Fundamental Analysis: Ultimate Guide For Trading Beginners

4.8 out of 5 stars (5 votes)

Embarking on your trading journey can often feel like traversing through a labyrinth, especially when faced with complex concepts like fundamental analysis. This comprehensive guide is designed to demystify this critical trading strategy, illuminating the path for beginners and offering a beacon of knowledge to those lost in the sea of financial jargon.

Fundamental Analysis: Ultimate Guide For Trading Beginners

💡 Key Takeaways

  1. Understanding Fundamental Analysis: Fundamental analysis is a method used by traders to evaluate a security's intrinsic value by examining related economic and financial factors. It is an essential tool for making informed trading decisions.
  2. Importance of Economic Indicators: Economic indicators such as GDP, interest rates, inflation, and unemployment rates are crucial in fundamental analysis. These indicators provide insight into the economic health of a country, which in turn impacts the value of its currency and securities.
  3. Financial Statements Analysis: Traders should understand how to analyze a company's financial statements - income statement, balance sheet, and cash flow statement. These statements give a clear picture of a company's financial health and future growth potential.

However, the magic is in the details! Unravel the important nuances in the following sections... Or, leap straight to our Insight-Packed FAQs!

1. Understanding Fundamental Analysis

Fundamental analysis is the cornerstone of long-term investment decisions. It is a method of evaluating a security by attempting to measure its intrinsic value, examining related economic, financial and other qualitative and quantitative factors. Traders who employ fundamental analysis often use financial statements as their primary source of data. They look at factors such as earnings, revenue, profit margins, and return on equity among other elements.

The crux of this approach is the belief that a company’s actual value may not be reflected in its current price. Traders using fundamental analysis believe that the market may misprice a security in the short run but, in the long run, the true value will be recognized. Therefore, investors can profit by buying these mispriced securities and waiting for the market to recognize its mistake.

In addition, fundamental analysis also involves learning about a company’s management, its competitive advantages, its competitors, and the markets it operates in. This kind of in-depth knowledge is invaluable in making well-informed trading decisions.

Balance sheets, income statements, and cash flow statements are the key documents used in fundamental analysis. These documents provide an overview of a company’s financial health and can help traders identify potential investment opportunities.

However, it’s important to note that fundamental analysis is not just about crunching numbers. It also involves a subjective assessment of how a company is managed, its brand recognition, and other less quantifiable factors.

Ultimately, the goal of fundamental analysis is to produce a quantitative value that an investor can compare with a security’s current price, with the aim of figuring out what sort of position to take with that security (underpriced = buy, overpriced = sell or short).

Remember, fundamental analysis is just one approach to analyzing stocks. Other methods include technical analysis and quantitative analysis. Each method has its strengths and weaknesses and can be used in conjunction with the others to make informed trading decisions.

Fundamental analysis is a powerful tool in a trader’s arsenal, but like any tool, it’s only as good as the person using it. It requires a significant amount of research and understanding of financial markets. However, the rewards can be substantial for those who master it.

Whether you’re a seasoned trader or just starting out, understanding fundamental analysis is crucial to your success in the trading world. It’s not the easiest concept to grasp, but with time and effort, you can become proficient and make more informed trading decisions.

1.1. Definition of Fundamental Analysis

Fundamental Analysis is a comprehensive approach to understanding the intrinsic value of a security, be it a stock, bond, or commodity. This method is rooted in the belief that a security’s actual, underlying worth may not always reflect its current market price. By digging deep into financial data, including income statements, balance sheets, and cash flow reports, the fundamental analyst attempts to ascertain a company’s true value.

It’s not just about numbers, though. Fundamental analysis also involves a broader look at factors that could potentially influence a security’s value. These could include everything from the overall state of the economy, industry trends, to the effectiveness of a company’s management.

Fundamental Analysis is a long-term investment strategy. It doesn’t seek to capitalize on market fluctuations in the short term, but rather to identify investments that will appreciate over a longer period. It’s about buying a stake in a company’s future, not just its present.

In the world of trading, where volatility is the only constant, fundamental analysis serves as a compass guiding traders towards sound, long-term investments. It’s not a guarantee of success, but a tool to make informed decisions and manage risk in an unpredictable market.

Remember, the goal of fundamental analysis is not to follow the market, but to understand it. And in doing so, it empowers traders to make decisions not based on speculation, but on diligent research and sound reasoning.

