Retail Forex Trading Industry in 2021: Is It Possible to Sustain Growth?
This season has long been an intriguing one for forex traders around the world, coronavirus pandemic, unprecedented volatility and lockdowns fueled trading activities and resulted in volumes that are high with the record breaking inclusion of new traders. The retail forex industry was dealing with a difficult challenge before 2020 as a result of regulatory issues across the earth as businesses started reporting a dip in volumes. Many brokers shut workplaces in various regions of the entire world due to regulatory issues.
In March 2020, because of a considerable outbreak of COVID-19, lockdowns limited traveling, and individuals were likely to remain at home. Fiscal markets started out reacting and that resulted in a number of trading possibilities throughout numerous assets. Due to high volatility in the forex market, pre-existing traders started out increasing their exposure to make the most of brand-new trading opportunities as brand new traders entered the industry. Being a result, forex brokers registered record volumes as well as new clients. Today that 2020 is intending to end, the real question arises, can it be easy for the retail forex trading industry to maintain the substantial growth it realized during 2020? We asked industry professionals for the take of theirs on the list forex trading market in 2021.
“One key consequence of the pandemic has been the move to working from home, both for brokers and traders alike. The COVID 19 outbreak has additionally resulted in unprecedented volatility. These have been several of the drivers for the massive surge in trading volume seen since March, as traders had more time on their hands on account of lockdowns and a lesser amount of travel overall, and were additionally looking for new interests to produce since they’d newfound time to dedicate. So, not simply had been present traders increasing the volumes of theirs but several firms have seen record amounts of completely new traders enter the business. This was certainly the case for Exness regarding both volumes as well as new clients,” Moyes believed.
“Initially in March when the pandemic broke out globally, there was a significant 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 months soon after, volume levels had continuously increased across the season with levels far exceeding those prior to the pandemic. For many firms, the increases may well be sustainable due to the amount of new clients. Additionally, circumstances around the extra time of men and women and working from home have changed almost no since earlier in the year, consequently, the same drivers for increased volumes still use. We are getting aproximatelly 80 % 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.