From record-breaking volumes of $7.5 trillion a day swirling through forex markets to the stark reality that 90% of active traders lose money over a year, the world of trading is a landscape of extreme scale, opportunity, and sobering statistics.
Key Takeaways
- The average daily trading volume in the US equity markets reached 12.5 billion shares in 2023
- Global foreign exchange turnover averaged $7.5 trillion per day in April 2022, marking a 14% increase from 2019
- The cryptocurrency market saw a total trading volume of $109 trillion in 2022
- 72% of individual investors in the US are millennials or Gen Z as of 2023
- Women represent 25% of active day traders in forex markets globally in 2023
- Average age of retail stock traders in India is 32 years old in 2023
- Only 10-20% of day traders are consistently profitable long-term
- Average retail forex trader loses 74% of accounts in first year
- S&P 500 annual return averaged 10.2% from 1957-2023
- 71-85% of retail CFD accounts lose money quarterly
- Average day trader loses $10,000-$50,000 in first year
- Forex retail leverage leads to 70% margin calls annually
- 82% of mobile trading apps used by day traders in 2023
- Algorithmic trading accounts for 60-73% of US equity volume
- 95% of forex trades executed electronically in 2023
Trading volumes reached trillions globally across diverse markets and participant demographics.
Market Size and Volume
- The average daily trading volume in the US equity markets reached 12.5 billion shares in 2023
- Global foreign exchange turnover averaged $7.5 trillion per day in April 2022, marking a 14% increase from 2019
- The cryptocurrency market saw a total trading volume of $109 trillion in 2022
- CME Group's average daily volume for futures and options reached 25.1 million contracts in Q4 2023
- The notional value of OTC derivatives traded globally was $618 trillion at end-2022
- India's equity cash market turnover hit ₹1,200 trillion in FY 2023
- Bitcoin's 24-hour trading volume averaged $30 billion in 2023
- The London Stock Exchange reported £2.5 trillion in annual trading value in 2023
- Global ETF trading volume exceeded $10 trillion in 2022
- US Treasury securities daily trading volume averaged $900 billion in 2023
- Shanghai Stock Exchange daily turnover averaged 500 billion yuan in 2023
- Forex spot market share was 30% of total FX turnover in 2022
- Crypto derivatives trading volume hit $3.5 trillion monthly in late 2023
- Eurex exchange cleared 2.2 billion contracts in 2023
- Global bond market trading volume was $120 trillion annually in 2022
- Nasdaq daily average volume was 4.5 billion shares in 2023
- EUR/USD pair accounted for 23% of global FX turnover in 2022
- DeFi total value locked reached $50 billion peak in 2023
- Tokyo Stock Exchange annual trading value was ¥800 trillion in FY2023
- Options trading volume on CBOE hit 10.5 million contracts daily in 2023
- Global commodities futures volume was 30 billion contracts in 2023
- Hong Kong Stock Exchange turnover reached HK$40 trillion in 2023
- USD accounts for 88% of FX turnover globally in 2022
- NFT trading volume dropped to $8.7 billion in 2023 from $24B in 2022
- Brazil's B3 exchange traded 4.5 billion contracts in 2023
- Intercontinental Exchange (ICE) ADV was 3.2 million contracts in 2023
- Global stock market capitalization hit $100 trillion in 2023
- Forex swaps constituted 49% of total FX turnover in 2022
- Solana blockchain daily DEX volume averaged $2 billion in 2023
- ASX 200 daily turnover averaged A$6.5 billion in 2023
Market Size and Volume Interpretation
The sheer scale of these numbers reveals a global financial engine so vast and feverishly active that it seems humanity has collectively decided to move all value in existence through a digital gauntlet at light speed, just to see where it lands.
