UK headquartered brokerage group Capital.com published a range of data on Tuesday morning, giving some insights into client activity at the firm.
The broker said that UK retail customers show the highest share of profitable accounts globally. Nearly 29% of UK client trades end with a positive realised P&L, compared to 27% in Europe and 15% in MENA.
Customers in the UK were also less 3x less likely to get margin called compared to their peers in MENA and used stop-losses for 25% of trades – almost double the levels in Capital.com’s MENA division.
Pareto rules the waves
The data published by Capital.com also illustrates the degree to which the CFD industry relies on a small number of heavy hitters to deliver the bulk of revenues.
Average deposits for the UK at the broker were $18,913, the highest for the broker globally. However, the median deposit was far lower at $1,526, suggesting a small number of large deposits that pushed the average figure upwards.
This is something we can see from the fact that a small segment of the broker’s clients deposited over $1m.
In the UK, the figure was 0.16% of total customers. That was higher than Europe – where it was just 0.03% – but much lower than the 0.31% in MENA.
“Our data shows that – UK traders are striking an excellent balance between risk and discipline,” said Rupert Osborne, CEO, Capital.com UK.
“Nearly one in four trades by UK clients are protected with a stop loss, and this figure climbs to over 66% among the oldest cohort, underlining a strong culture of risk management. We also see clear evidence that information is key to better trading: UK traders who regularly engage with our news and insights achieve a 60% profitable position rate, which is 15 percentage points higher than those who do not.”
