Trding.io Research

Do most traders really lose money? What official regulator data reveals

Across three of the world's major financial regulators — the UK's FCA, the EU's ESMA and Australia's ASIC — the official data agrees: the majority of retail CFD traders lose money. The figures range from 68% to 89% depending on the market and year. Here is exactly what each regulator found, with sources.

The short answer

You've probably seen the disclaimer on every broker's homepage: "XX% of retail investor accounts lose money when trading CFDs with this provider." That number isn't marketing — it's a legal requirement, grounded in data collected by financial regulators. We pulled the official figures from three of them.

The official loss rates, regulator by regulator

Why this matters for beginners

• Leverage is the amplifier. The EU cut retail leverage to 30:1 precisely because high leverage accelerates losses. Beginners chasing 1:500 offshore leverage are, statistically, the most exposed.
• Fees are a silent drag. ASIC found A$73 million of the losses were fees — money gone regardless of whether trades won or lost.
• Regulation is a floor, not a guarantee. Negative balance protection and segregated funds limit the damage — they don't change the base rate of losing.

How we compiled this

Every figure above comes directly from a primary regulator publication — FCA, ESMA and ASIC — and is linked to its source. We don't sell trading products, and we update these figures when regulators publish new data. If you spot an outdated number, tell us.

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This article is educational and is not financial advice. CFDs are complex instruments and come with a high risk of losing money.