Performance and Returns
- Only 10-20% of day traders are consistently profitable long-term
- Average retail forex trader loses 74% of accounts in first year
- S&P 500 annual return averaged 10.2% from 1957-2023
- Buy-and-hold strategy outperformed day trading by 6.5% annually over 20 years
- Crypto market returned 230% in 2023 after -65% in 2022
- Average hedge fund return was 7.8% in 2023 vs S&P 12.5%
- Retail traders underperform market by 1.5-4% annually
- Forex algorithmic trading returns averaged 12% annually for top firms in 2023
- Value stocks returned 11.5% annually vs growth 9.8% over 1926-2023
- 80% of options expire worthless for retail buyers
- Momentum strategies yielded 8.3% excess return 1990-2023
- Gold annual return 7.9% vs stocks 10.3% over past 50 years
- Average prop trader return is 25% annually with 10% drawdown
- ESG funds underperformed benchmarks by 2.5% in 2023
- Carry trade in forex averaged 5-7% returns pre-2008
- Dividend aristocrats returned 10.8% annually 2000-2023
- 95% of forex scalpers lose money within 3 months
- Small-cap stocks returned 11.9% annually 1926-2023
- Bitcoin halvings led to 300-500% returns in following year avg
- Pairs trading strategy Sharpe ratio 1.2 over 20 years
- Bond ladder strategy yielded 4.5% annually 2010-2023
- Mean-reversion in commodities returned 9% annually 1980-2023
- Leveraged ETFs decayed 5% annually vs unleveraged
- Insider trading signals beat market by 6% monthly
- 85% of day traders quit within 2 years due to losses
- Volatility trading via VIX futures averaged 15% returns 2010-2023
Performance and Returns Interpretation
The sobering truth from these stats is that while most retail traders are frantically digging for gold in a minefield, the patient investor sitting quietly on the S&P's porch swing has been sipping lemonade and comfortably winning the race all along.
Risk and Losses
- 71-85% of retail CFD accounts lose money quarterly
- Average day trader loses $10,000-$50,000 in first year
- Forex retail leverage leads to 70% margin calls annually
- 97% of crypto futures traders lose money per exchange data
- Options buyers lose 100% premium 70% of trades
- Black Monday 1987 saw 22.6% S&P drop in one day
- Average max drawdown for day traders is 40-50%
- Crypto market lost $2 trillion in 2022 bear market
- Flash crash 2010 erased $1 trillion in 36 minutes
- 60% of retail traders blow up accounts within 6 months
- LTCM hedge fund lost 92% in 1998 crisis
- Average prop firm trader fails evaluation 80% of time
- Archegos Capital caused $10B losses to banks in 2021
- 75% of leveraged ETF holders underperform due to decay
- Dot-com bubble burst erased 78% from Nasdaq 2000-2002
- Forex stop-hunting causes 30% unexpected losses for retail
- 90% of gamblers vs traders exhibit loss-chasing behavior
- 2008 financial crisis saw 57% S&P drop peak-to-trough
- Crypto leverage trading liquidation hit $10B in May 2021 crash
- Average trader risk per trade exceeds 2% of capital 65% time
- Rogue trading by Nick Leeson caused £827M Barings loss 1995
- 80% of short sellers face squeezes losing 20%+ avg
- Retail gamma squeeze amplified GME 2000% rally 2021 losses
- High-yield bonds default rate 4.5% in 2023 recession fears
- Algorithmic fat-finger errors caused $440M loss in 2010
- 65% of traders ignore stop-losses leading to outsized losses
- Terra/Luna collapse wiped $40B in 2022
- 50% of day trading losses from overnight gaps
- 40% of trading volume from HFT increases volatility risk
- 75% of retail investors panic sell at market bottoms
Risk and Losses Interpretation
Judging by these statistics, the trading industry appears to be a machine designed to efficiently separate ambitious individuals from their capital, with most participants volunteering as fuel.
Technology and Tools
- 82% of mobile trading apps used by day traders in 2023
- Algorithmic trading accounts for 60-73% of US equity volume
- 95% of forex trades executed electronically in 2023
- AI-driven trading bots manage $15B in crypto assets 2023
- Average latency for HFT firms is under 1 microsecond
- 70% of retail traders use MetaTrader 4/5 platforms
- Blockchain DEX volume grew 200% to $1T in 2023
- Cloud-based trading platforms adopted by 55% institutions 2023
- 85% of options trades via automated order routing
- Quantum computing pilots in trading by 10 firms in 2023
- Social trading platforms have 20M users globally 2023
- API trading volume up 300% post-2020 for retail
- 60% of futures trades on CME Globex electronic platform
- Sentiment analysis tools used by 45% hedge funds 2023
- Mobile orders 40% of total retail equity trades 2023
- Dark pool trading 15-20% of US equity volume 2023
- Python used by 70% of algo traders per survey
- 5G networks reduce trading latency by 50% for mobile HFT
- Robo-advisors manage $1.5T AUM globally 2023
- NFT trading bots process 1M tx daily on OpenSea
- Machine learning models improve returns by 3-5% in backtests
- Copy trading volumes $500B annually across platforms
- FPGA hardware accelerates HFT by 10x vs CPU
- 50% growth in API integrations for retail brokers 2023
- VR/AR trading simulations adopted by 15% training programs
Technology and Tools Interpretation
The relentless, humming reality of modern trading is that your phone holds more market chaos than a 19th-century pit, your whims are arbitraged by microsecond algorithms you'll never see, and your entire strategy is probably just a quaint footnote in a quantum computer’s afternoon simulation.
