Retail Forex Trading Industry in 2021: Is It Possible to Sustain Growth?
This particular season has long been a unique one for forex traders across the globe, coronavirus pandemic, unprecedented volatility and lockdowns fueled trading tasks and resulted in volumes which are high with the record-breaking addition of new traders. The list forex sector was facing a tough challenge before 2020 as a result of regulatory concerns across the world as businesses began reporting a dip of volumes. Many brokers closed office spaces in different parts of the earth because of regulatory problems.
In March 2020, due to a considerable outbreak of COVID-19, lockdowns restricted travel, and people were bound to remain at home. Fiscal markets began reacting and that resulted in many trading possibilities throughout various assets. Because of high volatility in the forex market, pre-existing traders started out increasing their exposure to take advantage of different trading opportunities as brand new traders entered the industry. As a result, forex brokers registered new clients as well as record volumes. These days that 2020 is intending to end, the actual concern arises, can it be simple for the retail forex trading sector to retain the substantial growth it achieved during 2020? We asked industry experts 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 additionally resulted in unprecedented volatility. These have been some of the drivers for the huge surge in trading volume seen since March, as traders had more time on their hands as a result of lockdowns and less travel overall, and were additionally looking for new interests to produce since they had newfound moment to dedicate. So, not only had been present traders increasing their volumes but several firms have seen record quantities of new traders enter the business. It was certainly the case for Exness about both volumes and new clients,” Moyes said.
“Initially in March when the pandemic broke out worldwide, there was a big upsurge in volatility which, together with all the newcomers, was driving volumes to unprecedented levels. Although there was the inevitable small drop off in the months immediately after, volume levels had continuously increased across the year with levels far exceeding those before the pandemic. For a lot of firms, the increases might well be renewable because of the amount of new clients. In addition, 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 use. We’re receiving about eighty % 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 added.