According to the latest report from Finance Magnates Intelligence, clients of Saxo Bank emerged as the most profitable participants in the FX/CFD market towards the close of 2023.
Their profitability level reached an impressive 38%, marking a notable increase of two percentage points over the past two months.
Moreover, this figure stood significantly higher, 11.5% above the average profitability of the top twenty brokers in terms of retail volumes.
This remarkable achievement by Saxo Bank is attributed to their dedication to providing cutting-edge Forex cloud solutions.
These solutions boast stable and rapid cross-border connections, capable of handling high-demand scenarios efficiently.
Finance Magnates Intelligence conducted its analysis using the Quarterly Industry Report, focusing on the 20 largest FX/CFD brokers by volume.
The study involved scrutinizing their monthly profitability and loss levels. Over the course of the year, there has been a consistent upward trajectory in profitability.
In August 2023, the average profitability was 25.6%, which gradually increased to 27.4% in October and slightly surged to 27.5% in December 2023.
The rankings in the top brokers’ list for December 2023 also witnessed some changes.
Saxo Bank reclaimed the top spot with a profitability rate of 38%, surpassing TeleTrade at 36.6%.
Hantec Markets climbed to the third position with a profitability rate of 34%, displacing CFI, which now occupies the fourth position with 30%.
CMC Markets secured the fifth spot with a profitability rate of 29%.
Among the firms analyzed, 50% maintained stable profitability levels, 25% experienced an increase, with Hantec Markets and Libertex leading the way with gains exceeding 5% over two months.
Unfortunately, 25% of the FX/CFD brokers saw a decline in profitability, with CFI leading the drop by 4%.
Compared to previous months, there is a declining number of firms with low profitability levels, defined as below 25%.
The latest report identified only four such firms, compared to five in October.
These include Axi at 24.5%, XTB at 22.0%, GBE Brokers at 21.3%, and Plus500 at 18%. Notably, Plus500’s clients have consistently experienced profitability levels below 20%.
In a separate report last month, Finance Magnates Intelligence highlighted the growth in average deposits within the FX/CFD market in October.
Data from CPattern revealed that the average deposit increased from $13,504 to $15,248 during that month, indicating continued growth and interest in the market.