The retail forex market has seen significant growth in recent years, with more and more individuals entering the market to trade currencies. However, it is difficult to determine the exact number of retail forex traders in the world, as data on this topic is not widely available.
According to a report by the Bank for International Settlements (BIS), the global forex market had an average daily turnover of $6.6 trillion in April 2019. This figure includes trades conducted by institutional investors, central banks, and retail traders. However, the report does not provide any specific data on the number of retail forex traders.
Another report by the Investment Industry Regulatory Organization of Canada (IIROC) estimates that there are approximately 30,000 retail forex traders in Canada alone. This figure is based on the number of individuals who have opened forex trading accounts with IIROC-regulated firms.
In the United States, the Commodity Futures Trading Commission (CFTC) requires all forex brokers to register with the agency and report their retail forex trading activity. According to the latest data from the CFTC, there were 68,653 active retail forex accounts in the United States as of August 2021. This figure represents a decline from previous years, which may be due to increased regulatory scrutiny and the growth of alternative investment options.
In Europe, the European Securities and Markets Authority (ESMA) requires forex brokers to report their retail trading activity to national regulatory authorities. However, there is no central database that tracks the number of retail forex traders in Europe as a whole.
Despite the lack of comprehensive data on the number of retail forex traders worldwide, it is clear that the market has grown significantly in recent years. The ease of access to online trading platforms and the availability of educational resources have made it easier for individuals to enter the market and trade currencies.
However, it is important to note that forex trading carries significant risks, and traders should carefully consider their investment goals and risk tolerance before entering the market. The high leverage offered by many forex brokers can amplify both profits and losses, and traders should be prepared to manage their positions carefully and monitor market conditions closely.
In conclusion, while there is no definitive answer to the question of how many retail forex traders there are in the world, it is clear that the market has seen significant growth in recent years. As the market continues to evolve and regulatory frameworks adapt, it will be important to continue monitoring trends in retail forex trading activity and the associated risks.
