Retail Forex Trading Industry in 2021: Is It Possible to Sustain Growth?
This particular year has been a fascinating one for forex traders around the planet, coronavirus pandemic, lockdowns and unprecedented volatility fueled trading activities and resulted in volumes that are huge with the record breaking fact of new traders. The list forex industry was facing a difficult challenge before 2020 because of regulatory concerns across the world as businesses started out reporting a dip in volumes. Many brokers shut workplaces in various areas of the entire world because of regulatory issues.
In March 2020, due to a considerable outbreak of COVID 19, lockdowns restricted travel, and people were bound to keep at home. Fiscal markets started out reacting and that resulted in a number of trading possibilities throughout numerous assets. As a result of excessive volatility in the forex industry, existing traders started increasing their exposure to make use of new trading possibilities as brand new traders entered the industry. To be a result, forex brokers registered record volumes as well as new clients. Today that 2020 is about to end, the true concern arises, do you find it possible 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 list forex trading market 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 also has 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 the hands of theirs as a result of lockdowns and a reduced amount of travel overall, and were also looking for new interests to produce since they had newfound moment to dedicate. And so, not simply had been existing traders increasing the volumes of theirs but some firms have seen record quantities of completely new traders enter the industry. This was definitely the case for Exness about both volumes and new clients,” Moyes believed.
“Initially in March if the pandemic broke out worldwide, there was an important upsurge in 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 immediately after, volume levels had steadily increased all over the season with levels far exceeding those prior to the pandemic. For many firms, the increases may well be sustainable given the number of new clients. Additionally, circumstances around the extra time of people and working from home have changed very little since earlier in the season, therefore, the same drivers for increased volumes continue to apply. We’re getting aproximatelly 80 % of the March volatility volume in Exness and currently running near to a fifty % increase from this time last year,” the Chief Commercial Officer at Exness added.