Copy Traders See a 9% Increase in Profit on FOLLOWME in Q3 2020
The number of copy traders (followers) earning a net profit in the third quarter this year on FOLLOWME, a social trading platform from China, has increased by nearly 9 percentage points compared to the first half of the year, reaching 48.4%. This also represents the highest profit–to-loss ratio among the three types of traders: copy traders, traders (signal providers) and individual traders.
Among traders, profitable accounts accounted for 31.1% while the loss-making accounts accounted for 68.9%. Compared with the first half of the year, the ratio of profitable accounts has increased by nearly 10%. On the other hand, under the independent traders’ category, the profitable accounts accounted for only 25.1%, which was significantly lower than traders. In the third quarter of 2020, the total number of trading orders in the FOLLOWME community was approximately 4.83 million, an increase of 18.6% from the second quarter.
Key Takeaway: With the on-going volatile environment, we highly recommend individual traders out there to have a risk management strategy in place and also make use of our COPYTRADE feature to enjoy a fruitful trading experience with the experienced traders and other copy traders.
Top 20 Brokers’ Profitable Accounts Improved Despite Lower Signups
In this quarter, the forex industry continued to be positively affected by COVID-19. The average percentage of profitable trading accounts of active Brokers in the FOLLOWME community was 25.5%, an increase of 3% points from the first half of the year. This is despite the fact that the average number of trading accounts has decreased by 24.1% to 322 compared with the first half of the year.
A total of 233 Brokers were active in the FOLLOWME community, with approximately 15,000 active accounts and 4.83 million orders.
We are pleased to see this improvement among the brokers in the latest quarter as this will allow our users to benefit from the best traders in the industry. Among them, the profitable accounts ratio of the top five has improved significantly, and GKFX – the best in the group saw an increase of 14% compared with the first half of the year. In the latest quarter, GKFX had the highest ratio of profitable accounts, at 41.8%, followed by FBS and Swissquote, at 38.3% and 34.6% respectively. On another note, although IC Markets replaced the regulator in the third quarter, IC Markets has become the most popular trader among the new users on FOLLOWME Trading Community due to its low spreads. It shows that when a new user chooses a Broker, the platform spread is a very important factor.
Among them, the top 20 Brokers saw an average order number of accounts above 110, and the highest is 936, which is an increase from 760 in the first half of the year.
On top of that, we also want to highlight another significant improvement in the efficiency of the copy trade orders handled by these brokers. The total copy trade orders in the third quarter were about 800,000, of which 676,000 were opened and closed within ONE second, accounting for 84.5%, compared with 76.1% in the first half of the year, and this indicated an improvement in their order processing efficiency.
If you want to get the full insights, read our latest report as featured here. For more information, visit www.followme.com
Founded in 2015, FOLLOWME is a social trading network designed to establish connection with Foreign Exchange investors from around the world. Within this community, users can share their trading experiences, strategies and exchange ideas with other investors.
FOLLOWME currently has over 600,000 registered users from more than 170 different countries. FOLLOWME works with more than 3,000 Brokers worldwide and supports our users to link their accounts within one platform. FOLLOWME has various tools for users to start investing, one of it is our COPYTRADE system, which allows users to automatically follow traders’ portfolio.
FOLLOWME mobile application is available on the App Store and on Google Play.