French Forex Market. Big country with a small number of traders?

France is home to over 67 million people. It is one of Europe’s largest countries in terms of people and size, as well as one of the world’s greatest economies. When it comes to the retail Forex and CFD market, however, it appears to be quite small.

According to current data, the Republic’s active trading population is less than 40,000 people. This is significantly lower than in Germany or Poland, where the retail FX/CFD market is far more developed.

In terms of nominal gross domestic product, France is currently the sixth-largest economy (GDP). According to the International Monetary Fund (IMF), the indicator’s value in recent years has been about $2,870,152 million, somewhat less than the United Kingdom, which is sixth on the list.

France is also among the top 20 countries on the Human Development Index (HDI). It is a composite metric that describes a country’s level of economic and social development. In a nutshell, it describes which country has the best quality of life.

In addition, Euronext Paris, one of Europe’s main stock exchanges, is located in France. It is the second-largest stock exchange in the world, behind the London Stock Exchange, with a market capitalization of over $4 trillion. It is based on the legacy of the Paris Bourse, which was formed about 300 years ago in 1724.

Earn passive income trading Forex, CFDs, Commodities, Binary options, Cryptocurrencies like Bitcoin and Ethereum as well as more rare coins in France with regulated brokers

Because of France’s lengthy history of capital market development, numerous private and retail investors are actively investing in the country. The Republic has added 1.1 million new dealers in the last three years. Around 743,000 persons were actively trading in the fourth quarter of 2021.

“French traders place a high value on the security of their funds (broker bank accounts are segregated, negative balance compensation is available, and insolvency protection is available). They are significantly more inclined to choose a broker with more client protection measures than a broker with perhaps better trading conditions but less protection in the past “Admirals Group AS’s Chief Value Officer and a Member of the Management Board, Jens Chrzanowski, stated.

“The same can be said for regulation, which is crucial for French traders. As a result, they frequently choose brokers with the best reputation and/or experience. Furthermore, even if trading circumstances worsen, a broker with a local presence (physical office) will almost certainly be a game-changer “Added he.

According to Chrzanowski, the number of people who hold shares in France is significantly more than the number of people who actively trade on the stock market each quarter, which is estimated to be around 4 million people. Surprisingly, only a small percentage of this large group is engaged in OTC markets, which includes CFD trading.