1.2. Importance of Fundamental Analysis in Trading

In the realm of trading, a keen understanding of fundamental analysis is akin to possessing a secret weapon. It’s an approach that delves into the very core of a company, scrutinizing its financial health, competitive positioning, and overall market conditions. This process, while intricate, is instrumental in making informed trading decisions.

Financial health is the backbone of any company, and fundamental analysis involves a meticulous examination of a company’s financial statements. This includes balance sheets, income statements, and cash flow statements. By doing so, traders can gauge a company’s profitability, debt levels, and operational efficiency, among other things.

Competitive positioning is another critical aspect of fundamental analysis. It involves understanding the company’s standing in its industry, its market share, and its competitive advantages or disadvantages. This information is crucial for predicting a company’s potential for growth and profitability in the future.

Furthermore, fundamental analysis also takes into account the broader market conditions. This may include economic indicators, industry trends, and geopolitical events that can impact a company’s performance. By incorporating this information into their trading strategy, traders can better anticipate market movements and make more informed decisions.

In essence, fundamental analysis is a comprehensive approach that enables traders to understand not just a company’s current value, but its potential future worth. It’s a critical tool for long-term investment strategies, but also useful for short-term trading decisions. Through a solid grasp of fundamental analysis, traders can better navigate the complex world of trading, making decisions that are not just informed, but strategic.

1.3. Difference Between Fundamental Analysis and Technical Analysis

While both fundamental analysis and technical analysis are crucial tools in the arsenal of every successful trader, they approach the market from very different perspectives. Fundamental analysis focuses on the intrinsic value of a security, taking into consideration a wide range of economic and financial factors such as company earnings, industry conditions, and macroeconomic indicators. It is a long-term strategy that aims to identify undervalued or overvalued securities, and is often favored by investors looking for long-term growth or value.

On the other hand, technical analysis is all about studying the statistical trends gathered from trading activity, such as price movement and volume. It operates on the belief that historical trading activity and price changes can be a powerful indicator of future market behavior. Technical analysts use charts and indicators to identify patterns that can suggest future activity, making it a go-to strategy for short-term traders and day traders.

The key difference between these two analyses lies in the timeframe and data they consider. Fundamental analysis is a methodical approach that requires a deep understanding of financial health, competitive advantage, and market conditions, while technical analysis is more about recognizing patterns and using statistical trends to predict future movements. Both have their strengths and weaknesses, and most successful traders use a combination of both to make well-informed trading decisions.

2. Components of Fundamental Analysis

Understanding the components of fundamental analysis is akin to assembling a jigsaw puzzle. Each piece provides a different perspective of the company’s financial picture, and when put together, they offer a comprehensive view of its overall health.

Firstly, there’s the financial statements. These are the company’s balance sheet, income statement, and cash flow statement. The balance sheet reveals what a company owns (assets) and owes (liabilities), the income statement shows how much money a company made and spent over a period, and the cash flow statement displays where a company’s money came from and where it went.

Then, there’s the earnings per share (EPS). This is a portion of a company’s profit allocated to each outstanding share of common stock. A higher EPS often indicates a more profitable company, but it’s essential to compare it with other companies in the same industry.

Next, we have the price-to-earnings (P/E) ratio. This is a valuation ratio of a company’s current share price compared to its EPS. A high P/E ratio could mean that a company’s stock is over-valued, or else that investors are expecting high growth rates in the future.

Another critical component is the dividend payout ratio. This measures the percentage of net income a company distributes to its shareholders in the form of dividends. A lower payout ratio may indicate that the company is reinvesting its earnings into growth opportunities.

Lastly, there’s the economic indicators. These are reports that detail a country’s economic health. They can range from employment data and inflation rates to GDP and retail sales. These macroeconomic factors can significantly impact a company’s performance.

Each of these components plays a vital role in fundamental analysis, providing traders with the necessary insight to make informed decisions. By comprehending these elements, traders can gauge a company’s intrinsic value and predict future price movements.

2.1. Economic Indicators

Economic indicators are a fundamental aspect of the trading world. These are statistics that represent economic factors and can help traders predict market trends. They are released by government agencies and non-profit organizations to provide a snapshot of a country’s economic health.

There are three main types of economic indicators: leading, lagging, and coincident. Leading indicators are those that change before the economy starts to follow a particular pattern. They are used to predict changes in the economy, but they are not always accurate. Examples of leading indicators include stock market performance, building permits, and consumer sentiment.

On the other hand, lagging indicators are those that change after the economy has already begun to follow a trend. They are often used to confirm that a pattern is occurring. Examples of lagging indicators include unemployment rates and corporate profits.

