List Forex Trading Industry in 2021: Is It Possible to Sustain Growth?
This particular year continues to be an interesting one for forex traders across the world, coronavirus pandemic, lockdowns and unprecedented volatility fueled trading tasks and resulted in high volumes with the record-breaking fact of new traders. The retail forex industry was facing a tough challenge before 2020 as a result of regulatory concerns across the earth as companies began reporting a dip in volumes. Many brokers shut workplaces in various areas of the entire world due to regulatory issues.
In March 2020, because of a considerable outbreak of COVID-19, lockdowns restricted traveling, and individuals were likely to keep at home. Financial markets started responding and that resulted in a number of trading possibilities throughout various assets. Because of increased volatility in the forex market, pre-existing traders started increasing their exposure to make the most of new trading opportunities as brand new traders entered the market. Being a result, forex brokers registered new clients and record volumes. Today that 2020 is intending to end, the actual question arises, do you find it easy for the retail forex trading industry to retain the significant growth it realized during 2020? We asked industry professionals for their take on the retail forex trading industry 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 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 their hands on account of lockdowns and a lesser amount of travel in general, and were additionally searching for new interests to produce since they had newfound moment to dedicate. And so, not just had been existing traders increasing their volumes but some firms have seen record amounts of new traders enter the business. This was certainly the case for Exness about both volumes and brand new clients,” Moyes believed.
“Initially in March when the pandemic broke out worldwide, there was an important upsurge in 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 soon after, volume levels had continuously increased across the season with levels far exceeding those before the pandemic. For many firms, the increases may well be sustainable due to the number of new clients. Also, circumstances around the spare time of folks and working from home have changed hardly any since earlier in the season, therefore, the same drivers for increased volumes continue to apply. We’re getting aproximatelly eighty % of the March volatility volume in Exness and currently operating near to a fifty % increase from this time last year,” the Chief Commercial Officer at Exness added.