Source

Is Forex good “investing”?
According to an article in borsen.dk - Saxo Bank, a retail Forex broker, says that 90% of the customers of Saxo Bank lose the entire value of their account within 6 month.

The information comes from many former executives and workers at Saxo Bank.

The reason is obviously since you can leverage a trade so much in Forex trading that a just a little move in the prices can wipe out your account. But you decide yourself how much leverage to use, nobody is forcing you to use the maximum allowed leverage.

The press executive at Saxo Bank, Kasper Elbjørn, will not deny or confirm the number that 90% of their customers lose everything in their account within 6 months. However he does confirm that Saxo Bank often is the counterpart in a lot of the Forex trades that their customers make. Saxo Bank does not offset the Forex trades on to other traders and investors in the Forex market.

So Saxo Bank makes money on their spread, the difference in price between sellers and buyers, but also make money when their customers lose money in the market.

It is very few customers that make money with Saxo Bank, it is just not the plan that customers should make any money. Pretty cynical stuff…