Coincident indicators change at the same time as the economy or stock market. They are used to identify the current state of the economy. Examples of coincident indicators include GDP, industrial production, and personal income.

Understanding these indicators can be a game-changer for traders. They can provide valuable insights into market trends and potential investment opportunities. For example, if a leading indicator such as building permits is on the rise, it could suggest that the construction industry is about to boom. This could be a good time for traders to invest in construction-related stocks.

However, it’s important to note that economic indicators should not be used in isolation. They are just one tool in a trader’s toolbox. Traders should also consider other factors such as market sentiment, technical analysis, and company fundamentals when making trading decisions.

Remember, the key to successful trading is not to rely on a single indicator or method. Instead, use a combination of tools and strategies to make informed decisions. This will increase your chances of success in the volatile world of trading.

2.2. Financial Statements

Understanding financial statements is a crucial aspect of fundamental analysis. These statements, which include balance sheets, income statements, and cash flow statements, provide a comprehensive overview of a company’s financial health. They offer valuable insights into a company’s assets, liabilities, revenues, expenses, and cash flows, all of which are essential factors in determining a company’s intrinsic value.

Balance sheets outline a company’s assets, liabilities, and shareholders’ equity. Assets represent everything a company owns, while liabilities show what the company owes. The difference between assets and liabilities equals shareholders’ equity, reflecting the net worth of the company.

Income statements, also known as profit and loss statements, reveal a company’s revenues, costs, and profits over a specific period. It starts with the company’s gross revenue, subtracts the costs of goods sold (COGS) to arrive at the gross profit. Then, it deducts operating expenses, taxes, and interest to determine the net income. The net income is a key indicator of a company’s profitability.

Cash flow statements illustrate how a company generates and spends cash during a particular period. It divides cash flow into three categories: operations, investing, and financing. Positive cash flow from operations indicates that a company is generating sufficient cash from its core business activities.

By scrutinizing these financial statements, traders can assess a company’s financial stability, growth potential, and profitability. This, in turn, can help them make informed decisions about buying or selling the company’s stocks. Remember, a solid understanding of financial statements is the backbone of successful fundamental analysis.

2.3. Company’s Management and Competitive Position

In the realm of trading, understanding a company’s management and its competitive position is paramount. This knowledge can significantly impact your investment decisions and overall trading strategy. The company’s management is essentially the brain of the organization. It is responsible for making crucial decisions that steer the company’s growth and profitability. Therefore, it’s crucial for traders to scrutinize the management’s track record, their experience, and their decision-making abilities.

A seasoned management team with a proven track record of making sound financial decisions can be a strong indicator of a company’s potential success. On the other hand, a management team with a history of poor decision-making can be a red flag. This is why it’s crucial to delve into the company’s annual reports, press releases, and other public information to assess the management’s performance.

The company’s competitive position in the market is another critical aspect to consider in fundamental analysis. It refers to the company’s standing relative to its competitors. A company with a strong competitive position often has a unique selling proposition (USP), a loyal customer base, a robust supply chain, or superior technology that gives it an edge over its competitors.

By analyzing the company’s competitive position, traders can gain insights into the company’s potential for long-term success. A strong competitive position can indicate a company’s ability to generate consistent profits, while a weak competitive position may suggest the opposite. Therefore, traders should pay close attention to the company’s market share, its competitive strategies, and the overall competitive landscape of the industry.

In essence, understanding a company’s management and competitive position is a critical step in fundamental analysis. It provides traders with valuable insights that can help them make informed investment decisions. So, don’t overlook this aspect of your fundamental analysis. Dive deep into the company’s management and competitive position to uncover potential trading opportunities.

3. Practical Application of Fundamental Analysis

Fundamental analysis is an essential tool for any trader looking to make informed decisions. This method of analysis delves deeply into a company’s financial health, studying everything from earnings reports to market position, to assess its intrinsic value. Unlike technical analysis, which focuses on price patterns and trends, fundamental analysis seeks to understand the factors driving those trends.

The practical application of this analysis begins with understanding a company’s financial statements. These include the balance sheet, income statement, and cash flow statement. They provide a wealth of information about a company’s assets, liabilities, income, and cash flow. By assessing these aspects, you can gauge a company’s financial health and its potential for future growth.

Ratio analysis is another key aspect of fundamental analysis. This involves comparing different financial metrics to understand a company’s performance. Some commonly used ratios include Price/Earnings (P/E), Return on Equity (ROE), and Debt/Equity (D/E). These ratios can provide insights into a company’s profitability, efficiency, and financial stability.