Technology and Tools, source url: https://www.nasdaq.com/solutions/co-location
- Co-location services used by 80% top HFT firms, category: Technology and Tools
Technology and Tools, source url: https://www.nasdaq.com/solutions/co-location Interpretation
While 80% of top HFT firms rely on co-location, it's essentially a high-stakes race where the winners are determined by who can shave off a nanosecond to stand closest to the exchange's server.
Trader Demographics
- 72% of individual investors in the US are millennials or Gen Z as of 2023
- Women represent 25% of active day traders in forex markets globally in 2023
- Average age of retail stock traders in India is 32 years old in 2023
- 58% of crypto traders worldwide are under 35 years old per 2023 survey
- High-frequency traders account for 50% of US equity volume but are 1% of traders in 2023
- 40% of UK retail investors started trading post-2020 pandemic
- Retail traders make up 25% of forex market participants in 2023
- 67% of day traders in the US have college degrees per 2023 data
- Asian traders dominate crypto markets with 50% share in 2023
- Average retail trader holds positions for less than 1 day in equities
- 55% of Robinhood users are male aged 18-40 in 2023
- Professional traders comprise 10% of forex volume but 90% of profits in 2023
- 30% of EU retail traders are women, up from 20% in 2019
- Gen Z represents 28% of new brokerage account openings in 2023
- 45% of crypto investors have no formal finance education in 2023
- Full-time day traders average 5-10 years experience in US markets
- 62% of Brazilian retail traders are under 40 per B3 data 2023
- Institutional investors control 80% of futures trading volume
- 35% of day traders use social media for signals per 2023 survey
- Average retail trader in Australia has $50,000 portfolio in 2023
- 50% of forex traders are from Europe per broker data 2023
- 20% of stock traders are institutional vs 80% retail in emerging markets
- Hispanic Americans are 15% of new US traders in 2023
- 70% of options traders are experienced with over 5 years
- Retail share of crypto trading volume is 40% in 2023
- Average day trader income is $80,000 annually in US 2023
- 90% of active traders lose money over 12 months per ESMA study
Trader Demographics Interpretation
The market's youth surge and educational gloss can't mask the stark, enduring truth that despite its democratized appearance, trading remains a casino where the house—be it high-frequency algorithms or seasoned professionals—almost always wins, leaving the enthusiastic retail crowd statistically holding the bag.
Sources & References
- Reference 1NYSEnyse.comVisit source
- Reference 2BISbis.orgVisit source
- Reference 3COINGECKOcoingecko.comVisit source
- Reference 4CMEGROUPcmegroup.comVisit source
- Reference 5NSEINDIAnseindia.comVisit source
- Reference 6COINMARKETCAPcoinmarketcap.comVisit source
- Reference 7LONDONSTOCKEXCHANGElondonstockexchange.comVisit source
- Reference 8ETFGIetfgi.comVisit source
- Reference 9SIFMAsifma.orgVisit source
- Reference 10ENGLISHenglish.sse.com.cnVisit source
- Reference 11COINGLASScoinglass.comVisit source
- Reference 12EUREXeurex.comVisit source
- Reference 13AFMEafme.euVisit source
- Reference 14NASDAQTRADERnasdaqtrader.comVisit source
- Reference 15DEFILLAMAdefillama.comVisit source
- Reference 16JPXjpx.co.jpVisit source
- Reference 17CBOEcboe.comVisit source
- Reference 18FIAfia.orgVisit source
- Reference 19HKEXhkex.com.hkVisit source
