Retail Forex Trading Industry in 2021: Is It Possible to Sustain Growth?
This particular season continues to be a unique one for forex traders around the planet, coronavirus pandemic, unprecedented volatility and lockdowns fueled trading activities and resulted in volumes that are huge with the record-breaking inclusion of new traders. The retail forex sector was facing a hard challenge before 2020 because of regulatory issues across the world as companies started out reporting a dip in volumes. Several brokers shut office spaces in different parts of the earth because of regulatory problems.
In March 2020, because of a massive outbreak of COVID-19, lockdowns limited traveling, and individuals were sure to keep at home. Fiscal markets started responding and that resulted in a number of trading possibilities throughout various assets. Because of excessive volatility in the forex industry, existing traders started out 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. These days that 2020 is about to end, the real concern arises, can it be simple for the retail forex trading market to retain the substantial growth it realized during 2020? We asked industry professionals for the take of theirs on the retail 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 some of the drivers for the massive increase in trading volume seen since March, as traders had far more time on their hands as a result of a reduced amount of travel and lockdowns overall, and were also searching for new interests to develop since they’d newfound time to dedicate. So, not just had been existing traders increasing their volumes but some firms have seen record levels of completely new traders enter the business. It was certainly the case for Exness about both volumes as well as new clients,” Moyes said.
“Initially in March when the pandemic broke out worldwide, there was a big upsurge of volatility which, along with all the newcomers, was driving volumes to unprecedented levels. Even though there was the inevitable small drop off in the days soon after, volume levels had continuously increased all over the season with levels far exceeding those before the pandemic. For many firms, the increases may well be renewable because of the amount of new clients. Furthermore, circumstances around the spare time of individuals and working from home have changed hardly any since earlier in the season, therefore, the same drivers for improved volumes still use. We’re receiving aproximatelly eighty % of the March volatility volume in Exness and currently operating near to a 50 % increase from this time last year,” the Chief Commercial Officer at Exness included.