French FX And CFD Trader Numbers Hit Four-Year Low
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According to two new reports by Investment Trends, the number of French FX and CFD traders has dropped below 30,000, marking the lowest level in four years. However, despite this decline, the French online trading and listed derivatives markets are still showing resilience.
The reports revealed changing investor profiles and potential opportunities for brokers as the landscape evolves.
The 13th edition of the France Leverage Trading Report revealed that French CFD and FX trader numbers are holding steady when compared to other markets. Although the overall number of traders has fallen and reached a four-year low, it is still higher than the pre-pandemic figures. The report noted that half of the growth from that period has been retained.
Lorenzo Vignati Says There Are Clear Growth Opportunities
Lorenzo Vignati, Associate Research Director at Investment Trends, stated that even though the number of new traders in France has decreased, there are clear growth opportunities.
He explained that new traders are eager to learn new skills and seek higher returns. Previously inactive traders have returned to the market in response to factors such as market outlook and volatility. Vignati added that brokers should adapt their strategies to attract and engage these groups of traders.
An earlier report from July by Investment Trends revealed that France is currently one of the smallest FX and CFD markets in Europe compared to other highly developed countries.
This is evident not only in the number of investors but also in the average margin per trade. For example, the average margin in France is €650, while in Italy it is €1,500, and in Germany, it stands at €1,150.
The Number Of French Traders Have Dropped By 8% In 2024
The report also talked about changes in how French traders are trading. French traders are more interested in trading commodities and foreign currencies, and they are using special charting tools more often to study the markets.
Vignati said that this shows how French traders are getting better at planning their trades. He also said brokers who give good technical help and tools for these trades will be in a good spot to meet what traders need.
The 2024 France Online Trading Report showed that the number of people trading online in France has dropped by 8% in the last year. However, this fall is much smaller than the big 17% drop that happened in 2023.
Vignati said the market stayed strong because of lots of new investors joining and fewer people stopping their trades. He added that brokers now have a chance to work with more experienced traders by giving them special services that fit their bigger investments and needs.
New investors are beginning to resemble the pre-pandemic profiles, with higher average ages and bigger portfolio sizes. These investors are drawn to the ability to invest small amounts, while returning traders are attracted to commission-free trading and a wider range of investment options.
Vignati also noted that around 30% of online investors in France consider themselves ‘novices’ or ‘advanced beginners.’ He stated that this group is looking for guidance, and financial media is their most trusted source of information.
He said brokers who provide educational resources will have the best chance to support and grow confidence among these novice traders.
