Today, it is much easier to become a trader than 30 years ago. traders need to have internet access, free software, and a broker’s account and trading can begin. Retail traders are the majority.
So, how many traders in the world?
According to The Modern Trader study, several online case studies, and research papers, there are around 14 million online traders in 2021. around the globe, usually males between 25 and 50 years old.
There are around 13.9 Million online traders worldwide according to “The Modern Trader” report and BIS, released by Broker Notes in the latest report, In a 2014 study by Bapi Maitra, Citigroup expert, there are 4 million retail traders globally.
Activity in the forex market has increased greatly after 1970. Based on the information provided by the Bank of international settlements, the trading volumes daily on an average increased from approximately 1.2 trillion in the year 1995 to 5.1 trillion, 21 years later. This makes it the biggest financial market in the year. While banks and large financial organizations contributed to a major part of the trading volumes, more customers can also trade in forex using the latest technologies. The online trading platforms developed by forex brokers are simple, easy, and available worldwide. Many would like to find out How many forex traders are there? Research indicates that approximately 9.6 million people are trading in forex online.
How many traders are there per continent:
| Continent/Region | Approx. number of online traders |
|---|---|
| Asia | 4630400 |
| North America | 2170500 |
| Europe | 2170500 |
| Africa | 1881100 |
| Middle East | 1403590 |
| South America | 868200 |
| Central America | 484745 |
| Oceania | 274930 |
How many traders are there in Europe broken down by country:
| Rank | Country | Approx. number of online traders |
|---|---|---|
| 1 | United Kingdom | 405160 |
| 2 | Germany | 217050 |
| 3 | Italy | 217050 |
| 4 | France | 188110 |
| 5 | Romania | 159170 |
| 6 | Spain | 140359 |
| 7 | Netherlands | 94055 |
| 8 | Poland | 88267 |
| 9 | Denmark | 53539 |
| 10 | Russia | 52092 |
| 11 | Hungary | 44857 |
| 12 | Bulgaria | 43410 |
| 13 | Greece | 43410 |
| 14 | Sweden | 41963 |
| 15 | Portugal | 39069 |
| 16 | Ireland | 36175 |
| 17 | Czech Republic | 31834 |
| 18 | Norway | 30387 |
| 19 | Ukraine | 28940 |
| 20 | Switzerland | 28940 |
| 21 | Austria | 27493 |
| 22 | Croatia | 26046 |
| 23 | Lithuania | 23152 |
| 24 | Belgium | 20258 |
| 25 | Slovenia | 17364 |
| 26 | Slovakia | 17364 |
| 27 | Estonia | 17364 |
| 28 | Serbia | 12878.3 |
| 29 | Finland | 12154.8 |
| 30 | Kosovo | 10563.1 |
| 31 | Albania | 8682 |
| 32 | Latvia | 8682 |
| 33 | Malta | 6511.5 |
| 34 | Moldova | 5498.6 |
| 35 | Iceland | 3906.9 |
| 36 | Luxembourg | 3038.7 |
| 37 | Belarus | 2749.3 |
| 38 | Montenegro | 1591.7 |
Location of online traders
Forex trading is a global business, and brokers have got permission from the regulators in many countries. In other cases, they have made arrangements for promoting their services outside their home country. Research indicates that one-third of the forex traders are based in the middle east and Asia. This number exceeds the European and North American trader population by more than one million. Though London, UK, New York in the USA are the major forex trading centers, forex traders are found worldwide
Internet users
At present, anyone can become a forex trader with an internet connection. Most of the trading platforms are designed for mobile phone access so personal computers are not required. There is 3.8 billion use the internet worldwide, so 1 in 396 is an online trader. The US has 320 million people using the internet, and research indicates that there is one trader for every 213 online traders. A 2014 Aite group study indicated that a quarter of the internet users in the USA who are adults may have tried online trading. The number of European online traders is 1.5 million, and the ratio of traders to internet users is 1:434
Though Asia has the highest number of internet users at 1.9 billion, the proportion of online traders is lower at 3.2 million for a ratio of 1:594 users. Though Africa has only 388 million people with internet access, it has 1.3 million traders online for a higher trader user ratio of 1:298. The Middle East has the highest trader to user ratio of 1:152, with a total of 147 million people with internet access. The largely Muslim online traders in North Africa, the Middle East face a problem since gains from trading, Riba is not allowed according to Islamic law. The forex accounts which have open transactions after trading hours are subjected to fees which may be credited or debited.
Since these fees are considered usurious, restrictions are imposed on currency trading, so that currency exchange will comply with sharia law. A large number of brokers have noted these restrictions to offer trading accounts complying with Islamic rules. Selling, buying currency is immediate for these accounts and no interest is paid. Since the Muslim traders are able to trade in foreign currency while complying with their religion, there is a higher proportion of traders in this region.
The UK, European traders
Statistical data indicates that the UK has 46 million people with internet access, the number of online traders exceeds 280,000 for a trader: user ratio of 1:164. Britain has the highest number of online traders in Europe. Regulatory changes in Europe regarding leveraged products like CFDs, Forex has reduced the number of forex traders to some extent. France, Holland, do not allow the promotion of leveraged products, the Cyprus regulator has restricted leverage to specific customers and Belgium has imposed a total ban on leverage for forex
Though the Financial Conduct Authority(FCA) of the UK, have considered controlling the leverage, no changes are implemented. UK traders can trade on margins, making only small deposits. Since the salary of more than 50% of UK online traders is less than GBP 35000 this margin trading, the margin trading is very attractive. Though Bafin, the German regulator has implemented changes to protect users from negative balances, the trading volumes of German forex traders remain low, slightly more than half the UK trading volume. Though the internet makes it’s possible for traders from different countries and faiths to trade in forex, UK has some of the highest volumes for forex trading.