Industry analysis is another crucial element. This involves studying the industry in which the company operates, including its competitors, market trends, and overall economic environment. By understanding these factors, you can better predict how changes in the industry might impact a company’s performance.

Economic indicators are also an essential part of fundamental analysis. These can include data on inflation, unemployment, GDP growth, and more. These indicators can provide insights into the overall health of the economy, which can significantly impact a company’s performance.

In essence, the practical application of fundamental analysis involves a thorough examination of a company’s financials, its industry, and the broader economy. By understanding these areas, traders can make more informed decisions and potentially improve their trading outcomes.

3.1. Steps to Conduct Fundamental Analysis

Step One: Economic Analysis is where you begin your journey into the world of Fundamental Analysis. Here, you examine the overall economic climate, looking at indicators such as GDP, unemployment rates, and inflation. These macroeconomic factors can significantly impact the trading landscape, and understanding them can provide you with a solid foundation for your investment decisions.

Step Two: Industry Analysis takes you deeper into the specifics. In this step, you focus on the industry of the asset you’re considering for trade. By studying industry trends, market size, growth rates, and competition, you can gauge the potential profitability of your chosen sector.

Step Three: Company Analysis is the final and most detailed step. Here, you delve into the company’s financial health, scrutinizing financial statements, earnings reports, and revenue forecasts. You’ll also assess the company’s management team, their strategies, and their performance track record.

Don’t forget: It’s crucial to remember that while Fundamental Analysis can provide valuable insights, it’s not a guaranteed predictor of future performance. It’s a tool to help you make informed decisions, but it should be used in conjunction with other trading strategies to maximize your chances of success.

3.2. Tools for Fundamental Analysis

Fundamental analysis is a cornerstone of successful trading, and to master it, you’ll need the right tools. One of the key tools for fundamental analysis is the financial statement. This is an essential document that provides a comprehensive overview of a company’s financial health. It includes the income statement, balance sheet, and cash flow statement, which offer insights into a company’s profitability, financial stability, and liquidity respectively.

Economic indicators are another vital tool. These include data like GDP, unemployment rates, and inflation rates, which can significantly impact market trends and the performance of individual companies. These indicators can help traders predict market movements and make informed trading decisions.

Stock screening tools are also crucial in fundamental analysis. They help traders filter stocks based on specific criteria such as market capitalization, P/E ratio, dividend yield, and more. This allows traders to identify potential investment opportunities that align with their trading strategy.

Company news and events can drastically affect a company’s stock price. Therefore, staying updated with the latest news about a company, such as earnings reports, product launches, and changes in management, is critical.

Lastly, analytical software and platforms can greatly simplify the process of fundamental analysis. They provide easy access to a wealth of data, sophisticated analysis tools, and advanced charting capabilities. This allows traders to analyze data more efficiently and make quicker, more informed decisions.

Remember, mastering fundamental analysis is not an overnight process. It requires patience, practice, and continuous learning. But with the right tools and dedication, it can significantly enhance your trading performance.

3.3. Limitations of Fundamental Analysis

While fundamental analysis has proven to be an effective tool in the trader’s arsenal, it is not without its limitations. One of the main challenges is that it requires a considerable amount of time and effort to gather, interpret, and analyze all the necessary information. This can be a daunting task, especially for trading beginners who may not yet have developed the necessary skills or knowledge base.

Moreover, fundamental analysis is largely based on public information, which means that it does not take into account any undisclosed or insider information. This could potentially lead to inaccurate or incomplete analysis, which in turn could impact the effectiveness of your trading decisions.

Another limitation is the fact that fundamental analysis is largely subjective. Different analysts may interpret the same data in different ways, leading to varying conclusions. This can make it difficult to establish a clear and consistent strategy, particularly for those who are new to trading.

Furthermore, the fundamental analysis operates on the assumption that the market will reflect the intrinsic value of a stock in the long run. However, this may not always be the case, especially in volatile or irrational markets.

Finally, it’s worth noting that fundamental analysis tends to focus on long-term investment strategies. While this can be beneficial for those looking to build a sustainable portfolio, it may not be as useful for traders who are more interested in short-term gains.

4. Fundamental Analysis for Different Types of Markets

Understanding fundamental analysis is crucial for any trader, regardless of the market in which they operate. It involves evaluating the intrinsic value of an asset by examining related economic, financial, and other qualitative and quantitative factors.

