Retail Forex Trading Industry in 2021: Is It Possible to Sustain Growth?
This particular season continues to be an interesting one for forex traders throughout the globe, coronavirus pandemic, unprecedented volatility and lockdowns fueled trading activities and resulted in volumes which are huge with the record breaking fact of new traders. The list forex sector was dealing with a hard challenge before 2020 because of regulatory concerns across the entire world as companies began reporting a dip in volumes. Many brokers closed offices in different regions of the earth due to regulatory problems.
In March 2020, due to a massive outbreak of COVID-19, lockdowns limited traveling, and individuals were likely to stay at home. Financial markets started responding and that resulted in a number of trading possibilities across various assets. Due to excessive volatility of the forex market, existing traders began increasing their exposure to make use of brand-new trading opportunities as brand new traders entered the industry. Being a result, forex brokers registered record volumes and new clients. Today that 2020 is about to end, the true concern arises, is it easy for the list forex trading market to keep the considerable growth it attained during 2020? We asked industry experts for the take of theirs on the list forex trading industry in 2021.
“One major consequence of the pandemic has been the move to working from home, both for traders and brokers alike. The COVID 19 outbreak has additionally resulted in unprecedented volatility. These have been several of the drivers for the enormous increase in trading volume seen since March, as traders had far more time on the hands of theirs on account of lockdowns and a reduced amount of travel overall, and were also searching for new interests to create since they’d newfound time to dedicate. Thus, not simply were present traders increasing their volumes but several firms have seen record quantities of completely new traders enter the industry. It was surely the case for Exness regarding both volumes as well as new clients,” Moyes said.
“Initially in March if the pandemic broke out worldwide, there was a significant upsurge in volatility which, together with all the newcomers, was driving volumes to unprecedented levels. Even though there was the inevitable small drop off in the months immediately after, volume levels had continuously increased all over the year with levels far exceeding those before the pandemic. For a lot of firms, the increases might well be renewable because of the number of new clients. In addition, circumstances around the spare time of folks and working from home have changed almost no since earlier in the season, consequently, the same drivers for increased volumes continue to use. We’re receiving aproximatelly eighty % of the March volatility volume in Exness and now operating near to a fifty % increase from this time last year,” the Chief Commercial Officer at Exness added.