Retail Forex Trading Industry in 2021: Is It Possible to Sustain Growth?
This season continues to be a unique one for forex traders around the globe, coronavirus pandemic, lockdowns and unprecedented volatility fueled trading tasks and resulted in volumes which are huge with the record-breaking inclusion of new traders. The list forex industry was facing a difficult challenge before 2020 because of regulatory issues across the entire world as businesses started reporting a dip of volumes. Many brokers shut workplaces in various regions of the earth due to regulatory problems.
In March 2020, because of a massive outbreak of COVID 19, lockdowns restricted traveling, and individuals were likely to keep at home. Financial markets started responding and that resulted in several trading opportunities across various assets. Because of increased volatility of the forex sector, pre-existing traders started out increasing the exposure of theirs to take advantage of new trading possibilities as brand new traders entered the market. As a result, forex brokers registered new clients and record volumes. These days that 2020 is intending to end, the actual concern arises, is it simple for the retail forex trading industry to retain the substantial growth it realized during 2020? We asked industry professionals for their take on the list 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 has also resulted in unprecedented volatility. These have been some of the drivers for the massive increase in trading volume seen since March, as traders had more time on the hands of theirs due to lockdowns and less travel overall, and were also looking for new interests to create since they had newfound moment to dedicate. Thus, not simply had been present traders increasing their volumes but several firms have seen record levels of completely new traders enter the industry. This was surely the case for Exness regarding both volumes and new clients,” Moyes believed.
“Initially in March if the pandemic broke out worldwide, there was a major upsurge of volatility which, together with all the newcomers, was driving volumes to unprecedented levels. Although there was the inevitable minor drop off in the days immediately after, volume levels had continuously increased all over the season with levels far exceeding those before the pandemic. For many firms, the increases may well be sustainable due to the amount of new clients. Furthermore, circumstances around the extra time of individuals and working from home have changed almost no since earlier in the season, consequently, the same drivers for increased volumes still apply. We are receiving about 80 % of the March volatility volume in Exness and currently running near to a 50 % increase from this time last year,” the Chief Commercial Officer at Exness included.