The rapidly expanding foreign exchange markets have attracted a new, sophisticated breed of individual trader focused almost entirely on forex, according to the first phase results of the CitiFX Pro Forex Trader Survey 2010.
The first-ever industry wide survey of forex traders was sponsored by CitiFX Pro and conducted in partnership with major forex media outlets including FXstreet.com, ActionForex, ForexPros and ForexTV.
A high percentage of respondents (63 per cent) concentrate exclusively on foreign exchange and said that forex is the only asset class they trade. Of those who also trade other asset classes, 71 per cent trade equities, with substantial numbers (47 per cent and 31 per cent) trading commodities and options, respectively.
“The first phase of the survey results, focusing on the profile and working environment of the forex trader, draws a picture of traders who are focused primarily on the foreign exchange markets,” says Sanjay Madgavkar, global head of margin foreign exchange trading at Citi. “The survey also shows a relatively high proportion of respondents trade the markets as full-time professionals.”
Almost 40 per cent of respondents said they trade forex full time, and more than 45 per cent have spent over USD1,000 on books, conferences, DVDs and other educational resources, with almost ten per cent having spent more than USD10,000.
Traders get their information from a wide range of sources, with internet finance sites ranking first at 63 per cent, followed by online forums at 38 per cent, information provided through a bank or broker at 34 per cent, blogs at 33 per cent, and the trader’s own network of contacts at 26 per cent.
While many respondents are new to forex trading – with more than three-quarters (77 per cent) of survey respondents saying they had begun trading forex in the last five years – respondents included a large number of experienced traders. More than 20 per cent have five years or more experience, and six per cent have been trading for more than ten years.
