The top 1 percent of retail traders take two-thirds of all the profits

Every retail trader has heard that most traders lose. Fewer know how the winnings are shared among those who do not. Data from iSAM Securities' Radar platform, reported by Finance Magnates, offers a striking answer. Over the past year, the top 1 percent of winning retail accounts captured 66.5 percent of all client profits. The top 5 percent captured 85.5 percent. And 1 percent of clients can account for 30 percent of a broker's total drawdown, the money it pays out to profitable traders. Retail trading is not just a game most people lose. It is a game where the winnings are concentrated in very few hands.

What the numbers actually say

Radar is a risk analytics platform that brokers use to monitor client activity, exposure and profitability in real time. Because it sees data across many accounts, it can show patterns that individual brokers might not publish. The headline finding is about distribution, not just averages: among accounts that made money, profits were extremely concentrated.

To put it plainly, if all profits earned by winning retail traders were a pie, one slice of about two-thirds went to the top 1 percent of winners. The next 4 percent shared roughly another fifth. Everyone else who made money shared what was left. That pattern is similar to wealth distribution in many economies, but compressed into a single year of trading.

The drawdown figure matters for brokers. If 1 percent of clients can account for 30 percent of the money a broker pays out to winners, then identifying and managing that small group is one of the most important risk tasks a broker has.

Broker disclosures in many markets already show that most retail CFD accounts lose money, with regulators requiring firms to publish the percentage. The iSAM data adds a layer those disclosures miss: among the minority who win, the gains are far from evenly shared.

Why it matters to IG and every market maker

Four days after the data was published, IG Group shares fell 22 percent after it reported that revenue retention dropped to about 70 percent from an 80 percent average in its third quarter. In simple terms, more of IG's clients made money. The iSAM data explains why that can hit so hard: a small group of strong traders having a good quarter can move an entire broker's results. We covered the episode in detail in our analysis of IG's crash.

Brokers that internalise client risk earn more when clients lose and less when clients win. If wins are spread evenly, results are predictable. If wins are concentrated in a small, skilled group, results depend on how that group performs, which is far less predictable. That is the hidden risk behind many CFD brokers' earnings.

The practical response is to identify consistently profitable clients and route their trades to liquidity providers rather than holding the risk. That is standard practice at sophisticated brokers, and tools like Radar exist partly to support it. The data suggests that getting this right is worth far more than most brokers assume.

The concentration also explains why copy trading has grown. If a small number of traders consistently outperform, many retail clients would rather follow them than trade on their own. Platforms that let clients copy strategies are effectively trying to spread the gains of the top performers more widely, though copying carries its own risks.

• Top 1 percent of winning retail accounts: 66.5 percent of all client profits
• Top 5 percent of winning accounts: 85.5 percent of client profits
• 1 percent of clients: up to 30 percent of a broker's total drawdown
• Source: iSAM Securities' Radar risk analytics platform
• Reported: Finance Magnates, 28 September 2026

What the winning few do differently

The data shows concentration rather than explaining it, but experience across the industry points to common traits among consistently profitable retail traders. They tend to use clear risk limits, cut losing positions quickly, avoid excessive leverage and trade fewer, more deliberate setups rather than reacting to every market move. Many specialise in a small number of markets they understand well.

They also treat trading as a business. That means keeping records, reviewing mistakes and adjusting strategies based on evidence rather than emotion. Tools such as trading journals, now offered on platforms including DXtrade, support that discipline. The difference between the winning few and everyone else is often process, not prediction.

Market conditions matter too. Some traders do well in trending markets and badly in ranges, and vice versa. The third quarter of 2026 brought strong trends, from Bitcoin's 42.7 percent quarterly gain to sharp moves in rates and currencies, which favoured traders positioned with those trends.

Position sizing is often the deciding factor. Traders who risk a small, fixed share of their account on each trade can survive losing streaks and stay in the market long enough for their edge to show. Traders who risk large amounts on single positions tend to blow up their accounts before skill has a chance to matter.

What it does not tell us

The data has limits worth noting. It covers accounts monitored through iSAM's Radar platform, which is used by a set of brokers rather than the entire market. Distribution patterns may differ at brokers with different client bases, products or regions. The headline figures describe concentration among winners, not the overall share of clients who lose.

It also does not show whether the same traders stay at the top year after year. Some may be consistently skilled; others may have had one lucky year in strongly trending markets. Distinguishing skill from luck requires longer track records than a single year of data provides.

Even with those caveats, the pattern is clear and consistent with what brokers see internally. A small group of profitable traders matters far more to a broker's results than the average client, and that has implications for both risk management and how trading is marketed.

Prop trading firms rely on the same insight. Their evaluation challenges are designed to find the small minority of traders with a real edge and give them capital, while fees from the many who fail fund the business. The iSAM data is, in a sense, the statistical foundation of the entire prop industry.

What it means for traders in Southeast Asia

For retail traders in Southeast Asia, where participation has grown fast, the data is a useful reality check. Social media often shows the winners and hides the rest, creating the impression that profits are common. The iSAM numbers suggest that even among traders who make money, most earn modest amounts while a small elite captures the majority.

That is not a reason to avoid trading, but it is a reason to approach it carefully: start small, use strict risk limits, learn from losses and be sceptical of anyone selling signals or guaranteed systems. The winning few did not get there by copying influencers.

The difference between the winning few and everyone else is often process, not prediction.

What brokers should do with this data

Brokers can use concentration data in two ways. Internally, it should shape risk management, ensuring that the small group of consistent winners is identified and hedged appropriately. Externally, honest education about how profits are distributed can build trust with clients and help them set realistic expectations.

Marketing should reflect reality too. Promotions that suggest trading profits are common sit uneasily with data showing how concentrated gains are. Brokers that present balanced information, including the realities of risk, are more likely to attract clients who trade responsibly and stay longer.

The iSAM data turns a vague truth about retail trading into hard numbers. Most traders lose, and even the winners are not equal: a tiny group takes most of the gains. For traders, that is a reason to focus on discipline over excitement. For brokers, it is a reminder that their results may depend on a few hundred clients they had better understand well.