Retail Forex Trading Industry in 2021: Is It Possible to Sustain Growth?
This year has been a fascinating 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 inclusion of new traders. The list forex niche was facing a tough challenge before 2020 because of regulatory concerns across the entire world as businesses started out reporting a dip of volumes. Many brokers shut offices in different parts of the world because of regulatory problems.
In March 2020, due to a considerable outbreak of COVID 19, lockdowns restricted travel, and individuals were sure to keep at home. Fiscal markets started out reacting and that resulted in a number of trading opportunities throughout various assets. Due to excessive volatility of the forex market, pre-existing traders started increasing their exposure to take advantage of brand-new trading possibilities as new traders entered the industry. Being a result, forex brokers registered record volumes and new clients. Today that 2020 is intending to end, the actual concern arises, is it simple for the list forex trading market to retain the considerable growth it attained during 2020? We asked industry professionals for their take on the list forex trading market in 2021.
“One main 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 several of the drivers for the huge surge in trading volume seen since March, as traders had far more time on the hands of theirs as a result of a reduced amount of travel and lockdowns overall, and were additionally searching for new interests to develop since they’d newfound moment to dedicate. And so, not simply were present traders increasing the volumes of theirs but some firms have seen record quantities of completely new traders enter the business. This was surely the case for Exness regarding both volumes as well as new clients,” Moyes said.
“Initially in March if the pandemic broke out globally, there was a big upsurge of volatility which, along with all the newcomers, was driving volumes to unprecedented levels. Although 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 most firms, the increases might well be sustainable given the amount of new clients. Also, circumstances around the spare time of folks and working from home have changed very little since earlier in the season, consequently, the same drivers for increased volumes continue to apply. We are getting about eighty % of the March volatility volume in Exness and now running near to a 50 % increase from this time last year,” the Chief Commercial Officer at Exness added.