Retail Margin Forex Trader Numbers Rebound – Retail forex trader numbers have surged after three years of decline, fueled by new traders and lower dormancy rates.
Core Motivations for New Forex Traders – Learning new skills, low capital entry, and day trading goals are key drivers, with “finfluencers” playing a growing role.
Crypto Trading on the Rise – Crypto adoption is increasing, driven by diversification, with fund security a crucial factor in platform choice.
September 2024, New York – Investment Trends has published its 2024 US Leverage Trading Report, which provides an in-depth analysis of the key trends shaping the US retail trading landscape. This year’s report highlights the resurgence of retail margin forex trading after a multi-year decline and the ongoing shift toward cryptocurrencies. The findings point to changing market dynamics as new traders enter the scene and the growing importance of diversification strategies.
The report shows that after three years of decline, the number of retail margin forex traders has grown by 11%, reaching 186,000 active traders in the last 12 months, compared to 167,000 in 2023. This growth stems from a strong influx of 71,000 new and reactivated traders. This was alongside a lower dormancy rate with nearly all dormant traders surveyed this year indicating they can be motivated to trade again.
“The renewed interest in margin forex trading in the US is remarkable, with fresh traders stepping into the market at a time of heightened financial awareness. The reduced dormancy rate is a clear indicator that the market is not only expanding but sustaining engagement, presenting significant opportunities for brokers to foster long-term relationships,” said Lorenzo Vignati, Associate Research Director at Investment Trends.
Copyright 2024: Investment Trends. 2024 US Leverage Trading Report
The results also show that primary reasons for starting margin forex trading include learning a new skill (45%), participating in markets with a small capital outlay (38%), and a desire to become a day trader (35%). Interestingly a small but growing proportion of traders—17% in 2024, up from 3% in 2023—cite being influenced by social media personalities or “finfluencers.”
Vignati added, “These motivations illustrate that retail traders are increasingly focused on skill development and low-cost market entry. With the added and growing influence of digital content creators, US brokers have an opportunity to cater to this new wave of informed and enthusiastic traders.”
The report highlights that cryptocurrencies continue to grow in popularity among traders, with 51% citing diversification as their primary reason for trading. Notably, 24% of traders are now using ETFs to access cryptocurrency, reflecting a demand for secure and regulated trading products. Fund security is the most important factor for 37% of traders when selecting a platform, and 32% of margin forex traders planning to start trading crypto indicating a clear regulatory framework would encourage them to do so.
“The shift towards crypto is a sign of the evolving preferences of retail traders. As traders continue to seek diversification, particularly through secure, regulated channels like ETFs, the industry must focus on enhancing security and transparency to maintain trust and continue attracting broader participation,” Vignati concluded.
For more information or to request a copy of the reports, please contact: Email: k.lakhani@investmenttrends.com or Phone: +44 203 865 9881.
About the report
The insights presented are drawn from a comprehensive study of n=5,468 US margin forex traders conducted by Investment Trends from June to July 2024. The report delivers actionable insights and critical data, helping financial professionals understand the latest trends and make informed decisions in these dynamic markets.
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