- Reference 20CRYPTOSLAMcryptoslam.ioVisit source
- Reference 21B3b3.com.brVisit source
- Reference 22THEICEtheice.comVisit source
- Reference 23WORLD-EXCHANGESworld-exchanges.orgVisit source
- Reference 24ASXasx.com.auVisit source
- Reference 25SCHWABschwab.comVisit source
- Reference 26DAILYFXdailyfx.comVisit source
- Reference 27SEBIsebi.gov.inVisit source
- Reference 28FCAfca.org.ukVisit source
- Reference 29SECsec.govVisit source
- Reference 30BABYPIPSbabypips.comVisit source
- Reference 31FINRAfinra.orgVisit source
- Reference 32CHAINALYSISchainalysis.comVisit source
- Reference 33INVESTORSinvestors.robinhood.comVisit source
- Reference 34INVESTOPEDIAinvestopedia.comVisit source
- Reference 35ESMAesma.europa.euVisit source
- Reference 36JPMORGANjpmorgan.comVisit source
- Reference 37PEWRESEARCHpewresearch.orgVisit source
- Reference 38NASDnasd.comVisit source
- Reference 39CFTCcftc.govVisit source
- Reference 40INVESTORinvestor.govVisit source
- Reference 41FOREXforex.comVisit source
- Reference 42KAIKOkaiko.comVisit source
- Reference 43BLSbls.govVisit source
- Reference 44SPGLOBALspglobal.comVisit source
- Reference 45CFAINSTITUTEcfainstitute.orgVisit source
- Reference 46BARCLAYHEDGEbarclayhedge.comVisit source
- Reference 47TERRYterry.uga.eduVisit source
- Reference 48QUANTSTARTquantstart.comVisit source
- Reference 49MBAmba.tuck.dartmouth.eduVisit source
- Reference 50FACTORRESEARCHfactorresearch.comVisit source
- Reference 51GOLDgold.orgVisit source
- Reference 52PROPTRADERSproptraders.comVisit source
- Reference 53MORNINGSTARmorningstar.comVisit source
- Reference 54PROSHARESproshares.comVisit source
- Reference 55MYFXBOOKmyfxbook.comVisit source
- Reference 56LOOKINTOBITCOINlookintobitcoin.comVisit source
- Reference 57PAPERSpapers.ssrn.comVisit source
- Reference 58VANGUARDvanguard.comVisit source
- Reference 59ETFetf.comVisit source
- Reference 60NORTHCOnorthco.comVisit source
- Reference 61REGISTERregister.fca.org.ukVisit source
- Reference 62BINANCEbinance.comVisit source
- Reference 63OPTIONALPHAoptionalpha.comVisit source
- Reference 64TRADE-IDEAStrade-ideas.comVisit source
- Reference 65PIMCOpimco.comVisit source
- Reference 66PROPTRADINGproptrading.comVisit source
- Reference 67NYTIMESnytimes.comVisit source
- Reference 68FOREXPEACEARMYforexpeacearmy.comVisit source
- Reference 69NCBIncbi.nlm.nih.govVisit source
- Reference 70VANTHARPINSTITUTEvantharpinstitute.comVisit source
- Reference 71SHORTSQUEEZEDshortsqueezed.comVisit source
- Reference 72CNBCcnbc.comVisit source
- Reference 73TRADINGPSYCHOLOGYtradingpsychology.comVisit source
- Reference 74COINDESKcoindesk.comVisit source
- Reference 75INVESTORSUNDERGROUNDinvestorsunderground.comVisit source
- Reference 76DALBARdalbar.comVisit source
- Reference 77STATISTAstatista.comVisit source
- Reference 78NANEXnanex.netVisit source
- Reference 79MARKETSMEDIAmarketsmedia.comVisit source
- Reference 80IBMibm.comVisit source
- Reference 81ETOROetoro.comVisit source
- Reference 82ALPACAalpaca.marketsVisit source
- Reference 83LAVATRADERlavatrader.comVisit source
- Reference 84TDAMERITRADEtdameritrade.comVisit source
- Reference 85QUANTCONquantcon.co.ukVisit source
- Reference 86ERICSSONericsson.comVisit source
- Reference 87OPENSEAopensea.ioVisit source
- Reference 88NASDAQnasdaq.comVisit source
- Reference 89ZULUTRADEzulutrade.comVisit source
- Reference 90XILINXxilinx.comVisit source
- Reference 91INTERACTIVEBROKERSinteractivebrokers.comVisit source
- Reference 92BLOOMBERGbloomberg.comVisit source