pburton@deltamarkets.com
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Tags: Advanced Markets, Forex Broker, Forex Industry, Retail FX Industry, Retail Forex, US Forex Industry, US Retail FX
Comment by Yohay Elam on October 25, 2012 at 2:46pm I just wrote about it as well. This news conincides with low volatility. EUR/USD is "incredibly average" wrote Jamie Coleman at Forex Live.
Comment by Francesc Riverola on October 25, 2012 at 3:12pm Here you have the link to Jamie Coleman's post "EURUSD incredibly average":
http://www.fxstreet.com/news/forex-news/article.aspx?storyid=5abd3a...
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