Forex traders often use fundamental analysis to assess the strength of a currency. They examine macroeconomic indicators such as GDP growth rates, inflation, interest rates, and even political stability. For instance, a country with a robust economy and political stability is likely to have a strong currency. On the other hand, economic instability or political turmoil can weaken a currency.

Stock traders, on the other hand, delve deep into a company’s financial statements, evaluating factors like earnings, revenue, cash flow, and debt. They also consider industry trends and market conditions. For example, a company with strong earnings growth and a low debt-to-equity ratio may be a good investment, especially if it operates in a growing industry.

Commodity traders must consider a different set of factors. These include supply and demand dynamics, weather patterns, and geopolitical events. For instance, a severe drought can reduce crop yields, leading to higher prices for agricultural commodities. Similarly, political unrest in a major oil-producing country can disrupt supply, causing oil prices to spike.

Cryptocurrency traders also use fundamental analysis, but the factors they consider are unique to the digital asset space. These include the technology behind a cryptocurrency, its use case, the team behind it, and regulatory developments. For example, a cryptocurrency with a strong use case, a competent team, and favorable regulatory developments may be a good investment.

Remember, while fundamental analysis can provide valuable insights, it’s not a guarantee of success. It’s just one tool in a trader’s toolbox. Combining it with technical analysis and sound risk management can increase your chances of success in the market.

4.1. Stock Market

The Stock Market is an intricate web of opportunities and challenges, a thrilling ride for those who dare to understand its dynamics. It’s a platform where companies sell shares of their business to raise capital, and traders buy these shares with the hope of earning profits. The stock market is a volatile entity, with prices fluctuating based on a plethora of factors.

Fundamental analysis is a method used by traders to determine the intrinsic value of a stock. It involves evaluating a company’s financials, industry position, and market conditions to predict future price movements. This analysis can be a useful tool for traders looking to buy undervalued stocks or sell overvalued ones.

Financial statements are the bread and butter of fundamental analysis. They provide a snapshot of a company’s financial health, including its assets, liabilities, revenues, and expenses. Traders scrutinize these documents to assess a company’s profitability, liquidity, and solvency.

Industry position also plays a pivotal role in fundamental analysis. A company’s position within its industry can indicate its competitive advantage and potential for growth. Traders often compare a company’s performance with its competitors to gauge its market strength.

Market conditions are another crucial factor in fundamental analysis. They encompass the overall state of the economy, including trends in employment, inflation, and interest rates. A strong economy typically bodes well for most companies, while a weak economy can spell trouble.

Fundamental analysis is not a foolproof method, but it can provide valuable insights for traders. It’s a complex process that requires a deep understanding of the stock market and its many variables. But with patience and diligence, it can be a powerful tool in a trader’s arsenal.

4.2. Forex Market

The Forex market, also known as the foreign exchange market, is a dynamic, global trading environment where currencies are bought and sold. It is the largest and most liquid market in the world, with an average daily trading volume exceeding $5 trillion. The Forex market operates 24 hours a day, five days a week, making it accessible to traders in different time zones around the globe.

Understanding how the Forex market works is crucial for traders who use fundamental analysis. This type of analysis involves evaluating a country’s economic indicators, such as inflation rates, GDP growth, and employment data, to predict currency movements. When a country’s economy is strong, its currency typically strengthens against other currencies. Conversely, when an economy is weak, its currency usually weakens.

Trading in the Forex market requires a keen understanding of economic indicators and how they impact currency values. For instance, a rise in a country’s interest rates can attract foreign investors, leading to an increase in the value of that country’s currency. Conversely, a decrease in interest rates can lead to a depreciation of the currency.

Political conditions can also influence the Forex market. Changes in government, political instability, and geopolitical events can lead to volatility in currency values. Traders who use fundamental analysis need to stay informed about global events and understand how these can impact the Forex market.

Trading strategies in the Forex market often involve a combination of fundamental and technical analysis. While fundamental analysis focuses on economic indicators and global events, technical analysis involves studying price charts and using statistical measures to predict future price movements. By using both types of analysis, traders can make more informed decisions and increase their chances of success in the Forex market.

4.3. Commodity Market

The commodity market is a critical component of fundamental analysis, offering a wealth of opportunities for traders. This market comprises a diverse range of products, from precious metals like gold and silver to agricultural products like corn and wheat. Each commodity has its own set of factors that influence its price, making it crucial for traders to understand these dynamics.

