Retail Forex Trading Industry in 2021: Is It Possible to Sustain Growth?
This particular year has long been an intriguing one for forex traders around the world, coronavirus pandemic, lockdowns and unprecedented volatility fueled trading activities and resulted in huge volumes with the record breaking addition of new traders. The retail forex niche was facing a tough challenge before 2020 because of regulatory issues across the entire world as businesses started out reporting a dip in volumes. Several brokers closed offices in different areas of the entire world because of regulatory problems.
In March 2020, because of a substantial outbreak of COVID 19, lockdowns limited traveling, and people were certain to keep at home. Fiscal markets started out responding and that resulted in a number of trading possibilities throughout different assets. Due to excessive volatility of the forex industry, existing traders started out increasing their exposure to make use of different trading possibilities as brand new traders entered the industry. To be a result, forex brokers registered record volumes and new clients. Today that 2020 is about to end, the true issue arises, do you find it simple for the retail forex trading market to keep the significant growth it realized during 2020? We asked industry professionals for the take of theirs on the retail forex trading market in 2021.
“One major consequence of the pandemic has been the move to working from home, both for brokers and traders alike. The COVID 19 outbreak has also resulted in unprecedented volatility. These have been some of the drivers for the huge rise in trading volume seen since March, as traders had far more time on their hands on account of lockdowns and a reduced amount of travel in general, and were additionally searching for new interests to produce since they’d newfound moment to dedicate. Thus, not simply had been existing traders increasing their volumes but some firms have seen record levels of completely new traders enter the business. It was surely the case for Exness about both volumes and brand new clients,” Moyes believed.
“Initially in March if the pandemic broke out worldwide, there was a big upsurge of volatility which, together with all of the newcomers, was driving volumes to unprecedented levels. Although there was the inevitable small drop off in the days immediately after, volume levels had continuously increased across the season with levels far exceeding those prior to the pandemic. For a lot of firms, the increases may well be renewable given the amount of new clients. Furthermore, circumstances around the spare time of individuals and working from home have changed almost no since earlier in the year, therefore, the same drivers for increased volumes still use. We are getting about eighty % of the March volatility volume in Exness and now running near to a fifty % increase from this time last year,” the Chief Commercial Officer at Exness added.