Exclusive: Vantage Prime Tops List of Win-Loss Ratios of 76 Retail Brokers in October 2020

Following the steps of European Securities and Markets Authority (ESMA), Australian Securities and Investments Commission (ASIC) on October 23th has officially confirmed its product intervention measures on the issue and distribution of contracts for differences (CFDs), therefore the forerunner of leverage limit has drawn attention of related interest parties again.

Fazzaco conducted a survey of EU-brokers, looking at the losing and profitable ratios of 76 brokers’ clients.

Vantage Prime Tops the List with 35.41% Profitable Ratio

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The list is compiled based on the losing ratios from smallest to largest. As you can see from the chart, Vantage Prime kept the smallest losing ratio as last month, with only 35.41%.

JFD came bottom of the table with 84.25% losing ratio. And there are other 6 brokers’ losing ratio over 80%, namely Capital Index, FXGM, CPT MARKETS, EC Markets, Forex24, KVB Prime and Admiral Markets

Differences between ESMA and ASIC in Risk Warning

There are many similarities between ESMA and ASIC new rules, such as in CFD leverage same restrictions, negative account balance protection, margin close-out arrangements, inducements prohibition ect.

However, ASIC adopts different rules in risk warning. ASIC will not require issuer-specific risk warnings or other disclosure-based conditions, including the percentage of losses on a CFD provider’s retail investor accounts. The efficacy of this requirement has been questioned. Therefore, it is understandable to have seen ASIC drop this requirement