Demand and supply are the key drivers in the commodity market. For instance, if a drought impacts the corn harvest, the supply of corn decreases while demand remains constant. This scenario typically leads to a rise in corn prices. Similarly, if a new technology increases the efficiency of mining gold, the supply of gold increases, potentially causing a drop in its price if demand remains constant.

Seasonal patterns also play a significant role in the commodity market. Many agricultural commodities, for example, have growing seasons that can significantly impact their supply and, consequently, their prices. Traders who understand these patterns can anticipate price changes and make informed trading decisions.

Geopolitical events can also have a significant impact on commodity prices. Wars, trade disputes, and changes in government policies can alter the supply and demand dynamics of commodities. For example, a trade embargo on a country that is a major oil producer can lead to a spike in oil prices.

Macroeconomic indicators such as GDP growth rates, inflation, and interest rates can influence commodity prices as well. For instance, during periods of high inflation, investors often turn to commodities like gold as a store of value, driving up their prices.

In the commodity market, traders can use futures contracts to speculate on price movements or hedge against potential price changes. These contracts allow traders to buy or sell a specific amount of a commodity at a predetermined price on a future date. By understanding the fundamental factors that influence commodity prices, traders can make more informed decisions when trading futures contracts.

The commodity market is a complex and dynamic arena. It requires a deep understanding of a multitude of factors, from weather patterns to geopolitical events. But for those who are willing to put in the time and effort to understand these dynamics, the commodity market offers a wealth of opportunities for profit and diversification.

❔ Frequently asked questions

triangle sm right
What is Fundamental Analysis?

Fundamental Analysis is a method used by traders to evaluate the intrinsic value of a security. It involves examining related economic, financial, and other qualitative and quantitative factors. The goal is to determine if the current market price is overvalued or undervalued, providing insights on whether to buy, sell, or hold the security.

triangle sm right
What are the key elements of Fundamental Analysis?

The key elements of Fundamental Analysis include the examination of a company’s financial statements (income statement, balance sheet, and cash flow statement), industry position, market conditions, and economic indicators like GDP, unemployment rates, and inflation.

triangle sm right
How does Fundamental Analysis differ from Technical Analysis?

While Fundamental Analysis focuses on a company’s intrinsic value by examining its financials and market conditions, Technical Analysis focuses on statistical trends based on market activity such as past prices and volume. The former is more concerned with ‘value’, while the latter is more concerned with ‘price’ and trends.

triangle sm right
Can Fundamental Analysis be used for all types of securities?

Yes, Fundamental Analysis can be applied to any type of security, from stocks and bonds to commodities and forex. However, the specific factors considered may vary. For example, when analyzing a bond, you might look at interest rates and the creditworthiness of the issuer.

triangle sm right
Is Fundamental Analysis more suitable for long-term or short-term trading?

Fundamental Analysis is typically more suitable for long-term investments. This is because it can take time for a company’s intrinsic value to be reflected in the market price. However, it can also provide insights for short-term trading decisions, especially in response to news events that may affect the company’s financial health.

Author: Florian Fendt
An ambitious investor and trader, Florian founded BrokerCheck after studying economics at university. Since 2017 he shares his knowledge and passion for the financial markets on BrokerCheck.
Read More of Florian Fendt
Florian-Fendt-Author

Leave a comment

Top 3 Brokers

Last updated: 14 Feb. 2025

IG Broker

IG

4.3 out of 5 stars (4 votes)
74% of retail CFD accounts lose money

Exness

4.3 out of 5 stars (23 votes)

Vantage

4.2 out of 5 stars (13 votes)
80% of retail CFD accounts lose money

You might also like

⭐ What do you think of this article?

Did you find this post useful? Comment or rate if you have something to say about this article.

Get Free Trading Signals
Never Miss An Opportunity Again

Get Free Trading Signals

Our favourites at one glance

We have selected the top brokers, that you can trust.
InvestXTB
4.4 out of 5 stars (11 votes)
77% of retail investor accounts lose money when trading CFDs with this provider.
TradeExness
4.3 out of 5 stars (23 votes)
bitcoinCryptoAvaTrade
4.2 out of 5 stars (17 votes)
71% of retail investor accounts lose money when trading CFDs with this provider.

Filters

We sort by highest rating by default. If you want to see other brokers either select them in the drop down or narrow down your search with more filters.
- slider
0100
What do you look for?
Brokers
Regulation
Platform
Deposit / Withdrawal
Account Type
Office Location
Broker Features