Retail Forex Trading Industry in 2021: Is It Possible to Sustain Growth?
This particular year has been a fascinating one for forex traders around the planet, coronavirus pandemic, unprecedented volatility and lockdowns fueled trading tasks and resulted in volumes that are huge with the record breaking addition of new traders. The retail forex industry was facing a hard challenge before 2020 as a result of regulatory issues across the earth as businesses started out reporting a dip of volumes. Several brokers closed workplaces in various regions of the entire world due to regulatory problems.
In March 2020, because of a substantial outbreak of COVID-19, lockdowns limited traveling, and individuals were sure to keep at home. Financial markets began reacting and that resulted in many trading possibilities throughout different assets. As a result of excessive volatility in the forex industry, existing traders began increasing the exposure of theirs to make the most of different trading opportunities as brand new traders entered the industry. Being a result, forex brokers registered new clients and record volumes. These days that 2020 is about to end, the true question arises, is it possible for the retail forex trading market to maintain the significant growth it realized during 2020? We asked industry experts for the take of theirs on the retail forex trading industry in 2021.
“One major 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 several of the drivers for the huge increase in trading volume seen since March, as traders had more time on their hands on account of a lesser amount of travel and lockdowns overall, and were also looking for new interests to produce since they’d newfound moment to dedicate. And so, not just were present traders increasing the volumes of theirs but some firms have seen record levels of new traders enter the business. It was certainly the case for Exness regarding both volumes and brand new clients,” Moyes believed.
“Initially in March if the pandemic broke out globally, there was an important upsurge of volatility which, along with all the newcomers, was driving volumes to unprecedented levels. Even though there was the inevitable slight drop off in the months immediately after, volume levels had continuously increased throughout the season with levels far exceeding those before the pandemic. For a lot of firms, the increases may well be renewable due to the number of new clients. Also, circumstances around the spare time of people and working from home have changed almost no since earlier in the season, therefore, the same drivers for improved volumes continue to apply. We are getting aproximatelly 80 % of the March volatility volume in Exness and now operating near to a 50 % increase from this time last year,” the Chief Commercial Officer at Exness included.