Retail Forex Trading Industry in 2021: Is It Possible to Sustain Growth?
This year continues to be an intriguing one for forex traders across the world, coronavirus pandemic, unprecedented volatility and lockdowns fueled trading activities and resulted in high volumes with the record breaking addition of new traders. The list forex industry was facing a hard challenge before 2020 because of regulatory concerns across the earth as companies started reporting a dip in volumes. Many brokers shut offices in various parts of the entire world because of regulatory problems.
In March 2020, because of a massive outbreak of COVID-19, lockdowns restricted travel, and individuals were certain to stay at home. Financial markets began responding and that resulted in many trading opportunities throughout different assets. Because of increased volatility in the forex industry, pre-existing traders started out increasing their exposure to make the most of brand-new trading opportunities as new traders entered the industry. Being a result, forex brokers registered new clients and record volumes. Now that 2020 is about to end, the real issue arises, can it be simple for the list forex trading market to maintain the significant growth it attained during 2020? We asked industry professionals for their take on the list forex trading industry in 2021.
“One key consequence of the pandemic has been the move to working from home, both for traders and brokers alike. The COVID 19 outbreak has also resulted in unprecedented volatility. These have been several of the drivers for the massive surge in trading volume seen since March, as traders had far more time on the hands of theirs due to a reduced amount of travel and lockdowns in general, and were also looking for new interests to produce since they’d newfound time to dedicate. And so, not just had been present traders increasing their volumes but several firms have seen record quantities of completely new traders enter the business. This was definitely the case for Exness regarding both volumes as well as new clients,” Moyes believed.
“Initially in March if the pandemic broke out globally, there was a significant 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 throughout the year with levels far exceeding those prior to the pandemic. For many firms, the increases may well be renewable because of the number of new clients. Furthermore, circumstances around the extra time of people and working from home have changed almost no since earlier in the season, consequently, the same drivers for increased volumes still use. We are getting about 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.