Retail Forex Trading Industry in 2021: Is It Possible to Sustain Growth?
This particular year has been an interesting one for forex traders around the world, coronavirus pandemic, lockdowns and unprecedented volatility fueled trading tasks and resulted in volumes that are high with the record breaking inclusion of new traders. The retail forex sector was facing a tough challenge before 2020 due to regulatory issues across the entire world as companies started reporting a dip in volumes. Several brokers closed offices in different parts of the earth because of regulatory issues.
In March 2020, due to a substantial outbreak of COVID 19, lockdowns restricted travel, and individuals were likely to keep at home. Financial markets began reacting and that resulted in a number of trading possibilities across various assets. Due to high volatility in the forex market, existing traders started increasing their exposure to make the most of different trading possibilities as 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 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 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 also has 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 on account of lockdowns and less travel in general, and were also searching for new interests to create since they had newfound moment to dedicate. And so, not just had been present traders increasing the volumes of theirs but some firms have seen record levels of completely new traders enter the business. It was certainly the case for Exness regarding both volumes as well as new clients,” Moyes said.
“Initially in March when the pandemic broke out globally, there was a big upsurge in volatility which, along with all of the newcomers, was driving volumes to unprecedented levels. Although there was the inevitable small drop off in the days right after, volume levels had continuously increased throughout the year with levels far exceeding those prior to the pandemic. For most firms, the increases might well be renewable due to the amount of new clients. Also, circumstances around the spare time of folks and working from home have changed almost no since earlier in the year, therefore, the same drivers for increased volumes continue to apply. We’re getting aproximatelly 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.