Retail Forex Trading Industry in 2021: Is It Possible to Sustain Growth?
This particular season has been an interesting one for forex traders across the globe, coronavirus pandemic, lockdowns and unprecedented volatility fueled trading activities and resulted in high volumes with the record-breaking inclusion of new traders. The retail forex sector was dealing with a hard challenge before 2020 due to regulatory concerns across the world as companies started out reporting a dip of volumes. Several brokers shut offices in different regions of the earth because of regulatory problems.
In March 2020, due to a considerable outbreak of COVID 19, lockdowns limited travel, and individuals were sure to stay at home. Fiscal markets started responding and that resulted in many trading opportunities across different assets. As a result of excessive volatility of the forex market, existing traders started out increasing their exposure to take advantage of different trading possibilities as brand new traders entered the market. Being a result, forex brokers registered record volumes and new clients. Today that 2020 is about to end, the real question arises, is it simple for the retail forex trading market to keep the significant growth it realized during 2020? We asked industry professionals for their take on the retail 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 massive increase in trading volume seen since March, as traders had more time on the hands of theirs as a result of lockdowns and less travel overall, and were also looking for new interests to produce since they’d newfound time to dedicate. Thus, not just were existing traders increasing their volumes but several firms have seen record levels of new traders enter the industry. This was surely the case for Exness about both volumes as well as brand new clients,” Moyes believed.
“Initially in March if the pandemic broke out worldwide, there was a significant upsurge in volatility which, along with all of the newcomers, was driving volumes to unprecedented levels. Even though there was the inevitable minor drop off in the days immediately after, volume levels had steadily increased throughout the season with levels far exceeding those prior to the pandemic. For many firms, the increases might well be sustainable given the amount of new clients. Furthermore, circumstances around the spare time of people and working from home have changed very little since earlier in the year, therefore, 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 fifty % increase from this time last year,” the Chief Commercial Officer at Exness included.